EXAM STUDY GUIDE 2026/2027
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1. Direct financial compensation - ANSWER ✔ compensation received in the
form of salary, wages, commissions, stock options or bonuses
2. indirect financial compensation - ANSWER ✔ all the tangible and
financially valued rewards that are not included in direct compensation
including free meals, vacation time and health insurance
3. nonfinancial compensation - ANSWER ✔ rewards and incentives given to
employees that aren't financial in nature
4. base pay - ANSWER ✔ reflects the size and scope of an employee's
responsibilities
5. severance pay - ANSWER ✔ give to employees upon termination of their
employment
6. fixed pay - ANSWER ✔ pays employees a set amount regardless of
performance
7. variable pay - ANSWER ✔ bases some or all of an employee's
compensation on employee, team, or organizational
8. pay structure - ANSWER ✔ the array of pay rates for different work or
skills within a single organization
,9. pay mix - ANSWER ✔ the relative emphasis give to different
compensation components
10.pay leader - ANSWER ✔ organization with a compensation policy of
giving employees greater rewards than competitors
11.pay follower - ANSWER ✔ an organization that pays its front-line
employees as little as possible
12.resource dependence theory - ANSWER ✔ proposition that organizational
decisions are influenced by both internal and external agents who control
critical resources
13.wage differentials - ANSWER ✔ differences in wage between various
workers, groups of workers, or workers within a career field
14.labor market - ANSWER ✔ all of the potential employees located within a
geographic area from which the organization might be able to hire
15.task feedback - ANSWER ✔ the degree to which carrying out the job's
required activities results in the individual's obtaining direct and clear
information about the effectiveness for his or her performance
16.job enrichment - ANSWER ✔ a job design approach that increases a job's
complexity to give workers greater responsibility and opportunities to feel a
sense of achievement
17.job enlargement - ANSWER ✔ adding more tasks at the same level of
responsibility and skill related to an employee's current position
18.job rotation - ANSWER ✔ workers are moved through a variety of jobs to
increase their interest and motivation
19.cross-training - ANSWER ✔ training employees in more than one job or in
multiple skills to enable them to do different jobs
,20.Which situation is an example of a managerial ethical dilemma? - ANSWER
✔ Being asked to directly supervise a family member
21.A human resource manual specifies that employees cannot be terminated or
punished for refusing to follow an illegal request made by a supervisor.
22.Which standard is being applied to resolve this ethical dilemma? -
ANSWER ✔ Rights Standard
23.What is the goal of affirmative action? - ANSWER ✔ By seeking to
remedy past practices that innately caused an adverse effect on applicants
24.A female employer is accused of having an employment practice that
negatively impacts women. The employer responds that she has the same
requirements for male and female applicants and wants to hire other women.
25.Why is this case a potential demonstration of adverse impact? - ANSWER
✔ Adverse impact is unintentional and relates to standard policies applied
to all employees.
26.Which protected classes must a company set hiring goals for under
Executive Order 11246? - ANSWER ✔ Minorities and women
27.An employer terminates an employee for being unattractive and putting less
effort in personal appearance.
28.Why is this permitted under an at-will employment relationship? -
ANSWER ✔ An employer can terminate an employee for an immoral
reason.
29.Which law guarantees that a woman can take unpaid time off following the
birth of her child without fear of losing her job? - ANSWER ✔ The Family
and Medical Leave Act of 1993
30.What is the goal of the Uniformed Services Employment and Reemployment
Rights Act of 1994? - ANSWER ✔ To prevent discrimination against
employees who may be called into active military service
, 31.Which event should be covered under workers' compensation? - ANSWER
✔ Breaking an arm while at work
32.How does an organization's human resource strategy support the
organization's business strategy? - ANSWER ✔ By helping it to acquire,
develop, motivate, and retain the talent needed to fulfill its strategy
33.What is a primary function of human resource management? - ANSWER
✔ Retaining talent
34.How does effective human resource management improve organizational
performance? - ANSWER ✔ By enhancing a company's ability to cope
with growth and change
35.Which characteristic of an employee should human resource management
focus on to enhance organizational culture? - ANSWER ✔ Fit within an
organization
36.Which belief is an example of bias creating barriers to equal treatment in an
organization? - ANSWER ✔ Extroverted employees are the most effective.
37.Which factor in successful organizational change can be provided through
effective human resource management? - ANSWER ✔ Trust
38.What is the organization's formal system of task, power, and reporting
relationships called? - ANSWER ✔ An organizational structure
39.How does human resource management support organizational leadership? -
ANSWER ✔ By providing employees with opportunities for professional
development and growth
40.Which decision can human resource management assist with during the
combination stage of mergers and acquisitions? - ANSWER ✔ When to
declare the combination a success
41.How can human resource managers serve as internal consultants? -
ANSWER ✔ By helping managers avoid common training pitfalls