HOW MUCH Flashcards
- An organization conducts a pay survey and finds that some of its key employees are underpaid. Which approach best supports the desire to raise the pay for these employees while balancing a concern of adding to their salary burden?
A) Awarding compensation for results versus time in position
B) Adjusting pay in fixed increases that are linked to performance
C) Implementing annual increases to offset changes in purchasing power
D) Providing a percentage increase based on individual compa-ratios
B) Adjusting pay in fixed increases that are linked to performance
- The HR director wants to recommend that stock ownership incentive plans be offered to all levels of employees. What information should the HR director share that would best influence the rest of the leadership team to support this initiative?
A) It would enhance individuals’ ability to perform multiple tasks that help to increase their performance.
B) It would improve individual performance by providing development opportunities that create a results-focused culture.
C) It would increase competition for retention of talent and address disgruntled employees who feel they deserve better.
D) It would give employees a stake in the company and enhance employee productivity and organizational performance.
- Correct Answer: D
- While creating an executive compensation plan, which factor should the HR leader consider as critical?
A) Incentives to meet business objectives
B) Accounting consequence of discounted stocks
C) Employee’s portion of stock option costs
D) Cost-of-living increase for that year
- Correct Answer: A
- Which market practice benefits should be offered to attract or entice executives to join a global organization?
A) Car, transportation allowance, and meal allowance
B) Health care, self-funded retirement, and bonuses
C) Vacation, family leave, and holiday time off
D) Stock options, performance grants, and incentives
- Correct Answer: D
- To strategically increase organization-wide performance, which is the best strategy that will incentivize all employees to perform better toward the overall performance?
A) Offer a profit-sharing plan.
B) Implement a commission plan.
C) Provide merit increases.
D) Recognize high performers.
- Correct Answer: A
- A salesperson takes over a new territory and will hire and manage five other sales associates and office staff. The salesperson is currently paid a straight commission but asks for a salary to match her current earnings so she can set up the office and train both the office staff and the sales force. Which is the best option to pay the salesperson?
A) She should be paid a salary for three months and then eased back into commission.
B) She should be paid a straight salary to encourage the training efforts in the region.
C) She should be paid a straight commission, and a sales trainer for new hires and an office manager should be hired.
D) She should be paid a salary plus a commission based on the total territory sales of those hired.
- Correct Answer: D
- An organization raises the minimum pay of its salary ranges. Which is the best technique an HR manager should consider that will correct the compression issue that may occur between new hires and long-term employees?
A) Red-circle new employees after increases.
B) Implement an aggressive merit pay program.
C) Use a productivity-based system to bridge compression.
D) Provide person-based pay to long-term employees.
- Correct Answer: B
- After reviewing the results of a recent benefits needs assessment, an employer must make tough decisions about controlling health insurance costs. At the same time, employees are asking for enhanced health insurance. Which is the appropriate next step the benefits manager should take to resolve the issue?
A) Increasing cost sharing for active employee plans so enhanced insurance can be offered
B) Offering coverage that can provide employees with additional insurance protection
C) Eliminating a lesser-used benefit and replacing it with enhanced insurance
D) Conducting due diligence about supplemental coverage before making a decision
- Correct Answer: D
- An HR manager conducts a benefits needs assessment based on a strategic goal of implementing a phased retirement program, which includes recruiting and retaining workers past traditional retirement age. Which information will be most useful in developing the business case for this strategy?
A) Current costs of benefits, needs analysis, and projected increases over the next 12 months
B) Complete benefits utilization review of the current workforce, organizational needs, and gap analysis
C) Analysis of technologies in place to facilitate knowledge transfer processes of older workers
D) Data collected identifying which employees currently use Medicare as a primary health insurance provider
- Correct Answer: B
- New leadership is in place at a large retailer. All departments are undergoing detailed reviews of their support of organizational strategy and effectiveness. The benefits department has just completed its review, and leadership believes that benefit offerings are not reflective of the organization’s total rewards philosophy. A gap analysis yields overlapping benefits. Which action should be taken to remedy the situation?
A) Instituting cost-containment strategies regardless of which benefits support retention efforts
B) Conducting a review to identify gaps in benefits offerings versus utilization
C) Polling a small group of employees, asking which benefits they like
D) Conducting a cost analysis and dropping the most expensive benefit.
- Correct Answer: B
- A talent acquisition manager is negotiating a compensation package with a potential candidate for a difficult-to-fill senior-level position. Which is the best strategy the manager should consider in order to make the offer more attractive?
A) Offering additional vacation time
B) Increasing the flexible spending account
C) Offering on-site child care
D) Providing additional parental leave
A) Offering additional vacation time
- What action makes a benefits program most effective in attracting, motivating, and retaining employees?
A) Developing a compensation strategy specifically targeted at the workforce
B) Balancing employees’ needs while reducing benefits-related organizational costs
C) Reducing administrative costs and not providing employer contributions
D) Increasing participation rates and reducing per-capita administrative costs
D) Increasing participation rates and reducing per-capita administrative costs
- What is true of the differences in generational impacts on globalization?
A) Younger generations of workers may embrace globalization more readily than older generations.
B) Older generations’ use of early technology such as computers and fax machines made them the first “digital-native” generation.
C) Younger generations of workers are more likely to see the world as discrete islands of politics, culture, and economics.
D) Older generations of employees are more globally savvy than younger generations.
A) Younger generations of workers may embrace globalization more readily than older generations.
- How does an understanding of Perlmutter’s orientations provide HR with a blueprint for developing effective global staffing strategies?
A) Staffing strategies need to include an understanding of the relationship between headquarters and subsidiaries.
B) Push and pull factors at play in each orientation define what type of staffing strategy should be employed.
C) An understanding is necessary in developing offshoring and outsourcing options, which are part of the strategy.
D) The different orientations define the degree of organizational decentralization and do not affect business strategies.
- Correct Answer: A
- Which phenomenon is occurring when many of a global organization’s minority employees are avoiding other members of their minority group, adjusting their attire, matching grooming and mannerisms to the majority, and refraining from advocating for their minority group?
A) Bracketing
B) Integrating
C) Assimilating
D) Covering
- Correct Answer: D
