Stuvia 3203824 Strategic Compensation in Canada 7e Parbudyal Singh Richard Long Test Bank

Strategic Compensation in Canada,
7e Parbudyal Singh, Richard Long

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(Strategic Compensation in Canada, 7e Parbudyal Singh, Richard Long)
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Chapter 1
1. Chapter 01-001
There is no one best compensation system that fits all
firms.
*a. True
b. False
2. Chapter 01-002
An effective compensation system is important to most
organizations because it can mean the difference between
company success and failure.
*a. True
b. False
3. Chapter 01-003
The main similarity between extrinsic rewards and intrinsic
rewards is that they both satisfy so-called higher order
needs such as survival and security.
a. True
*b. False
4. Chapter 01-004
A reward strategy is the plan for the mix of rewards to be
provided to organization members along with the means
through which they will be provided.
*a. True
b. False
5. Chapter 01-005
Compensation strategy includes the â€œhowâ€• and â€œhow
muchâ€• in terms of compensation to be paid.
*a. True
b. False

7. Chapter 01-007
A compensation system has two components: base pay and
performance pay.
a. True
*b. False
8. Chapter 01-008
The optimal compensation system is one that adds the most
value to the organization, after considering all its costs.
*a. True
b. False
9. Chapter 01-009
There is often one so-called best compensation system that
applies to a broad spectrum of organizations.
a. True
*b. False
10. Chapter 01-010

According to the "Road Map to Effective Compensation," the
first step is formulating your reward and compensation
strategy.
a. True
*b. False
11. Chapter 01-011

Which of the following statements is supported by evidence
in the textbook?
a. Canadian firms spend 50 to 80 percent of their

capital budgets on compensation.
b. Properly designed compensation systems usually
promote unproductive behaviour.
c. Reward systems should be static and rarely
reviewed.
*d. Canadian firms spend 40 to 70 percent of their
operating budgets on compensation.

12. Chapter 01-012

Which of the following statements most accurately describes extrinsic rewards?
a. They focus on factors inherent in the work itself-the job content.

b. They satisfy higher-order human needs.
*c. They include monetary and nonmonetary rewards and come from
the job context.
d. They involve skill variety, task identity, task
significance, autonomy, and feedback.
13. Chapter 01-013

Jackson, a service manager, loves his job. He particularly
appreciates the level of autonomy his job provides. From a
rewards perspective, which kind of reward appears to be
motivating Jackson?
a. Extrinsic
b. Incentives
*c. Intrinsic
d. Compensation
14. Chapter 01-014

Compensation means different things to different
stakeholders. For shareholders, what is an important
consideration?
a. take-home pay of employees

b. effectiveness of the compensation system in
attracting employees
*c. financial value of the compensation system to the
firmâ€™s bottom line
d. fairness of the compensation system
15. Chapter 01-015

As a small business owner committed to the total rewards
approach to compensation, what do you need to establish
before you start to develop your compensation system?
a. a reward system
b. an incentive program
c. a compensation strategy
*d. a reward strategy


16. Chapter 01-016

Which item is considered part of a compensation system?
*a. performance pay

b. flexible work schedules
c. positive organizational culture
d. work/life programs
17. Chapter 01-017

Which of the following best describes the term â€œreward
strategyâ€•?
a. the means through which performance bonuses are

paid
*b. the mix of rewards provided to organization
members
c. the means for recognizing outstanding achievement
d. the means for identifying the key contextual
variables for an organization
18. Chapter 01-018

An owner of an enterprise asks you to describe the major
components of a compensation system. What would you exclude
from your description?
a. base salary
b. performance pay
c. employee benefits
*d. flexible work schedules and some element of job
autonomy
19. Chapter 01-019

Which of the following best explains intrinsic rewards?
a. Intrinsic rewards focus on increasing an

employeeâ€™s financial position.
*b. Intrinsic rewards are provided by job content.
c. Intrinsic rewards provide security and employee
services.
d. Intrinsic rewards relate to bonuses based on
performance.

20. Chapter 01-020

The compensation system typically refers to which aspect of
the reward system?
a. the mix of intrinsic and extrinsic rewards

*b. the economic or monetary part
c. the entire spectrum of rewards
d. incentives
21. Chapter 01-021

You have offered your sales associate an all-expenses-paid
trip for two to Australia if she doubles her annual sales
volume from last year. What type of inducement are you
offering?
a. intrinsic reward
b. extrinsic reward
*c. incentive
d. job enrichment
22. Chapter 01-022

Which of the following would be an example of an extrinsic
reward?
a. interesting and meaningful work

*b. pay for performance based on the number of units
produced per hour
c. being able to see the companyâ€™s product being
used by a satisfied customer
d. work that allows for enhanced personal development
23. Chapter 01-023

According to Maslowâ€™s theory, what is the most basic
need?
a. safety needs
b. self-actualization needs
c. respect and self-esteem needs
*d. physiological needs
24. Chapter 01-024

Your company has a high turnover and poor work quality.
According to exit interviews, a large percentage of

employees cite boredom as the primary cause for leaving

your company. Almost all of them were satisfied with their
compensation packages. Which of the following actions could
help you reduce your high turnover rate?
a. providing a pension option and offering a

retirement planning service
b. introducing pay-for-performance plans
*c. trying to enrich the jobs to make them more
interesting
d. offering dental and medical coverage
25. Chapter 01-025

Which statement best describes the key aspect of Maslowâ€™s
theory of needs?
a. Extrinsic rewards are more important than intrinsic

rewards.
b. Intrinsic rewards are more important than extrinsic
rewards.
*c. Humans tend to first satisfy their basic needs
before higher order needs.
d. Self-esteem needs are more closely tied to rewards
than the other needs.
26. Chapter 01-026

Which statement is most accurate regarding the reward
strategy?
a. The reward system is the blueprint for creating the

reward strategy.
b. Intrinsic awards alone will not motivate the needed
behaviour.
c. Determining the mix of rewards to be provided is an
easy process.
*d. Various combinations of intrinsic and extrinsic
rewards need to be considered for developing the
optimal reward strategy.
27. Chapter 01-027

Which of the following items is a component of the
compensation strategy?
*a. employee benefits

b. employment security
c. promotion criteria
d. job enrichment
28. Chapter 01-028

A group of unionized employees negotiating a new contract
is holding out for a better indirect pay plan. What should
management offer the group in order to reach an agreement?
*a. better services and benefits

b. better training and development opportunities
c. pay for performance
d. a more competitive base pay
29. Chapter 01-029

As head of the human resources department for a new
company, you have been asked to formulate a compensation
strategy. What is the first thing you need to determine?
*a. the role that compensation will play in the reward

system
b. the correct mix of performance and base pay
c. the total amount of compensation to be provided
d. the role the reward system will play in the
compensation strategy
30. Chapter 01-030

You are a newly hired director of human resources for a new
software company. Your CEO has asked you to provide the
board of directors with recommendations relating to the
companyâ€™s yet-to-be-established reward system. What
should you tell the board?
*a. The various combinations of intrinsic and

extrinsic rewards need to be considered.
b. The optimal strategy is the least expensive.
c. Like most companies in Canada, we should adopt a
total compensation approach.
d. The plan for creating the compensation system is
the most important aspect of the strategy.

31. Chapter 01-031

Which of the following would be the best choice for a
compensation system?
a. A competitive base pay and incentives are offered.

b. Employees share in the organizationâ€™s profits.
c. Compensation is linked to knowledge.
*d. The system is cost effective and achieves company
goals.
32. Chapter 01-032

Which statement most accurately describes the optimal
reward system?
*a. It adds the most value to the organization after

considering all its costs.
b. It maximizes opportunities for learning and
development.
c. It identifies best practices.
d. It provides whatever will satisfy the employeeâ€™s
needs.
33. Chapter 01-033

According to the textbook, what is a key argument about
compensation systems in Canada?
a. Organizations should keep wages low.

b. There is one best compensation system that can be
applied to organizations.
c. Compensation systems are more important than all
other management systems in organizations.
*d. An equitable compensation system offers a
competitive advantage for organizations.
34. Chapter 01-034

You have been given the responsibility to develop an
effective compensation system for your company. Which of
the following should serve as your first focus?
*a. understanding your organization and your people

b. formulating and determining budgets
c. designing your performance pay and indirect pay
plans

d. implementing, managing, evaluating, and adapting

the system
35. Chapter 01-035

Which statement best describes current compensation
practices and expectations related to the key criteria for
evaluating the success of a compensation system?
a. It is realistic to expect that a reward system will

achieve all eight of the effectiveness criteria.
*b. Organizations must constantly assess the
effectiveness of their reward and compensation
systems.
c. Successful organizations all have equitable reward
systems.
d. Most firms have found the right answers to the
compensation puzzle.
36. Chapter 01-036

What is the last step to effective compensation according
to the â€œRoad Map to Effective Compensationâ€•?
a. developing new job descriptions and performance

evaluation criteria
*b. implementing, managing, and evaluating the
compensation system as circumstances change
c. securing senior management approval and
implementing the compensation system
d. determining the compensation mix to be used in the
compensation system
37. Chapter 01-037

According to the textbook, what is the primary reason for
organizations' increased use of compensation consultants?
a. Corporations are contracting out most human

resource functions.
b. Given greater standardization associated with
compensation systems, it makes sense to use dedicated
outside consultants.
*c. The level of complexity of compensation systems
has increased.
d. It is often cheaper to use to use consultants.

38. Chapter 01-038

Which statement best describes the context of compensation
management within a firm?
a. All organizations need a human resources department

to deal with compensation issues.
*b. The larger the firm, the greater the need for
compensation specialists.
c. In smaller organizations, compensation consulting
firms are responsible for compensation strategy.
d. Within a large firm, all managers require extensive
knowledge of compensation.
39. Chapter 01-039

In small organizations, who is typically responsible for
a. Vice-President of Human Resources

*b. owner or chief executive officer
c. Board of Directors
d. government
40. Chapter 01-040

After graduation, you were offered a position as a job
analyst with a local bank. Which of the following would
best describe your new job?
a. designing and implementing compensation policies

b. formulating compensation strategy and ensuring
congruency with corporate objectives
c. evaluating market data from organizations of
similar size and scope
*d. developing job descriptions and conducting job
evaluations

Chapter 2
1. Chapter 02-001
If a particular compensation system has been successful in
one organization, it is very likely that replicating that
compensation system will bring success in another
organization.
a. True
*b. False
2. Chapter 02-002
The strategic framework for compensation helps to identify
the corporate strategy that will best suit a firmâ€™s
compensation strategy.
a. True
*b. False
3. Chapter 02-003
An organizationâ€™s vision refers to its long-term, optimal
desired state.
*a. True
b. False
4. Chapter 02-004
Horizontal fit refers to the alignment between an
organizationâ€™s mission, vision and values, and the
various supportive strategies that cascade down an
organization.
a. True
*b. False
5. Chapter 02-005
An organizationâ€™s domain is simply another term for
managerial strategy or plan.
a. True
*b. False

6. Chapter 02-006
The three main managerial strategies described in the
textbook are: the classical strategy, the human relations
strategy, and the high involvement strategy.
*a. True
b. False
7. Chapter 02-007
The classical managerial approach to management assume
employees are inherently lazy and require constant
vigilance.
*a. True
b. False
8. Chapter 02-008
Narrow jobs characterize high involvement systems.
a. True
*b. False
9. Chapter 02-009
Group and organizational pay systems characterize firms
that use a classical managerial strategy.
a. True
*b. False
10. Chapter 02-010

According to Miles and Snow, business strategies are
classified into three types: defender, prospector, and
analyzer, with a residual type reactor to cover firms that
do not have a distinct overall strategy.
*a. True
b. False
11. Chapter 02-011

3M and Apple have organizational strategies that encourage
innovation. As a result, their compensation strategies

support innovative behaviours by employees. Which term

refers to this alignment of strategies?
a. tight fit
b. loose fit
c. horizontal fit
*d. vertical fit
12. Chapter 02-012

The training, compensation, and performance management
functions at Technology Today Inc.. are all focused on
helping the organization achieve its goals. What is this
alignment of strategies called?
a. cross fit
b. functional fit
*c. horizontal fit
d. vertical fit
13. Chapter 02-013

You recently transferred from a smaller manufacturing firm
to a larger one and discovered that, although entirely
different, both compensation systems are effective. How is
this possible?
a. Both companies have well-trained managers.

b. Both companies do similar work and hire the same
kinds of employees.
*c. Both systems fit the organization and its
strategy.
d. Both provide compensation packages that lead the
marketplace.
14. Chapter 02-014

What can you determine by examining a firmâ€™s contextual
variables?
a. the managerial strategy that a firm is actually

using
*b. the type of structure the organization should be
using
c. the firmâ€™s competitive advantage and required
resources
d. organizational goals, mission, and vision

15. Chapter 02-015

Which term refers to the vehicle used by an organization
for executing its business strategy?
*a. its structure

b. its culture
c. horizontal fit
d. vertical fit
16. Chapter 02-016

As a human resources consultant, you decided to recommend
to a business owner that they should use a contingency view
to organizational design. In order to support your
recommendation, what would you look at first from a
business structure perspective?
a. structural variables
b. job design variables
c. financial variables
*d. contextual variables
17. Chapter 02-017

Which of the following is a structural variable
interrelated with compensation?
a. business strategy
*b. job design
c. organization size
d. technology
18. Chapter 02-018

What should an effective organizational structure provide
an organization?
a. It identifies sources of required inputs for an

organization.
b. It reduces internal uncertainty while increasing
external uncertainty for an organization.
c. It increases internal uncertainty while decreasing
external uncertainty for an organization.
*d. It decreases both internal and external
uncertainty for an organization.

