HRM 324 Final Exam Guide

Base pay defined is?
     Pay by the drink
     Hourly or annual salary
     Service fees
     A fee that is paid per project



 How is base pay adjusted over time?
     Cost of living adjustments
     Seniority pay, merit pay
     Incentive pay, person focused pay
     All of the above



 Extrinsic compensation includes?
     Base salaries and bonuses
     Jobs that provide autonomy
     Both monetary and nonmonetary rewards
     Traditional pay

4) Competency based can be defined as?

 Two basic types of focused pay programs, pay for knowledge and skill base pay
 Compensation for longevity
 Phased wage approach
 Retirement compensation

5) Pay for knowledge can be defined as?

a) Rewards for managerial, service, or professional workers for successfully learning specific curricula

b) Consultant fees

c) Measures labor productivity

6) Skill-based pay defined is?

a) Employees who work on computers

b) A term used mostly for employees who do physical work

c) Trade that deals mainly with the restaurants industry

d) Skills considered supervisory

7) Incentive pay defined is?

 Augments employees base pay
 Appears as a one-time payment
  Employees usually receive a combination of recurring base pay and incentive pay
 All of the above

8) Incentive pay plans can be broadly classified into what 3 categories.

a) Store sales, profit levels, customer quality

b) Cost savings, reduction, services

c) Individual incentive plans, group incentive plans, company wide plans

d) Number of units produced, amount of sales, error rate

9) Individual incentive pay plans are most appropriate under what 3 conditions?

a) Where employee’s performance can be measured objectively, employees have sufficient control over work outcomes; incentive plans do not create a level of unhealthy competition

b) Piecework plans, management incentive plans, referral plans

c) Pay and performance relationships, strive for excellence, incentive awards with job performance

10) Pension plans that entitle employers and employees to substantial tax benefits are known as:

 Qualified plans
 Nonqualified plans
 Plan termination and procedures
 PBGC

11) Qualified pension plans posses’ 13 fundamental characteristics.

a) True

b) False

12) Qualified pension plans are subject to minimum accrual rules based on the Internal Revenue Code and ERISA.

a) True

b) False

13) Under an international setting, Home Country-Based Method is?

 A method that compensates expatriates’ the amount they would receive if they were performing similar work in the United States
 Court compensation
 A standard benefit program
 Hardship allowance

14) How many methods are there for calculating base pay for U.S. expatriates.

a) 1

b) 3

c) 2

d) 4

15) Hardship allowances compensate expatriates for their sacrifices while on assignment’s.

True
False