Compensation 1
Which of the following is NOT an intrinsic source of employee motivation?
a. Increased responsibility
b. Pay raise
c. Increased employee autonomy
d. Tasks organized to allow individuals to complete activities
e. Performance feedback
What is a pay raise?
Dana, a compensation specialist for a large hospital in Phoenix is reviewing pay rates for nurses and nursing technicians in other health care organizations in the Phoenix area. She is also making sure her organization is giving as much vacation and shift differentials as her competition. What is she studying?
a. Wage structure
b. Compensation survey
c. Overtime pay review
d. Wage and hour law
e. Classification
What is a compensation survey?
Which of the following is NOT a legally required benefit?
a. Health insurance
b. Social Security
c. Unemployment compensation
d. Workers’ compensation
e. Unpaid family and medical leave
What is health insurance?
What is the advantage to an employer who offers an employee assistance program?
a. Decreased turnover and absenteeism
b. Lower insurance premiums
c. Support of the organizational strategy and employee development
d. Increased incentives that make recruitment easier
e. Less time off work for illness and on-the-job injuries
What is decreased turnover and absenteeism
Donna, a 45-year-old bank manager, is married to Darren, a 40-year-old economist with a real estate development firm. They currently waive all optional portions of Donna’s retirement package. Darren received a letter from his employer stating that the firm is changing retirement and benefits plans the first of the year. How can they determine which of their company pension retirement benefits plans should be changed or kept?
a. Social Security Administration Review
b. COBRA
c. Summary Plan Description
d. HIPAA
e. Pension Benefit Guaranty Corporation Publications
What is the Summary Plan Description?
Which of the following is an extrinsic source of employee motivation?
a. Increased responsibility
b. Impressive job title
c. Participation in decision-making
d. Opportunities for job growth
e. More interesting work
What is an impressive job title?
Intrinsic rewards include money, promotions, and benefits.
True or False
What is false?
Jose works for a toy manufacturer that invests an amount equal to a certain percentage of his pay each year into a trust fund account. His firm has contributed to this optional program every year, even when they lost money. His fund usually receives the 25% maximum allowed by law. What kind of retirement program does Jose have?
a. Defined benefit plan
b. 403(k)
c. Money purchase pension plan
d. Profit-sharing plan
e. Roth Individual Retirement Account
What is a profit-sharing plan?
Employees can set aside pretax dollars for health needs and childcare through the use of:
a. health savings accounts.
b. group insurance benefits.
c. employee assistance programs.
d. flexible spending accounts.
e. wellness programs.
What is flexible spending accounts?
Vinita, a nurse, broke her hand tending a patient. She has used up her annual sick leave and will be unable to work for six more weeks. She is receiving pay for her time not worked through which benefit plan?
a. Employee assistance
b. Worker's replacement
c. Short-term disability
d. Company sick leave
e. Long-term disability
What is short-term disability?
Which of the following is NOT true regarding Social Security?
a. Social Security provides a source of income for American retirees, disabled workers, and surviving dependents of workers who have died.
b. Social Security provides some health insurance coverage through the federal Medicare program.
c. Social Security is financed only by the employer contributions.
d. To be eligible for Social Security, employees must be employed for a minimum of 40 quarters.
e. Social Security benefits vary based on the previous year’s inflation, additional earnings, and recipient age.
What is Social Security is financed only by the employer contributions?
Hassan, a compensation analyst for a large firm, is completing a job evaluation for “Administrative Assistant.” He reads a chart that identifies “high school diploma” as the 2nd degree in the “Education” skill factor, and adds 44 into his calculation. He identifies “Making sure that work area does not present a hazard to others” as the 1st degree in the “Safety of others” responsibility factor, and adds 5 into his calculator. What job evaluation method was used?
a. Ordering
b. Classification
c. Basic factors
d. Point method
e. Core specification
What is the point method?