19. Chapter 02-019

What can you determine by examining a firmâ€™s structural
variables?
*a. the managerial strategy a firm is actually using

b. the managerial strategy a firm should be using
c. a firmâ€™s corporate strategy
d. the corporate strategy a firm should be using
20. Chapter 02-020

Which of the following is classified as a â€œmainâ€•
managerial strategy?
a. job design management strategy

b. laissez-faire management strategy
c. transformational management strategy
*d. human relations management strategy
21. Chapter 02-021

You have been asked to explain to a manager the notion of
structural variables within the context of a strategic
framework for compensation. Which variable would you
elaborate on?
*a. how work is divided into subtasks

b. the market the company serves
c. the level of differentiation in the products and
services offered by the company
d. the companyâ€™s productsâ€™ life cycle
22. Chapter 02-022

Which of the following is a contextual variable to consider
when deciding on the managerial strategy to be used?
*a. business strategy

b. job design
c. reward system
d. control system
23. Chapter 02-023

Which variable indicates to management the most appropriate
managerial strategy to use in an organization?

a. organizational processes
b. factors of production
*c. contextual variables
d. structural variables
24. Chapter 02-024

What are the two main categories of organizational
variables?
*a. contextual and structural

b. horizontal and vertical
c. classical and human relations
d. Miles and Snow
25. Chapter 02-025

You have recently been hired by a manufacturing company in
Vancouver, British Columbia. You conclude that the company
is using a high-involvement management strategy. What would
you review to support your aforementioned conclusion?
*a. structural variables

b. organizational policies and procedures
c. contextual variables
d. behaviours of managers
26. Chapter 02-026

Which set of strategies reflects different assumptions
about employees and how they should be managed?
*a. classical, human relations, and high-involvement

b. low-cost, differentiator, and focused
differentiator
c. corporate, competitive, and business
d. defender, prospector, and analyzer
27. Chapter 02-027

Which term best describes the scope of business operations
undertaken by an organization?
a. integration
b. differentiation
c. craft
*d. domain

28. Chapter 02-028

Which characteristics are common in a classical
organization?
a. joint employeeâ€"management planning and goal

setting
b. intrinsic rewards often being used as a reward
system
c. loyal employees who are dedicated to the norms of
the organization
*d. strong management control over employees
29. Chapter 02-029

Which rewards are normally associated with a high-
involvement managerial strategy?
a. high levels of pay and benefits

*b. providing employees with the opportunity to grow
professionally
c. providing employees with a pleasant team
environment
d. promotions based on a high level of production
30. Chapter 02-030

Which reward strategy is appropriate for companies using a
human relations approach to management?
*a. Rewards are mainly extrinsic and focus on loyalty

to the organization.
b. A wide variety of both intrinsic and extrinsic
rewards are used.
c. Only extrinsic rewards are offered.
d. Only intrinsic rewards are offered.
31. Chapter 02-031

Tariq, a new employee, is told by a more experienced
employee to do only the minimum and not attempt to be a
â€œsuperstar.â€• What variable best describes what Tariq is
experiencing?
a. engagement
b. commitment
c. structure

*d. culture
32. Chapter 02-032

Which key cultural value would be detrimental to a high-
involvement organization?
a. honesty
b. trustworthiness
*c. doing things the way they have always been done
d. open communication
33. Chapter 02-033

Which organizational variable would complement a classical
management strategy?
*a. strong policies and procedures dictating work

processes
b. high level of horizontal communication
c. significant autonomy given to employees
d. employee-focused organizational culture
34. Chapter 02-034

Marie is the new owner of a large apple farm in British
Columbia. She hires seasonal workers to pick apples during
the months of October and November each year. Historically,
there has been an abundance of labour supply. Which
managerial strategy would best fit this farmâ€™s situation?
a. human relations
*b. classical
c. hybrid
d. high-involvement
35. Chapter 02-035

Which term describes an organizationâ€™s core values and
understandings shared by its members?
a. organizational structure
*b. organizational culture
c. organizational domain
d. organizational strategy

36. Chapter 02-036

Which managerial strategy most highly values an
organizationâ€™s culture?
a. classical
b. human relations
*c. high involvement
d. hybrid
37. Chapter 02-037

A prospector strategy, short life cycle products, a highly
skilled work force, and a relatively small organization
would be a good combination of variables for which
managerial strategy?
a. classical
b. human relations
*c. high-involvement
d. mechanical
38. Chapter 02-038

According to the textbook, which term would best describe
an analyzer business strategy?
a. speed
b. slow
*c. balance
d. classical
39. Chapter 02-039

Which condition has NOT made it increasingly difficult for
Canadian firms to make the classical managerial strategy
work for them?
a. Educational levels have increased.

*b. Globalization has allowed work to be outsourced to
a variety of developing countries.
c. Economic security and social security have
improved.
d. Social values have become more democratic and
egalitarian.

40. Chapter 02-040

You have been asked to provide some element of rationale
why some companies using a human relations strategy
sometimes attempt to change to a more classical framework.
Which statement would best describe the most important
issue associated with your explanation?
a. It is simply very hard on management to pursue a

human relations strategy.
b. There is pressure from owners to increase
profitability.
*c. Companies fail to react fast enough to changes in
the environment.
d. Greater worker mobility makes a human relations
strategy obsolete.

Chapter 3
1. Chapter 03-001
A sales organization rewards employees for the number of
client contacts made via telephone. A review of client
contact quality determines that most of these contacts will
never convert into sales. As it relates to reward problems,
this exemplifies a lack of congruency between rewards and
behaviour.
*a. True
b. False
2. Chapter 03-002
The three key employee behaviours that may be desired by
employers are membership, task, and citizenship.
*a. True
b. False
3. Chapter 03-003
The key employee attitudes are flexibility, citizenship,
and individual goal commitment.
a. True
*b. False
4. Chapter 03-004
Reward dissatisfaction can result from perceived inequity.
*a. True
b. False
5. Chapter 03-005
Equity theory partially explains the basic notion of
perceived inequity between oneâ€™s view of his or her
contribution and the contribution of others in similar
contexts.
*a. True
b. False

6. Chapter 03-006
Job satisfaction is a key employee behaviour.
a. True
*b. False
7. Chapter 03-007
Distributive justice refers to the fairness of the process
in giving rewards.
a. True
*b. False
8. Chapter 03-008
The principal source of citizenship behaviour is
organizational identification.
*a. True
b. False
9. Chapter 03-009
Classical management strategies generally require a reward
system that focuses on task behaviour.
*a. True
b. False
10. Chapter 03-010

The first step in designing a reward system that will
produce the behaviour the organization needs is to develop
rewards that address salient employee needs.
a. True
*b. False
11. Chapter 03-011

At a unionized firm, workers went on strike even after
management offered them a two percent increase in pay. The
union representing the workers said that the proposed
increase did not match the workersâ€™ contributions to the
firm. What type of reward problem is evident in this
situation?

a. failure to produce the desired behaviour

b. production of the desired behaviour and undesirable
consequences
*c. production of reward dissatisfaction
d. lack of task behaviour
12. Chapter 03-012

You operate an inbound call centre serving the various
needs of your customers. Over the last several months, you
notice that customers are waiting on hold for several
minutes before being served. To motivate operators, you
introduce an incentive program that rewards those operators
that answer over 200 calls per 8-hour shift. Shortly
thereafter, wait times drop but service complaints
escalate. What kind of reward problem does this vignette
describe?
a. failure to produce desired behaviour

*b. production of desired behaviour and undesirable
consequences
c. production of reward dissatisfaction
d. unfair compensation practices
13. Chapter 03-013

Which short scenario best describes organizational
citizenship behaviour?
*a. Marek, a shop mechanic, approaches management with

an initiative that will improve customer service.
b. Ahmed, a faculty member, starts and finishes his
lectures on time as per his syllabus.
c. Mari, a university graduate, was so impressed with
company ABC that she decided to join the company. Ten
years later she was still working for ABC.
d. Colin â€œvolunteersâ€• for special community events
on behalf of his company only when he is paid
overtime.
14. Chapter 03-014

You are extremely happy with your job and would not
hesitate to recommend your company as a good place to work.
Which key employee attitude are you expressing?

a. organizational identification
b. motivation
*c. job satisfaction
d. commitment
15. Chapter 03-015

What is the definition of membership behaviour?
a. paying ones dues on time

b. being polite with others
*c. a decision to join and stay with a firm
d. the attitude one holds toward oneâ€™s job and the
workplace
16. Chapter 03-016

You have been asked to explain to a client the notion of
work motivation. Which of the following would best
characterize an employeeâ€™s work motivation?
a. someone that is happy with his job

*b. someone that puts forward great effort to perform
a task well
c. someone that shares the organizationâ€™s goals and
aspirations
d. someone that is happy and satisfied with the job
content and his/her performance
17. Chapter 03-017

Which of the following is associated with job satisfaction?
a. increased job effort

*b. lower employee turnover
c. higher training costs
d. job security
18. Chapter 03-018

Which of the following is NOT a key employee attitude?
a. job satisfaction
b. work motivation
c. organizational identification
*d. organizational citizenship

19. Chapter 03-019

An employee survey at a particular company indicated very
strong employee job satisfaction levels. Management was
elated with the outcome of the survey. What is a likely
consequence of having satisfied employees?
*a. decreased grievances

b. employees who are more innovative
c. employees who are more cooperative
d. improved interdepartmental integration and
communication
20. Chapter 03-020

When a potential employee joins an organization, there is
often an implied contract between the employee and the
organization, based on expectations of rewards and
contributions. Which of the following best describes this
contract?
a. provincial labour code

b. deprivation contract
*c. psychological contract
d. perceived equity
21. Chapter 03-021

Your employer has not kept his promises in relation to pay,
benefits, and ongoing training and development
opportunities. Which of the following best describes your
situation?
a. unethical behaviour
b. lack of organizational justice
c. perceived inequity
*d. violation of the psychological contract
22. Chapter 03-022

Which theory is most applicable in explaining why a hockey
player who earns $10 million per year is dissatisfied with
his pay?
*a. equity
b. relative deprivation
c. psychological contract
d. reinforcement

23. Chapter 03-023

You think your salary is unfair compared to others in your
department, and you threaten to quit your job. Which theory
best explains your actions?
a. psychological contract
b. expectancy theory
c. procedural justice
*d. equity theory
24. Chapter 03-024

Organizational justice has two key dimensions. Which pair
of variables best captures these two dimensions?
a. distributive and integrative justice

*b. distributive and procedural justice
c. psychological and tenure-based justice
d. psychological and task justice
25. Chapter 03-025

Which of the following would be an example of distributive
justice?
*a. Based on your performance, you believe you were

given the pay raise you deserved.
b. You have the opportunity to appeal your pay raise.
c. Your managers openly share the reward decision-
making process with all employees.
d. Reward decisions are based on job-related
performance and free of bias.
26. Chapter 03-026

Which scenario is reflective of an organization displaying
procedural justice in their reward system?
a. Pay is not similar for employees performing at the

same general level.
b. Pay is attached to increases in consumer price
indexes regardless of actual performance.
*c. Employees are able to appeal pay increase
decisions using a transparent appeal process.

d. Employees are not able to articulate when and how

pay increases are provided.
27. Chapter 03-027

A particular employee becomes dissatisfied with a decision
by an organization to decrease pay. Which of the following
could be considered an attempt by the employee to increase
rewards?
a. taking longer coffee breaks

b. increased absenteeism
*c. padding their expense accounts
d. seeking a less demanding job in a different company
28. Chapter 03-028

In an effort to improve the relationships with employees,
management at ABC recently implemented policies to make
their pay more consistent across jobs that were similar.
What would this change help with?
a. improving the psychological contract

*b. improving perceptions of procedural justice
c. improving perceptions of distributive justice
d. decreasing perceptions of relative deprivation
29. Chapter 03-029

Arlo is committed to his organization out of a sense of
belongingness and loyalty. What type of commitment is Arlo
displaying?
*a. affective
b. continuance
c. task
d. moral
30. Chapter 03-030

Which of the following refers to content theories of
motivation?
a. theories based on reinforcement theories

b. theories that focus on managerial strategies
c. theories that focus on understanding the means by
which people make choices

*d. theories that focus on human needs
31. Chapter 03-031

In what way is there congruency between Maslowâ€™s theory
and Herzbergâ€™s theory?
*a. The higher-order needs correspond to motivators,

and lower-order needs correspond to the hygienes
factors.
b. Both Maslow and Herzberg assume that a satisfied
need no longer motivates.
c. Both Maslowâ€™s and Herzbergâ€™s theories could be
classified as â€œprocess theories.â€•
d. Both Maslow and Herzberg explicitly describe the
distinction between job satisfaction and work
motivation.
32. Chapter 03-032

Which term is used to describe the degree of urgency an
individual attaches to the satisfaction of a particular
need?
a. hierarchy of needs
b. need deprivation
c. needs analysis
*d. need salience
33. Chapter 03-033

Hanif was generously rewarded by his parents when he
received excellent grades. His parents are hoping that the
rewards will help Hanif get similar grades in the future.
Which theory helps to explain this scenario?
a. Maslowâ€™s theory
b. Herzbergâ€™s theory
c. expectancy theory
*d. reinforcement theory
34. Chapter 03-034

According to reinforcement theory, what happens when
organization-controlled rewards stop?
a. Employees are motivated to work on their own.

b. Intrinsic motivation disappears.

*c. Desired behaviours eventually disappear.
d. There is no change in behaviour.
35. Chapter 03-035

Which scenario best describes the notion of expectancy,
according to the expectancy theory of motivation?
*a. Paul believes he can complete the project in five

days.
b. Paul is under the impression that even if he
finishes the project in five days, the company will
not provide him with the promised promotion.
c. Paul does not value the promised promotion.
d. Paul would like to be recognized as a valued
employee by being given a large pay increase.
36. Chapter 03-036

According to expectancy theory, which of the following
would be an example of negative instrumentality?
*a. You believe that no matter how hard you work your
performance will not be recognized.
b. You do not have confidence in your ability to
perform the required task.
c. You do not value the reward.
d. You are not motivated to exert any effort.
37. Chapter 03-037

Which term refers to the individualâ€™s perception of how
likely it is that the effort they give will lead to the
successful performance of the desired behaviour?
a. valence
*b. expectancy
c. instrumentality
d. salience
38. Chapter 03-038

You are the human resource manager for a non-profit
organization focusing on cleaning local parks. The vast
majority of staff are volunteers from the local community.
You are so pleased with their commitment that you approach

a consultant looking for advice on what kinds of additional

rewards you should provide. Which of the following would be
an appropriate recommendation, according to the attribution
theory of motivation?
*a. Offer to pay the attendance fee to any volunteer

willing to attend a conference dealing with the value
of green space in cities.
b. Offer to pay $100.00 per month if volunteers show
up for all their shifts.
c. Offer to pay volunteers $.50 for every pound of
garbage collected from local parks.
d. Offer to pay a nominal fee for members that find
other volunteers willing to join the organization.
39. Chapter 03-039

Economic theory of motivation is closely aligned with which
management strategy?
a. differentiation management strategy

b. high-involvement management strategy
c. human relations management strategy
*d. classical management strategy
40. Chapter 03-040

Zara would typically go â€œwell beyond the call of dutyâ€•
in the workplace to help her organization achieve its
goals. What is Zara displaying?
a. membership behaviour
*b. organizational citizenship behaviour
c. task behaviour
d. proactive behaviour

Chapter 4
1. Chapter 04-001
The two key questions that must be addressed in designing
any compensation system are: a) What role should each of
the three compensation components play in the compensation
mix? and b) What total level of compensation should be
provided?
*a. True
b. False
2. Chapter 04-002
An advantage of base pay is that it directly links pay with
output or performance.
a. True
*b. False
3. Chapter 04-003
Generally, research supports the notion that employees
prefer compensation strategies that have performance pay as
the key compensation mechanism.
a. True
*b. False
4. Chapter 04-004
The main types of individual performance pay are piece
rates, commissions, merit pay, and goal-sharing plans.
a. True
*b. False
5. Chapter 04-005
According to research cited in the textbook, performance
pay plans have relatively high discontinuation rates.
*a. True
b. False

7. Chapter 04-007
Competitive pressure may force some firms to provide
indirect pay.
*a. True
b. False
8. Chapter 04-008
One major advantage of job evaluation programs is that they
require the use of comprehensive job descriptions.
a. True
*b. False
9. Chapter 04-009
Pay-for-knowledge systems are beneficial for organizations
that require great task flexibility from their labour
force.
*a. True
b. False
10. Chapter 04-010

Competency-based pay is usually applied at the managerial
and professional levels.
*a. True
b. False
11. Chapter 04-011

Which of the following steps is NOT considered in designing
a compensation system?
*a. determining actual dollar values for jobs and

individual employees
b. determining the total level of compensation to
provide
c. determining how each of the mix choices should be
structured
d. determining the mix of compensation components

12. Chapter 04-012

For the majority of employees in Canada, what is the
largest component of the pay package?
a. benefits
b. performance pay
c. indirect pay
*d. base pay
13. Chapter 04-013

Jung is compensated based on a rate of $25.00 per hour
worked. Which term best describes the manner in which Jung
is compensated?
a. commission
*b. wage
c. piece rate
d. salary
14. Chapter 04-014

Why might employees prefer base pay over performance pay?
a. Performance pay is more predictable.

b. Base pay is directly related to their performance
level.
*c. They dislike uncertainty about their compensation.
d. Market conditions are always changing.
15. Chapter 04-015

As a human resource consultant, you have been asked to
provide some rationale on why an organization may decide to
use base pay as a cornerstone for a compensation scheme.
Which of the following should you use to back up your
argument?
*a. It provides an organization with more labour

flexibility in the allocation of tasks.
b. It guarantees employee performance and aligns
salaries to performance.
c. It encourages team work.
d. Unions are most likely to agree with managementâ€™s
approach, given this scheme encourages individual
performance.

