HRMN 5470 - PUGH EXAM 1 QUESTIONS WITH
VERIFIED ANSWERS
The rewards employees receive for performing their jobs - Answers - compensation
Employees' critical psychological states that result from preforming their jobs - Answers
- intrinsic compensation
Both monetary and non-monetary rewards - Answers - extrinsic compensation
The design and implementation of compensation systems to reinforce the objectives of
both HR strategies and competitive business strategies - Answers - strategic
compensation
Sets of collective skills, knowledge, and abilities that employees can apply to create
economic value for their employers - Answers - human capital
Competitive business strategy that focuses on being the lowest cost producer/seller of
goods and services - Answers - lowest cost strategy
When is lowest cost strategy the most effective? (4) - Answers - 1. When jobs have
predictable behaviors
2. Jobs have short term focus
3. Job requires autonomous activity
4. Job focuses on quantity of output
Competitive business strategy that focuses on offering unique goods or services to the
public - Answers - differentiation strategy
When is a differentiation strategy most effective? (3) - Answers - jobs that:
1. Require high creativity
2. Have long term focus
3. Involve risk taking
What are examples of core compensation? (2) - Answers - 1. Annual salary
2. Hourly wage
What employee factors are compensable? (4) - Answers - 1. Skill level
2. Effort
3. Level of responsibility
4. Severity of working conditions
, What ways can core compensation be adjusted? (4) - Answers - 1. Cost of living
adjustments
2. Seniority pay
3. Merit pay
4. Incentive pay
Periodic base pay increases that are founded on changes in prices as indexed by the
consumer price index - Answers - cost of living adjustments
Rewarding employees with periodic additions to base pay according to employees'
length of service in performing their jobs - Answers - seniority pay
Employees' compensation over time should be determined by differences in job
performance - Answers - merit pay
Rewarding employees for partially or completely attaining a predetermined work
objective - Answers - incentive pay
Reward managerial, service, or professional workers for successfully learning specific
curricula - Answers - pay for knowledge
Increasing employee pay as they master new skills - Answers - skill-based pay
What are the 3 broad categories of discretionary benefits? (3) - Answers - 1. Protection
programs
2. Paid time-off
3. Services
Provides family benefits, promote health, and guard against income loss caused by
catastrophic factors as unemployment, disability, or serious illness - Answers -
protection programs
Provides employees with pay for time when they are not working - Answers - paid time-
off
Provides such enhancements as tuition reimbursement and day care assistance to
employees and their families - Answers - services
Achieved when the value of each job is clearly defined - Answers - internal consistency
Compensation policies that fit business objectives; vital in attracting and retaining
employees - Answers - market competitiveness
Determined by employees' credentials, job knowledge, and job performance - Answers -
pay structures
VERIFIED ANSWERS
The rewards employees receive for performing their jobs - Answers - compensation
Employees' critical psychological states that result from preforming their jobs - Answers
- intrinsic compensation
Both monetary and non-monetary rewards - Answers - extrinsic compensation
The design and implementation of compensation systems to reinforce the objectives of
both HR strategies and competitive business strategies - Answers - strategic
compensation
Sets of collective skills, knowledge, and abilities that employees can apply to create
economic value for their employers - Answers - human capital
Competitive business strategy that focuses on being the lowest cost producer/seller of
goods and services - Answers - lowest cost strategy
When is lowest cost strategy the most effective? (4) - Answers - 1. When jobs have
predictable behaviors
2. Jobs have short term focus
3. Job requires autonomous activity
4. Job focuses on quantity of output
Competitive business strategy that focuses on offering unique goods or services to the
public - Answers - differentiation strategy
When is a differentiation strategy most effective? (3) - Answers - jobs that:
1. Require high creativity
2. Have long term focus
3. Involve risk taking
What are examples of core compensation? (2) - Answers - 1. Annual salary
2. Hourly wage
What employee factors are compensable? (4) - Answers - 1. Skill level
2. Effort
3. Level of responsibility
4. Severity of working conditions
, What ways can core compensation be adjusted? (4) - Answers - 1. Cost of living
adjustments
2. Seniority pay
3. Merit pay
4. Incentive pay
Periodic base pay increases that are founded on changes in prices as indexed by the
consumer price index - Answers - cost of living adjustments
Rewarding employees with periodic additions to base pay according to employees'
length of service in performing their jobs - Answers - seniority pay
Employees' compensation over time should be determined by differences in job
performance - Answers - merit pay
Rewarding employees for partially or completely attaining a predetermined work
objective - Answers - incentive pay
Reward managerial, service, or professional workers for successfully learning specific
curricula - Answers - pay for knowledge
Increasing employee pay as they master new skills - Answers - skill-based pay
What are the 3 broad categories of discretionary benefits? (3) - Answers - 1. Protection
programs
2. Paid time-off
3. Services
Provides family benefits, promote health, and guard against income loss caused by
catastrophic factors as unemployment, disability, or serious illness - Answers -
protection programs
Provides employees with pay for time when they are not working - Answers - paid time-
off
Provides such enhancements as tuition reimbursement and day care assistance to
employees and their families - Answers - services
Achieved when the value of each job is clearly defined - Answers - internal consistency
Compensation policies that fit business objectives; vital in attracting and retaining
employees - Answers - market competitiveness
Determined by employees' credentials, job knowledge, and job performance - Answers -
pay structures
