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Test Bank — Compensation, 14th Edition — Barry Gerhart & Jerry Newman — ISBN 9781264080908 — Latest Update 2025/2026 — (All Chapters Covered 1‑18)

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This verified Test Bank entry for Compensation (14th Edition) by Barry Gerhart and Jerry Newman (ISBN 9781264080908) provides a comprehensive, chapter‑organized academic resource aligned with the textbook’s structure. Intended for instructors and academic catalogues, it supports coursework in human resource management, pay strategy, compensation systems, and organizational leadership. The textbook’s chapter sequence begins with Chapter 1: The Pay Model, followed by Chapter 2: Strategy: The Totality of Decisions, Chapter 3: Defining Internal Alignment, Chapter 4: Job Analysis, Chapter 5: Job‑Based Structures and Job Evaluation, Chapter 6: Person‑Based Structures, Chapter 7: Defining Competitiveness, Chapter 8: Designing Pay Levels, Mix, and Pay, Chapter 9: Pay‑for‑Performance: Theory and Evidence, Chapter 10: Pay‑for‑Performance: Types of Plans, Chapter 11: Performance Appraisals, Chapter 12: The Benefit Determination Process, Chapter 13: Benefit Options, Chapter 14: Compensation of Special Groups: Executives and Others, Chapter 15: Union Role in Wage and Salary Administration, Chapter 16: International Pay Systems, Chapter 17: Government and Legal Issues in Compensation, and concludes with Chapter 18: Management: Making It Work.

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Compensation 14th Edition
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TEST BANK
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Barry Gerhart
AP

Comprehensive Test Bank for Instructors
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and Students
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© Barry Gerhart. All rights reserved. Reproduction or distribution without permission is

prohibited.
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©DREAMSHUB

, Test Bank for Compensation (14th Edition)
ISBN: 9781264080908
Authors: Barry Gerhart, Jerry Newman
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Chapter 1: The Pay Model
Chapter 2: Strategy: The Totality of Decisions
Chapter 3: Defining Internal Alignment
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Chapter 4: Job Analysis
Chapter 5: Job-Based Structures and Job Evaluation
Chapter 6: Person-Based Structures
Chapter 7: Defining Competitiveness
Chapter 8: Designing Pay Levels, Mix, and Pay
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Chapter 9: Pay-for-Performance: Theory and Evidence
Chapter 10: Pay-for-Performance: Types of Plans
Chapter 11: Performance Appraisals
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Chapter 12: The Benefit Determination Process
Chapter 13: Benefit Options
Chapter 14: Compensation of Special Groups: Executives and Others
Chapter 15: Union Role in Wage and Salary Administration
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Chapter 16: International Pay Systems
Chapter 17: Government and Legal Issues in Compensation
Chapter 18: Management: Making It Work
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©DREAMSHUB

, Student name:__________
1) Total CEO annual compensation at S&P 500 companies is roughly $12.3 million. At just
over half that total ($6.5 million), which compensation component comprises the majority of
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that total compensation amount?
A) Stock option awards
B) Salary
C) Stock grants
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D) Bonuses



2) The "say on pay" and clawback provisions are included in which of the following federal
laws?
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A) The Dodd-Frank Wall Street Reform and Consumer Protection Act
B) The Affordable Care Act of 2010
C) The Fair Labor Standards Act (FLSA)
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D) The Cost-of-Living Act (COLA)


3) One of the reasons why the great majority of the uninsured in the United States are from
AP
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
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insurance to their employees.
D) most workers decline health insurance when it is offered by their employers.
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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.
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D) directional effect.
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, 5) Which of the following is an example of a relational return?
A) A short-term incentive
B) Employment security
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C) Allowances
D) Income protection
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6) Which of the following is given as an increment to base pay in recognition of past work
behavior?
A) Merit bonuses
B) Relational returns
C) Merit increases
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D) A short-term incentive
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7) GreenRain Corporation 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?
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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
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employees
D) Liam, who suggests increasing merit bonuses
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8) Which of the following statements concerning cash compensation and the Fair Labor
Standards Act is true?
A) Nonexempt employees have their pay calculated at an hourly wage.
B) Exempt workers receive overtime pay.
C) Managers and professionals usually fit the category of nonexempt worker.
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D) Labeling all base pay as "salary" means the employer does not have to follow the
FLSA regulations.
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