16. Chapter 04-016

Which of the following conditions makes using output-
related pay impractical?
a. Output is easy to measure.

b. Output is very stable.
*c. Output cannot be controlled by the individual
employee.
d. Output is easy to price in terms of its value to
the employer.
17. Chapter 04-017

As an employer, you believe it is always a good idea to pay
people for their contributions to organizational results.
Which plan would likely be the key component of the
compensation plan?
a. indirect pay
b. base pay
c. pay for knowledge
*d. performance pay
18. Chapter 04-018

A particular organization wants to include in their
compensation system some element of organizational
performance linkage, while at the same time it wants to
encourage employee commitment. In addition to base pay,
what would most likely be included in this compensation
mix?
a. merit pay
b. piece rates
*c. profit sharing
d. targeted incentives
19. Chapter 04-019

As the CEO of a small start-up firm, you would like to
reward employees based, in part, on organizational
performance. However, cash flow is low. Which pay plan
should you consider using?
*a. employee stock plans

b. high base pay

c. extensive benefits
d. commissions
21. Chapter 04-021

Which pay type usually makes up a small proportion of total
compensation, and may not be used at all by some employers?
a. mandatory benefits
b. wages
*c. merit pay
d. salaries
22. Chapter 04-022

In Canada approximately what percentage of an employerâ€™s
total compensation costs are employee benefits?
*a. 10-20
b. 20-30
c. 30-40
d. 40-50
23. Chapter 04-023

Which of the following is an example of mandatory indirect
pay?
a. major health benefits such as medical coverage

b. registered retirement savings plans (RRSPs)
benefits
c. employee services
*d. workersâ€™ compensation benefits
24. Chapter 04-024

Your company offers you pay for time not worked, disability
benefits, supplemental medical coverage, and a full range
of free employee services. Which component of the
compensation mix includes these items?
a. direct pay
b. base pay
*c. indirect pay
d. performance pay

25. Chapter 04-025

As a consultant, you were asked by an organization to
provide a list of indirect benefits that the employer is
not required by law to provide. Which of the following
items would you NOT put on your list?
*a. employment insurance

b. company pension plan
c. psychological counselling
d. supplemental medical coverage
26. Chapter 04-026

Why can medical and dental coverage can be purchased more
cheaply by the employer than the employee?
a. indexation
*b. economies of scale
c. utility
d. dividends
27. Chapter 04-027

Which statement best explains the reason for the decrease
in popularity of â€œdefined benefit plansâ€• by employers
in Canada?
*a. There has been increased longevity of employees.

b. Defined benefit plans are simply not popular among
employees.
c. They help organizations plan more accurately;
hence, they make it easier to fund these liabilities.
d. Employers believe defined contribution plans are
much more unpredictable from a funding perspective.
28. Chapter 04-028

Which of the following is NOT a method used to determine
employee base pay?
*a. profit sharing

b. pay-for-knowledge
c. job evaluation
d. market pricing

29. Chapter 04-029

As a general rule, organizations using a high-involvement
managerial strategy use indirect pay as a way to encourage
which of the following relationships?
a. employerâ€"community
b. employeeâ€"task
*c. employerâ€"employee
d. employerâ€"union
30. Chapter 04-030

Which methods are used to establish base pay?
*a. market pricing, job evaluation, and pay for

knowledge
b. job analysis, competency testing, and demographics
c. tenure, job preview, and environmental analysis
d. knowledge, education, and market pricing
31. Chapter 04-031

Which of the following refers to job evaluation?
a. determining how well a job is performed

b. surveying the market
*c. ranking all jobs according to their value to the
firm
d. establishing the skill level of each employee
32. Chapter 04-032

ABC Inc. is a very small firm. It has decided to pay its
employees at rates that are similar to other small firms in
its geographic area. What method of pay is ABC Inc. using?
a. job evaluation
*b. market pricing
c. competency-based pay
d. geographic-based pay
33. Chapter 04-033

What are two key advantages of market pricing?
*a. simplicity and cost

b. equity and fairness
c. equity and efficiency

d. range and depth
34. Chapter 04-034

Which statement best describes the difference between pay-
for-knowledge systems (PKS) and job-based pay systems?
*a. Pay-for-knowledge systems involve basing pay on

the capabilities of individuals, and job-based pay is
based on the characteristics of the job.
b. Pay-for-knowledge systems are applied to managerial
employees, and job-based pay is applied to
operational-level employees.
c. Pay-for-knowledge systems are more widely used by
Canadian firms than job-based pay systems.
d. Pay-for-knowledge systems involve low training
costs and are easier to administer than job-based pay
systems.
35. Chapter 04-035

Which statement best describes the notion of pay-for-
knowledge systems?
*a. There is little empirical evidence supporting the

validity of competency-based pay models.
b. Competency-based pay models are usually associated
with operational level roles.
c. Pay for knowledge requires very detailed job
descriptions for every role in an organization.
d. Pay for knowledge fits well with classical
management styles, requiring employee flexibility in
skill sets.
36. Chapter 04-036

As the owner of a large hotel, you expect your employees to
be flexible, learn a variety of skills, and be able to
shift from one job to another as needed. Which plan will
best fit your needs?
a. stock options
*b. skill-based pay
c. team-based pay
d. piece rates

37. Chapter 04-037

Which base pay method best supports behaviours needed by
high-involvement firms?
a. market pricing
*b. pay-for-knowledge
c. job evaluation
d. broad banding
38. Chapter 04-038

A manager at a local manufacturing firm is perplexed that
employees frequently respond to managementâ€™s request with
the dreaded â€œThat is not on my job description,â€• or
â€œThat is above my pay grade.â€• From a compensating
perspective, which base pay method is normally associated
with the aforementioned responses?
a. market pricing
*b. job evaluation
c. competency-based pay
d. skill-based pay
39. Chapter 04-039

Your executive vice president has asked you to explain the
basic notion of â€œskill blocksâ€• within the context of
skill-based pay systems design. What two variables would
you emphasize?
*a. different skills and depth of each skill

b. skill certification and criterion
c. key competencies and training requirements
d. broad banding and market value
40. Chapter 04-040

Which of the following is NOT a key issue in competency-
based pay systems?
a. identifying competencies that demonstrably affect

performance
b. devising methods to measure achievement of each
competency
c. providing learning opportunities
*d. developing the merit pay grid

Chapter 5
1. Chapter 05-001
The central issue associated with attendance incentives is
the notion that these programs treat only the symptoms
while ignoring the underlying issues that cause absenteeism
in the first place.
*a. True
b. False
2. Chapter 05-002
Piece rates have experienced high discontinuation rates.
*a. True
b. False
3. Chapter 05-003
Sales commissions are usually appropriate in situations
where individual sales people exercise significant
independence.
*a. True
b. False
4. Chapter 05-004
All things being equal, goal-sharing programs are thought
to be less motivational than gain-sharing programs.
a. True
*b. False
5. Chapter 05-005
One of the problems with gain-sharing plans is that they do
not encourage employee participation.
a. True
*b. False
6. Chapter 05-006
Unions generally oppose profit-sharing plans on the basis
of potential manipulation of profits by management and the

uncertainty associated with profit sharing when compared

with base pay.
*a. True
b. False
7. Chapter 05-007
The three main types of employee stock plans are: stock
bonus plans, stock purchase plans, and stock option plans.
*a. True
b. False
8. Chapter 05-008
Employee stock plans are often used by companies using a
classical management strategy
a. True
*b. False
9. Chapter 05-009
Profit-sharing plans can reduce the need for employee
supervision.
*a. True
b. False
10. Chapter 05-010

The current distribution profit-sharing plan is sometimes
called a â€œcash plan.â€•
*a. True
b. False
11. Chapter 05-011

Which of the following is an organizational-level pay
performance plan?
a. goal-sharing plans
b. merit-pay plans
c. special-purpose incentive pay plans
*d. profit-sharing plans

12. Chapter 05-012

What is the most common form of performance pay used by
medium to large Canadian firms?
*a. merit raises

b. profit sharing
c. merit bonuses
d. commissions
13. Chapter 05-013

You work for a company that assembles plastic toys.
Generally speaking, employees working at similar assembly
plants receive $15.00 per hour. Internal corporate data
indicate that the average worker should be able to assemble
20 toys per hour. Your organization has made a strategic
decision to pay assembly line workers on the basis of their
output. What is the piece rate you are contemplating paying
your assembly line workers?
a. $300.00 per day

b. $1.33 per toy
*c. $0.75 per toy
d. $150.00 per day
14. Chapter 05-014

What is a key advantage of piece rate pay systems?
*a. They reduce the need for external control of

employees through supervision.
b. They create team work.
c. They link pay to group effort.
d. They encourage â€œrate busters.â€•
15. Chapter 05-015

Which statement best explains why, despite their
motivational potential, piece rate systems often do not
motivate maximum effort?
*a. Work group norms define acceptable rates of

production.
b. Piece rates are used in conjunction with base pay.
c. Workers may be tempted to cut corners on quality.

d. Workers are more concerned with production than

safety.
16. Chapter 05-016

Which of the following would NOT be an ideal scenario in
which to consider using a piece rate plan?
a. Quality standards can be monitored effectively.

*b. Significant teamwork is needed to complete a
particular task.
c. Each unit of production can be easily measured.
d. Tasks tend to be fairly static over time.
17. Chapter 05-017

John works for an aerospace company selling satellites to
communication companies. He receives a set percentage of
the overall sale price of the satellite in the form of
compensation. He does not receive a fixed salary or
benefits. Which term best describes Johnâ€™s compensation
plan?
a. hybrid commission plan

b. leverage commission plan
c. percentage commission plan
*d. straight commission plan
18. Chapter 05-018

In what way are piece rates and commissions similar to each
other?
a. Employees donâ€™t have to worry about working

themselves out of a job.
*b. They reduce the need for external control of
employees through supervision.
c. Both types are commonly used in conjunction with
base pay.
d. Both are popular systems widely used in the service
sector.
19. Chapter 05-019

Johnâ€™s employer decides to provide him with regular
advances against his future commissions as a way to smooth

out Johnâ€™s income. Which term best describes the pay plan
used by Johnâ€™s employer?
a. sales stipend system

*b. draw system
c. pay advance system
d. security income
20. Chapter 05-020

Which type of selling requires the most initiative on the
part of the sales representative?
a. maintenance
b. conversion
c. leverage
*d. new market
21. Chapter 05-021

In the public sector, what is one factor that should be
considered when designing merit pay?
a. role of consultants
*b. role of unions
c. pay mix with profit sharing
d. pay mix with stock options
22. Chapter 05-022

Which statement best describes how North American employees
view merit raises?
a. They are viewed as not promoting

employeeâ€"employer relationships.
*b. They are viewed with significant scepticism by
employees.
c. They are not viewed in a positive light because of
the objective nature of performance reviews.
d. They are viewed in a positive light by unionized
employees.
23. Chapter 05-023

One of the problems with merit raises is the risk of
providing a long-term future reward for a short-term past

performance. What is one way to address this problem while

maintaining the performance appraisal system?
*a. Replace merit raises with merit bonuses.

b. Use stock options instead of merit raises.
c. Use a team to assess performance.
d. Outsource merit systems.
24. Chapter 05-024

Your employer is considering tying the bonus pool to the
firmâ€™s profitability and then allocating this amount to
employees based on individual merit. With reference to
expectancy theory, which component of the merit system will
be weakened and thus make it less motivational for you as
an employee?
a. valence
b. expectancy
*c. instrumentality
d. effort
25. Chapter 05-025

As a human resource specialist, you have been asked by your
organization to lead a discussion on the merits of using
internal promotions as a main reward mechanism. Which point
would you most likely NOT raise?
*a. They are an expensive process, as promotions are

typically associated with pay increases.
b. They often carry both intrinsic and extrinsic
rewards.
c. They recognize contributions made by strong
performers.
d. They are often seen as a key motivation tool for
employees.
26. Chapter 05-026

Which of the following is NOT a suitable condition for
merit pay?
a. Individual performance varies.

*b. Performance is not controllable by the individual.
c. Individual performance can be separated out.
d. Undesirable side effects are readily manageable.

27. Chapter 05-027

An automotive shop wants to reward employees for
demonstrating creative customer service that leads to
repeat business. A particular employee received a 10
percent bonus for suggesting that the company contact
customers 24 hours after repairs to ensure customers are
satisfied. What type of incentive would be the most
appropriate in this scenario?
a. merit-raise plans
b. goal-sharing plans
c. gain-sharing plans
*d. special-purpose plans
28. Chapter 05-028

Which of the following is a group level organizational pay
performance system?
*a. gain sharing

b. piece rates
c. merit raises
d. commissions
29. Chapter 05-029

According to the textbook, what is the main drawback
associated with attendance plans?
a. There are costs associated with administering the

program.
b. Both intended and unintended behaviours are not
easy to observe.
c. It is difficult to deal with the so-called
â€œlegitimateâ€• absences.
*d. They do not deal with the underlying cause of the
issue.
30. Chapter 05-030

From an employerâ€™s point of view, what is the most
attractive feature of properly designed gain-sharing plans?
*a. The plans are self-funding.

b. Positive work group norms develop.

c. The need for supervisory control is reduced.

d. Employees monitor each otherâ€™s performance.
31. Chapter 05-031

What is a key difference between gain-sharing and
organizational performance pay plans?
*a. Unlike organizational level plans, gain sharing

can be applied to not-for-profit and government
organizations.
b. Gain sharing results in more pay for employees.
c. Unions support organizational level pay plans but
not gain sharing.
d. There are more free riders in gain-sharing plans.
32. Chapter 05-032

As the owner of a real estate firm with multi-office
operations, you provide a bonus to all sales personnel in
the highest-producing office each month. What type of
performance pay plan are you using?
a. goal-sharing
*b. competitive bonus
c. pooled performance
d. group commissions
33. Chapter 05-033

Which are the main types of profit sharing plans?
a. current assessment plan, deferred plan, and blended

plan
b. deferred plan, cash plan, and group plan
*c. combination plan, deferred plan, and current
distribution plan
d. current distribution plan, combination plan, and
employee plan
34. Chapter 05-034

Your CEO is concerned that employees are not saving enough
for their retirement. At the same, the CEO wants to have
some of the companyâ€™s profits shared with all employees.
To address these issues, your CEO asks you, a human
resource compensation specialist, to recommend the most

appropriate profit-sharing plan to address this retirement

issue. Which profit-sharing plan would you recommend?
*a. deferred
b. combination
c. current distribution
d. cash plan
35. Chapter 05-035

Which characteristic of profit-sharing plans may be viewed
as negative from the perspective of an employer?
a. They align employee and employer interests.

b. They eliminate the â€œfree riderâ€• principle by
holding everyone accountable.
c. They are more complex than gain-sharing plans.
*d. They require the sharing of potentially
confidential information with employees.
36. Chapter 05-036

What do employees receive under an employee stock bonus
plan?
*a. shares at no cost to themselves

b. cash value of phantom shares
c. a bonus equivalent to the increase in their share
value
d. free financial advice on stocks
37. Chapter 05-037

A publicly traded Canadian corporation provides employees
with one year of continuous service and the opportunity to
place 6% of their pre-tax income in a plan that may be
invested in the companyâ€™s stock. Furthermore, the company
matches the shares by 50% up to a limit of 4% of the
employeesâ€™ pre-tax income. From the perspective of the
employee, what are the potential drawbacks of participating
in this program?
a. Administrative costs associated with these plans

are normally very high.
b. It is extremely difficult for an employee to
determine the performance of their stock.
c. They pose too much of a tax burden.

