Test Bank for Strategic Compensation: A Human Resource Management Approach, 11th Edition by Martocchio, All Chapters | Complete Guide A+

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, All Chapters x x
Answers Included x x




Strategic Compensation: A Human Resource Management Approach, 11e (Martocchio)
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Chapter 1 Strategic Compensation: A Component of Human Resource Systems
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1) refers to the design and implementation of compensation systems to reinforce the
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objectives of both HR strategies and competitive business strategies.
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A) Extrinsic compensation x



B) Strategic compensation x



C) Strategic analysis x



D) Intrinsic compensation x



Answer: B
x x



Difficulty: Moderate x



Skill: Concept
x x



AACSB: Analytical Thinking
x x x



LO: 1.1: Define strategic compensation.
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2) Protection programs are what type of compensation benefits?
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A) External
B) Non-monetary rewards x



C) Internal
D) Monetary
Answer: B
x x



Difficulty: Moderate x



Skill: Concept
x x



AACSB: Analytical Thinking
x x x



LO: 1.1: Define strategic compensation.
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3) Which of the following is NOT an example of a core compensation?
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A) Medical insurance x



B) End-of-year bonuses x



C) Merit pay x



D) Monetary compensation x



Answer: A
x x



Difficulty: Moderate x



Skill: Concept
x x



AACSB: Reflective Thinking
x x x



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,
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many companies have been offering higher pay increases. Approximately, how much have pay
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increases been?
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A) Less than 2% x x



B) 2% up to 2.9%
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C) 3% up to 3.8%
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D) 4% or more
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Answer: D
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Difficulty: Challenging x



Skill: Concept
x x



AACSB: Application of Knowledge x x x



xLO: 1.1: Define strategic
x x x



compensation.
x




5) Employee benefits refer to . x x x x



A) salary and bonuses x x



B) monetary compensation x



C) nonmonetary rewards x



D) effective compensation practices x x



Answer: C
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Difficulty: Easy x



Skill: Concept
x x



AACSB: Reflective Thinking x x x



LO: 1.1: Define strategic compensation.
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6) Which of the following is a specific tactical HR compensation decision?
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A) Performance appraisal x



B) Seniority pay x



C) Recruitment
D) Training
Answer:
x



xB
Difficulty: Moderate x



Skill: Concept
x x



AACSB: Analytical Thinking x x x



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



Difficulty: Moderate x



Skill: Concept
x x



AACSB: Reflective Thinking x x x



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



Difficulty: Moderate x



Skill: Concept
x x



AACSB: Analytical Thinking x x x



LO: 1.1: Define strategic compensation.
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9) Which of following contributed greatly to the need for a strategic approach to compensation?
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A) Advances in technology x x



B) Dramatic increases in CEO compensation x x x x



C) Higher productivity per worker x x x



D) Greater inequality in wealth x x x



Answer: A
x x



Difficulty: Moderate x



Skill: Concept
x x



AACSB: Analytical Thinking x x x



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



Skill: Concept
x x



AACSB: Application of Knowledge x x x x



LO: 1.2: Summarize the role of compensation as a strategic business partner.
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