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MIDTERM TEST
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Midterm test

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Started on Friday, 30 September 2022, 11:20 AM
State Finished

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Completed on Friday, 30 September 2022, 11:42 AM

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Time taken 21 mins 54 secs
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Marks 19.00/20.00
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Grade 9.50 out of 10.00 (95%)
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Question 1

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1.This clearly defines the relative value of each job among all jobs within a company.
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a. internally consistent compensation system
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b. market comparison standards
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c. generalized work activities
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d. intra-organizational job markers
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Question 2
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Complete
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10.Midpoint, minimum, and maximum are values used to define which of the following?
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a. pay grades
b. pay ranges
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c. pay levels
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d. pay structures
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Question 3
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11. If the company adopts a market lead policy, how will that company's pay range midpoint compare to the market average?
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a. There is not enough information to make this determination.

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b. The midpoint will be lower than the market average.

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c. The midpoint will be the same as the market average.

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d. The midpoint will be higher than the market average.

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Question 4

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Complete

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12. The HR manager of a company thinks that they have too many narrow pay grades within the organization. By getting the support from

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upper management, the manager decided to consolidate existing pay grades and ranges into fewer pay grades and broader pay ranges in
order to create a flatter organization in terms of compensation. This is an example of which pay structure variation?

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a. multiple-tier pay system
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b. pay compression
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c. broadbanding
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d. two-tier pay system
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Question 5
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13.Gainsharing is an incentive plan that ________.
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a. uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement
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b. contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares
of the firm's stock for employees

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c. involves the firm regularly distributing a percentage of profits as profit shares to employees
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d. provides tax advantages for employees by deferring income taxes, often until the employee retires
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e. engages employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared
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among employees and the company

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Question 6
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14. Jason works at a call center for an insurance company, and he has been answering calls regarding auto insurance. Recently, he started to
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attend a training program about home insurance. Upon successful completion of this training program, Jason will be able to handle home
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insurance questions and queries as well. If this insurance company has a compensation policy that rewards Jason's completion of this
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training, then what type of pay system does it employ?

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a. incentive pay
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b. merit pay
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c. pay-for-knowledge
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d. seniority pay
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Question 7

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Complete

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15. These compensation systems go a long way in attracting and retaining the most qualified employees and are based upon market and

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compensation surveys.

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a. internally consistent compensation systems

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b. market-competitive pay systems
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c. job evaluation compensation systems
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d. externally consistent compensation systems

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Question 8
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16. Which of the following are the two main reasons given for adopting person-focused programs?

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a. market monopolies and lower labor costs
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b. market monopolies and company turnover
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c. smaller labor markets and strategic outlines

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d. technological innovations and increased global competition
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Question 9
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17. Which of the following is a characteristic of job-based pay?

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a. It rewards employees on their promise to make positive contributions to the work place.
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b. A reward is based on the successful acquisition of work-related skills or knowledge.

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c. It compensates employees for the number of jobs in which they possess the skills to perform.
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d. It compensates employees for the jobs they currently perform.

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Question 10
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18. Which of the following represents the pay rate differences for jobs and employee contributions of unequal worth to a company?
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a. merit pay
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b. retention pay
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c. incentive pay
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d. pay structures
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Question 11

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Complete

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19. Which of the following is true about the level of risk involved with incentive pay?

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a. It is lower for higher-level employees than for lower-level employees.
b. It is dependent on subjective performance appraisals.

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c. It depends on the extent to which employees control the attainment of a desired goal.

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d. It decreases as incentive pay represents a greater proportion of total core compensation.
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Question 12

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2.Which of the following describes job duties, tasks, and relevant factors needed to perform a job adequately?
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a. job summary
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b. job context
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c. job content
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d. job structure

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Question 13
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Complete
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20. This type of individual incentive plan rewards employees who recruit new customers or new employees.
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a. piecework
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b. management incentive
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c. referral
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d. behavior encouragement
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Question 14
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3.Which is the fundamental principle of internally consistent compensation systems?

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a. Pay rates should mirror pay rate differences among the competition.
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b. Jobs that require higher qualifications should be paid more than jobs that require lower qualifications.
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c. All jobs should be valued according to need.

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d. All jobs should be valued equally because every job directly contributes to competitive advantage.
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Question 15

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Complete

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4.Which of the following entails an examination of a company's external market context and internal factors?

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a. compensation plan
b. regression analysis

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c. compensation survey

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d. strategic analysis
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Question 16

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5.Compensation professionals integrate the internal job structure with the external market pay rates identified through compensation
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surveys, and this integration reveals which of the following?

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a. changes in employee benefits over time
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b. pay rates that reflect both the company's and the external market's valuations of jobs
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c. changes in wages and salaries over time

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d. changes in labor costs between geographic locations
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Question 17
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6. These are used as reference points for setting pay levels.

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a. benchmark jobs
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b. median pay
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c. mean pay
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d. market-competitive pay
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Question 18
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7. When using compensation survey data, statistical analyses are used to integrate this with the external market, in order to determine pay
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rates.
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a. internal pay scales

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b. internal pay benchmarks

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c. nominal pay rates

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d. internal job structures

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Question 19

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8. The XYZ Company is a world leader in medical device manufacturing. Aiming to continue its market position in this industry, the XYZ

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Company pursues a differentiation strategy. As a result, this company compensates its employees higher than competitors in order to attract
and retain the best employees. What kind of pay level policy does the XYZ Company follow?

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a. market match
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b. market lead
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c. market pay line
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d. market lag
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Question 20
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9.For the purpose of applying pay policies, this term refers to the groupings of jobs based on compensable factors.
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a. pay ranges
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b. pay grades

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c. market lines
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d. market-competitive pay structures

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◄ Chapter 18
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