Managing Employee Compensation Quiz Answer. In this post you will get Quiz Answer & Assignment Of Managing Employee Compensation Quiz
Managing Employee Compensation
Offered By ”University of Minnesota”
Week- 1
Pay Determination
1.
Question 1
Which of the following is NOT an element of the pay mix?
1 point
- Benefits
- Base cash
- Key performance indicators
- Short term incentives
- Long-term incentives
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2.
Question 2
Which of the following statements about the Strategic Messaging Model is NOT correct?
1 point
- In general, we choose our money, mix, and messaging before we choose whom we want to attract, retain, and motivate.
- Messaging includes how we communicate the pay mix to employees.
- Money includes the value of the total compensation package.
- Mix includes relative allocation of compensation across the pay mix.
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3.
Question 3
A job description for a truck driver may list “basic truck maintenance skills” under:
1 point
- Job title
- Job summary
- Job context
- KSAs
- Job duties
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4.
Question 4
Suppose your organization wants to match pay on the external labor market. Using surveys, you find that the median pay in the external market for that job is $35,000 per year. Which of the following is true?
1 point
- The cap in pay for employees in that job should end at $35,000 per year.
- The bottom of the pay range for that job should be $35,000 per year.
- The typical employee for that job should earn about $35,000 per year.
- Entry-level employees for that job should begin at $35,000 per year.
- The top of the pay range for that job should be $35,000 per year.
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5.
Question 5
Which of the following statements about compensation surveys is FALSE?
1 point
- For compliance, compensation departments should make sure pay survey data are more than three months old.
- For best accuracy, compensation departments should make sure that internal jobs and benchmarked jobs have the same job titles.
- For compliance, compensation departments should use third-parties to administer surveys.
- For best accuracy, compensation departments should make sure that internal jobs and benchmarked jobs are in the same industry and geography.
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6.
Question 6
Suppose that some new technology (like Coursera!) instantly made it cheap and easy for anyone to become a lawyer. What effect will this have on labor supply and labor demand?
1 point
- Labor supply will increase
- Neither curve will change
- Labor supply will decrease
- The labor supply and labor demand curves will both change
- Labor demand will increase
- Labor demand will decrease
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7.
Question 7
Consider the following statements about employees who are promoted. Which is NOT true?
1 point
- Employees who are promoted can go from relatively high on their grade’s pay range to being relatively low of the new grade’s pay range.
- An employee who is promoted will get a new pay range, with the maximum of the pay range corresponding to base plus the total possible incentive pay.
- Employees who are promoted will generally see an increase in base pay.
- Employees who are promoted will change job grades.
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8.
Question 8
Which of the following statements about pay structures and internal benchmarks is NOT correct?
1 point
- The pay policy line must perfectly intersect all of the control rates.
- The control rates tell you the pay at benchmarked jobs.
- Pay tends to increase in job grades because higher grades tend to have workers with greater skills and experience.
- Pay tends to increase in job grades because higher grades tend to have workers whose productivity is associated with greater revenue.
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9.
Question 9
Using a typical merit-based raise criteria, which of the following employees would likely get the largest annual raise?
1 point
- An employee high on the pay range, with high evaluations.
- An employee who has not been recently promoted, but has been receiving high evaluations for a long time.
- An employee in the middle of the pay range with average evaluations.
- An employee low on the pay range, with high evaluations.
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10.
Question 10
Which of the following statements about pay bands is NOT true?
1 point
- They typically combine multiple contiguous grades.
- They typically span multiple non-contiguous grades within the same ladder (e.g. associates are levels 1-3 and 7-9).
- They typically combine jobs that are roughly similar in job level, prestige, and pay.
Week- 2
Pay For Performance
1.
Question 1
Employees who receive high performance evaluations for their prior year’s accomplishments are awarded a fixed cash award. This is an example of tying evaluations to what element of the pay mix?
1 point
Short Term Incentives
Perks
Long Term Incentives
Base pay
Non-Monetary
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2.
Question 2
Which of the following scenarios illustrates the halo bias?
1 point
The evaluator knows that the employee has POOR technical skills. This contaminates her ratings for the employee’s reliability, customer service skills, and willingness to help others. The latter ratings are now biased UPWARD.