*d. If the company does poorly, your job and savings

may be at risk.
38. Chapter 05-038

An HR Manager bought 1000 shares in his company at a price
that was a little less than market prices. What type of
stock plan is this?
a. stock option
b. stock bonus
*c. share purchase
d. market share
39. Chapter 05-039

Which plans are set up so that a payout is contingent on
the achievement of three- to five-year performance goals?
a. pension plans
*b. long-term incentives
c. deferred profit-sharing plans
d. goal-sharing plans
40. Chapter 05-040

Which of the following is normally seen as an advantage
associated with long-term incentives plans?
*a. They may encourage a better understanding of the

business.
b. They tie rewards to the companyâ€™s ability to pay.
c. They usually dilute shareholder equity for existing
shareholders.
d. Goals are easy to determine, particularly in
dynamic industries.

Chapter 6
1. Chapter 06-001
In developing a compensation strategy, the two key
questions that must be addressed are: â€œHow much is to be
paid?â€• and â€œWhen should it be paid?â€•
a. True
*b. False
2. Chapter 06-002
Pay equity legislation falls under employment standards in
all Canadian provinces.
a. True
*b. False
3. Chapter 06-003
Jurisdiction over labour markets is primarily within the
realm of the federal government of Canada.
a. True
*b. False
4. Chapter 06-004
The process of formulating a compensation strategy includes
five distinct yet interrelated steps.
*a. True
b. False
5. Chapter 06-005
Salaries are the major component of total compensation for
the highest paid executives in Canada.
a. True
*b. False
6. Chapter 06-006
A â€œlead-the-marketâ€• compensation policy should be
deployed only in situations when organizations face very
tight labour markets.

a. True
*b. False
7. Chapter 06-007
ABC Inc. tends to offer compensation packages below market
for entry-level positions, while compensating significantly
above market for more highly skilled senior positions in
the company. ABC Inc. is utilizing a hybrid compensation
policy.
*a. True
b. False
8. Chapter 06-008
Before adopting a compensation strategy, it must be able to
pass through three screens: affordability, legality, and
employee attraction.
*a. True
b. False
9. Chapter 06-009
Golden parachutes generally assure large severance payments
for dismissed executives.
*a. True
b. False
10. Chapter 06-010

The key reason that executives earn so much more than other
employees is because their base pay is so much higher.
a. True
*b. False
11. Chapter 06-011

In Canada, organizations face numerous legislated
constraints creating so-called â€œboundariesâ€• to their
compensation systems. Which of the following is NOT
categorized as a legislated constraint or boundary?

a. Employment Standards Act or the Canada Labour Code

b. Human Rights Act
*c. management strategy constraints
d. income tax, both individual and corporate
12. Chapter 06-012

Which of the following is NOT covered by employment
standards legislation in Canada?
a. minimum wages
b. minimum age for employment
*c. pay equity
d. hours of work
13. Chapter 06-013

Trucks Are Us Ltd. is a British-Columbiaâ€"based trucking
company providing long-haul services across Canada. Which
level of government has the primary responsibility for
passing labour-related legislation covering employees of
Trucks Are Us Ltd.?
a. British Columbia and other provinces in which

Trucks Are Us Ltd. operates
b. British Columbia government
c. municipalities and provincial governments in which
Trucks Are Us Ltd. operates
*d. federal government
14. Chapter 06-014

A particular organization wants to explore the potential
for converting many of their employees into contractors.
Which characteristic would potentially lead the Canada
Revenue Agency to reject this change in classification?
a. The worker has the ability to refuse or accept work

from the organization.
*b. The company directs how and where the work should
be completed.
c. The worker has control over who actually completes
the work.
d. The worker can choose the manner in which the work
is completed.

15. Chapter 06-015

Which type of legislation covers issues such as overtime
pay rates, paid time off, and minimum wage levels?
a. human rights
*b. employment standards
c. trade union
d. tax
16. Chapter 06-016

Which statement best explains the legal difference between
an employee and a contractor?
a. Only employees are allowed on the work site.

b. Contractors cannot hire another person to complete
the work.
*c. Contractors are exempt from employment standards
legislation.
d. Employees can be forced to work overtime.
17. Chapter 06-017

Which of the following workers are NOT covered under
minimum wage legislation in some jurisdictions?
a. students
b. employees working from home
*c. domestic servants
d. commissioned salespeople
18. Chapter 06-018

All Canadian jurisdictions have passed human rights
legislation prohibiting employment discrimination based on
specific employee factors. What is NOT covered under these
broad human rights legislation?
a. marital status
b. race
c. gender
*d. education
19. Chapter 06-019

A male forklift operator thinks that his employer is
discriminating against him with respect to his pay because

of his age. Which legislation would be applicable in this

case?
a. labour standards legislation

b. pay equity legislation
*c. human rights legislation
d. trade union legislation
20. Chapter 06-020

When we discuss labour market constraints, what are we
specifically referring to?
a. union constraints on labour allocation

*b. availability of employees versus demand
c. cost-of-living constraints on pay demands
d. managerial strategy in recruitment methods
21. Chapter 06-021

The demand for carpenters far outstrips the supply in
British Columbia. In fact, many of the construction
companies are relying on the international market to fill
vacancies. Which term best describes the labour market for
carpenters in British Columbia?
*a. tight
b. loose
c. contingent
d. contractual
22. Chapter 06-022

Your organization is facing significant competition,
putting pressure on your profit margins. Labour costs
account for a significant percentage of your cost
structure, and you are concerned with your profitability,
moving forward. Furthermore, you are finding that it is
extremely difficult to find production workers willing to
work for minimum wage in Canada. As a result, you decide to
move operations to Vietnam so you can take advantage of
lower labour costs. Which type of key constraint has caused
you to make this decision?
a. tax
*b. financial
c. legislated

d. service market
23. Chapter 06-023

What should be your first step when you formulate the
*a. Define the required behaviour.

b. Determine the compensation mix.
c. Evaluate the proposed strategy.
d. Determine the compensation level.
24. Chapter 06-024

In which organization would compensation have a low role?
*a. UNICEF store

b. chicken-processing plant
c. tree-planting firm
d. used car dealership
25. Chapter 06-025

Which pair of job characteristics is likely associated with
a high-involvement managerial strategy?
a. individual and low customer contact jobs

b. low task interdependence and narrow-in-scope jobs
c. simple and repetitious jobs
*d. broad and creative jobs
26. Chapter 06-026

To keep work interesting and provide higher compensation
opportunities for your design engineers, you have created a
compensation system that allows them to move from an entry
level to an expert specialist level. What term is used to
describe this system?
a. management pathing
*b. technical ladder
c. competency-based
d. leader development
27. Chapter 06-027

You are attempting to define the role compensation will

play in your reward strategy. What is a key factor that

needs to be examined?
*a. the nature of intrinsic and other extrinsic

rewards offered
b. the compensation level strategy
c. the indicators of goal achievement
d. the compensation system behavioural objectives
28. Chapter 06-028

In which circumstance does the compensation system need to
be relied on less heavily to motivate behaviour?
a. food processing plant

*b. shelter helping the homeless
c. underground coal mine
d. tire manufacturer
29. Chapter 06-029

In which situation would a â€œlag the market compensation
strategyâ€• be applicable?
*a. Turnover costs are low.

b. Turnover costs are high.
c. Recruitment costs are high.
d. The demand for labour is high.
30. Chapter 06-030

As a human resource compensation specialist, you are
recommending that your company compensate entry-level
factory workers 10 percent below market, while paying 10
percent above market for engineers. What type of
compensation policy are you recommending to your
organization?
a. lag
b. lead
c. match
*d. hybrid
31. Chapter 06-031

Lag strategies are cost-effective for which type of firms?
*a. firms that are labour-intensive

b. firms needing to attract top-quality applicants

c. firms that value employee stability
d. firms that invest heavily in training and
development
32. Chapter 06-032

A particular company operates several food processing
plants across Canada. An internal audit of the company
determined that several plants were paying above-market
wages while other plants were paying below-market wages.
What systemic issue could be causing this situation?
*a. The company most likely uses one pay scale across
Canada.
b. Workers in some of the plants appear to be
negotiating higher wages.
c. Different management strategies are being used in
each plant.
d. The compensation mix is likely the cause.
33. Chapter 06-033

Which method involves using a â€œwhat ifâ€• scenario to
determine which compensation-level strategy is most
efficient for your organization?
a. cost-benefit analysis
b. market share analysis
c. trial analysis
*d. utility analysis
34. Chapter 06-034

Who is primarily responsible for the employee compensation
strategy for most Canadian organizations?
a. government and chambers of commerce

*b. top leadership, human resources professionals, and
compensation specialists
c. compensation survey firms and human resource
managers
d. government and human resource managers
35. Chapter 06-035

As the owner of a medium-sized engineering consulting firm,

you decide to implement a compensation level policy that

compensates your employees based on market rates. Which
type of compensation policy have you adopted?
a. lead
*b. match
c. hybrid
d. lag
36. Chapter 06-036

A hybrid compensation-level strategy is one that varies
across which of the following?
*a. employee groups

b. managerial strategies
c. business segments
d. industrial sectors
37. Chapter 06-037

Before implementing a compensation strategy, human
resources professionals must ensure the appropriate screens
are in place to evaluate the strategyâ€™s appropriateness.
Which screen is NOT considered one of the so-called â€œmust
pass screensâ€•?
a. Costs are within the financial means of the

organization.
b. The new compensation strategy meets the minimum
standards under employment standards legislation.
c. The new compensation strategy attracts potential
employees with the required skill sets.
*d. Current employees will be happy with the new
compensation strategy.
38. Chapter 06-038

Which of the following is generally NOT one of the reasons
why firms use contingent workers?
a. to address the shortage of qualified full-time

employees
b. to cut on labour costs
*c. to screen candidates for future employment
d. to improve employee productivity and job
satisfaction

39. Chapter 06-039

Which variable in executive compensation packages accounts
for the majority of the value associated with executive pay
in Canada?
a. annual bonuses
b. base pay
*c. stock grants and stock options
d. perks
40. Chapter 06-040

What is the most important factor driving executive
compensation?
*a. firm size

b. firm performance
c. fraud
d. political connections on boards

Chapter 7
1. Chapter 07-001
The job evaluation process focuses on how to evaluate
individual employee performance to produce a solid
foundation for a merit pay system.
a. True
*b. False
2. Chapter 07-002
Job analysis is derived from job specifications, which in
turn are the foundation of all job evaluation systems.
a. True
*b. False
3. Chapter 07-003
A job description serves several purposes, including
providing guidance in the selection and recruitment
process.
*a. True
b. False
4. Chapter 07-004
There are four main methods of conducting job analysis:
interviews, observation, questionnaires, and functional job
analysis.
*a. True
b. False
5. Chapter 07-005
Of the four main methods used to conduct job analysis,
interviews and questionnaires are by far the most effective
when dealing with organizations that do not currently have
examples of jobs to be reviewed.
a. True
*b. False

6. Chapter 07-006
The Position Analysis Questionnaire (PAQ) focuses on
behaviours that make up a job.
*a. True
b. False
7. Chapter 07-007
Two methods of job evaluation are ranking/paired comparison
and classification/grading.
*a. True
b. False
8. Chapter 07-008
Red-circling applies to employees who are below the pay
range for their jobs.
a. True
*b. False
9. Chapter 07-009
Under Ontario pay equity legislation, going through the pay
equity process is unnecessary if your firm has no female
job classes.
*a. True
b. False
10. Chapter 07-010

The Ontario Pay Equity Act covers all employers in the
province.
a. True
*b. False
11. Chapter 07-011

Which process is used to determine the relative importance
of the employeeâ€™s job to the organization and the placing
of those jobs in the same hierarchy level?
a. job analysis

b. market analysis
c. performance appraisal
*d. job evaluation
12. Chapter 07-012

Which process is looked upon as the process of gathering
data and information about the characteristics required for
specific jobs?
*a. job analysis

b. job evaluation
c. job description
d. job specifications
13. Chapter 07-013

Which job analysis method is used for organizations that
are being created or when new jobs are introduced?
a. observation
b. interviews
c. questionnaires
*d. functional job analysis
14. Chapter 07-014

As a human resource professional, you have been asked by
your organization to develop a job description for the
heavy-duty mechanic role. What are you likely NOT to
include in the job description?
a. some statement describing the conditions under

which the mechanic will work under
*b. the appropriate pay grades, ranges, and future pay
increase scales
c. the level of skill and certification required for
the role
d. the fact that the mechanic will be working under
the supervision of a senior technician
15. Chapter 07-015

What is the term generally used to describe employees who
are below the pay ranges for their jobs?
*a. green-circled

b. red-circled
c. targeted for promotion
d. discriminated
16. Chapter 07-016

Which of the following is NOT a valid purpose for
conducting job evaluation?
*a. to control employee performance

b. to control wage costs
c. to create an equitable pay structure
d. to create perceptions of equitable pay among those
covered by the system
17. Chapter 07-017

Which statement would NOT describe an appropriate usage of
job descriptions?
a. determining necessary employee qualifications

b. creating questions in the interview process
*c. supporting the development of business level
strategies
d. developing training plans
18. Chapter 07-018

What do job specifications focus on?
a. job activities
b. reporting structure
*c. employee qualifications
d. performance
19. Chapter 07-019

Which statement provides the best example of a job
specification?
a. arranging meetings and scheduling out-of-town

travel
*b. possessing a valid driverâ€™s licence
c. answering telephones and personal inquiries
d. reporting to the head of the department

20. Chapter 07-020

The textbook introduces four main approaches to conducting
job analysis. Which approach would you NOT likely use to
collect information on the teller role at an existing
Canadian bank?
a. Observe several bank tellers performing their jobs.

*b. Perform a functional job analysis.
c. Interview several tellers at a local branch.
d. Provide questionnaires to several tellers.
21. Chapter 07-021

Because your company is newly created, you do not have any
job descriptions. Which method of job analysis will you
need to use?
a. interviews
b. questionnaires
*c. functional
d. observation
22. Chapter 07-022

Carlos decides to use a time-and-motion study to gather
information about a particular job. What kind of job
analysis method is Carlos using?
*a. observations
b. interviews
c. questionnaires
d. functional job analysis
23. Chapter 07-023

XYZ. Inc. uses a group of judges to examine its job
descriptions and determine the value of these jobs to the
organization. What job evaluation method is XYZ Inc. using?
a. point method
b. functional job analysis
*c. ranking method
d. policy capturing method

24. Chapter 07-024

Which job evaluation method has historically been popular
with government civil service organizations?
a. ranking
*b. classification/grading
c. factor comparison
d. paired comparison
25. Chapter 07-025

You have been asked to present to management potential
drawbacks associated with using a job analysis process at
your company. Which of the following would likely NOT be
included in your list of drawbacks?
a. analyzing the jobholder rather than the job

b. gender bias
c. use of technical language
*d. use of incorrect benchmark jobs
26. Chapter 07-026

One of the shortcomings associated with job analysis in
dynamic work environments is the potential for obsolete
data to be used for a variety of human resource decisions.
What proactive steps would you recommend to an organization
facing this issue?
*a. Update job descriptions systematically.

b. Stop conducting job analysis.
c. Contract out most of your human resource functions.
d. Allow each manager in the organization to create
actual job descriptions.
27. Chapter 07-027

Which of the following is NOT one of the methods of job
evaluation discussed in the textbook?
a. ranking method
*b. forced distribution method
c. factor comparison method
d. statistical/policy capturing method

29. Chapter 07-029

An Ontario-based organization asks you to recommend a job
evaluation method that may meet pay equity legislation.
What job evaluation method are you likely NOT to recommend?
a. point
b. factor comparison
*c. ranking
d. classification
30. Chapter 07-030

Which job evaluation method is like sorting books among a
series of carefully labelled shelves in a bookcase?
a. ranking
b. paired comparison
*c. classification
d. factor comparison
31. Chapter 07-031

Which evaluation method uses questionnaires to capture time
spent on certain activities and the importance of those
activities to the successful completion of the job?
a. point
b. factor comparison
c. classification
*d. statistical/policy capturing
32. Chapter 07-032

Which term is used to describe key characteristics of jobs
that are valued by organizations and differentiate jobs
from one another?
a. core job dimensions

b. job facts
*c. compensable factors
d. benchmarks
33. Chapter 07-033

Organizations need to answer a series of questions in order
to conduct job evaluations effectively. What question would
a job evaluation process NOT address?

a. Who conducts the job evaluations?

