test_item_file_ch11.docVIP

Chapter 11: Establishing Strategic Pay Plans Multiple Choice _____ refers to all forms of pay or rewards going to employees and arising from their employment. Reimbursement Employee compensation Salary Benefits Remuneration (b; easy) Direct financial payments include all of the following except _____. wages insurance salaries incentives commissions (b; easy) Which of the following is categorized as an indirect payment portion of employee compensation? wages salaries employer-paid insurance commissions bonuses (c; moderate) Joh is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a commission on every sale he makes. His pay is based on _____. time pay incentives bonuses seniority (b; moderate) Which of the following factors affects the design of any pay plan? legal union company policy equity all of the above (e; easy) In general, the main issue in collective bargaining is _____. time off with pay wage rates income security cost-of-living adjustments health care benefits (b; moderate) Unions negotiate all of the following pay-related issues except _____. wage rates income security unpaid leave to care for an immediate family member time off with pay all of the above (c; moderate) When longer-term employees’ salaries are lower than those of workers entering the firm today, _____ has occurred. wage curve salary compression age discrimination market expansion reward strategy (b; easy) Salary compression can be caused by _____. recession inflation economic depression all of the above none of the above (b; difficult) How are cost-of-living differentials handled by employers when employees are transferred from one location to one with a higher cost of living? payment of a nonrecurring, lump sum amount payment of a differential for ongoing costs raise employee’s base salary pay an ongoing differential for ongoing costs plus a lump sum amount all of the above (e; easy