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Compensation 13Th Edition By Barry Gerhart - Test Bank
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Compensation 13Th Edition By Barry Gerhart - Test Bank
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,Compensation, 13e (Gerhart)Chapter 1 The Pay Model
1) Which of the following programs introduced by Congress includes restrictions on executive
pay that are designed to discourage executives from taking "unnecessary and excessive risks"?
A) Corporate Welfare Program
B) Employee Welfare Program
C) Troubled Asset Relief Program
D) Corporate Liability Relief Program
Answer: C
Difficulty: 1 Easy
Topic: Compensation: Does It Matter? (or, "So What?")
Accessibility: Keyboard Navigation
2) ________ is defined as employee belief that returns and/or rewards are due regardless of
individual or company performance.
A) Entitlement
B) Ability
C) Compliance
D) Motivation
Answer: A
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation
3) One of the reasons why the great majority of the uninsured in the United States are from
working families is that
A) many larger employers do not offer health insurance as it does not guarantee an increase in
productivity levels.
B) health insurance is costlier for larger employers.
C) many small employers are much less likely than larger employers to offer health insurance to
their employees.
D) most workers decline health insurance when it is offered by their employers.
Answer: C
Difficulty: 2 Medium
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,4) The degree to which pay influences individual and aggregate motivation among employees at
any point in time is referred to as a(n):
A) sorting effect.
B) incentive effect.
C) turnover effect.
D) directional effect.
Answer: B
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation
5) Which of the following is an example of a relational return?
A) A short-term incentive
B) Employment security
C) A long-term incentive
D) Income protection
Answer: B
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation
6) Which of the following is given as an increment to base pay in recognition of past work
behavior?
A) Base pay
B) A long-term incentive
C) Merit pay
D) A short-term incentive
Answer: C
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 7) GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a board
meeting with the senior executives to discuss the issue. Who among the following suggests
increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?
A) Tom, who suggests increasing the decision-making authorities given to the employees to
make work more challenging
B) Deena, who suggests providing more work/life balance to the employees by increasing the
number of paid leaves
C) Syed, who suggests increasing the medical insurance coverage offered to the employees
D) Liam, who suggests increasing merit bonuses
Answer: A
Difficulty: 3 Hard
Topic: Forms of Pay
Accessibility: Keyboard Navigation
8) Which form of pay does NOT permanently increase labor costs?
A) Incentives
B) Merit pay
C) Cost-of-living adjustments
D) Base pay
Answer: A
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation
9) Which of the following is true of incentives?
A) They reward past behavior to influence future behavior.
B) They are linked to subjective performance measures.
C) They permanently increase labor costs.
D) They are re-earned each pay period.
Answer: D
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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