Test Bank for Strategic Compensation in Canada (7th Edition) by Singh & Long | All Chapters | Accurate & Exam-Tested Questions | ISBN 9781774128626

TEST BANK

STRATEGIC COMPENSATION IN CANADA
7TH EDITION

PART 1: STRATEGY, REWARDS, AND BEHAVIOUR

CHAPTER NO. 01

1. There is no one best compensation system that fits all firms.


*a. True
b. False


2. An effective compensation system is important to most organizations because it can
mean the difference between company success and failure.


*a. True
b. False


3. The main similarity between extrinsic rewards and intrinsic rewards is that they both
satisfy so-called higher order needs such as survival and security.


a. True
*b. False


4. A reward strategy is the plan for the mix of rewards to be provided to organization
members along with the means through which they will be provided.


*a. True
b. False

,5. Compensation strategy includes the “how” and “how much” in terms of
compensation to be paid.


*a. True
b. False


6. The main difference between a reward system and a compensation system is that a
reward system rewards only good performance while a compensation system provides
pay to all employees.


a. True
*b. False


7. A compensation system has two components: base pay and performance pay.


a. True
*b. False


8. The optimal compensation system is one that adds the most value to the organization,
after considering all its costs.


*a. True
b. False


9. There is often one so-called best compensation system that applies to a broad spectrum
of organizations.


a. True
*b. False

,10. According to the "Road Map to Effective Compensation," the first step is formulating
your reward and compensation strategy.


a. True
*b. False


11. Which of the following statements is supported by evidence in the textbook?


a. Canadian firms spend 50 to 80 percent of their capital budgets on
compensation.
b. Properly designed compensation systems usually promote unproductive
behaviour.
c. Reward systems should be static and rarely reviewed.
*d. Canadian firms spend 40 to 70 percent of their operating budgets on
compensation.


12. Which of the following statements most accurately describes extrinsic rewards?


a. They focus on factors inherent in the work itself-the job content.
b. They satisfy higher-order human needs.
*c. They include monetary and nonmonetary rewards and come from the job
context.
d. They involve skill variety, task identity, task significance, autonomy, and
feedback.


13. Jackson, a service manager, loves his job. He particularly appreciates the level of
autonomy his job provides. From a rewards perspective, which kind of reward appears to
be motivating Jackson?


a. Extrinsic
b. Incentives

, *c. Intrinsic
d. Compensation


14. Compensation means different things to different stakeholders. For shareholders,
what is an important consideration?


a. take-home pay of employees
b. effectiveness of the compensation system in attracting employees
*c. financial value of the compensation system to the firm’s bottom line
d. fairness of the compensation system


15. As a small business owner committed to the total rewards approach to compensation,
what do you need to establish before you start to develop your compensation system?


a. a reward system
b. an incentive program
c. a compensation strategy
*d. a reward strategy


16. Which item is considered part of a compensation system?


*a. performance pay
b. flexible work schedules
c. positive organizational culture
d. work/life programs


17. Which of the following best describes the term “reward strategy”?


a. the means through which performance bonuses are paid
*b. the mix of rewards provided to organization members