True / False Questions
31.
When unemployment increases, the proportion of the population covered by health insurance decreases.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
32.
The degree to which pay influences individual and aggregate motivation among employees is called the sorting effect.
FALSE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
33.
Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.
FALSE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Forms of Pay
34.
Commissions are an example of incentives.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Forms of Pay
35.
Most U.S. firms use merit pay increases.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Forms of Pay
36.
Base wage reflects both the value of the work and individual employee skills and experience.
FALSE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Forms of Pay
37.
Pension and health benefits are a very large component of total compensation for many large companies such as American Airlines and GM.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Forms of Pay
38.
A major challenge facing most employers is the rising cost of health care benefits.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Forms of Pay
39.
Procedural fairness suggests that the way a pay decision is made is of less importance to employees than the results of the decision.
FALSE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: A Pay Model
40.
If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: A Pay Model
41.
Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: A Pay Model
42.
Even if the federal compensation laws change, it is unnecessary to change pay systems to ensure continued compliance.
FALSE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: A Pay Model
43.
Internal alignment refers to comparisons among jobs or skill levels inside a single organization.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: A Pay Model
44.
Since HR research contains information useful to managers, most managers read research in HR management, and compensation journals.
FALSE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Caveat Emptor-Be an Informed Consumer
45.
Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.
FALSE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Caveat Emptor-Be an Informed Consumer
46.
Monetary incentives produce the biggest increases in job performance.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Caveat Emptor-Be an Informed Consumer
47.
A study found that only a very small amount of change in CEO pay is related to changes in company performance.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Caveat Emptor-Be an Informed Consumer