pensions
C.
stock options
D.
incentives
12.
Which of the following is often the largest component in an executive pay package?
A.
Base pay
B.
Stock options
C.
Merit pay
D.
Perks
13.
Among employers that provide health insurance, the cost to provide family coverage per year per employee is approximately _____.
A.
$4,000
B.
$9,000
C.
$16,000
D.
$22,000
14.
Robert, the CEO of GameTrack Corp., wants to restructure the pay plan without increasing the labor costs in the long run. He is most likely to achieve this, while retaining his top employees, by:
A.
increasing base pay and decreasing variable pay.
B.
increasing incentive pay and decreasing base pay.
C.
hiring more employees and reducing the marginal product output requirements.
D.
providing across-the-board increases on a monthly basis.
15.
Incentives do not permanently increase labor costs because:
A.
they rely on a subjective rating of performance.
B.
they are given based on the past performances of the employees.
C.
they increase the base wage.
D.
they are one-time payments.
16.
A difference between incentives and merit increases is that incentives:
A.
do not increase the base wage, whereas merit increases the base wage.
B.
cannot be tied to the performance of an individual, whereas merit increases can be tied to the performance of an individual.
C.
rely on a subjective measure of performance, whereas merit increases rely on an objective measure of performance.
D.
are relational returns, whereas merit increases are part of the total compensation.
17.
Which of the following is a fundamental objective, and NOT a policy, in the pay model?
A.
Fairness
B.
Competitiveness
C.
Contributions
D.
Alignment
18.
Which of the following is a policy, and NOT an objective, in the pay model?
A.
Ethics
B.
Competitiveness
C.
Efficiency
D.
Fairness
19.
Incentives and merit guidelines are techniques of the _____ policy of the pay model.
A.
internal alignment
B.
external competitiveness
C.
employee contributions
D.
management of the pay system
20.
_____ refers to comparisons among jobs or skills inside a single organization.
A.
External competitiveness
B.
Internal alignment
C.
Compliance
D.
Merit increase
21.
In the context of pay relationships, which of the following is illegal in the United States?
A.
Paying on the basis of the nature of jobs
B.
Paying on the basis of pay comparisons with competitors
C.
Paying on the basis of one's age
D.
Paying on the basis of one's skill level
22.
Managers seek internal alignment within their organization by:
A.
matching the competitors' pay rates.
B.
following FLSA guidelines.
C.
using fair merit increases.
D.
paying on the basis of similarities among jobs.
23.
Compensation policy choices that affect the pay level relative to other companies are most closely associated with the _____ aspect of the pay model.
A.
internal alignment