Sick leave, holiday leave, and long-term disabilities are grouped together as
a. intrinsic job enhancement.
b. retirement benefits.
c. paid time off.
d. health preservation benefits.
e. long-term maintenance.
What is paid time off?
Andre, a pizza maker, fell against an oven and injured his hand. His company was reluctant to file a workers’ compensation report for this injury. Why?
a. Insurance rates are computed based on the organization’s accident experience.
b. Workers’ compensation is designed to provide income for employees who are between jobs, not for injuries.
c. Hand injuries are not covered under this legislation.
d. Workers’ compensation benefits are paid to surviving relatives. John did not die.
e. John’s company self-insured with a private company.
What is, insurance rates are computed based on the organization’s accident experience.
All of the following statements about workers’ compensation are accurate EXCEPT:
a. Workers’ compensation is counted as part of labor expenses due to the accountability factor.
b. Cost of workers’ compensation is shared between the employee and the employer.
c. Workers’ compensation benefits are based on fixed schedules of minimum and maximum payments.
d. Some states allow employers to self-insure for workers’ compensation.
e. Some states provide a required insurance system for handling workers’ compensation.
What is the cost of workers’ compensation is shared between the employee and the employer.
Chris, a store manager for a sporting goods organization, is on the compensation committee. Today, they are evaluating jobs. Chris and Kenny, one of the owners, are comparing jobs to each other, one at a time. By the end of the day, they will have compared all jobs to every other job and come up with a ranking. What method was used?
a. Ordering
b. Classification
c. Basic factors
d. Point method
e. Prioritization
What is ordering?
The Federal minimum wage is $7.25 per hour.
True or False
What is true?
Jermaine, a janitor, fell from a ladder while he was changing a light bulb and hurt his leg and shoulder. As a result, he has been unable to work for the past five years and is drawing 60% of his salary. Under what benefit plan is he covered?
a. Wellness
b. Short-term disability
c. Keogh
d. Long-term disability
e. Employee assistance
What is long-term disability?
Maizie, a charge nurse in a large hospital, is frustrated with a phone call. She is thumbing through Joe’s file, looking for a patient consent signature before she can answer questions from Joe’s secretary, “How is Joe?” What health issue is relevant to Maizie’s predicament?
a. Traditional
b. HMO
c. PPO
d. COBRA
e. HIPAA
What is HIPAA?
Today, benefit and service offerings add nearly _________ to an organization payroll costs.
a. 20%
b. 30%
c. 40%
d. 50%
e. 60%
What is 30%?
Lisa, a compensation analyst for a large government agency, is completing a job evaluation for her organization. She is reviewing the grades that have been established by skills, knowledge and abilities because several managers have complained that the jobs no longer “fit” into the defined grades. What job evaluation method is Lisa using?
a. Ordering
b. Classification
c. Basic factors
d. Point method
e. Prioritization
What is classification?
Which type of long-term incentive makes up the largest portion of an executive’s pay?
a. Base salary
b. Stock options
c. Bonuses based on sales
d. Benefits
e. Golden parachutes
What are stock options?
Last year Rebecca set aside $5000 pretax dollars for child care in a flexible spending account. She only used $3200. What happened to the remaining $1800?
a. She received a lump sum payment of $1800 in her first January paycheck.
b. It reverted to her employer.
c. She had to pay taxes on the amount before it was added back to her income.
d. She transferred it to her medical care account.
e. It stays in the account to be used this year, a rollover.
What is, it reverted to her employer?
Emmanuel worked for a large manufacturing firm in Detroit. Last year, he moved to the Southwest for his daughter’s health and has continued to provide health care coverage for his family. He is concerned, because he needs to find a new job in the next 2 years, or his coverage will be cancelled. What kind of health insurance does Emmanuel have?
a. Traditional
b. HMO
c. PPO
d. COBRA
e. HIPAA
What is COBRA?
A recent survey found that as many as 70 percent of American workers didn’t take all of their vacation time.
True or False
What is true?