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St. Joseph’s College BUS 230 Human Resources – Test No. 3 – Spring 2021 Part 1 – Multiple Choice _____1. Employee compensation refers to: a. salary and wages b. monetary pay and rewards c. all forms of pay or rewards d. contractual pay methods or fringe benefits _____2. There are many forms of employee motivation. The most important motivator is still: a. power c. affiliation b. self-actualization d. money _____3. Salaried employees are paid for: a. performance b. periods of time like a week, month or year c. d. the job qualifications _____4. Wages must compare favorable with rates in other organization, which is known as: a. external equity c. wage compensation b. internal equity d. compensation policy _____5. The concept that each employee should view his or her pay as equitable given other pay rates inside the organization is known as: a. external equity c. internal equity b. wage compensation d. compensation policy _____6. In establishing pay rates, an employer should conduct a salary survey for the purpose of: a. job evaluation c. slotting jobs into pay grades b. pricing benchmark jobs d. performance appraisals _____7. Job evaluation is a techniques used to determine: a. job reviews of individuals b. performance appraisals of individuals c. the relative worth of each job d. the relative value of an individual’s career _____8. Job evaluation is mostly a judgmental process which requires close cooperation and input from the following except: a. supervisors c. personnel specialists b. customers d. union representatives _____9. The following are elements in a manager’s compensation package EXCEPT: a. commission c. benefits b. salary d. short term incentives _____10. The amount of salary managers are paid usually depends on the value of the person’s work to the organization and how well the person is: a. accepted by customers c. exercising managerial authority b. influencing the board d. discharging responsibilities _____11. The benefits and perks include the following except: a. health care c. retirement income b. salary and wages d. ‘holiday and vacation pay _____12. A type of incentive that gives income over and above base salary to individual employees who meet a specific individual performance standard is a(n) a. profit sharing plan c. individual incentive program b. commission d. GANT cash bonus system _____13. An incentive plan that awards for accomplishments that are not readily measured by a standard, such as “to recognize the long hours this employee put in last month”, is a(n): a. individual incentive program c. variable pay b. profit sharing plan d. spot bonus _____14. A type of incentive plan that gives pay over and above base salary to all team members when to group or team collectively meets a specified standard for performance: a. group incentive program c. gain sharing plan b. profit sharing plan d. individual incentive plan _____15. A type of incentive plan that generally is an organization wide incentive program that provides employees with a share of the organization’s earnings in a specified period is a(n): a. individual incentive plan c. gain sharing plan b. profit sharing plan d. semi-variable incentive plan _____16. A type of incentive plan that is an organization wide pay plan designed to reward employees for improvements in organizational productivity is a: a. group incentive program c. gain sharing program b. variable pay d. spot bonus _____17. Under this pay system, each worker receives a set payment for each piece produced or processed in a factory or shop. It is know as a: a. minimum wage plan c. straight piecework plan b. guaranteed piecework plan d. minimum piecework plan _____18. The following are advantages of piecework incentive plan except: a. piecework plans are sim0ple to calculate and they are easily understood by employees b. piece rate plans appear equitable in principle c. piece rate plans can be powerful since rewards are directly tied to performance d. production standards can be adjusted easily to control labor costs _____19. When a worker is rewarded by a percent premium that equals the percent by which his/her performance is above standard is know as the: a. premium plan c. bonus hour plan b. standard hour plan d. percent incentive plan _____20. The piecework plan is expressed in monetary terms where as the standard hour plan is expressed in: a. units per hour c. units of time b. percent of standard d. percent of base wage _____21. The following are ways that employers use team or group incentive plans except: a. setting standards for each group member and measuring the output of each member b. setting a production standard based on the final output of the group as a whole c. choosing a measurable definition of group performance that the group can control d. setting standards so members receive the 75th percentile of the incentive _____22. A short term incentive plan that is designed to motivate the short term performance of managers and is ties to company profitability is called a(n): a. performance plan c. capital accumulation program b. stock option plan d. annual bonus _____23. The following are the three basic issues when a firm awards short term incentives except: a. eligibility c. fund size determination b. formula design d. individual awards _____24. When everyone gets a bonus based on the company’s results, regardless of individual effort: a. team incentive plan c. profit sharing b. group incentive plan d. annual bonus __D__25. One drawback to the split award approach is that it pays too much to the marginal performer. One way to get around this would be to use the: a. corrected split award system c. lump-sum bonus method b. individual bonus method d. multiplier method _____26. Long term incentives, most often reserved for senior executives, are called: a. stock option programs c. capital accumulation programs b. stock appreciation rights programs d. performance achievement plans _____27. These incentive plans permit the recipient to either exercise the option (by buying the stock) or instead to take any appreciation in the stock price in cash or stock: a. stock options c. restricted stock plans b. stock appreciation rights d. phantom stock plans __C__28. In these incentive plans, shares are usually awarded without cost to the executive: a. stock payment plans c. phantom stock plans b. stock gifting plans d. restricted stock plans _____29. The following are advantages of compensating sales people on a straight salary basis except: a. salespeople know in advance what their income will be b. employers has fixed, predictable sales force expenses c. makes it difficult to switch to a competitor d. develops a high degree of loyalty among the sales staff _____30. Which of the following is a disadvantage of the paying salespeople a straight salary? a. emphasizes “making the sale” b. does not depend on results c. does not promote loyalty d. little flexibility in switching territories _____31. Indirect financial payments given to employees are know as a. commissions b. stock options c. employee benefits d. financial incentives _____32. A generic term for benefits that are for time not worked is: a. employee benefits b. supplemental pay benefits c. retained time pay d. time off pay _____33. Individualized benefit plans allowed by