COMPENSATION & BENEFITS CHAPTER 3

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Revision for Chapter 3 Compensation & Benefits

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Wendy

Malaysia

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COMPENSATION & BENEFITS CHAPTER 3


Froggy Jumps COMPENSATION & BENEFITS CHAPTER 3Online version Revision for Chapter 3 Compensation & Benefits by Wendy 1 Which of the following is NOT a factor affecting individual levels of pay? a Seniority b Employee personality c Degree of skill 2 What is the primary purpose of seniority-based pay? a Increase sales revenue b Reduce training costs c Encourage employee loyalty 3 In a seniority-based pay system, wages usually increase according to the employee's a Years of service b Educational qualification c Age 4 Which is an advantage of seniority-based payment? a Encourages competition among employees b Eliminates perceptions of favoritism c Rewards only high performers 5 Which is a disadvantage of seniority-based payment? a Reduces employee loyalty b Difficult to administer c Discourages innovative thinking 6 The Consumer Price Index (CPI) is mainly used to measure a Employee productivity b Increase in the cost of living c Company profit 7 When the cost of living rises rapidly, some employers provide a COLA b Annual bonus c Promotion 8 Outstanding employees may receive special a Attendance awards b Merit increments or bonuses c Seniority increments only 9 Pay-for-performance schemes require a Effective and fair performance appraisal systems b Equal salaries for all employees c Government approval 10 Which of the following is NOT one of the three approaches to performance-based pay? a Merit pay b Merit bonuses c Piece-rate salary 11 Merit pay is best described as a A one-time annual bonus b A permanent increase added to base pay c A retirement benefit 12 Which is a disadvantage of merit pay? a Easy administration b Possible favoritism by supervisors c Rewards outstanding employees 13 Merit bonuses differ from merit pay because they are a Added permanently to base salary b Based on seniority c One-time financial awards 14 Incentive pay rewards employees for a Performing beyond normal duties b Staying with the company longer c Completing mandatory training 15 Which is an example of an individual incentive plan? a Profit sharing b Employee stock option plan c Piecework 16 In a piecework system, employees are paid according to a Years of service b Number of units produced c Working hours 17 Behavioral encouragement plans mainly reward employees for a Good attendance b Educational qualifications c Long service 18 Group incentive plans reward employees based on a Individual productivity b Years of service c Team performance 19 Which of the following is a company-wide incentive pay? a Merit pay b Profit sharing c Piecework 20 Employees with higher levels of skill generally receive a Lower wages b Higher wages c Fewer benefits 21 Seniority-based pay guarantees higher productivity. a TRUE b FALSE c 22 The Consumer Price Index helps employers determine cost-of-living adjustments. a TRUE b FALSE c 23 Merit bonuses are permanently added to an employee's base salary. a TRUE b FALSE c 24 Merit pay is based on an employee's level of performance. a TRUE b FALSE c 25 Piecework pays employees according to the number of units produced. a TRUE b FALSE c 26 Referral plans reward employees for recruiting successful job applicants or new customers. a TRUE b FALSE c 27 Group incentive plans reward only the highest-performing individual in a team. a TRUE b FALSE c 28 Profit sharing is a form of company-wide incentive pay. a TRUE b FALSE c 29 Employee stock option plans allow employees to purchase company shares. a TRUE b FALSE c 30 Degree of skill has no influence on an employee's level of pay. a TRUE b FALSE c

COMPENSATION & BENEFITS CHAPTER 3

Froggy Jumps

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COMPENSATION & BENEFITS CHAPTER 3Online version

by Wendy

Which of the following is NOT a factor affecting individual levels of pay?

What is the primary purpose of seniority-based pay?

In a seniority-based pay system, wages usually increase according to the employee's

Which is an advantage of seniority-based payment?

Which is a disadvantage of seniority-based payment?

The Consumer Price Index (CPI) is mainly used to measure

When the cost of living rises rapidly, some employers provide

Outstanding employees may receive special

Pay-for-performance schemes require

Which of the following is NOT one of the three approaches to performance-based pay?

Merit pay is best described as

Which is a disadvantage of merit pay?

Merit bonuses differ from merit pay because they are

Incentive pay rewards employees for

Which is an example of an individual incentive plan?

In a piecework system, employees are paid according to

Behavioral encouragement plans mainly reward employees for

Group incentive plans reward employees based on

Which of the following is a company-wide incentive pay?

Employees with higher levels of skill generally receive

Seniority-based pay guarantees higher productivity.

The Consumer Price Index helps employers determine cost-of-living adjustments.

Merit bonuses are permanently added to an employee's base salary.

Merit pay is based on an employee's level of performance.

Piecework pays employees according to the number of units produced.

Referral plans reward employees for recruiting successful job applicants or new customers.

Group incentive plans reward only the highest-performing individual in a team.

Profit sharing is a form of company-wide incentive pay.

Employee stock option plans allow employees to purchase company shares.

Degree of skill has no influence on an employee's level of pay.