Chapter 1
1. The fundamental purpose of a compensation system is to help create a willingness among
qualified persons to join the organization and to perform the tasks needed by the organization.
a. True
b. False
2. Your company is experiencing high turn over and poor work quality. Which of the following
actions will increase intrinsic rewards?
a. Providing a pension option and offering a retirement planning service.
b. Introducing pay-for-performance plans.
c. Trying to enrich the jobs to make them more interesting.
d. Offering dental and medical coverage.
3. Which of the following statements is most accurate regarding the reward strategy?
a. The reward system is the blueprint for creating the reward strategy.
b. Intrinsic awards alone will not motivate the needed behaviour.
c. Determining the mix of rewards to be provided is an easy process.
d. Various combinations of intrinsic and extrinsic rewards need to be considered for
developing the optimal reward strategy.
4. Which of the following items is not a component of the compensation strategy?
a. Employee benefits
b. Employment security
c. Base pay
d. Performance pay
5. Which statement best describes current compensation practices and expectations related to the
key criteria for evaluating the success of a compensation system.
a. It is realistic to expect that a reward system will achieve all eight of the effectiveness
criteria.
b. Continuing evaluation of the effectiveness of the reward and compensation system is
crucial for most organizations.
c. Successful organizations all have equitable reward systems.
d. Most firms have found the right answers to the compensation puzzle.
Chapter 2
1. To expand your scope as an HR practitioner, you recently transferred from a smaller
manufacturing firm to a larger one and discovered that, although entirely different, both
compensation systems are effective. How is this possible?
a. Both companies have well-trained managers.
b. Both companies do similar work and hire the same kinds of employees.
c. Both systems fit the organization and its strategy.
d. Both take a universal approach using the best practices of Canada’s top employers.
2. Which of the following dimensions is not a structural variable?
a. job design
b. coordination/departmentation
c. reward systems
d. corporate strategy
3. Which of the following dimensions is not a contextual variable?
a. control system
b. technology
c. work force
d. organization size
4. Which of the following production processes refers to long-linked technology?
a. Standardized transactions are used to connect mutually interested people.
b. Tasks are divided into sequential steps and carried out by different employees.
c. Each item or case is unique and dealt with individually.
d. There is no standardization used to produce the product.
, 5. A defender strategy, a stable environment, a long-linked technology, a relatively low-skilled
work force, and a large organization would be a good combination of variables for which
managerial strategy?
a. Classical
b. human relations
c. high-involvement
d. Hybrid
Chapter 3
1. You are extremely happy with your job and would not hesitate to recommend your company as a good
place to work. Which key employee attitude are you expressing?
a. Organizational identification
b. Motivation
c. Job satisfaction
d. Commitment
2. Which of the following attitudes refers to the strength of an employee’s desire to perform his or her
job duties well?
a. job satisfaction
b. work motivation
c. organizational identification
d. organizational commitment
3. Which of the following rewards reinforces continuance commitment?
a. Portable pension plans
b. Seniority-based pay increases
c. Fixed term contracts
d. Matching competitor pay levels
4. What type of behaviour will you likely generate by demonstrating a genuine concern for the welfare of
your employees and sharing company profits with them?
a. Affective commitment
b. Continuance commitment
c. Task
d. Moral commitment
5. Which of the following refers to content theories of motivation?
a. Theories based on reinforcement theories
b. Theories that focus on managerial strategies
c. Theories that focus on understanding the means by which people make choices
d. Theories that focus on human needs
6. Which of the following actions would be an example of positive reinforcement?
a. A manager praises an employee for good performance
b. A supervisor ignores an employee who consistently asks for direction
c. A manager gives an employee a one-day suspension without pay for showing up late
d. An employee accepts the least desirable job in the plant hoping to be promoted
7. Firms practising human relations management will be primarily concerned with which employee
behaviours?
a. All three behaviours are important
b. Task
c. Membership and organizational citizenship
d. Membership and task
8. Which of the following employee behaviours is appropriate for firms using a classical managerial
strategy?
a. Membership
b. Organizational citizenship
c. Task
1. The fundamental purpose of a compensation system is to help create a willingness among
qualified persons to join the organization and to perform the tasks needed by the organization.
a. True
b. False
2. Your company is experiencing high turn over and poor work quality. Which of the following
actions will increase intrinsic rewards?
a. Providing a pension option and offering a retirement planning service.
b. Introducing pay-for-performance plans.
c. Trying to enrich the jobs to make them more interesting.
d. Offering dental and medical coverage.