*b. Which jobs should be changed?
c. What appeal mechanisms are to be established?
d. How should the job evaluation results be applied?
34. Chapter 07-034

Joel, whose pay was above the pay range, was forced to take
a substantial pay cut. He has decided to challenge his
employers in the courts. What will he likely claim?
a. discrimination
*b. constructive dismissal
c. demotion
d. red-circling
35. Chapter 07-035

Mario performs his job at a very high standard.
Unfortunately, a job evaluation process determined that he
is currently being paid at a level below the minimum in a
new pay scale. Which statement best describes Marioâ€™s
current position in the new pay scale?
a. Mario would be classified as a â€œconstructive

employee.â€•
b. Mario would be classified as an â€œexception-to-
the-pay-scaleâ€• employee.
*c. Mario would be classified as a â€œgreen-circled
employee.â€•
d. Mario would be classified as a â€œred-circled
employee.â€•
36. Chapter 07-036

Which of the following is NOT a valid reason to re-evaluate
jobs?
a. Labour market conditions change significantly.

b. The strategy of the organization changes.
*c. A new performance system is implemented.
d. There is a high level of appeals.
37. Chapter 07-037

Which procedure is NOT required under the Ontario Pay
Equity Act?

a. identifying job classes by gender

b. collecting job information
c. comparing jobs using gender neutral system
*d. checking for performance appraisal biases
38. Chapter 07-038

The textbook identifies several methods that may be used
when comparing female and male job classes. Which method
would you consider to be inappropriate?
a. proxy
b. job-to-job
*c. equality
d. proportional value
39. Chapter 07-039

In Ontario, once completed, pay equity plans should be
shared with employees, including both process and outcomes.
Which of the following organizations would be exempt from
posting their pay equity plans?
a. a global manufacturer in Ottawa employing 250

workers
b. a car manufacturer employing 1,000 workers at its
Toronto plant
c. a food processing factory employing 200 full-time
employees
*d. a farming operation in Ontario employing 25
employees annually
40. Chapter 07-040

Which of the following practices can NOT be used to achieve
pay equity?
*a. Pay levels for male comparator jobs will be

lowered.
b. All positions in a job class will receive
adjustments in dollar terms.
c. Each female job class must receive a yearly
adjustment until pay equity is achieved.
d. Inequitable female job classes with the lowest job
rate must receive a greater adjustment.

Chapter 8
1. Chapter08-001
The final step in developing a job evaluation system using
a point method requires that the job hierarchy scheme meet
certain criteria, including validity and market fit.
*a. True
b. False
2. Chapter08-002
Job evaluations help to establish internal equity.
*a. True
b. False
3. Chapter08-003
Under pay equity legislation, organizations need to
evaluate three out of the four main categories of
compensable factors in evaluating jobs.
a. True
*b. False
4. Chapter08-004
The two methods for deriving factor weightings are
statistical analysis and expert judgment.
*a. True
b. False
5. Chapter08-005
Reliability of the job evaluation system means that the
system will produce the same results even if different
evaluators are used.
*a. True
b. False
6. Chapter08-006
The primary drawback associated with using the point method
of job evaluation is that it provides an illusion of a

scientific process when in fact the method relies

significantly on the judgment of evaluators in selecting
appropriate weights
*a. True
b. False
7. Chapter08-007
Broad banding results in fewer jobs in a pay grade.
a. True
*b. False
8. Chapter08-008
A pay grade is the same as a pay range.
a. True
*b. False
9. Chapter08-009
A living wage is the same as the minimum wage.
a. True
*b. False
10. Chapter08-010
One possible solution to excessive pay scale overlaps is to
ensure that the maximum pay in a lower scale is less than
the midpoint of the next higher pay scale
*a. True
b. False
11. Chapter08-011
Which of the following is NOT a component of the point
method of job evaluation?
a. compensable factors
b. total points
c. factor degrees
*d. competencies

12. Chapter08-012
What is generally NOT considered an advantage of the point
method of job evaluation?
a. It gives the relative value of jobs.

b. It helps to establish internal equity among jobs.
*c. It helps to establish market rates for jobs.
d. It has a high degree of precision.
13. Chapter08-013
Four main categories of compensable factors are used widely
in industry. Which of the following could be included in
the skill category?
a. Arvind often exposed to chemicals.

*b. Nina needs to solve a variety of problems at work.
c. Alain is held accountable for error rates.
d. Dorcas often has to be able to lift 25 kg boxes.
14. Chapter08-014
Under the point method scheme of job evaluation, what is
the main characteristic that distinguishes one job from
another thereby making a job more valuable to an
organization?
a. market comparators
b. regression analysis
c. base pay structure
*d. point scores of the jobs
15. Chapter08-015
Which of the following is NOT a job evaluation compensable
factor required by pay equity legislation in Ontario?
a. skill
b. effort
c. working conditions
*d. market comparability
16. Chapter08-016
Which statement best describes the use of job evaluations
and pay equity in Ontario?

a. Multiple plans can be used for a bargaining unit in

unionized organizations.
*b. A single plan is required for a bargaining unit in
unionized organizations.
c. The job evaluation system must use between 8-12
compensable factors.
d. If the organization is not unionized, Ontario
legislation requires the use of different plans for
blue-collar and white-collar jobs.
17. Chapter08-017
Which compensable factor would you include under the main
category of â€œworking conditionsâ€•?
*a. requirements associated with being exposed to

health hazards
b. requirements associated with educational levels
c. requirements associated being responsible for the
safety of coworkers
d. requirements associated with having to produce
certain levels of output
18. Chapter08-018
Assume that options (a), (b), (c), and (d) below represent
degree 1, 2, 3, and 4, respectively, for the formal
education factor on your summary rating chart for the point
method of job evaluation. Based on the degree definitions,
which of the following degrees is arranged out of place on
the chart?
a. degree 1: completion of high school

b. degree 2: one year of post-secondary education
c. degree 3: three year college diploma or university
degree
*d. degree 4: completion of grade 9
19. Chapter08-019
Two thousand points are distributed between compensable
factors, based on the following: education 750 points, time
pressure 350 points, customer contact 500 points, and
communication skills 400 points. Which step in developing a
job evaluation system using the point method recognizes
these variations in importance?

a. defining the factors

*b. weighting the factors
c. scaling the factors
d. testing the system
20. Chapter08-020
Which approach for deriving factor weights tends to be seen
as being rather complex and difficult to understand?
a. the â€œa prioriâ€• method

*b. the statistical analysis method
c. the testing and functional method
d. the benchmark scallion method
21. Chapter08-021
After several evaluators apply the job evaluation system to
a heavy-duty mechanic job, you find significant
discrepancies in the weights associated with each
compensable factor. What is NOT likely to be a reason for
the discrepancies?
a. factor definition being used by the evaluators

b. job information provided to the evaluators
*c. evaluators using the wrong benchmarks
d. degree of definition provided to the evaluators
22. Chapter08-022
In calibrating job evaluation results with the market, we
select â€œkeyâ€• organizational jobs for market
comparisons. What are these â€œkeyâ€• jobs called?
*a. benchmark jobs

b. market comparators
c. market calibrators
d. compensable jobs
23. Chapter08-023
After plotting a regression (market line), you determine
that the slope is very steep. What possible conclusion can
you make from observing the slope of the regression line?
a. The correlation coefficient is approaching â€"1

(negative one).

b. There is too much spread in job evaluation points

between low-value and high-value jobs.
*c. There is not sufficient spread in job evaluation
points between low-value and high-value jobs.
d. Lower-value jobs appear to be compensated above
market rates.
24. Chapter08-024
What does the market line determine?
a. whether the firm should lead, lag, or match the

market
*b. the relationship of job evaluation results to
market pay rates
c. the relationship of job evaluation results to a
firmâ€™s pay grades
d. a pay rate based on a market survey
25. Chapter08-025
What does a â€"1 (negative one) correlation coefficient
mean?
a. There is a positive relationship between job

evaluation points score and pay levels.
*b. There is an inverse relationship between job
c. Your regression equation has a very steep upwards
slope.
d. There is very little relationship between job
26. Chapter08-026
In exploring solutions to job evaluation problems, what is
NOT one of the main steps?
a. Check that benchmark jobs are equivalent to market

comparator jobs.
b. Determine if the wrong factors have been included
in the job evaluation system.
*c. Adjust the point totals of the outlier jobs to
improve the correlation coefficient.
d. Examine whether jobs have been badly evaluated.

27. Chapter08-027
The textbook identifies four possible pitfalls associated
with the point method of job evaluation. Which category of
pitfalls would include a situation whereby the factor is
poorly defined, creating a situation in which the evaluator
is not clear what the factor is designed to pick up?
a. hierarchical grounding
b. factor overlaps
c. gender bias
*d. inconsistent construct
28. Chapter08-028
What does the correlation coefficient of the market pay
line tell you?
*a. â€œgoodness of fitâ€• between the job evaluation

points and market pay
b. pay equity adjustments to be made
c. degree of freedom in market rates
d. accuracy of the market data
29. Chapter08-029
Which of the following is NOT a source of gender bias
associated with developing a point method job evaluation
process?
*a. excessive range in the degree statements

b. excluding factors often associated with female
dominated positions
c. biased job descriptions
d. separate job families
30. Chapter08-030
What type of gender bias problem is exemplified by the
belief that â€œany of the skills needed to work with young
children should not be highly rated because care giving
comes natural to womenâ€•?
a. ignoring factors found in female jobs

*b. confusing job content with stereotypes
c. biased job descriptions
d. differential evaluation of factors

31. Chapter08-031
The following are hypothetical points provided to the
following jobs:â†µâˆ™ heavy-duty mechanic: 900â†µâˆ™ human
resource specialist: 900â†µâˆ™ technician: 900â†µâ†µThe
organization sees these positions as having equal value
from a base pay perspective; hence, there is no difference
in pay. What term best describes the grouping of these
jobs?
*a. pay grade

b. range tightness
c. pay range
d. pay structure
32. Chapter08-032
You have been asked to provide rationale for clustering
jobs into so-called pay grades. What is NOT likely to be
included in your rationale?
*a. Clustering of organization tends to reduce labour

costs.
b. It facilitates the administrative process; one pay
range can cover several jobs.
c. Slight changes in job content do not necessarily
trigger a review.
d. It accounts for the fact job evaluations are to a
large degree subjective in nature.
33. Chapter08-033
Which term refers to the actual minimum and maximum pay
rate, in dollar terms, for all the jobs that fall in a
particular pay grade?
*a. pay range

b. broad banding
c. market anchor
d. step progression
34. Chapter08-034
What is a negative consequence of clustering jobs into pay
grades?

a. Pay grades make it difficult to justify and explain

pay rates to employees.
b. Pay grades create less stability for the pay
system.
*c. There may be pressure to reclassify borderline
jobs or to promote people to get more money.
d. Similar jobs are grouped into the same grades.
35. Chapter08-035
Which of the following is an inevitable outcome of broad
banding?
a. There are increased labour costs, as everyone is

paid more for specific jobs.
b. It decreases the level of flexibility within the
pay grades.
c. It tends to lead to â€œskinnyâ€• pay grades.
*d. Jobs with significantly different scores end up in
the same â€œband.â€•
37. Chapter08-037
The pay policy line is used to establish which pay
structure component?
*a. midpoint of the pay range

b. range spreads
c. overlaps between ranges
d. pay grade size
38. Chapter08-038
Which statement best reflects the relationship between the
minimum wage and a living wage?
a. They are the same.

*b. A living wage tends to be higher than the minimum
wage.
c. The minimum wage tends to be higher than a living
wage.
d. A living wage is two times the minimum wage.
39. Chapter08-039
Which practice is a threat to the integrity of the job
evaluation system?

a. wider pay grades as the system goes up

b. equal dollar differences between the range midpoint
and the range minimum, and between the range midpoint
and the range maximum
c. wider range spreads for higher pay grades
*d. excessive overlaps between pay ranges
40. Chapter08-040
After reviewing pay ranges for your organization, you
realize a significant number of pay ranges do not overlap
or do not connect. For example, the maximum of the pay
range for pay grade number 2 is $50,000 and the minimum
range for pay grade number 3 is $60,000.00. What is a
potential root cause of this issue?
*a. Ranges are too narrow and/or there are not enough
pay grades.
b. An equal approach method was used to establish pay
grades.
c. An equal percentage method was used to establish
pay grades.
d. Poor benchmark jobs were used to establish pay
grades.

Chapter 9
1. Chapter 09-001
In broad terms, wages paid for a particular â€œlabourerâ€•
depend on the relationship between supply and demand for
labour, and a specific companyâ€™s ability to pay.
*a. True
b. False
2. Chapter 09-002
Existing companies tend to lower wages when demand for
labour exceeds supply.
a. True
*b. False
3. Chapter 09-003
For public sector organizations, the key factor determining
wages is the employeesâ€™ ability to generate revenue.
a. True
*b. False
4. Chapter 09-004
It is easier to use third-party surveys and data than to
design and conduct an in-house survey.
*a. True
b. False
5. Chapter 09-005
Informal surveys have poor reliability and validity.
*a. True
b. False
6. Chapter 09-006
In order to calibrate a compensation system, a sample of 25
to 45 percent of sample of jobs should be a minimum.
a. True

*b. False
7. Chapter 09-007
In conducting a compensation survey, the first step should
be to identify the jobs to be surveyed.
*a. True
b. False
8. Chapter 09-008
The compa-ratio is calculated by taking the average pay of
all employees holding a particular job title and then
dividing this by the midpoint of the pay range for that
job.
*a. True
b. False
9. Chapter 09-009
A very large interquartile quotient tends to indicate that
all jobs in the sample are equivalent.
a. True
*b. False
10. Chapter 09-010

Compensation surveys reflect the value placed on jobs by
the labour market, but this does not always mean that the
market values jobs fairly.
*a. True
b. False
11. Chapter 09-011

Which of the following best explains why current employers
do not seem to reduce wages for existing employees in the
short term when the supply for a particular set of skills
far outstrips the demand?
a. because of the wage compression phenomenon

*b. because of the negative impact on performance and
increased turnover

c. because labour budgets tend to be determined on an

annual basis
d. because fewer potential employees tend to put
upwards pressure on wages
12. Chapter 09-012

Which of the following is NOT considered a general pattern
in compensation levels?
a. Union employees receive more compensation than

comparable non-union employees.
b. Male employees earn more than female employees on
average.
c. Resource sector employees earn more than those in
the service sector.
*d. The wage gap between public-sector organizations
and private-sector firms is narrow for top-level
employees.
13. Chapter 09-013

Which of the following is generally NOT a determinant of
employeesâ€™ pay in the public sector?
a. collective bargaining
*b. employeesâ€™ ability to generate revenues
c. employersâ€™ ability to pay
d. budget available for pay increases
14. Chapter 09-014

Which condition tends to explain why jobs in the higher
hierarchy positions of the public sector tend to be paid
less than similar positions in the private sector?
a. a strong union
*b. publicly visible salaries
c. the levels of indirect pay provided to senior
public sector positions
d. a poor industry reputation
15. Chapter 09-015

Which of the following identifies two crucial dimensions of
the labour market?

