CH11

3) A total rewards approach considers

a. cost constraints.
b. business strategy.
c. individual reward components as part of an integrated whole.
d. employee value.
e. compensation and benefits together.

Answer: c
20) Job evaluation involves comparing jobs to one another based on their content. Job content is
assessed using
a. critical incidence.
b. job design.
c. comparable worth.
d. behavioural anchors.
e. compensable factors.

Answer: e
30) A disadvantage of the job classification method of job evaluation is the difficulty in
a. grouping jobs.
b. classifying jobs.
c. writing job descriptions.
d. writing grade descriptions.
e. developing job clusters.

Answer: d
49) The rate range is usually built around the
a. job evaluation.
b. wage line or curve.
c. performance appraisal.
d. job specialization.
e. Hay system.

Answer: b
51) Broadbanding facilitates less specialized, boundaryless
a. jobs and organizations.
b. division of work.
c. job evaluation.
d. geographic dispersion.
e. leniency and error.

Answer: a
59) When developing compensation plans for managers and professionals, job evaluation is
central to
a. non-salary issues.
b. benefits.
c. incentives.
d. bonuses.
e. base salary.

Answer: e
71) Executive, administrative, and professional employees are included in the overtime
requirements of employment/labour standards legislation.
a. True
b. False

Answer: b
Chapter 12

22) All of the following are reasons to use team incentive plans except
a. facilitating on-the-job training.
b. reinforcing individual incentives.
c. reinforcing group planning.
d. reinforcing problem solving.
e. helping ensure collaboration.

Answer: b
26) Aziz is the human resources professional at a consulting engineering company. He has been
asked by the executive team to implement a short term incentive plan for senior managers.
Which of the following is not a basic issues he should consider?
a. eligibility
b. how much to pay out
c. fund-size determination
d. individual awards
e. salary grade

Answer: e
29) When all employees earning over a threshold amount are automatically eligible for
consideration for short-term incentives, this is called the criterion of
a. key position.
b. job evaluation.
c. job clusters.
d. salary grade.
e. salary-level cutoff point.

Answer: e
30) Revlex Inc. has implemented a refinement of the salary cutoff approach to short-term
incentive eligibility, which assumes that all managers should be eligible for short-term
incentives. This is known as
a. salary grade.
b. performance appraisals.
c. gainsharing.
d. key position.
e. profit-sharing plans.
Answer: a
33) When a target bonus is set for each eligible position and adjustments are then made for
greater- or less-than-targeted performance, this is called
a. a lump-sum bonus.
b. retirement income.
c. an annual bonus.
d. an individual award.
e. gainsharing.

Answer: d
40) All of the following are long-term incentive plans extended to employees except
a. restricted stock plans.
b. phantom stock plans.
c. stock options.
d. retained earnings plans.
e. stock appreciation rights.

Answer: d
52) The term merit pay can apply to incentive raises given to any employees, but is most often
used with respect to
a. salespeople.
b. white-collar employees.
c. executives.
d. blue-collar employees.
e. hourly workers.

Answer: b
53) Amy received a salary increase based on her individual performance over the past year. Amy
received which of the following types of compensation?
a. individual increases
b. individual incentives
c. special awards
d. individual bonuses
e. merit pay
Answer: e
67) Reasons why incentive plans do not work include all of the following except
a. firms do not get what they pay for.
b. pay is not a motivator.
c. performance pay cannot replace good management.
d. rewards may undermine responsiveness.
e. rewards rupture relationships.

Answer: a
78) A disadvantage to the piecework incentive plan is that the incentive value can be powerful,
since rewards are directly tied to a percentage of performance that is above standard.
a. True
b. False

Answer: b
82) Unlike salaries, short-term incentive bonuses never result in plus or minus adjustments of
25% or more in total pay.
a. True
b. False

Answer: b
84) The multiplier method is when a manager whose individual performance was poor might not
even receive a company performance-based bonus, on the assumption that the bonus should be a
product of individual and corporate performance.
a. True
b. False

Answer: a
Chapter 13
1) Any indirect financial payments given to employees are known as
a. financial incentives.
b. stock options.
c. perquisites.
d. commissions.
e. employee benefits.

Answer: e
4) The average cost of benefits, as a percentage of payroll, is approximately
a. 30%.
b. 37%.
c. 50%.
d. 25%.
e. 10%.

Answer: b
76) Employees, who work during the notice period provided by the employer before employment
is terminated, receive a lump sum payment called "pay in lieu of notice."
a. True
b. False

Answer: b
78) Accidental death and dismemberment coverage provides annuity payments in addition to life
insurance benefits when death is accidental.
a. True
b. False

Answer: b
Chapter 14
2) Surveys have shown that ____ percent of Canadians believe that workplace accidents are
inevitable.
a. 75
b. 52
c. 64
d. 61
e. 50

Answer: d
85) Several studies suggest that a test such as the Employee Reliability Inventory (ERI) can help
employers reduce unsafe acts at work.
a. True
b. False

Answer: a
Chapter 16
31) All of the following statements about union certification are true except that
a. if a union loses a representation vote, another election cannot be held among the same
employees for at least a year.
b. representation votes are supervised by the LRB (or equivalent).
c. in those jurisdictions with automatic certification, if the level of support is not sufficient for
such certification, but is above a specified minimum level, the LRB (or equivalent) will order a
representation vote.
d. in most jurisdictions, LRBs can grant automatic certification.
e. in all jurisdictions, in order for a union to be certified, more than 50 percent of the potential
bargaining unit members must be in support of the union.

Answer: e
47) Bargaining that is aimed at seeking win-win solutions to labour relations issues is ________
bargaining.
a. productivity
b. integrative
c. union acceptance
d. mutual gains
e. distributive

Answer: d
54) The process involved in settling a dispute when special legislation is passed ordering striking
or locked-out employees back to work is known as
a. final offer selection.
b. mediation-arbitration.
c. rights arbitration.
d. arbitration.
e. interest arbitration.

Answer: e
53) The imposition of the final terms of a collective agreement occurs through the process
known as
a. mediation-arbitration.
b. rights arbitration.
c. arbitration.
d. final offer selection.
e. interest arbitration.

Answer: e
56) The section of the collective agreement that identifies the recognized trade union and
clarifies its rights and responsibilities as the exclusive bargaining agent for the employees in the
bargaining unit, is known as the ________ clause.
a. union recognition
b. union rights
c. union security
d. bargaining unit descriptor
e. union exclusivity

Answer: a
65) The primary purpose of the grievance procedure is to
a. call to the attention of union and management leaders areas of the contract requiring
clarification or modification in subsequent negotiations.
b. resolve issues that were not anticipated by those at the bargaining table.
c. serve as a communications device.
d. interpret the contract language.
e. ensure the application of the contract with a degree of justice for both parties.

Answer: e
66) The final and binding process, through which disputes arising out of the interpretation or
application of a collective agreement are settled, is known as
a. arbitration.
b. interest arbitration.
c. final offer selection.
d. rights arbitration.
e. mediation-arbitration.
Answer: d

84) There are generally four internal steps prior to arbitration.

a. True
b. False

Answer: b
Chapter 17