Question 1

Which of the following is an external factor that can influence the rates of wages required to recruit or retain competent employees?
A)labour market conditions
B)employer's compensation policy
C)willingness to pay
D)employee's relative worth

Accepted Answer

Labour market conditions, such as unemployment rates and competition for skilled workers, can significantly impact the rates of wages required to recruit and retain competent employees. For example, in a tight labour market where workers have multiple job offers, an employer may need to offer higher wages or better benefits packages to attract and retain employees.

Question 2

Which system of job evaluation is being used when raters are simply arranging jobs in order from highest to lowest relative worth based on their overall knowledge of the jobs?
A)job grade system
B)factor comparison method
C)point system
D)job ranking

Accepted Answer

Job ranking is the system of job evaluation used when raters are simply arranging jobs in order from highest to lowest relative worth based on their overall knowledge of the jobs. The other options listed (job grade system, factor comparison method, and point system) involve more detailed analysis and point assignment for various job factors.

Question 3

What is a manager attempting to do by using a pay-for-performance standard?
A)increase the base salaries of employees
B)increase total organizational performance by applying strategic goal setting
C)increase employee motivation by paying employees on a skills-based concept
D)increase employee output through linking performance with desired employee rewards

Accepted Answer

By using a pay-for-performance standard, the manager is attempting to increase employee output by linking performance with desired employee rewards. This serves as an incentive for employees to perform to the best of their abilities, which ultimately benefits the organization.

Question 4

What will most likely result from determining wage increases solely on the basis of the CPI?
A)employees will be motivated in the short run
B)a more equitable compensation system will be created
C)stronger pay-for-performance perceptions will occur
D)pay rates within a pay structure will be compressed

Accepted Answer

If wage increases are determined solely on the basis of the CPI, then pay rates within a pay structure will be compressed. This is because CPI increases are typically given to all employees, regardless of their individual performance or skills, which can result in a narrowing of pay differences within the organization.

Question 5

Which method of comparison is NOT used in job evaluation?
A)job ranking system
B)job worth system
C)point system
D)job classification system

Accepted Answer

Job worth system is not a commonly used method of job evaluation. The other options (job ranking, point system, job classification) are all commonly used methods.

Question 6

Which of the following is an internal factor that can influence the wage mix?
A)legal requirements
B)area wage rates
C)employee's relative worth
D)labour market conditions

Accepted Answer

The employee's relative worth is an internal factor that can influence the wage mix, as it pertains to how the organization values and evaluates the contributions of its employees. Legal requirements, area wage rates, and labour market conditions are all external factors that can also impact the wage mix.

Question 7

Which of the following is an external factor that can influence the wage mix?
A)the employer's ability to pay
B)the cost of living
C)the worth of the job
D)the employee's relative worth

Accepted Answer

The cost of living is an external factor that can influence the wage mix. This refers to the general level of prices for goods and services in a particular area, which affects the purchasing power of employees' wages. Higher costs of living might require higher wages to attract and retain employees. The other options are internal factors that are determined by the employer or employee's performance and qualifications.

Question 8

What are employees who are compensated on an hourly basis also known as?
A)wage earners
B)salaried employees
C)piecework employees
D)commission earners

Accepted Answer

Employees who are compensated on an hourly basis are commonly referred to as wage earners.

Question 9

What item identifies the salary component of a compensation system?
A)merit pay
B)base pay
C)cash bonuses
D)commissions

Accepted Answer

Base pay is the fixed amount of money that an employee receives on a regular basis, usually in the form of an hourly wage or an annual salary. It is the foundation of a compensation system, as it reflects the worth of the job and the skills and experience of the employee. Merit pay, cash bonuses, and commissions are all forms of variable pay that are tied to performance, sales or other metrics, and are used to reward employees for achieving certain goals or objectives.

Question 10

How are employees classified when their compensation is calculated on the basis of weekly,or monthly periods?
A)hourly employees
B)management employees
C)salaried employees
D)permanent employees

Accepted Answer

Employees who are compensated based on weekly or monthly periods are classified as salaried employees. Salaried employees receive a fixed amount of compensation for their work, regardless of the number of hours worked. This is different from hourly employees, who are typically paid an hourly rate for the hours worked. Management and permanent are not relevant classifications based on the method of compensation.

Question 11

What do labour-market conditions reflect?
A)the forces of supply and demand for qualified workers within an area
B)the total amount of qualified labour available to a hiring employer
C)the wage rates for specific types of labour
D)the employer market available for those seeking employment

Accepted Answer

Labour-market conditions reflect the forces of supply and demand for qualified workers within an area. This includes factors such as the number of available jobs, the number of qualified workers seeking employment, and the wages being offered. Other factors such as the overall state of the economy, trends in industry-specific employment, and shifts in demographic patterns can also impact labour-market conditions.

