ACTUAL Exam Questions and CORRECT
Answers
Broadbanding - CORRECT ANSWER - The practice of using fewer pay grades with much
broader ranges than in traditional compensation systems. Main advantage is more consistent with
flattening of organizational levels and growing jobs that are multidimensional. Problem is
employees expect a promotion to come with a pay raise and movement to a new pay. By not
having this employees will feel there is no room for promotion opportunities. Most companies
use traditional pay grades.
Coaches - CORRECT ANSWER - Observe and feedback is given to immediate
supervisors. It is the continual process of learning by doing. Group coaching on leadership can
help create high-performance teams. Outside help can come in for executive coaching.
Observation with suggestions.
Counseling - CORRECT ANSWER - Heighten employee awareness of organizational
policies and rules. Being made aware of rules, and knowledge of possible disciplinary actions
may prevent violations.
Adverse Selection - CORRECT ANSWER - Certain employees select and use certain
benefits. Example: employees with younger children are more likely to enroll in orthodontic
coverage.
Assessment Center - CORRECT ANSWER - Assessment exercise composed of a series of
evaluative tests used for selection and development. Tests and exercises must reflect the content
of the job for which individuals are being screened, the types of problems faced on that job.
Bargaining Unit - CORRECT ANSWER - Employees eligible to select a single union to
represent and bargain collectively for them. NLRA excludes supervisors from voting or joining.
Cannot be be included, however who qualifies as a supervisor is not always clear.
, Collective Bargaining - CORRECT ANSWER - Process where representatives of
management and workers negotiate over wages, hours and other terms and conditions of
employment.
Management Rights - CORRECT ANSWER - Rights reserved so that the employer can
manage, direct and control it's business, even with a labor contract.
Behavioral Interview - CORRECT ANSWER - Applicants give specific examples of how
they have performed a certain task or handled a problem in the past.
Situational Interview - CORRECT ANSWER - Structured interview that contains
questions about how applicants might handle specific job situations.
Stress Interview - CORRECT ANSWER - Designed to create anxiety and put pressure on
applicants to see how they respond.
Benchmarking - CORRECT ANSWER - Comparing the business results to the industry.
Comparing business metrics to an industry standard or best practice. Best determined by
measures on a year to year basis.
Performance Standards - CORRECT ANSWER - Can be viewed as objective or
subjective. Objective example: number of items sold. Subjective example: requires judgement on
the part of the evaluator and is more difficult to determine. I.E. Employees attitude. Indicators of
what the job accomplishes and how performance is measured in key areas of the job.
Disparate Treatment - CORRECT ANSWER - Occurs when members of a group are
treated differently than others.
Disparate Impact - CORRECT ANSWER - Occurs when members of a protected category
are substantially underrepresented as a result of employment decisions that work to their
advantage.