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P | M04 CB Pre-exam

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

What is the compa-ratio for an employee who earns $15 per hour where the salary range has a midpoint of $12 per hour?

a)

0.03

b)

0.80

c)

1.25

d)

1.35

2.

Beth, a small business owner, wants to ensure external equity when establishing pay rates. Beth should most likely ___________ .

a)

use wage curves to price each pay grade

b)

compare performance appraisals

c)

conduct a salary survey

d)

check online pay sites

3.

What are the two main categories of financial rewards?

a)

Compensation and work/life balance

b)

Employee benefits and career development

c)

Direct (monetary) and indirect (benefits)

d)

Training and employee benefits

4.

Which of the following is a long-term pay policy that can protect jobs and control labor costs by linking compensation to production?

a)

Internships

b)

Overtime pay

c)

Profit sharing

d)

Early retirement

5.

Above-market compensation policies are more likely to:

a)

create an impression of innovation and success.

b)

improve employee morale and reduce employee turnover.

c)

affect employee cooperation more than any other business policy.

d)

reduce barriers between people who need to work closely together.

6.

Keith works as a construction foreman, and he is viewed as a reliable, competent employee. Keith was recently injured in a car accident while on vacation, and his injuries are so severe that he will not be able to return to work. Which of the following would most likely provide Keith with benefits?

a)

group life insurance

b)

unemployment insurance

c)

workers' compensation insurance

d)

supplemental benefits

7.

The indirect financial and nonfinancial payments employees receive for continuing their employment with a company are called (a)   .

8.

An HR manager conducting an HR audit on compensation would most likely search for __________

a)

current job descriptions

b)

workforce health and safety training

c)

completed benefit enrollment forms

d)

compliance with labor laws

9.

A compensation method related to an employee’s individual performance is known as ________

a)

an incentive pay plan.

b)

a differential pay plan.

c)

a step plan.

d)

a merit pay plan.

10.

An employee is motivated by knowing there is room for base pay to grow. This BEST exemplifies _________

a)

an effective metric.

b)

pay transparency.

c)

a benefits summary.

d)

required communication.

11.

Which benefit has the BEST potential to reduce an employer’s health-care costs?

a)

Promoting a wellness program

b)

Offering flexible work hours

c)

Providing a parent with unpaid leave for qualified child-rearing issues

d)

Offering more paid vacation or holiday leave than legally mandated

12.

What is a possible outgrowth of a benefit plan needs assessment?

a)

Paying exempt employees overtime

b)

Adding medical coverage for physiotherapy care

c)

Increasing salaries for exempt employees

d)

Setting new strategic objectives for the organization

13.

All of the following types of information will most likely be collected by a human resources specialist through a job analysis EXCEPT _______ & _______. (choose 2 out of 5)

a)

work activities

b)

human behaviors

c)

performance standards

d)

employee benefits options

e)

individual development needs

14.

A ___________ is comprised of jobs of approximately equal difficulty or importance as established by job evaluation.

a)

wage curve

b)

benchmark

c)

pay grade

d)

class

15.

Central basic factors that establish how several jobs compare to one another and that determine the pay for each job are called -------------.

a)

compensable factors

b)

job evaluation factors

c)

ranking factors

d)

analysis factors

16.

Which of the following terms refers to a systematic comparison done in order to determine the worth of one job relative to another?

a)

job analysis

b)

job evaluation

c)

job description

d)

job classification

17.

Which job evaluation method would be MOST appropriate for an organization with limited resources that has a large number of people with similar, defined jobs?

a)

Paired comparison

b)

Point-factor

c)

Job ranking

d)

Job classification

18.

_________ means collapsing salary grades and ranges into just a few wide levels, each of which contains a relatively wide range of jobs and salary levels.

a)

Wage band

b)

Job evaluation

c)

Broadbanding

d)

Job banding

19.

Which job evaluation method would provide a small organization with a quick and inexpensive way to compare one job to another?

a)

Job ranking

b)

Point-factor

c)

Paired comparison

d)

Job classification

20.

Which of the following would not be considered a form of indirect compensation?

a)

Legally mandated benefits (such as social security)

b)

Vacation time

c)

Perquisites

d)

Premium pay for vacations