*a. occupational grouping and geographic scope

b. unemployment rate and turnover in the area
c. availability of labour and types of legislation
d. education levels and experience ratings
16. Chapter 09-016

As a human resource specialist, you recommend an
international scope when defining the relevant labour
market for a nuclear physicist to be responsible for the
safety of a Canadian nuclear reactor. Which variable is
likely to be informing your decision?
*a. the level of job specialization

b. the international nature of the industry
c. the highly visible nature of the role
d. the high profile nature of the role
17. Chapter 09-017

Which characteristic is NOT typically considered in the
selection of market comparator firms?
a. the type of product or service the firm provides

*b. whether the firm has achieved pay equity
c. whether the firm is union or non-union
d. the geographic area over which it operates
18. Chapter 09-018

What is a potential drawback associated with using
compensation consultants to gather labour market
information?
a. The data is usually not presented in a â€œuser-

friendly mannerâ€•; hence, it is difficult to use.
b. The data is usually old and not relevant.
*c. The data may be restricted to client firms; hence,
it does not necessarily comprise an appropriate
sample.
d. The data tends to be more expensive compared to
designing and administering your own survey.
19. Chapter 09-019

What are three of the main â€œthird-partyâ€• sources of
compensation data?

a. Statistics Canada, trade journals, and government

agencies
b. private agencies, trade journals, and government
agencies
*c. government agencies, industry groups, and
consulting firms
d. consulting firms, boards of trade, and publishers
20. Chapter 09-020

What is a key concern related to using data from free
compensation data websites?
a. complexity of the data

b. cost of the data
c. proprietary issues
*d. validity of the data
21. Chapter 09-021

Which survey source raises concerns among HR professionals
about the validity of their data?
a. industry groups
b. formal in-house
*c. free websites
d. consultants
22. Chapter 09-022

Which topic would typically NOT be included in survey
questions asked by most consultants in the process of
populating their compensation databases?
a. number of employees
b. criteria associated with movements within the pay
range
c. base pay, performance pay, and indirect pay
*d. turnover rates
23. Chapter 09-023

Which of the following provides the best-quality
compensation data?
*a. personal interviews

b. questionnaires

c. telephone interviews
d. mail surveys
24. Chapter 09-024

An employer is contemplating conducting their own in-house
compensation surveys. What would you caution them about?
a. There is a lack of control over process.

b. There is no need to involve outside consultants.
*c. Skills and abilities associated with survey
methodology are needed.
d. They are likely to sample the wrong jobs and/or
industry.
25. Chapter 09-025

What is NOT a main step in conducting a proper compensation
survey?
a. identifying jobs to be surveyed

*b. identifying employees to be surveyed
c. determining the information needed
d. determining how you will collect the data
26. Chapter 09-026

The textbook identifies two in-house methods that may be
used to collect compensation data. Which of the following
is classified as an â€œin-houseâ€• source?
*a. formal surveys

b. government agencies
c. consultants
d. industry groups
27. Chapter 09-027

In analyzing compensation data that include extreme values,
what would be an advisable measure of central tendency to
use?
a. compa-ratio
b. mean
*c. median
d. inter-quartile ranger

28. Chapter 09-028

Although very costly to use on a significant scale, which
method of data collection provides the best quality of
information?
a. internet surveys
*b. personal interviews
c. telephone interviews
d. questionnaires
29. Chapter 09-029

Which method is used to measure dispersion of salary data
across employers?
*a. percentiles
b. weighted mean
c. simple mean
d. median
30. Chapter 09-030

Which of the following is NOT a procedure used to analyze
and interpret survey data?
a. central tendency
b. dispersion
c. compa-ratio
*d. data aging
31. Chapter 09-031

Which of the following is generally NOT collected in
compensation surveys?
a. base pay
*b. performance appraisal methods
c. performance pay
d. benefits
32. Chapter 09-032

You have determined that the lowest-paying employer pays
its administrative assistants a mean total compensation of
$30,000, and the highest-paying employer pays its
administrative assistants a mean total compensation of

$42,000. What is the dispersion in administrative assistant

compensation across firms?
a. 12 percent
b. 25 percent
*c. 40 percent
d. 50 percent
33. Chapter 09-033

Which measure can be used to assess the central tendency of
pay?
a. dispersion
b. standard deviation
c. quartiles and deciles
*d. mean
34. Chapter 09-034

You determined that $65,000.00 in salary represents the
85th percentile of total compensation paid by employers for
the heavy-duty mechanic job in British Columbia. Which
statement is most accurate, given the aforementioned
statement?
*a. 15% of employers compensate above $65,000.

b. $65,000.00 represents the median.
c. 15% of employers compensate below $65,000.
d. 85% of employers compensate above $55,250.
35. Chapter 09-035

Which statement best describes the compa-ratio?
a. It is calculated by averaging the pay ranges in the

quartiles.
b. It is a measure of pay dispersion across employers.
*c. It is derived by dividing mean base pay by the
midpoint of the pay range.
d. It is a calculation based on average base pay for
each job.
36. Chapter 09-036

What does a compa-ratio of greater than 1 mean?

*a. Employees, on average, are being paid above the

midpoint in the pay range.
b. The majority of employees are in the first pay
quartile.
c. The firm is paying their employees in the bottom
half of the pay range.
d. The firm has only a minority of their employees in
the top pay bracket.
37. Chapter 09-037

What term describes the process of adjusting survey results
to account for the dated nature of compensation surveys,
while at the same time, taking into consideration potential
market increases in the following year?
a. benchmarking the data

*b. aging the data
c. data alignment
d. pay trending
38. Chapter 09-038

Which compa-ratio suggests that, on average, employees are
being paid above the mid-point of the range?
a. 0.01
b. 0.92
c. 1.00
*d. 1.03
40. Chapter 09-040

Which of the following is NOT a possible limitation of
compensation surveys?
*a. Free labour market data is not readily available.

b. We cannot surmise anything about compensation
strategies practised by other firms.
c. They may misrepresent actual pay trends.
d. Markets may not value jobs fairly.

Chapter 10
1. Chapter 10-001
The majority of medium to large Canadian firms use
performance appraisals.
*a. True
b. False
2. Chapter 10-002
Three main categories capture the primary reasons why
companies conduct performance appraisals: administrative,
symbolic, and supervisory.
a. True
*b. False
3. Chapter 10-003
Performance appraisals accurately reflect employeesâ€™
performance.
a. True
*b. False
4. Chapter 10-004
A major reason why performance appraisals may not work
effectively is that they are applied in circumstances that
are not appropriate.
*a. True
b. False
5. Chapter 10-005
Evidence appears to support the notion that supervisors
often have desired outcomes in mind before they start a
performance appraisal process.
*a. True
b. False

7. Chapter 10-007
The â€œbeauty effectâ€• is a rating error in performance
appraisals.
*a. True
b. False
8. Chapter 10-008
Including a self-appraisal component in the performance
appraisal process encourages employees to reflect on the
performance of peers.
a. True
*b. False
9. Chapter 10-009
The 360-degree feedback method usually gathers
data/information from three sources: subordinates,
supervisors, and at times, customers.
a. True
*b. False
10. Chapter 10-010

In an effort to â€œprovide something to everyone,â€•
organizations may lump merit pay and cost of living
increases together. This action dilutes the relationship
between merit pay increases and performance.
*a. True
b. False
11. Chapter 10-011

Which statement best summarizes the general sentiment
expressed by stakeholders in describing performance
appraisals in Canada?
a. Managers find the process much more worthwhile than

employees
b. A great majority of companies tend to pick one
process and stick with it over long periods of time
*c. Managers and employees have little faith that the
process leads to valid and reliable results

d. Employees are much more likely to embrace and find

the process valuable
12. Chapter 10-012

From your perspective as a compensation officer, what is
the most important category of reasons for doing
performance appraisals?
a. supervisory
*b. administrative
c. developmental
d. symbolic
13. Chapter 10-013

Karima's performance appraisal provided almost identical
results when six different managers evaluated her
performance. Which conclusion could you make about the
performance appraisal process experienced by Karima?
*a. It appears to be reliable; however, no conclusions

can be made about its validity.
b. It appears to be reliable; hence, is it also valid.
c. Issues of central tendency need to be addressed.
d. It appears to be a very effective process.
14. Chapter 10-014

Nathan has fabulous interpersonal skills. This causes
raters to ignore some of his weaknesses, which include time
management, technical, and leadership skills. Which
perceptual error is likely impacting Nathanâ€™s rating?
a. central tendency error

*b. halo error
c. leniency effect
d. contrast effect
15. Chapter 10-015

Which of the following is NOT an administrative reason for
doing performance appraisals?
a. to identify employees for merit pay

b. to identify employees for promotion
*c. to provide useful feedback to employees

d. to monitor the overall quality of performance of

the firm
16. Chapter 10-016

As a supervisor you have a tendency to rate all employees
as â€œaverageâ€• in everything. You are guilty of using
which perceptual error?
a. halo error
b. contrast effect
*c. central tendency error
d. recency effect
17. Chapter 10-017

Which performance appraisal method is congruent with a
management approach that dictates that no more than 15
percent of employees are to be rated as excellent,
commanding a top percentage increase in merit pay?
*a. forced distribution

b. paired comparison
c. behaviourally anchored rating scales
d. field review
18. Chapter 10-018

Which performance appraisal method could be described as
â€œwinâ€"lose,â€• creating a situation whereby in order to
improve his/her standing, an employee has to displace
another team or department member?
a. graphic rating scale

b. paired comparison method
*c. forced distribution
d. field review
19. Chapter 10-019

ABC Inc. uses â€œmystery shoppersâ€• to appraise staff at
its departmental stores. What type of performance appraisal
method is ABC Inc. using?
a. graphic rating scales

*b. field reviews
c. management by objectives

d. behavioural observation scales
20. Chapter 10-020

Which performance appraisal method builds on the
behavioural anchored rating scales by requiring that
management provide a â€œfrequency ratingâ€• associated with
positive behaviour?
a. behaviourally anchored rating scales

b. graphic rating scale
*c. behavioural observation scale
d. ranking and forced distribution
21. Chapter 10-021

A sales manager with a local coffee distributor sits down
with each salesperson at the beginning of the fiscal year
to determine performance targets for the year. Then, on a
regular basis, the manager reviews each employeeâ€™s
performance against these jointly determined targets. What
performance appraisal method is the manager likely using?
a. graphic rating scale

*b. management by objectives
c. results anchored rating scales
22. Chapter 10-022

XYZ Inc. appraises its employees on key traits such as
â€œinitiativeâ€•, on a scale of 1 to 6, with 1=inferior
performance and 6=outstanding. What method of performance
appraisals is XYZ Inc. using?
*a. graphic rating scales

b. management by objectives
c. behavioural anchored rating scales
23. Chapter 10-023

What two key elements make management by objectives a
highly effective approach to employee motivation?
*a. goals and feedback

b. trust and open communication

c. core competencies and engagement

d. involvement and business strategy
24. Chapter 10-024

Which statement associated with Management by Objectives
(MBO) is NOT accurate?
a. Goals should be determined jointly between a

manager and an employee
b. To be effective, goals should be realistic
*c. Broad general goals are congruent with the MBO
approach
d. Regular evaluation and feedback against targets is
critical
25. Chapter 10-025

What is NOT generally a source of employee performance
appraisals?
a. supervisors
*b. board of directors
c. subordinates
d. professional raters
26. Chapter 10-026

Which statement best describes peer evaluation ratings?
*a. Peers tend to be more lenient than superiors

b. Peers tend to be less lenient than superiors
c. There is no difference between peer and superior
ratings
d. Peer ratings are the most valid of the sources of
appraisals
27. Chapter 10-027

According to research cited in the textbook, which
appraisal source is used by the majority of Canadian
employers?
a. supervisory and self-appraisals

*b. only supervisory appraisals
c. 360-degree feedback
d. supervisory, self, and peer appraisals

28. Chapter 10-028

A particular organization uses a forced ranking system to
appraise employees. As a peer appraiser, why might an
employee be tempted to give colleagues a low rating?
a. Rating errors can be balanced out

*b. A limited amount of merit pay is available
c. Conflict and ill will among peers is reduced
d. You can all benefit if you rate each other low
29. Chapter 10-029

Which statement best describes self-appraisals?
a. They tend to be deflated

*b. They tend to be inflated
c. Poor performers tend to deflate their ratings the
most
d. Self-appraisals are of high value for pay purposes
30. Chapter 10-030

Which source is much less accurate in assessing the
performance of managers?
a. peers
b. professional raters
*c. subordinates
d. supervisors
31. Chapter 10-031

Which source of appraisals can be expected to work well
only in classical organizations?
a. peers
*b. supervisors
c. self
d. subordinates
32. Chapter 10-032

Kam tends to demonstrate behaviours that are
counterproductive to strong work performance. Which
appraisal method would most likely provide the most
inaccurate ratings?

a. peer
*b. self
c. subordinate
d. supervisor
33. Chapter 10-033

Which source uses many different rating groups to evaluate
the employeeâ€™s performance?
a. professional raters
b. tiered supervisors
*c. 360-degree feedback
d. field review
34. Chapter 10-034

Which statement would you NOT associate with a
multisource/360-degree feedback process?
a. They tend to be seen by recipients as fair

b. They are more accurate than single-source processes
*c. They tend to be more effective when results are
linked to merit pay
d. They are more credible to the recipient
35. Chapter 10-035

What is NOT a key element of performance management?
a. goal setting
b. encouragement and support
c. feedback
*d. multisource input
36. Chapter 10-036

Which statement does NOT accurately describe performance
management?
a. Goal setting is central to its application

*b. Although 90 percent or more of Canadian companies
use some performance management process, only 10
percent find it â€œeffective or very effectiveâ€•
c. It tends to work best in organizations using a
high-involvement or human relations strategies

d. Development of benchmarks that are valid and

reliable is critical
37. Chapter 10-037

Many organizations do not offer merit raises to employees
who are at the top of their pay ranges. This can cause
morale problems for these employees. What is a potential
solution to this issue?
a. Cut pay for employees who are below the top of the
pay range
*b. Give merit bonuses to the affected employees
c. Re-evaluate the performance appraisal methods
d. Increase minimum pay for all employees
38. Chapter 10-038

Senior management decides how much money will be available
for merit pay against performance metrics identified at the
beginning of the fiscal year, and then distributes those
funds across departments. Which approach has senior
management used to determine the total amount of money
available for merit pay?
*a. top-down
b. across the board
c. organizational performance indicators
d. bottom-up
39. Chapter 10-039

What is the first issue to decide when designing a merit
pay system?
*a. the objectives of the system

b. the amount of money to be distributed
c. how appraisals will be linked to pay
d. the methods to appraise employee performance
40. Chapter 10-040

There are several critical issues that need to be addressed
in designing an effective merit system. According to the
textbook, which of the following is NOT identified as a
critical issue?

a. ultimate goal(s) of the merit system

b. process for training evaluators
c. manner in which feedback will be provided
*d. process that ensures equal increases across
employee job ratings

Chapter 11
1. Chapter 11-001
In order for the Scanlon plan to work, organizations must
be able to predict future cost of inputs, particularly
labour.
a. True
*b. False
2. Chapter 11-002
The Scanlon Plan helps in the development of a cooperative
relationship among workers, unions, and management.
*a. True
b. False
3. Chapter 11-003
The Scanlon plan has changed over the years. A central
reason for these changes is the notion that employees can
reduce labour input as a function of output by increasing
other costs.
*a. True
b. False
4. Chapter 11-004
Gain sharing is not a viable plan to use if no valid
historical benchmark can be set.
*a. True
b. False
5. Chapter 11-005
Goal-sharing plans have increased in popularity over the
last decade.
a. True
*b. False

6. Chapter 11-006
Employee participation is not necessarily a component of
goal-sharing plans.
*a. True
b. False
7. Chapter 11-007
Financially funded plans combine at least two criteria in
establishing goal-sharing bonuses. Often, one of those
variables is organizational profitability, making such
plans highly motivational to employees.
a. True
*b. False
8. Chapter 11-008
Deferred profit-sharing plans are often used as quasi
pension plans, particularly in medium-sized companies.
*a. True
b. False
9. Chapter 11-009
A phantom stock plan ties an employeeâ€™s bonus to the
performance of company stock, but that employee never
actually receives any stock.
*a. True
b. False
10. Chapter 11-010

Research supports the notion that if adequate monetary
compensation is in place, coupled with an open and
supportive managementâ€"employee environment, nonmonetary-
based recognition tends to offer little value to
stakeholders.
a. True
*b. False

11. Chapter 11-011

Which gain-sharing plan requires that management has access
to historical data so as to be able to calculate a so-
called â€œnormal labour costâ€•?
a. Rucker plan
b. family of measures plan
*c. Scanlon plan
d. Improshare plan
12. Chapter 11-012

Working as a human resources compensation specialist for a
manufacturing company, you become concerned employees will
attempt to reduce labour costs â€œby any meansâ€• so as to
enhance available bonuses via the companyâ€™s gain-sharing
plan. This behaviour may potentially lead to more work-
related accidents or dissatisfied customers. What would you
do to mitigate this reduction in labour costs due to â€œby
any meansâ€• mentality?
a. Expand the pool.

