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ch1
1. Which of the following includes restrictions on executive pay that are designed todiscourage executivesfrom taking "unnecessary and excessive risks"?A. Corporate Welfare ProgramB. Employee Welfare Program
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C. Troubled Asset Relief ProgramD. Corporate Liability Relief Program2. According to the text, if women had the same education, experience, and unioncoverage as men and alsoworked in the same industries and occupations, they would be expected to earn about _____ of what menearn.A. 62%B. 70%C. 80%
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D. 90%3. Hourly compensation costs for manufacturing workers are higher in _____ than theU.S.
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A. NorwayB. JapanC. SpainD. Singapore4. Hourly compensation costs for manufacturing workers are lower in _____ than theU.S.
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A. KoreaB. NorwayC. SwedenD. Netherlands5. When executives decide where to locate a manufacturing plant, the most importantconsideration is:A. hourly compensation costs
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B. labor productivityC. strength of local labor unionsD. cost of government mandated benefits6. _____ would be most concerned about executive pay.A. ManagersB. EmployeesC. Society
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D. Stockholders7. _____ would be most concerned about compensation as a major expense.
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A. ManagersB. EmployeesC. SocietyD. Stockholders
 
8. The primary reason compensation is important to managers is because:A. employees regard it as areward.
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B. it influences employee behavior.C. it is a larger cost than benefits.D. stock holders dislike high compensation costs.9. Employees view compensation as all but which of the following?A. AreturnB. An entitlementC. A reward
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D. An investment10. The degree to which pay influences individual and aggregate motivation among theemployees at any pointin time is referred to as:A. sorting effect.
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B. incentive effect.C. motivational effect.D. directional effect.13. Which of the following is an example of a relational return?A. Short-term incentives
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B. Recognition and statusC. Work-life balanceD. Income protection14. Which of the following are given as increments to the base pay in recognition of pastwork behavior?A. Base payB. Cost-of-living adjustments
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C. Merit payD. Incentives15. Which form of pay is likely to be least expensive for employers?
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A. IncentiveB. Merit payC. Cost-of-living adjustmentsD. Base pay16. Employees who want to be sure their good performance will be rewarded will prefer A. merit pay.B. team incentives.
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C. individual incentives.D. across-the-board pay increases.17. Variable pay may also be calledA. exemptB. non-exemptC. stock options
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D. incentives18. Which of the following is the largest component in an executive pay package?
 
 
A. Base pay
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B. Stock optionsC. Merit payD. Perks19. A company that says its relatively low starting pay will be offset by larger future payincreases is using theconcept of _____.
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A. present-valueB. merit payC. incentivesD. deferred benefits20. All of the following have direct financial costs for an employer except:A. benefits
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B. relational returnsC. work-life balanceD. income protection21. Which of the following is not an objective in the pay model?A. FairnessB. ComplianceC. Efficiency
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D. Productivity22. Costs are to management as _____ is to alignment.
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A. work analysisB. communicationC. surveysD. merit guidelines23. Market definitions are to competitiveness as performance based is to _____.A. alignmentB. complianceC. efficiency
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D. contributions24. Which of the following is not a policy in the pay model?
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A. FairnessB. CompetitivenessC. ContributionsD. Alignment25. Performance, quality, customers, stockholders and costs are components of which of the objectives of the pay model?A. FairnessB. Compliance
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C. EfficiencyD. Competitiveness26. _____ implies that the way a pay decision is made may be as important to employeesas the results of thatdecision.
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