Question 12

What are organizations with formal job systems more likely to rely on to determine wage rates?
A)wage equity comparisons
B)worth analysis
C)job evaluation
D)expert opinions

Accepted Answer

Organizations with formal job systems are more likely to rely on job evaluation to determine wage rates. Job evaluation is a systematic process used to determine the relative worth of jobs within an organization, based on various factors such as skill, responsibility, effort, and working conditions. This process helps to ensure that wages are determined based on objective criteria rather than subjective factors such as negotiation or favoritism.

Question 13

What is considered to be a common goal of compensation policies?
A)to influence customer behaviours
B)to manage the performance of key staff
C)to control the compensation budget
D)to remain competitive in the product market

Accepted Answer

The answer of What is considered to be a common...

Question 14

What does employee compensation refer to?
A)certain forms of pay and rewards to employees
B)pay and rewards to employees
C)all forms of pay or rewards to employees,both direct and indirect
D)cash payments only

Accepted Answer

Employee compensation refers to all forms of pay or rewards to employees, both direct and indirect, including salaries, wages, bonuses, benefits, and other non-monetary perks. It encompasses both cash and non-cash payments made to employees.

Question 15

What is the proper term for the process of determining the relative worth of jobs in order to determine pay rates?
A)job evaluation
B)job analysis
C)job determination
D)job diagnosis

Accepted Answer

The proper term for the process of determining the relative worth of jobs in order to determine pay rates is job evaluation. It involves analyzing and comparing job duties, responsibilities, and skills to determine their relative worth and create a pay structure. Job analysis refers to the process of gathering and analyzing information about the duties, responsibilities, and skills required for a job. Job determination and job diagnosis are not commonly used terms in this context.

Question 16

What is the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians known as?
A)the consumer price index
B)the inflation index
C)a cost of living allowance
D)a cost of living adjustment

Accepted Answer

The measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians is known as the consumer price index (CPI). The CPI is used to track inflation and is commonly used as a benchmark for cost of living adjustments and allowances.

Question 17

What is the simplest method of job evaluation?
A)point method
B)job classification method
C)factor comparison method
D)ranking method

Accepted Answer

The ranking method is the simplest method of job evaluation. It involves ranking jobs based on their level of importance or difficulty relative to each other, without assigning specific point values or comparing them to an external standard.

Question 18

Based on productivity research,what amount of increase in employee output is expected following implementation of a pay-for-performance program?
A)5 to 10 percent
B)15 to 35 percent
C)35 to 50 percent
D)50 to 75 percent

Accepted Answer

Research indicates that pay-for-performance programs typically result in a 15 to 35 percent increase in employee output, as they provide financial incentives that motivate employees to improve their performance.

Question 19

What would an employer wishing to raise the "real wages" of employees have to do?
A)grant across the board wage increases
B)re-evaluate jobs in order to upgrade their worth
C)pay employees on a pay for performance standard
D)grant wage increases larger than the cost of living

Accepted Answer

Real wages refer to the purchasing power of wages, i.e., how much goods and services the wages can buy. To raise real wages, an employer must increase wages at a rate higher than the increase in the cost of living, ensuring that employees can afford more with their earnings.

Question 20

Under what circumstances will employees deem that compensation is equitable?
A)when the work is perceived to be equally distributed among team members
B)when the compensation is perceived to be equal to the value of the work performed
C)when the compensation system uses the same methods for all job types
D)when the work is perceived to be appropriate for their hierarchical level

Accepted Answer

Employees will deem compensation to be equitable when they believe that the compensation is equal to the value of the work they perform. This means that employees should be paid fairly and reasonably for the work they do, regardless of other factors like hierarchical level or the methods used to determine compensation.

Quiz 7: Recognizing and Rewarding Employees

Which of the following is an external factor that can influence the rates of wages required to recruit or retain competent employees?

Which system of job evaluation is being used when raters are simply arranging jobs in order from highest to lowest relative worth based on their overall knowledge of the jobs?

What is a manager attempting to do by using a pay-for-performance standard?

What will most likely result from determining wage increases solely on the basis of the CPI?

Which method of comparison is NOT used in job evaluation?

Which of the following is an internal factor that can influence the wage mix?

Which of the following is an external factor that can influence the wage mix?

What are employees who are compensated on an hourly basis also known as?

What item identifies the salary component of a compensation system?

How are employees classified when their compensation is calculated on the basis of weekly,or monthly periods?

What do labour-market conditions reflect?

What are organizations with formal job systems more likely to rely on to determine wage rates?

What is considered to be a common goal of compensation policies?

What does employee compensation refer to?

What is the proper term for the process of determining the relative worth of jobs in order to determine pay rates?

What is the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians known as?

What is the simplest method of job evaluation?

Based on productivity research,what amount of increase in employee output is expected following implementation of a pay-for-performance program?

What would an employer wishing to raise the "real wages" of employees have to do?

Under what circumstances will employees deem that compensation is equitable?