HRM-CHAPTER 7

1) Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment?

• A) salary

• B) employee benefits

• C) wage reimbursement

• D) employee compensation

2) Which of the following is NOT a type of direct financial payment?

• A) wages

• B) insurance

• C) incentives

• D) commissions

3) Which of the following terms refers to pay in the form of financial benefits, such as insurance?

• A) direct financial payments

• B) out-of-pocket expenses

• C) indirect financial payments

• D) sales commissions

4) John is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a 5% commission for every sale he makes. Which of the following terms best describes John's situation?

• A) pay for performance

• B) indirect financial compensation

• C) time-based compensation

• D) piecework pay

5) Which of the following terms refers to a compensation plan that advances a firm's strategic goals?

• A) strategic management

• B) performance pay plan

• C) aligned reward strategy

• D) workers' compensation package

6) What theory of motivation states that people are strongly motivated to maintain a balance between what they perceive as their contributions and their rewards?

• A) Two-factor theory

• B) Equity theory

• C) Learned needs theory

• D) Expectancy theory

7) Which of the following is NOT one of the forms of equity related to compensation issues?

• A) group

• B) external

• C) individual

• D) procedural

8) Which form of equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies?

• A) distributive

• B) internal

• C) external

• D) procedural

9) Which form of equity refers to the fairness of a job's pay rate in comparison to other jobs within the same company?

• A) external

• B) internal

• C) distributive

• D) individual

10) Which form of equity refers to the fairness of an individual's pay as compared with what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual's performance?

• A) internal

• B) distributive

• C) individual

• D) procedural