The evaluator knows that the employee has EXCELLENT reliability. This contaminates his ratings for the employee’s technical skills, customer service skills, and willingness to help others. The latter ratings are now biased UPWARD.
The evaluator knows that the employee has EXCELLENT reliability. This contaminates his ratings for the employee’s technical skills, customer service skills, and willingness to help others. The latter ratings are now biased DOWNWARD.
The evaluator knows that the employee has POOR technical skills. This contaminates her ratings for the employee’s reliability, customer service skills, and willingness to help others. The latter ratings are now biased DOWNWARD.
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3.
Question 3
What performance metric might be found on Behaviorally-Anchored Rating Scale?
1 point
The employee’s customer satisfaction scores are at least 4.5 out of 5.0.
The employee generates $10 million in new business.
The employee displays courtesy and patience when speaking to frustrated customers.
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4.
Question 4
Which of the following are examples of a Key Performance Indicators?
1 point
Year-end bonus
Total dollar value of sales generated
Average customer service score
Units produced
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5.
Question 5
Which of the following statements about tournament incentives is accurate?
1 point
Tournament incentives work well when employees work together in teams
Tournament incentives encourage employees to share best practices
Tournament incentives promote competition between employees
Tournament incentives help maintain the effectiveness of incentives when outside factors affect many employees’ productivity
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6.
Question 6
When India was a British Colony, the British tried to reduce the population of cobras by providing incentives for people to hunt them. They did so by providing a bounty for dead cobras. However, this led people to begin breeding snakes, so that they may be slaughtered and delivered for bounty. Ultimately, this incentive suffered from the
1 point
Metering problem
Control problem
Measurement problem
Alignment problem
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7.
Question 7
A salesperson is paid 1% of revenue generated up to $1,000,000, 2% of revenue generated up to $2,000,000, and 3% of revenue generated thereafter. This is an example of what kind of an incentive?
1 point
Flat
Accelerated
Linear (negative slope)
Linear (positive slope)
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8.
Question 8
Which of the following statements is true?
1 point
Performance shares are only issued after a stock reaches a certain price.
Stock options are only issued after a stock reaches a certain price.
Phantom shares work like stock grants, except the criteria for granting them is known only to the firm.
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9.
Question 9
When an employee joins her organization, she gets an option to purchase 1000 shares with a strike price of $2 per share, and these shares vest over four years. One year later, the stock price is $3 per share. Two years later, the stock price is $4 per share. The employee then quits and exercises any vested options. Which of the following statements is true?
1 point
The employee exercises the option to purchase 1000 shares, paying $4 per share.
The employee exercises the option to purchase 500 shares, paying $2 per share.
The employee exercises the option to purchase 1000 shares, paying $2 per share.
The employee exercises the option to purchase 500 shares, paying $4 per share.
The employee exercises the option, purchasing 250 shares at $3 per share, and 250 shares at $4 per share.
The employee cannot exercise any options.
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10.
Question 10
Which of these employees is most likely to receive a stock option that is qualified under the IRS Code Section 409A, meaning that any incentives would qualify as an incentive stock option (ISO)?
1 point
A barista who participates in his employer’s employee stock option purchase program.
A programmer whose compensation package includes a stock option grant.
A Chief Financial Officer whose compensation package includes a stock option grant.
Week- 3
Benefits and Compliance
1.
Question 1
Which of the following statutes provides job-protected unpaid leave for new parents?
1 point
EEO
FMLA
FLSA
NLRA
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2.
Question 2
Which of the following would be TRUE of someone recognized by the FLSA as a trainee?
1 point
The trainee would not provide immediate benefit to their employer.
The trainee’s job duties would be exempt under the FLSA.
The trainee’s employer would be not covered under the FLSA.
The trainee must not be paid more than $455 per week.
All of the above.
None of the above.
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3.
Question 3
There are a several reasons firms use employer-sponsored pension plans. One reason is that it allows employees to defer compensation until retirement, when they’re taxed at a relatively low rate. Second, by participating in an employer’s plan, the employer may be able to negotiate lower management fees with service providers. These two specific reasons illustrate what two general reasons that firms provide employer-sponsored pension plans, rather than cash? Mark the best answer
1 point
They’re cheaper for firms to provide than for workers and they enjoy returns to scale
They attract the right kind of worker
They’re motivational symbolic benefits
They’re cheaper for firms to provide than for workers
They provide benefits to firms
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4.