*b. Introduce a modifier.
c. Use a Scanlon plan.
d. Introduce a â€œtop hatâ€• program.
13. Chapter 11-013

Which plan does NOT make employee involvement an important
part of the system?
a. Rucker
b. Scanlon
*c. Improshare
d. family of measures
14. Chapter 11-014

A management report identified the following labour usage
ratios for a window manufacturer in Richmond, British
Columbia: 1.4 hours of labour per window in 2015; 1.25
hours of labour per window in 2016. Management makes the
arbitrary decision to set next yearâ€™s gain-sharing cutoff
at 1.325 labour hours per window (the average of the 2015
and 2016 figures). Which gain-sharing plan is management
using?

a. Scanlon plan
b. family of measures plan
c. Rucker plan
*d. Improshare plan
15. Chapter 11-015

Which of the following is NOT an issue to be considered
when designing a gain-sharing plan?
a. deciding on the split among employees

*b. deciding on the share price
c. deciding on the frequency for payout
d. developing procedures for communicating results
16. Chapter 11-016

In designing gain-sharing plans, why is there a need to
decide on the historical baseline against which to compare
productivity?
*a. to determine whether real productivity gains

actually occurred
b. to satisfy the unions
c. to allow for flexibility
d. to increase employee participation
17. Chapter 11-017

The authors identified eight major issues that should be
considered when designing a gain-sharing plan. Which
potential issue is NOT identified by the authors of the
textbook?
a. making a decision on the bonus plan

b. making a decision on frequency of payouts
*c. making a decision to use a fixed or discretionary
plan
d. making a decision on how to communicate results
18. Chapter 11-018

Which condition makes a gain-sharing plan NOT viable and
requires you to consider another option?
*a. No valid historical benchmark can be set.

b. Employee involvement is not an integral part of the

system.
c. The plan involves large expenditures to implement.
d. Employees receive only 50 percent of the share.
19. Chapter 11-019

Which of the following is NOT associated with gain-sharing
plans?
a. cooperation between employees and management

b. teamwork among employees
c. equality in gains
*d. individual rewards
20. Chapter 11-020

Which bonus allocation method best supports the philosophy
of gain sharing?
*a. Everyone receives an equal share after minor

adjustments are made for time worked.
b. Higher performers receive a greater share.
c. Higher-paid employees receive a greater share.
d. Part-time and newly hired employees receive
nothing.
21. Chapter 11-021

You have been tasked with providing management with a list
of factors distinguishing goal-sharing plans from gain-
sharing plans. Which of the following should NOT be
included in your list?
a. Both have lost popularity in recent years.

b. Goal-sharing plans typically include several levels
of attainment.
*c. Goal-sharing plans quantify cost savings and then
share those benefits with both employees and the
company using a fixed formula.
d. Both require that management identify the group
participating in the plan.
22. Chapter 11-022

What is NOT a necessary component of goal-sharing plans?

*a. employee participation

b. performance goals
c. bonus payouts
d. achievement levels
23. Chapter 11-023

Human resource professionals have identified three types of
goal-sharing plans. Which of the following is NOT one of
those types?
*a. standard plus plans

b. single-goal plans
c. multi-goal plans
d. financially funded plans
24. Chapter 11-024

What is generally NOT considered in allocating the bonus in
goal-sharing plans?
a. seniority
b. salary
*c. organizational performance
d. individual performance
25. Chapter 11-025

A group of farm workers normally pick 10,000 kilograms of
cherries during a regular eight-hour shift. The operations
manager decides to provide each picker in the group with a
meaningful monetary reward if the farm workers are able to
meet a new â€œstretch goalâ€• of 12,500 kilograms per
eight-hour shift. Which term best describes this new
â€œstretch goalâ€•?
a. standard plus
*b. goal plus
c. goal level
d. red circle plus
26. Chapter 11-026

Your company has decided to distribute a goal-sharing bonus
according to the salary levels of employees. What is likely
to be a natural outcome of this decision?

a. It discourages free riding by some employees.

b. It is the most egalitarian distribution method.
*c. It maintains the same proportion of goal-sharing
compensation in the compensation mix for all
employees.
d. It adjusts for actual time worked during bonus
period.
27. Chapter 11-027

In which type of organization is profit-sharing the most
common?
*a. high-involvement
b. human relations
c. defender
d. classical
28. Chapter 11-028

As a medium-sized company owner, you believe that it is
morally just that employees receive a portion of the
profits they help generate, and you want to provide them
with some form of pension plan. Which type of plans should
you consider using?
*a. deferred profit sharing

b. share appreciation rights
c. registered retirement savings
d. current distribution
29. Chapter 11-029

ABC Ltd. generated one million Canadian dollars in profits
this year. ABC Ltd. decides to place 200,000 Canadian
dollars (20 percent of pre-tax profits) in a bonus pool. In
previous years, this figure has ranged from zero to 50
percent of pre-tax profits. What type of formula is ABC
Ltd. using to determine contributions into the pool?
a. fixed percentage
b. fixed threshold
*c. discretionary
d. percentage approach

30. Chapter 11-030

According to research on Canadian firms, which employees
are included in the profit-sharing plan in the majority of
cases?
a. all full-time and part-time employees

b. non-unionized employees only
c. designated employees only
*d. all full-time employees
31. Chapter 11-031

What is the least common basis for allocating profit-
sharing bonuses across employees in Canadian firms?
a. seniority
b. individual performance
c. salary level
*d. equal distribution across all employees
32. Chapter 11-032

Which statement does NOT accurately describe a profit-
sharing plan?
a. For motivational reasons, fixed formula profit-

sharing plans are recommended.
*b. Stock bonus plans provide employees with the right
to purchase shares in the future at a fixed price.
c. Deciding the split is an important issue in gain-
sharing plans.
d. A key issue in designing profit-sharing plans is
the form of the bonus payout.
33. Chapter 11-033

Management decides to allocate 1,000 shares to a particular
employee at a market value of $50.00 per share under a
share appreciation rights plan. One year later, the value
of these shares has increased to $65.00. How many shares
would this employee actually receive as a bonus at the end
of the year?
a. 15.4 shares
b. 20 shares
*c. 230.8 shares
d. 1,000 shares

34. Chapter 11-034

Which group has historically had the most access to stock
options?
*a. top executives

b. human resource managers
c. full-time employees
d. unionized employees
35. Chapter 11-035

Which statement does NOT accurately describe employee share
purchase plans?
*a. Employees receive shares at no cost to themselves,

usually as a bonus.
b. Employees provide a direct payment of some sort in
exchange for the shares.
c. Often the price employees pay for the shares is
less than market value.
d. Often employers will match the amount of shares
purchased by the employee up to a set limit.
36. Chapter 11-036

Which statement best explains a phantom stock plan?
*a. Although their bonus is tied to the performance of

company stock, the employees never receive any stock.
b. Rewards are based on the stock performance of
client firms.
c. Employees are awarded stock at no cost to
themselves.
d. Employees can purchase stock at a fixed price
within a set period of time.
37. Chapter 11-037

An employer issues Johnny 2,000 stock options in
recognition of a very good year. These particular options
vest after 24 months from the date of issuance with an
exercise price of $21.00 per share. After 24 months, these
shares trade in the open market at $25.00 per share, and
Johnny decides to exercise his 2,000 options, generating a
gain of $8,000 (minus transaction fees). Which statement

best describes Johnnyâ€™s tax situation pursuant to these

gains?
a. Because these options were a bonus provided by the

employer, there are no tax consequences attributable
to Johnny.
b. Because these shares are â€œunder water,â€•
Johnnyâ€™s employer is responsible for any taxes on
the gains.
c. Johnny will have to pay taxes based on the
corporate tax rate.
*d. Johnnyâ€™s gain will be deemed as income, but
taxes will be paid at the capital gains rate.
38. Chapter 11-038

Full-time employees at ABC Company are given the
opportunity to purchase company stock at a future time at a
fixed price. What type of performance-based pay is ABC
Company using?
*a. stock option plan

b. stock purchase plan
c. stock bonus plan
d. phantom share plan
39. Chapter 11-039

What is NOT the â€œbest practiceâ€• when designing
nonmonetary reward plans?
a. For large organizations, the usage of an elected

committee of employees and managers should be
considered when providing significant rewards to
employees.
b. A champion or group of champions should be
considered to keep the program â€œalive.â€•
*c. Whenever possible, reward only those employees in
the top 10 percent.
d. Whenever possible, all deserving employees should
be recognized.
40. Chapter 11-040

Which of the following is NOT an example of a nonmonetary
award?

*a. stock bonuses

b. a pat on the back for a job well done
c. a company picnic
d. an all-expenses-paid holiday

Chapter 12
1. Chapter 12-001
Life insurance is among the top three nonmandatory benefits
offered by Canadian firms with at least 10 employees.
*a. True
b. False
2. Chapter 12-002
Deferred profit-sharing plans tend to be classified as
â€œcontributory benefits.â€•
a. True
*b. False
3. Chapter 12-003
Defined contribution plans ultimately transfer retirement
income risk from the employer to the employee.
*a. True
b. False
4. Chapter 12-004
It is not cost effective having employers purchase dental
coverage on behalf of their employees instead of the
employees themselves.
a. True
*b. False
5. Chapter 12-005
A force promoting flexible benefits plans is the increasing
diversity of the work force.
*a. True
b. False
6. Chapter 12-006
A force hindering flexible benefits plans is loss of
economies of scale in the purchase of benefits.

*a. True
b. False
7. Chapter 12-007
Defined contribution plans are riskier for employees versus
defined benefit plans.
*a. True
b. False
8. Chapter 12-008
Firms with pension plans have higher turnover rates among
employees.
a. True
*b. False
9. Chapter 12-009
One drawback associated with outsourcing routine benefits
administration is the notion that employers will begin to
lose touch with benefit needs and issues important to
employees.
*a. True
b. False
10. Chapter 12-010

Research shows that satisfaction with a benefits plan
declines as employees learn more about it.
a. True
*b. False
11. Chapter 12-011

Which nonmandatory major benefit is the most common among
Canadian organizations with 10 or more employees?
*a. life insurance

b. supplemental unemployment benefits
c. formal pension plans
d. group RRSPs

12. Chapter 12-012

For most organizations, what component of its benefits
package is second only to mandatory benefits in terms of
cost for an organization?
a. employment assistance programs

b. wellness and recreational plans
*c. retirement plans
d. pay for time not worked plans
13. Chapter 12-013

Which of the following is NOT a government-regulated
benefit?
*a. outplacement services

b. rest breaks
c. vacation time
d. statutory holidays
14. Chapter 12-014

Which variable is NOT used to determine the income level
provided to employees upon retirement under a â€œdefined
benefit programâ€•?
a. some variable (percentage) of the average income

over a certain period of time, usually three to five
years
*b. the companyâ€™s profit level over a period of
three to five years
c. employeesâ€™ years of service
d. employeesâ€™ salary level
15. Chapter 12-015

Keenan has worked for a local company for the last 25
years. Upon retirement, Keenan has been guaranteed a salary
of $2,000.00 per month under the companyâ€™s retirement
plan. What kind of retirement benefit program is this
company using?
a. defined contribution plan

b. tax-deferred plan
*c. defined benefit plan
d. registered retirement savings plan

16. Chapter 12-016

As a result of a recent human resource audit, it was
determined that a particular company has an â€œunderfund
liabilityâ€• associated with its retirement plan, requiring
an immediate injection of cash. What type of pension plan
or retirement plan is this company likely using?
a. hybrid flexible plan

b. registered retirement savings plan (RRSP)
c. mandatory retirement plan
*d. defined benefit plan
17. Chapter 12-017

Which variable has NOT caused Canadian organizations to
move away from pensions that have defined benefits?
a. inflationary pressures during the early 1980s

*b. tax issues associated with the manner in which
pension plans are funded
c. market returns associated with pension funds
d. rising life expectancies of employees
18. Chapter 12-018

Which of the following are all Canadians entitled to?
*a. Old Age Security

b. defined pension plans
c. defined contribution plans
d. deferred profit-sharing plans
19. Chapter 12-019

Which term refers to a company pension plan that guarantees
a certain benefit to retirees regardless of market
conditions?
*a. defined benefit plan

b. money purchase plan
c. defined contribution plan
d. Canada Pension Plan
20. Chapter 12-020

As a member of the companyâ€™s defined benefit plan,
employees receive a pension based on one percent of the

average of their best three yearsâ€™ earnings for each year

of service. What will be your annual pension if you retire
after 30 years of service and have averaged $50,000 per
year during your three best years?
*a. $15,000
b. $28,000
c. $30,000
d. $50,000
21. Chapter 12-021

Which of the following is NOT a mandatory benefit?
a. Canada Pension Plan

*b. defined benefit pension plans
c. workersâ€™ compensation
d. employment insurance
22. Chapter 12-022

From a funding obligation perspective, why do employers
prefer to use a defined contribution pension plan?
*a. Liability is limited to the amount placed into the

plan.
b. Actuarial predictions are made easier.
c. Pensioners are guaranteed a fixed sum of money.
d. This avoids â€œunderfundedâ€• plans.
23. Chapter 12-023

Which statement best describes pension plans in Canada?
a. Defined contribution plans have been decreasing.

*b. Defined contribution plans have been increasing.
c. Hybrid plans have been decreasing.
d. Defined benefit plans have not changed in terms of
their use.
24. Chapter 12-024

From an employeeâ€™s point of view, what advantage do
defined contribution plans have over defined benefit plans?
a. The employer assumes the risk of investments.

