test_item_file_ch11 - Human Resource Management: An Asian...

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Human Resource Management: An Asian Perspective (Second Edition) Chapter 11: Establishing Strategic Pay Plans Multiple Choice 1. _____ refers to all forms of pay or rewards going to employees and arising from their employment. a. Reimbursement b. Employee compensation c. Salary d. Benefits e. Remuneration (b; easy) 2. Direct financial payments include all of the following except _____. a. wages b. insurance c. salaries d. incentives e. commissions (b; easy) 3. Which of the following is categorized as an indirect payment portion of employee compensation? a. wages b. salaries c. employer-paid insurance d. commissions e. bonuses (c; moderate) 4. 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 _____. a. time b. pay c. incentives d. bonuses e. seniority (b; moderate) 5. Which of the following factors affects the design of any pay plan? a. legal b. union c. company policy d. equity e. all of the above (e; easy) 172
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Human Resource Management: An Asian Perspective (Second Edition) 6. In general, the main issue in collective bargaining is _____. a. time off with pay b. wage rates c. income security d. cost-of-living adjustments e. health care benefits (b; moderate) 7. Unions negotiate all of the following pay-related issues except _____. a. wage rates b. income security c. unpaid leave to care for an immediate family member d. time off with pay e. all of the above (c; moderate) 8. When longer-term employees’ salaries are lower than those of workers entering the firm today, _____ has occurred. a. wage curve b. salary compression c. age discrimination d. market expansion e. reward strategy (b; easy) 9. Salary compression can be caused by _____. a. recession b. inflation c. economic depression d. all of the above e. none of the above (b; difficult) 10. How are cost-of-living differentials handled by employers when employees are transferred from one location to one with a higher cost of living? a. payment of a nonrecurring, lump sum amount b. payment of a differential for ongoing costs c. raise employee’s base salary d. pay an ongoing differential for ongoing costs plus a lump sum amount e. all of the above (e; easy) 11. When an employee is transferred to an international location and his or her base salary reflects his or her home country’s salary with allowances added for cost-of-living differences, the employer has used a _____ salary plan. a. transfer b. home-based c. host-based d. cost-of-living e. allowances included (b; moderate) 173
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Chapter 11: Establishing Strategic Pay Plans 12. When an employee who is transferred to another country is assigned a salary based on the base salary for that position in the country where he or she will work, the employer has used a _____ salary plan. a.
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test_item_file_ch11 - Human Resource Management: An Asian...

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