Practice Test Bank - Strategic Compensation: A Human Resource Management Approach by Martocchio
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Martocchio,8e from
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Strategic Compensation
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Ch 1 Strategic Compensation: A Component of Human Resource Systems
1Ch. What is the’ primary factor that will prevent companies from’ growing in the’ next
decade?
ACh. increased government regulations
BCh. the’ inability to attract an’d retain employees
CCh. caps on executive pay in some organizations
DCh. increased global competition
ANS: B
DIFF: HARD:
== Analytic Thinking
Objective:.: Describe what compensation is. (1)
2Ch. Protection programs are what type of compensation benefits?
ACh. external
BCh. non-monetary
CCh. internal
DCh. monetary
ANS: B
DIFF: Moderate
== Analytic Thinking
Objective:.: Describe what compensation is. (1)
3Ch. Which of the’ following would be an example of a non-monetary reward?
ACh. medical insurance
BCh. vacations
CCh. day care assistance
DCh. all of the’ above
ANS: D
,DIFF: Easy
== Analytic Thinking
Objective:.: Describe what compensation is. (1)
4Ch. This law made it illegal to pay women less for performing equal work as men.
ACh. Equal Pay Act of 1963
BCh. Civil Rights Act of 1964
CCh. Davis - Bacon Act of 1931
DCh. Fair Labor Standards Act of 1938
ANS: A
DIFF: Moderate
== Analytic Thinking
Objective:.: Describe what compensation is. (1)
,5Ch. What is the’ typical annual Cost-of-living adjustment (COLACh. in recent years?
ACh. 0 to 1 percent
BCh. 2 to 3 percent
CCh. 3 to 5 percent
DCh. 8 to 10 percent
ANS: B
DIFF: HARD:
== Analytic Thinking
Objective:.: Describe what compensation is. (1)
6Ch. What type of pay system rewards employees for partially or completely attaining a
predetermined work objective?
ACh. seniority pay
BCh. merit pay
CCh. incentive pay
DCh. skill-based pay
ANS: C
DIFF: Moderate
== Analytic Thinking
Objective:.: Describe what compensation is. (1)
7Ch. Jason works at a call center for an insurance company, an’d he has been answering
calls regarding auto insurance. Recently, he started to attend a training program about
home insurance. Upon successful completion of this training program, Jason will be able to
handle home insurance questions an’d queries as well. If this insurance company has a
compensation policy that rewards Jason's completion of this training, then what type of pay
system does it employ?
ACh. incentive pay
BCh. merit pay
CCh. seniority pay
DCh. pay-for-knowledge
, ANS: D
DIFF: Easy
== Application of Knowledge
Objective:.: Describe what compensation is. (1)
8Ch. Which of the’ following is NOT one of the’ three broad categories that are considered
discretionary benefits?
ACh. worker's compensation laws
BCh. paid time off
CCh. protection programs
DCh. services
ANS: A
DIFF: HARD:
== Analytic Thinking
Objective:.: Describe what compensation is. (1)
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