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test_item_file_ch11test_item_file_ch11
Chapter 11: Establishing Strategic Pay Plans
Multiple Choice
_____ refers to all forms of pay or rewards going to employees and arising from their employment.
Reimbursement
Employee compensation
Salary
Benefits
Remuneration
(b; easy)
Direct financial payments include all of the following except _____.
wages
insurance
salaries
incentives
commissions
(b; easy)
Which of the following is categorized as an indirect payment portion of employee compensation?
wages
salaries
employer-paid insurance
commissions
bonuses
(c; moderate)
Joh is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a commission on every sale he makes. His pay is based on _____.
time
pay
incentives
bonuses
seniority
(b; moderate)
Which of the following factors affects the design of any pay plan?
legal
union
company policy
equity
all of the above
(e; easy)
In general, the main issue in collective bargaining is _____.
time off with pay
wage rates
income security
cost-of-living adjustments
health care benefits
(b; moderate)
Unions negotiate all of the following pay-related issues except _____.
wage rates
income security
unpaid leave to care for an immediate family member
time off with pay
all of the above
(c; moderate)
When longer-term employees’ salaries are lower than those of workers entering the firm today, _____ has occurred.
wage curve
salary compression
age discrimination
market expansion
reward strategy
(b; easy)
Salary compression can be caused by _____.
recession
inflation
economic depression
all of the above
none of the above
(b; difficult)
How are cost-of-living differentials handled by employers when employees are transferred from one location to one with a higher cost of living?
payment of a nonrecurring, lump sum amount
payment of a differential for ongoing costs
raise employee’s base salary
pay an ongoing differential for ongoing costs plus a lump sum amount
all of the above
(e; easy
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