HRM 324 Final Exam Answer.docx

HRM 324 Final Exam Answer Key at the end 1. Base pay defined is? a. Pay by the drink b. Hourly or annual salary c. Service fees d. A fee that is paid per project 1 How is base pay adjusted over time? a. Cost of living adjustments b. Seniority pay, merit pay c. Incentive pay, person focused pay d. All of the above 1 Extrinsic compensation includes? a. Base salaries and bonuses b. Jobs that provide autonomy c. Both monetary and nonmonetary rewards d. Traditional pay 4) Competency based can be defined as? a. Two basic types of focused pay programs, pay for knowledge and skill base pay b. Compensation for longevity c. Phased wage approach d. 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? a. Augments employees base pay b. Appears as a one-time payment c. Employees usually receive a combination of recurring base pay and incentive pay d. 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: a. Qualified plans b. Nonqualified plans c. Plan termination and procedures d. 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. A method that compensates expatriates’ the amount they would receive if they were performing similar work in the United States b. Court compensation c. A standard benefit program d. Hardship allowance 14) How many methods are there for calculating base pay for U.S. expatriates. a) 1 b) 3 c) 2 d) 4