Question 4
Suppose that, for some condition, an insuree has a $1,000 deductible and 50% coinsurance until a $10,000 cap. The health care provider’s fees amount to $600. What is the insuree’s liability?
1 point
$0
$300
$1,000
$600
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5.
Question 5
Which of the following statements about the ACA health insurance exchange marketplaces are correct?
1 point
All states participate in the health insurance exchange created by the federal government.
All states have their own state-specific health insurance exchanges.
Some states create health insurance exchanges, and other states defer to an exchange set up by the federal government.
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6.
Question 6
True or False: Defined contribution plans are generally tax advantaged because they allow you to defer taxable income until you’re in a lower tax bracket.
1 point
True
False
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7.
Question 7
Li Li’s pension fund mandates that she will receive $1800 per month for the rest of her life. This is an example of what kind of fund?
1 point
Defined Contribution (e.g. 401k)
Simplified Employee Pension
Defined Benefit
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8.
Question 8
Pierre’s pension plan allows him to choose the amount of his contribution and how his contributions are invested. The better his chosen investments perform, the more money he’ll have in his plan’s account when he retires. This is an example of what kind of a pension plan?
1 point
Defined Benefit
Social Security
Defined Contribution (e.g. 401k)
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9.
Question 9
Which of the following is generally regarded as a best practice?
1 point
Choosing funds with high management fees.
Actively picking individual stocks with a pension fund.
Shifting the allocation of a pension fund away from stocks and toward investment grade bonds as workers approach retirement age.
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10.
Question 10
Which of the following is a TRUE statements about ERISA?
1 point
ERISA requires that employers that offer pension plans contribute at least 3% of an employee’s salary.
ERISA provides minimum standards of fiduciary responsibility for employers that provide pension plans.
ERISA requires that employers provide access to a qualified pension plan.
Peer-graded Assignment: Job and Benefits Analysis
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Week- 4
Non-Monetary Rewards
1.
Question 1
Non-monetary rewards are:
1 point
Always less important than cash compensation
Always more important than cash compensation
Only important when you are newly hired
Important to both employees and employers
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2.
Question 2
From an employee’s perspective, non-monetary rewards are:
1 point
Valuable to each employee based upon their preferences
A nuisance, and take up valuable time at work
Hard to understand
Important, and might include a good company reputation
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3.
Question 3
When it comes to Non-Monetary Rewards, employers think:
1 point
It will cost way too much money
This is a big waste of time
This might be a good way to show our company culture and values
We can offer non-monetary rewards so that we can reduce employee compensation
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4.
Question 4
For recognition to be effective it should:
1 point
Be done in a way that is meaningful in the culture
Include a cash award
Recognize something important
Be given by the CEO
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5.
Question 5
Learning at work is:
1 point
Fine, as long as it does not take too long
Great, but my manager should see me doing it
Fine, as long as it doesn’t lead to extra work
Great, as it is a way to learn more about my job and other jobs
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6.
Question 6
Employees who want work flexibility:
1 point
Could be anyone. Almost all of us need work flexibility at some point
Might prefer to work on a part-time schedule
Are lazy and do not want to work very hard
Are sometimes people dealing with family emergencies
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7.
Question 7
In implementation, non-monetary rewards program designs:
1 point
Should be very formalized, and include many details, options and approvals
Can be informal, and set up between a manager and the employee
Can be formal, and set up by the company, likely including written guidelines or practices
Must be kept confidential, and implemented occasionally
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8.
Question 8
Can things go wrong with non-monetary reward programs?
1 point
Yes, despite best intentions.
Maybe, but you have to be very unlucky
Not really. Problems mostly occur in cash compensation programs
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9.
Question 9
The benefits of being an Employer of Choice include:
1 point
Employees like working for your company
Probably make it easier to recruit new employees
Likely to have a great reputation
Guarantees business success
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10.
Question 10
Non-monetary rewards are:
1 point
Very common, but often customized
Valued by employees
Valuable to employers
All of the above
