Test Bank for Strategic Compensation: A Human Resource Management Approach, 11th Edition by Martocchio.

All Chapters Answers Included

Strategic Compensation: A Human Resource Management Approach, 11e (Martocchio)
Chapter 1 Strategic Compensation: A Component of Human Resource Systems

1) refers to the design and implementation of compensation systems to reinforce the
objectives of both HR strategies and competitive business strategies.
A) Extrinsic compensation
B) Strategic compensation
C) Strategic analysis
D) Intrinsic compensation
Answer: B
Difficulty: Moderate
Skill: Concept
AACSB: Analytical Thinking
LO: 1.1: Define strategic compensation.

2) Protection programs are what type of compensation benefits?
A) External
B) Non-monetary rewards
C) Internal
D) Monetary
Answer: B
Difficulty: Moderate
Skill: Concept
AACSB: Analytical Thinking
LO: 1.1: Define strategic compensation.

3) Which of the following is NOT an example of a core compensation?
A) Medical insurance
B) End-of-year bonuses
C) Merit pay
D) Monetary compensation
Answer: A
Difficulty: Moderate
Skill: Concept
AACSB: Reflective Thinking
LO: 1.1: Define strategic compensation.




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,4) Since the COVID-19 epidemic restrictions eased and allowed employees to return to work,
many companies have been offering higher pay increases. Approximately, how much have pay
increases been?
A) Less than 2%
B) 2% up to 2.9%
C) 3% up to 3.8%
D) 4% or more
Answer: D
Difficulty: Challenging
Skill: Concept
AACSB: Application of Knowledge
LO: 1.1: Define strategic compensation.

5) Employee benefits refer to .
A) salary and bonuses
B) monetary compensation
C) nonmonetary rewards
D) effective compensation practices
Answer: C
Difficulty: Easy
Skill: Concept
AACSB: Reflective Thinking
LO: 1.1: Define strategic compensation.

6) Which of the following is a specific tactical HR compensation decision?
A) Performance appraisal
B) Seniority pay
C) Recruitment
D) Training
Answer: B
Difficulty: Moderate
Skill: Concept
AACSB: Analytical Thinking
LO: 1.1: Define strategic compensation.

7) compensation refers to the mental state of employees as a result of their
performance on the job.
A) Intrinsic
B) Extrinsic
C) Core
D) Monetary
Answer: A
Difficulty: Moderate
Skill: Concept
AACSB: Reflective Thinking
LO: 1.1: Define strategic compensation.


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,8) Compensation represents both the intrinsic and extrinsic rewards employees receive for
performing their jobs. Briefly describe both types of rewards and indicate the professionals who
are responsible for managing them.
Answer: Intrinsic compensation reflects employees' psychological mind-sets that result from
performing their jobs. Extrinsic compensation includes both monetary and nonmonetary rewards.
Organizational development professionals promote intrinsic compensation through effective job
design. Compensation professionals are responsible for extrinsic compensation. Extrinsic
compensation includes both monetary and nonmonetary rewards. Compensation professionals
establish monetary compensation programs to reward employees according to their job
performance levels or for learning job-related knowledge or skills. Nonmonetary rewards include
protection programs (e.g., medical insurance), paid time off (e.g., vacations), and services (e.g.,
day care assistance). Most compensation professionals refer to nonmonetary rewards as
employee benefits.
Difficulty: Moderate
Skill: Concept
AACSB: Analytical Thinking
LO: 1.1: Define strategic compensation.

9) Which of following contributed greatly to the need for a strategic approach to compensation?
A) Advances in technology
B) Dramatic increases in CEO compensation
C) Higher productivity per worker
D) Greater inequality in wealth
Answer: A
Difficulty: Moderate
Skill: Concept
AACSB: Analytical Thinking
LO: 1.2: Summarize the role of compensation as a strategic business partner.

10) Which of the following shifts in workforce composition makes it necessary to have a
strategic approach to compensation issues?
A) Fewer employees are earning college degrees.
B) More women entered the labor force after the pandemic.
C) A leadership gap due to retiring baby boomers.
D) Most younger employees do not have the same work ethic.
Answer: C
Difficulty: Moderate
Skill: Concept
AACSB: Application of Knowledge
LO: 1.2: Summarize the role of compensation as a strategic business partner.




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, 11) In GE's human resource leadership program (HRLP), successful participants will achieve
which of the following?
A) Gain an understanding of the depth of specialization for each (HR) function
B) Gain an understanding of HR competencies, global leadership skills, and business acumen
C) Gain an understanding of the width of specialization for each HR function
D) Gain an understanding of HR from a generalist's perspective
Answer: B
Difficulty: Easy
Skill: Application of Knowledge
AACSB: Application of Knowledge
LO: 1.2: Summarize the role of compensation as a strategic business partner.

12) A mass spectrometer in a research lab is an example of which of the following?
A) Human capital
B) Financial capital
C) Capital equipment
D) Performance enhancers
Answer: C
Difficulty: Moderate
Skill: Application of Knowledge
AACSB: Application of Knowledge
LO: 1.2: Summarize the role of compensation as a strategic business partner.

13) Which of the following tools can compensation professionals use to leverage the value of
human capital?
A) Higher minimum wages
B) Skill-based pay programs
C) Compensation based on length of employment
D) Employee unionization support
Answer: B
Difficulty: Challenging
Skill: Concept
AACSB: Analytical Thinking
LO: 1.2: Summarize the role of compensation as a strategic business partner.




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