D351 Functions of HR Management-
Questions and Answers
What is broad banding? Correct Ans-combining multiple pay levels into one
lowers administrative burden of maintaining the compensation system
what is variable pay? Correct Ans-based on when the employee works (ex: overtime) or
where the employee works; also called differential pay
also recognized as incentive pay
what are the two choices in incentive pay? Correct Ans-individual or group based incentives
what are individual incentives? Correct Ans-Reward the effort & performance of individual
employees
what are group incentives? Correct Ans-provide reinforcement for actions of more than one
individual within the organization
what is social loafing? Correct Ans-the tendency for people in a group to exert less effort
when pooling their efforts toward attaining a common goal than when individually accountable
,what is merit pay? Correct Ans-- based on performance
- when an org bases salary on the level of individual skills
- use it when employees are underpaid but company has a salary burden
what are piecework plans? Correct Ans-pay based on the number of units
what is a profit sharing program? Correct Ans-programs that provide a portion of company
proceeds over a specific period of time (usually quarterly or annually) to the employees of the
firm through a bonus payment
what is an employee stock ownership plan? Correct Ans-An arrangement in which a
corporation holds its own stock in trust for its employees, who gradually receive ownership of
the stock and control its voting rights
what are extrinsic rewards? Correct Ans-payoff a person receives from others for performing
a particular task
what are SMART goals? Correct Ans-Specific, Measurable, Attainable, Realistic, Timely
what are "golden parachutes?" Correct Ans-written into executive contracts that provide
special payments to key executives who might lose their position or be otherwise disadvantaged
if another company took control of the org through a merger or acquisition; aka parachutes
what is workers compensation? Correct Ans-type of insurance for work related injuries
,what is unemployment insurance? Correct Ans-a government program that partially protects
workers' incomes when they become unemployed
what is the Family and Medical Leave Act of 1993? (FMLA) Correct Ans-a law that allows
employees to take unpaid, job-protected leave for certain family and medical reasons
ex: 12 workweeks in 12 month period for birth of child, placement for adoption, serious health
condition
or 26 workweeks of leave during a single 12 month period to care for a service member with
serious injury
what is the Affordable Care Act of 2010? Correct Ans-US legislation intended to improve
healthcare quality through using information technology, ensuring affordable care, & increasing
the # of insured persons.
what is COBRA? Correct Ans-requires most private employers to continue to make health
benefits available to separated employees and their families for a time, generally 18 months after
separation; the former employee must pay for the coverage
What is vesting? Correct Ans-refers to the employee's right to the employer's contributions or
benefits attributable to the contributions if employment terminates prior to retirement
, What is the pension benefit guarantee corporation? (PGBC) Correct Ans-· a government
corporation established within the Department of Labor whose purpose is to insure retirement
funds from failure
What are fee-for-service plans? Correct Ans-plans that cover a set percentage of fees for
medical services - for either doctors or inpatient care
typically do not cover preventative care
do not need a referral to see a specialist
what are health maintenance organizations (HMO) Correct Ans-a health care plan that
provides both health maintenance services and medical care as a part of the plan
provides routine preventative care
will choose a PCP
generally required to use doctors and facilities within a network
What is a preferred provider organization? (PPO) Correct Ans-Members can see any dr or
provider that accepts medicare
No referral for specialist
Questions and Answers
What is broad banding? Correct Ans-combining multiple pay levels into one
lowers administrative burden of maintaining the compensation system
what is variable pay? Correct Ans-based on when the employee works (ex: overtime) or
where the employee works; also called differential pay
also recognized as incentive pay
what are the two choices in incentive pay? Correct Ans-individual or group based incentives
what are individual incentives? Correct Ans-Reward the effort & performance of individual
employees
what are group incentives? Correct Ans-provide reinforcement for actions of more than one
individual within the organization
what is social loafing? Correct Ans-the tendency for people in a group to exert less effort
when pooling their efforts toward attaining a common goal than when individually accountable
,what is merit pay? Correct Ans-- based on performance
- when an org bases salary on the level of individual skills
- use it when employees are underpaid but company has a salary burden
what are piecework plans? Correct Ans-pay based on the number of units
what is a profit sharing program? Correct Ans-programs that provide a portion of company
proceeds over a specific period of time (usually quarterly or annually) to the employees of the
firm through a bonus payment
what is an employee stock ownership plan? Correct Ans-An arrangement in which a
corporation holds its own stock in trust for its employees, who gradually receive ownership of
the stock and control its voting rights
what are extrinsic rewards? Correct Ans-payoff a person receives from others for performing
a particular task
what are SMART goals? Correct Ans-Specific, Measurable, Attainable, Realistic, Timely
what are "golden parachutes?" Correct Ans-written into executive contracts that provide
special payments to key executives who might lose their position or be otherwise disadvantaged
if another company took control of the org through a merger or acquisition; aka parachutes
what is workers compensation? Correct Ans-type of insurance for work related injuries
,what is unemployment insurance? Correct Ans-a government program that partially protects
workers' incomes when they become unemployed
what is the Family and Medical Leave Act of 1993? (FMLA) Correct Ans-a law that allows
employees to take unpaid, job-protected leave for certain family and medical reasons
ex: 12 workweeks in 12 month period for birth of child, placement for adoption, serious health
condition
or 26 workweeks of leave during a single 12 month period to care for a service member with
serious injury
what is the Affordable Care Act of 2010? Correct Ans-US legislation intended to improve
healthcare quality through using information technology, ensuring affordable care, & increasing
the # of insured persons.
what is COBRA? Correct Ans-requires most private employers to continue to make health
benefits available to separated employees and their families for a time, generally 18 months after
separation; the former employee must pay for the coverage
What is vesting? Correct Ans-refers to the employee's right to the employer's contributions or
benefits attributable to the contributions if employment terminates prior to retirement
, What is the pension benefit guarantee corporation? (PGBC) Correct Ans-· a government
corporation established within the Department of Labor whose purpose is to insure retirement
funds from failure
What are fee-for-service plans? Correct Ans-plans that cover a set percentage of fees for
medical services - for either doctors or inpatient care
typically do not cover preventative care
do not need a referral to see a specialist
what are health maintenance organizations (HMO) Correct Ans-a health care plan that
provides both health maintenance services and medical care as a part of the plan
provides routine preventative care
will choose a PCP
generally required to use doctors and facilities within a network
What is a preferred provider organization? (PPO) Correct Ans-Members can see any dr or
provider that accepts medicare
No referral for specialist