3. Which of the following statements is most accurate regarding the reward strategy?
a. The reward system is the blueprint for creating the reward strategy.
b. Intrinsic awards alone will not motivate the needed behaviour.
c. Determining the mix of rewards to be provided is an easy process.
d. Various combinations of intrinsic and extrinsic rewards need to be considered for
developing the optimal reward strategy.
4. Which of the following items is not a component of the compensation strategy?
a. Employee benefits
b. Employment security
c. Base pay
d. Performance pay
5. Which statement best describes current compensation practices and expectations related to the
key criteria for evaluating the success of a compensation system.
a. It is realistic to expect that a reward system will achieve all eight of the effectiveness
criteria.
b. Continuing evaluation of the effectiveness of the reward and compensation system is
crucial for most organizations.
c. Successful organizations all have equitable reward systems.
d. Most firms have found the right answers to the compensation puzzle.
Chapter 2
1. To expand your scope as an HR practitioner, you recently transferred from a smaller
manufacturing firm to a larger one and discovered that, although entirely different, both
compensation systems are effective. How is this possible?
a. Both companies have well-trained managers.
b. Both companies do similar work and hire the same kinds of employees.
c. Both systems fit the organization and its strategy.
d. Both take a universal approach using the best practices of Canada’s top employers.
2. Which of the following dimensions is not a structural variable?
a. job design
b. coordination/departmentation
c. reward systems
d. corporate strategy
3. Which of the following dimensions is not a contextual variable?
a. control system
b. technology
c. work force
d. organization size
4. Which of the following production processes refers to long-linked technology?
a. Standardized transactions are used to connect mutually interested people.
b. Tasks are divided into sequential steps and carried out by different employees.
c. Each item or case is unique and dealt with individually.
d. There is no standardization used to produce the product.
, 5. A defender strategy, a stable environment, a long-linked technology, a relatively low-skilled
work force, and a large organization would be a good combination of variables for which
managerial strategy?
a. Classical
b. human relations
c. high-involvement
d. Hybrid
Chapter 3
1. You are extremely happy with your job and would not hesitate to recommend your company as a good
place to work. Which key employee attitude are you expressing?
a. Organizational identification
b. Motivation
c. Job satisfaction
d. Commitment
2. Which of the following attitudes refers to the strength of an employee’s desire to perform his or her
job duties well?
a. job satisfaction
b. work motivation
c. organizational identification
d. organizational commitment
3. Which of the following rewards reinforces continuance commitment?
a. Portable pension plans
b. Seniority-based pay increases
c. Fixed term contracts
d. Matching competitor pay levels
4. What type of behaviour will you likely generate by demonstrating a genuine concern for the welfare of
your employees and sharing company profits with them?
a. Affective commitment
b. Continuance commitment
c. Task
d. Moral commitment
5. Which of the following refers to content theories of motivation?
a. Theories based on reinforcement theories
b. Theories that focus on managerial strategies
c. Theories that focus on understanding the means by which people make choices
d. Theories that focus on human needs
6. Which of the following actions would be an example of positive reinforcement?
a. A manager praises an employee for good performance
b. A supervisor ignores an employee who consistently asks for direction
c. A manager gives an employee a one-day suspension without pay for showing up late
d. An employee accepts the least desirable job in the plant hoping to be promoted
7. Firms practising human relations management will be primarily concerned with which employee
behaviours?
a. All three behaviours are important
b. Task
c. Membership and organizational citizenship
d. Membership and task
8. Which of the following employee behaviours is appropriate for firms using a classical managerial
strategy?
a. Membership
b. Organizational citizenship
c. Task
