Flashcards in Final Exam Deck (75)
Which of the following is an example of indirect financial compensation (employee benefits)?
Direct financial compensation consists of the pay that a person receives in the form of wages, salaries, commissions, and health benefits.
Which type of compensation increases an employee's base pay and contributes to cost control over time?
John works at a company that uses a variety of heavy machines. John knows how to operate three of the machines, and if he learns how to use another one, his pay will increase. Which type of compensation plan is most likely used by John's employer?
The rationale for adopting seniority pay plans is described by which theory?
human capital theory
Which of the following is a disadvantage associated with team-based incentives?
Exemplary performers become disgruntled and quit.
Which type of profit-sharing plan places company contributions in an irrevocable trust and credits individual employees' accounts?
When the United Auto Workers negotiate with GM and Ford for higher wages, which legislation supports the union's right to engage in collective bargaining?
National Labor Relations Act
What is the primary by-product of job analysis?
How many universal job factors are there with the factor comparison job evaluation method?
The classification method of job evaluation is the simplest job evaluation method and requires comparing a job description with a class description.
Firms which pay below the average labor market price for jobs will most likely have ________.
higher turnover rates
In determining pay grades, each dot on a scatter diagram represents ________.
Firms use compensation surveys to determine pay structures.
Which of the following is a problem inherent in compensating contingent workers?
Benefits are typically unrelated to employee ________.
Steve is employed as an accounts manager at an advertising agency. Steve has been offered a similar position at another firm for an equivalent salary and benefits package. When making his decision, Steve should focus primarily on nonfinancial compensation factors. Which of the following questions is LEAST relevant to Steve's decision to remain at his current job?
Is the employee stock option plan risky?
As a rule, employees receive benefits because of their productivity in an organization.
Benefits do not generally serve as motivation for improved performance.
Which of the following laws requires that employers and employees pay equally for Social Security retirement benefits?
Federal Insurance Contribution Act
Health care benefits represent the most expensive cost in the area of indirect financial compensation. Which of the following is NOT a factor that has combined to create this situation?
inefficient administrative processes
Disability insurance, survivors' benefits, Medicare, and unemployment insurance are provided by and administered by the Social Security Administration.
Which law set the criteria for distinguishing between qualified and nonqualified plans?
Employee Retirement Income Security Act
Carson Enterprises is considering the idea of replacing personal leave and vacation time with paid time off. Which of the following best supports this decision?
Last minute absences are a significant problem among Carson employees.
Which law gives employees the opportunity to temporarily continue their health insurance coverage if they are terminated from their job?
Consolidated Omnibus Budget Reconciliation Act
Anne, who has a preexisting medical condition, recently changed jobs. Which legislation was passed to protect individuals such as Anne?
Health Insurance Portability and Accountability Act
The primary reason for enacting ERISA was to ________.
strengthen current and future retirement programs
All of the following are true about the Patient Protection and Affordable Care Act of 2010 EXCEPT that ________.
children over 21 cannot remain on their parents' policy
A 401(k) plan is a defined benefit plan in which employees may defer income up to a maximum amount allowed.