*b. They tend to be more portable.

c. They provide a higher pension for those who join

the company later in life.
d. Risk is averaged over a large group of employees.
25. Chapter 12-025

Life and accident insurance is almost always included in
benefit plans. Which statement does NOT accurately describe
life and accident insurance?
a. Often a spouse or partner may be included under the

coverage.
b. Coverage amounts may be increased at the
employeeâ€™s expense, or on a cost-sharing basis.
c. Often the coverage is based on a multiple of the
employeeâ€™s annual salary.
*d. Recent changes to the tax code have made group
life insurance products much more tax-friendly to
employees.
26. Chapter 12-026

Teresa has a dental plan through her employer. Recently,
she has undergone dental work costing the plan $2,500.
Luckily for Teresa, this particular dental work was covered
completely by her dental plan. What are the tax
consequences as a result of Teresa not having to pay for
the dental work?
a. Her employer will add the $2,500 as an expense in

their income statement.
b. She will have to include the $2,500 as additional
income.
*c. There are no tax consequences at all as benefits
are tax-free.
d. Teresa will have to claim half of the benefit as
income.
27. Chapter 12-027

Which term usually describes severance packages for
executives?
a. RRSPs
b. termination benefits
*c. golden parachutes
d. just cause severance

28. Chapter 12-028

Which type of employee services are free onsite massages
during peak times, fitness club memberships, and Internet
stations in lounge areas examples of?
a. workâ€"life balance
b. outplacement services
c. employee assistance programs
*d. wellness and recreational
29. Chapter 12-029

Which benefit will reinforce your strong commitment to
helping your employees in balancing work and personal
activities?
a. group banking package discount rates

*b. paid time off for community service
c. subsidized meals and free hot drinks
d. computer purchase plan
30. Chapter 12-030

What is usually NOT considered by courts in establishing
awards relating to notice periods or severance in lieu of
notice?
a. whether some element of enticement was involved

b. the likelihood that the employee will secure
employment quickly
c. the employeeâ€™s age
*d. the employeeâ€™s gender
32. Chapter 12-032

Which plan allows you to tailor your benefit plan to suit
your needs and even trade off benefits that are not
important to you?
a. health care spending accounts

b. simplified flex plan
*c. flexible benefits plan
d. fixed benefits plan

33. Chapter 12-033

What is NOT a possible reason for implementing flexible
benefit plans?
a. cutting benefit costs

b. developing a more diverse work force
*c. lowering overall administrative costs
d. shifting employee perspective away from an
entitlement approach
34. Chapter 12-034

Firms with flexible benefit plans may enjoy a competitive
advantage in terms of recruitment. What is the likely
reason for this?
a. Flexible plans can lower administrative costs.

*b. Prospective employees may find the idea of
choosing their benefits appealing.
c. Flexible plans enjoy economies of scale.
d. Flexible plans imply higher wages.
35. Chapter 12-035

What is the first issue in developing an effective benefit
system?
a. determining the tax implications

b. examining the compensation cost structure of the
organization
c. establishing the administration process
*d. determining the role of indirect pay in
compensation strategy
36. Chapter 12-036

Which of the following is NOT an issue in establishing an
indirect pay system?
*a. determining the role of employee performance in

establishing benefits
b. choosing a process for plan design
c. choosing the benefits system and specific benefits
d. determining the structure of each benefit

37. Chapter 12-037

Experts will support the notion that employee participation
in the process of designing a benefits plan is highly
desirable. Which goal do experts NOT identify as a positive
outcome of having employee involvement?
a. better understanding of needs

b. support mechanism in communicating the plan
c. increased level of acceptance
*d. decreased overall plan costs
38. Chapter 12-038

What is NOT a consideration in deciding whether to include
a particular benefit in indirect pay?
a. whether it contributes to the objectives of

indirect pay
*b. whether or not there is a union
c. whether it is valued by employees
d. whether it adds much net value to the compensation
package
39. Chapter 12-039

Which statement best describes benefits for full-time
versus part-time employees in Canada?
*a. Most jurisdictions do not legally require firms to

have the same benefits for full-time and part-time
employees.
b. Most firms have the same benefits for both
categories of employees, regardless of the law.
c. All employees who work more than 20 hours a week
are entitled to nonmandatory benefits.
d. All employees who work more than 25 hours a week
are entitled to nonmandatory benefits.
40. Chapter 12-040

Which process of evaluating benefits systems considers the
net benefits associated with a particular benefit system?
a. competitive analysis
b. cost break-even analysis
*c. cost analysis
d. employee surveys


Chapter 13
1. Chapter 13-001
In the bottom-up approach to compensation budgeting, a
budgeted amount is allocated to compensation and given to
department managers for distribution to their employees.
a. True
*b. False
2. Chapter 13-002
A compensation budget is a forecast of what the firm
expects to spend on compensation in the coming year.
*a. True
b. False
3. Chapter 13-003
Of all the human resource functions, payroll activities
were one of the first functions to be computerized in
medium and large organizations in Canada.
*a. True
b. False
4. Chapter 13-004
Because of complexity and resistance by stakeholders,
computers have taken on a secondary role in communicating
compensation policies and procedures.
a. True
*b. False
5. Chapter 13-005
Information technology is particularly useful for pay and
remittance calculations.
*a. True
b. False

6. Chapter 13-006
Organizations frequently outsource a portion of their
benefits administration to "product providers."
*a. True
b. False
7. Chapter 13-007
The more strategic the compensation system is to the
organization, the more it should be outsourced.
a. True
*b. False
8. Chapter 13-008
To avoid resistance to a new compensation system, it is
best to discontinue use of the old system before fully
testing the new system. Otherwise, employees will gravitate
to the old and familiar system.
a. True
*b. False
9. Chapter 13-009
Research suggests that employee satisfaction with their
compensation is directly related to their understanding of
the compensation system.
*a. True
b. False
10. Chapter 13-010

In evaluating a new compensation system, two main sets of
employee attitudes should be examinedâ€"job attitudes and
compensation attitudes.
*a. True
b. False
11. Chapter 13-011

Your organization has asked you to prepare a compensation
budget by taking into account the following variables:

current employeesâ€™ wages, anticipated merit increases,

seniority increases, as well as expected turnover. What
kind of compensation budgeting process is your organization
using?
a. zero-based
b. top-down
*c. bottom-up
d. break-even
12. Chapter 13-012

Which statement best describes outsourcing among Canadian
firms?
*a. Outsourcing of HR functions is on the decline.

b. Outsourcing of HR functions is increasingly used.
c. Larger firms outsource their HR functions more than
smaller firms.
d. Outsourcing does not offer any benefits
13. Chapter 13-013

What would a human resource professional consider to be a
necessary part of documenting the compensation system?
*a. ensuring stakeholders have up-to-date job

evaluation manuals
b. deciding to use an external service provider
c. designing job evaluation criteria that are valid
and reliable
d. deciding on the compensation strategy
14. Chapter 13-014

Which of the following is NOT a component of compensation
administration?
a. collecting the necessary information

b. performing pay calculations
*c. establishing accountability
d. preparing and distributing remittances
15. Chapter 13-015

What is NOT an advantage of outsourcing the compensation
function?

a. cost savings from economies of scale

b. expertise provided by outside personnel
c. in-house managers may be able to spend more time
focusing on strategic issues
*d. increased internal capacity to understand the
compensation system
16. Chapter 13-016

What is a major issue for most organizations when planning
for information technology?
a. whether to use computers

b. whether to use consultants
*c. how advanced the system should be
d. whether to protect employee privacy
17. Chapter 13-017

When does communication occur in compensation
communications?
*a. not until understanding passes from the sender to

the receiver
b. once the communication tool, such as a podcast, is
launched
c. only after evaluations prove that the
communications were effective in increasing employee
satisfaction
d. not until employee attitudes are changed
18. Chapter 13-018

You are a human resource professional at a large accounting
firm in Ontario. Part of your mandate requires that you
investigate processes that will streamline basic human
resource functions, such as remittance of pay stubs to
employees. You are currently thinking about automating this
process. What are the minimum requirements you must meet in
order to make this process compliant with Bill 88
(Electronic Commerce Act)?
a. Make the statements available via the companyâ€™s

intranet to employees.
b. Send out a quarterly summary to each employee via a
â€œpersonalized email,â€• and make the biweekly stubs
available via the Intranet.

c. It is impossible to be compliant with the act while

automating the process.
*d. On a biweekly basis, send out the statements to
each employee via the companyâ€™s email platform.
19. Chapter 13-019

You work in a human resource department and have access to
the personal health information of employees. A front line
manager contacts you and requests that you look at an
employeeâ€™s file and let them know if there are any health
issues that could explain an employeeâ€™s â€œbizarre
behaviourâ€• (the employee seems extremely quiet). Which of
the following actions should you take, so as to be
compliant with Bill C-6 (PIPEDA)?
a. Email the file to the manager but scrub it so only

information that may be related to the â€œbizarre
behaviourâ€• is included.
b. Email the employeeâ€™s file to the manager,
including any health-related information you may have.
*c. Do not share any health-related information with
the manager, even if they tell you they are going to
escalate the request.
d. Email the requested information but tell the
manager not to share it with anyone.
20. Chapter 13-020

According to a recent survey of HR professionals, what is
the predominant use of human resources management systems?
a. planning and research

b. time and attendance
*c. payroll
d. benefits
21. Chapter 13-021

Which statement does NOT support the notion of outsourcing
some human resource functions to third-party service
providers?
*a. It provides internal staff with a better sense of

issues facing employees.
b. It reduces costs.

c. It leverages the specialized knowledge of external

experts.
d. It allows internal staff to focus on strategic
human resource activities.
22. Chapter 13-022

Which factor is NOT normally a consideration when
organizations make the decision to outsource human resource
functions?
a. size of the organization

*b. activities competitors are undertaking with their
human resource functions
c. level of internal expertise
d. strategic role played by compensation in the
organization
23. Chapter 13-023

What is NOT a key aspect in implementing the compensation
system?
a. putting infrastructure in place

b. testing the system
*c. conducting job evaluations
d. conducting training
24. Chapter 13-024

A training process is critical to the launch of a new
compensation system. The textbook identifies three groups
of stakeholders that should be trained so as to facilitate
the introduction of an effective compensation system. Which
stakeholder should have very detailed system knowledge?
a. recruiters and secretarial personnel

b. front-line supervisors and managers
*c. support personnel in the human resource department
d. all customer-facing employees
25. Chapter 13-025

Which statement does NOT accurately describe developing a
communication plan to introduce a new compensation system?

a. Employees need to know the rationale behind the

change.
b. Ensure it is an on-going process; communicate
often.
c. Various modes of communications should be used.
*d. It is often a recipe for failure if frontline
managers are told of impending changes early in the
process.
26. Chapter 13-026

Which of the following is NOT one of the steps in
implementing the compensation system?
a. Establish the implementation task forces.

*b. Decide on the compensation level.
c. Test the system.
d. Conduct the training.
27. Chapter 13-027

Why is it useful to conduct surveys of key employee
attitudes before system implementation?
a. to provide information about the new system

*b. to have a baseline for future comparisons
c. to solicit recommendations for changes
d. to create perception of employee involvement
28. Chapter 13-028

Which statement does NOT accurately describe compensation
communication?
a. Employers may be found legally liable for poor

benefits communication.
b. Two-way communication is extremely important.
c. The move towards defined contribution plans has
increased the need for effective communication.
*d. Employees who understand their compensation system
are less satisfied with it.
30. Chapter 13-030

Which statement does NOT accurately describe the act of
evaluating the compensation system?

a. Most organizations donâ€™t even try to evaluate

their systems.
b. A slipshod attempt at evaluation may do more harm
than good.
*c. Compensation costs below budgeted levels should
make you happy.
d. If the budget was not realistic in the first place,
comparisons are meaningless.
31. Chapter 13-031

What is the logical time for the first evaluation of the
a. immediately after implementation

*b. six months after implementation
c. one year after implementation
d. two years after implementation
32. Chapter 13-032

A particular company notices that performance, as measured
by the accuracy of entries by managers in a new human
resource management system, decreased during the early
stages of launch. What phenomenon may account for this
decrease in performance?
a. socialization
*b. initial dip
c. integration
d. freedom to act
33. Chapter 13-033

What main indicators should firms examine in the process of
examining compensation costs?
a. budgeted costs and actual costs

b. compensation cost ratios and budget ratios
c. net profit per employee and average employee
earnings
*d. compensation cost ratios and average employee
earnings

34. Chapter 13-034

Which employee attitude towards the compensation system
should be evaluated?
*a. satisfaction with the process by which

compensation is determined
b. work motivation
c. job satisfaction
d. organizational identification
35. Chapter 13-035

When evaluating a new compensation system, you notice that
the compensation cost ratio increased, while total
compensation or average earnings remained static. What is a
likely explanation?
a. All employees have received some kind of raise.

*b. Total costs and/or revenues have decreased.
c. Benefits have been removed from total compensation.
d. There is an error in the data; this situation is
not possible.
36. Chapter 13-036

Which change to the compensation system is likely to be
triggered by an aging workforce?
a. more vigorous job evaluations

b. more focus on tuition reimbursements
*c. more focus on pension plans
d. increased pay equity
37. Chapter 13-037

Katrina works at a factory assembling plastic toys. She
prides herself in producing the most units with the lowest
rejection rates. What kind of behaviour is Katrina
displaying?
a. loyalty
b. citizenship
c. membership
*d. task

38. Chapter 13-038

As a result of focusing your recruitment efforts on
attracting recent university graduates, your workforce has
become younger. What impact does this change have on your
a. It needs greater focus on pension plans and

retirement income.
*b. It needs to offer more cash and family benefits.
c. It needs to adopt a job evaluation system.
d. It needs to adopt a new managerial strategy.
39. Chapter 13-039

Given changes in financial circumstances of an
organization, senior management requests recommendations
geared towards containing compensation costs. What would
NOT be a recommendation that you would bring forward?
a. Enact a hiring freeze.

b. Contain benefit costs.
c. Replace some raises with bonuses.
*d. Replace variable pay with fixed pay.
40. Chapter 13-040

A good employee threatens to leave your firm because she
has received a higher pay offer from a competitor. The
offer is well outside your companyâ€™s pay range for the
job the employee is performing. What should you tell the
employee?
a. You will match the other offer.

b. You will beat the other offer to be sure you
wonâ€™t lose her.
c. You will try to get her job put into a higher pay
grade.
*d. You wish her all the best in her new job with the
competitor.

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Strategic Compensation in Canada,

7e Parbudyal Singh, Richard Long

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10. Chapter 01-010

11. Chapter 01-011

a. Canadian firms spend 50 to 80 percent of their

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12. Chapter 01-012

a. They focus on factors inherent in the work itself-the job content.

13. Chapter 01-013

14. Chapter 01-014

a. take-home pay of employees

15. Chapter 01-015

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16. Chapter 01-016

*a. performance pay

17. Chapter 01-017

a. the means through which performance bonuses are

18. Chapter 01-018

19. Chapter 01-019

a. Intrinsic rewards focus on increasing an

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20. Chapter 01-020

a. the mix of intrinsic and extrinsic rewards

21. Chapter 01-021

22. Chapter 01-022

a. interesting and meaningful work

23. Chapter 01-023

24. Chapter 01-024

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employees cite boredom as the primary cause for leaving

a. providing a pension option and offering a

25. Chapter 01-025

a. Extrinsic rewards are more important than intrinsic

26. Chapter 01-026

a. The reward system is the blueprint for creating the

27. Chapter 01-027

*a. employee benefits

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28. Chapter 01-028

*a. better services and benefits

29. Chapter 01-029

*a. the role that compensation will play in the reward

30. Chapter 01-030

*a. The various combinations of intrinsic and

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31. Chapter 01-031

a. A competitive base pay and incentives are offered.

32. Chapter 01-032

*a. It adds the most value to the organization after

33. Chapter 01-033

a. Organizations should keep wages low.

34. Chapter 01-034

*a. understanding your organization and your people

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d. implementing, managing, evaluating, and adapting

35. Chapter 01-035

a. It is realistic to expect that a reward system will

36. Chapter 01-036

a. developing new job descriptions and performance

37. Chapter 01-037

a. Corporations are contracting out most human