MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.

1) In establishing pay rates, an employer should conduct a salary survey for the purpose of: 1) A) job evaluation.

B) performance appraisals.

C) slotting jobs into pay grades.

D) pricing jobs.

E) fine tuning pay rates.

Answer: D

Explanation:A)

B)

C)

D)

E)

2) Compensation policies are usually written by the HR or compensation manager together with: 2) A) supervisors.

B) compensation consultants.

C) senior management.

D) employees.

E) stockholders.

Answer: C

Explanation:A)

B)

C)

D)

E)

B) employee value.

C) compensation and benefits together.

D) individual reward components as part of an integrated whole.

E) cost constraints.

Answer: D

Explanation:A)

B)

C)

D)

E)

4) Assigning pay rates to each pay grade (or to each job) is usually accomplished with a: 4) A) performance appraisal.

B) wage grade.

C) rate range.

D) wage curve.

E) job evaluation.

Answer: D

Explanation:A)

B)

C)

D)

E)

A) contractual pay methods or fringe benefits to employees.

B) all forms of pay or other compensation provided to employees.

C) cash payments only.

D) certain forms of pay and rewards to employees.

E) payroll costs.

Answer: B

Explanation:A)

B)

C)

D)

E)

6) You are the HR professional at a forestry company. You are responsible for implementing a pay 6) equity plan. Which of the following questions would not be beneficial for the purpose of avoiding pay equity problems?

A) Is the pay system clearly documented in a salary administration manual?

B) Have pay equity consultants been hired?

C) Are job duties and responsibilities clearly documented?

D) Are pay equity laws being monitored and adhered to in each province?

E) When was the pay system last reviewed?

Answer: B

Explanation:A)

B)

C)

D)

E)

7) Job evaluation is mostly a judgmental process which requires close cooperation and input from the 7) following EXCEPT: A) supervisors.

B) compensation specialists.

C) customer responses.

D) union representatives.

E) employees.

Answer: C

Explanation:A)

B)

C)

D)

E)

8) The following are primary functions of the job evaluation committee EXCEPT: 8)

A) selecting a job evaluation method.

B) identifying 10 or 15 key benchmark jobs.

C) selecting behavioural anchors.

D) evaluating the worth of each job.

E) selecting compensable factors.

Answer: C

Explanation:A)

B)

C)

D)

E)

9) The job evaluation committee will want to group similar jobs (in terms of their ranking or number 9) of points, for instance) into grades for: A) personal growth.

B) pay purposes.

C) assessment purposes.

D) non- economic reasons.

E) wage structure purposes.

Answer: B

Explanation:A)

B)

C)

D)

E)

10) Experience has shown that competency- based pay is more efficient in the ________ years of its 10)

existence.

A) first

Answer: A B) first 10 C) first 5 D) last E) later

Explanation: A)

B)

C)

D)

E)

11) Engagement is: 11)

A) transactional rewards which are consistent across competing organizations.

B) the belief that the organization cares about talent management.

C) positive emotional connection to the employer and a clear understanding of the strategic significance of the job.

D) providing competitive base pay.

E) relational work experiences.

Answer: C

Explanation:A)

B)

C)

D)

E)

12) Wage surveys undertaken by the human resources department may collect other data which would 12) include the following EXCEPT: A) vacation time.

B) industry demand.

C) employee benefits.

D) sick leave benefits. E) insurance benefits.

Answer: B

Explanation:A)

B)

C)

D)

E)

13) The following are elements in a manager’s compensation package EXCEPT: 13)

A) long- term incentives.

B) benefits.

C) salary.

D) commission.

E) short- term incentives.

Answer: D

Explanation:A)

B)

C)

D)

E)