some employers in order to accommodate employee preferences for benefits are known as: a. personalized benefits plans b. benefit option plans c. individualized benefit plans d. flexible benefits programs _____34. Advantages of using the flexible benefit plans include all except: a. meet changing needs b. new benefits easily introduced c. cost containment d. administrative expenses decrease _____35. A form of union security in which the company can hire non-union people who must join the union after a prescribed period of time and pay dues is called: a. agency shop b. closed shop c. open shop d. union shop _____36. A form of union security in which employees who do not belong to the union must still pay union dues is called: a. agency shop b. closed shop c. open shop d. union shop _____37. The union must show that at least 30% of the eligible employees are interested in unionization by use of: a. literature distribution b. authorization cards c. straw votes d. attendance at organizing meetings _____38. During the authorization stage, unions can picket the company, subject to three constraints: (1) the must file a petition for an election within 30 days after the start of picketing; (2) the firm cannot already be lawfully recognizing another union; and (3) there cannot already have been a valid NLRB election during the past: a. 6 months b. 12 months c. 24 months d. 18 months _____39. The group of employees that the union is authorized to represent and negotiate collectively for is known as the: a. union executive committee b. negotiating committee c. bargaining agreement d. bargaining unit _____40. Items in collective bargaining which are neither illegal nor mandatory are called: a. voluntary bargaining items b. optional bargaining items c. legal bargaining items d. non-mandatory bargaining items Part 2 - True _____41. The Taft-Hartley Act established the National Labor Relations Board (NLRB) _____42. If the employer chooses not to contest the union’s right to an election and/or the scope of the bargaining unit and/or which employees are eligible to vote in the election, no hearing is needed and the parties can stipulate an election. _____43. The collective bargaining process is characterized by negotiating in good faith the following: wages, fact-findings, hours of work, and working conditions of employment. _____44. Employers can bypass the union representative and still fulfill their duty to bargain. _____45. A mediator is a neutral third party who studies the issues in a dispute and makes a public recommendation of what a reasonable settlement should be. _____46. Unemployment benefits are for workers who are terminated through no fault of their own. _____47. Eligibility requirements for vacations and holidays vary from firm to firm. _____48. The Family and Medical Leave Act provides pay to an employee when he or she is out of work because of illness. _____49. Providing severance pay is a humanitarian gesture as well as good public relations. _____50. Worker’s compensation provides income benefits only, medical treatment for injuries is provided through the employer’s medical or liability insurance. Part 3 – Multiple Choice _____ 51. Which one of the following is the supervisor's primary role in safety? A) conducting daily safety inspections of the workplace B) helping workers file claims for job-related injuries C) alerting top management to OSHA inspections D) setting health and safety standards for the firm _____ 52. All of the following are effective ways that employers reduce workers' compensation costs EXCEPT ________. A) enforcing safety policies B) communicating safety policies C) providing classroom training D) using appropriate safety equipment _____ 53. Which one of the following best describes the primary purpose of the Occupational Safety and Health Administration? A) set and enforce the safety and health standards for almost all workers in the U.S. B) ensure that employees of state agencies have safe and healthy working conditions C) provide safe and healthy working conditions to all self-employed persons D) ensure that family farms provide healthy and safe working environments _____ 54. The Occupational Safety and Health Act was intended to ________. A) set national, state, and local safety and health standards B) assure every person safe and healthful working conditions C) provide safe and healthful working conditions to self-employed persons D) prevent the occurrence of occupational illnesses among public employees _____ 55. All of the following are covered by the Occupational Safety and Health Act EXCEPT ________. A) federal agents C) crane operators B) hospital nurses D) self-employed persons _____ 56. Which government agency enforces the standards set out by the Occupational Safety and Health Act? A) Department of Health and Human C) Department of Commerce Services D) Department of Labor B) Department of Agriculture _____ 57. Under OSHA, employers with ________ or more employees must maintain records of and report occupational injuries and occupational illnesses. A) 6 C) 35 B) 11 D) 50 _____ 58. What term is used to describe any abnormal condition or disorder caused by exposure to environmental factors associated with employment? A) on-the-job accident C) occupational illness B) chronic condition D) work-related disease _____ 59. According to OSHA, employers must report occupational injuries that result in any of the following EXCEPT ________. A) first aid treatment C) restriction of motion B) loss of consciousness D) transfer to another job _____ 60. Which one of the following would most likely NOT be considered a reportable injury according to OSHA? A) Mike breaks his arm while playing in a softball game during a mandatory company picnic. B) John sprains his ankle after becoming tangled in his car's seat belt in the company parking lot. C) Leah breaks her wrist after slipping in a puddle on a stairwell inside the company building. D) Tom injures his back during a traffic accident as he delivers lumber in a company truck. Part 3 – Essay Questions: (Answer two questions) 1. 2. 3. Most firms have annual bonus plans aimed at motivating the short term performance of their managers and executives. List and explain the basic issues to be considered when awarding short term issues to be considered when awarding short term incentives. What are the advantages and disadvantages of short term performance incentives? In 2010-2011, the National Basketball Association (or Major League Baseball, or more recently the National Hockey League) were unable to reach a labor agreement with the players union and implemented a lockout, eliminating a significant portion of the season (or in the case of the NHL, the entire season). Why would the owners do a lockout instead of continuing the season without a contract? Explain the difference between mediation and arbitration. Why would labor and management both be hesitant to appoint an arbitrator? In the event of a breakdown in the collective bargaining process, list and explain the options that are available to both labor and management. 4. Explain and discuss the differences between the following different theories of motivation discussed in Chapter 12: Equity Theory, Herzberg Two Factor Theory and Expectancy Theory, and also how would you apply them in formulating an incentive plan.