Multiple Choice
Identify the choice that best completes the statement or
answers the question.
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1.
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Value-added compensation is described as:
a. | indirect compensation | b. | equal pay for work of equal
value | c. | components of the compensation program that add value to the organization and to
employees | d. | the value comparison of inputs and outcomes | e. | direct
compensation |
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2.
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Expectancy theory in relation to compensation indicates that:
a. | one compares his/her compensation to another | b. | one’s
perception of external equity is motivational | c. | one’s perception that compensation
received is equal to the value of work performed | d. | one’s perception that motivation depends
on the attractiveness of rewards and the probability of attaining those rewards | e. | one’s
perception of the internal and external equity of rewards |
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3.
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All of the following are considered to be external factors that influence wage
rates EXCEPT:
a. | labour market | b. | cost of living | c. | legal
requirements | d. | organizational strategy | e. | unionization of the
organization |
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4.
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Which one of the following is NOT one of the job evaluation systems:
a. | job rating system | b. | job ranking system | c. | job classification
system | d. | factor comparison system | e. | point system |
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5.
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The wage curve:
a. | is used to represent a group of jobs that are all paid the same
rate | b. | is a range of salaries that can be paid to similar jobs based on the
incumbents’ performance and experience | c. | links the midpoints of jobs at different
ranges | d. | shows the relationship between the relative worth of jobs and the wage rates paid
them. |
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6.
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A rate range has:
a. | range steps | b. | range overlap | c. | a
midpoint | d. | all of the above |
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7.
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“Red Circle” rates are those that:
a. | fall below the pay range for a particular position | b. | fall above the pay
range for a particular position | c. | identify benchmark jobs | d. | identify the
midpoint in a pay range | e. | none of the
above |
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8.
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Wage surveys are used to determine:
a. | the external equity of jobs | b. | the internal equity of jobs | c. | the pay equity of
jobs | d. | the employment equity of jobs |
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9.
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Which one of the following is NOT another name for skill-based pay:
a. | knowledge-based pay | b. | technical competency-based
pay | c. | competency-based pay | d. | multiskill-based pay | e. | pay for
knowledge |
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10.
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Federal and provincial governments regulate compensation through all the
following legislation, EXCEPT:
a. | Canada Labour Code | b. | Child Labour
provisions | c. | Employment Standards Acts | d. | Pay Equity | e. | Labour Relations
Acts |
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True/False
Indicate whether the statement is true or
false.
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1.
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Rewarding employees for future performance is a typical strategic compensation
objective.
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2.
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Equal pay for work of equal value suggests that all jobs in one category must be
paid the same rate.
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3.
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The only goal in a typical compensation program is to attract qualified
employees while controlling labour costs.
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4.
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Wage rate compression refers to the broadbanding approach to pay ranges.
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5.
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External factors that will impact on compensation include labour market
conditions, area wage rates, collective bargaining and legal requirements.
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6.
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The Canada Labour Code is a piece of provincial legislation that impacts
compensation practices.
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7.
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Broadbanding involves collapsing many traditional salary grades into a few wide
salary bands.
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8.
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One of the advantages of a competency-based pay system is that it ensures
employees learn new job-related skills.
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9.
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One of the problems with published pay surveys is that they are not always
compatible with users' jobs.
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10.
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Typically, benchmark jobs are used for comparison purposes in pay
surveys.
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