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Conceptually, a job structure can be defined as the relative pay of various jobs in the organization.


The equity theory suggests that people often evaluate their situations by comparing them with those of other people.


Internal equity pay comparisons focus on what employees in other organizations are paid for doing the same general job.


Benchmarking is a procedure in which a company compares its own practices against those of the competition.


The most widely used job evaluation technique is the point-factor system.


A disadvantage of using pay grades is the increased administrative burden and costs.


Pay plans are typically used to energize, direct, or control employee behavior.


Organizations have a very low degree of discretion in deciding how to pay employees.


Incentive pay refers to linking annual pay increases to performance appraisal ratings.


Deming argues for the use of merit pay in increasing organization performance levels.


Employee Stock Ownership Plans (ESOPs) can carry significant investment risks for employees.


Group incentive pay plans tend to use a broader range of performance measures than do individual-oriented plans


The four performance measures of a balanced scorecard include financial measures, customer measures, internal measures, and learning and growth measures.


One of the reasons for giving more responsibility to employees for retirement planning and other benefit decisions is to increase their awareness and understanding of such benefits.


There is no legal obligation for employers to offer private retirement plans, but most do.


The two types of disability insurance are short-term disability plans and long-term disability plans.


Unlike a cash balance plan, with a 401(k), all the contributions come from the employer.


Despite passage of the Family and Medical Leave Act, the United States still offers significantly less unpaid leave than most Western European countries.


To control health-care costs, employers have been increasingly shifting costs to employees through the use of deductibles, coinsurance, exclusions and limitations, and maximum benefits.


Flexible benefit plans (also known as cafeteria-style plans) permit employees to choose the types and amounts of benefits they want for themselves.


Management's adoption of union avoidance strategies has increased significantly during the last 20 or 30 years.


The AFL-CIO is not a labor union but rather an association that seeks to advance the shared interests of its member unions at the national level, much like the Chamber of Commerce or the National Association of Manufacturers.


All members of a bargaining unit, whether union members or not, must be represented by the union.


Since the 1950s, union membership has remained relatively stable as a percentage of employment.


Managers and supervisors cannot be unionized.

Labor market

_ pay comparisons may be more important when attracting and retaining qualified employees is difficult, and when the costs of recruiting replacements is high.

In developing a job-evaluation system, compensable factors

are the characteristics of jobs that a firm values and chooses to pay for.

Job analysis

Which one of the following HR activities provides basic descriptive information on job attributes and the job itself?

Internal equity

_____ pay comparisons focus on what employees within the same organization, but in different jobs, are paid.

Health insurance

Which of the following is an example of an indirect payment?

A capital-intensive business

What type of business is most likely to have a high revenue-to-labor-cost ratio?

Pay rate range spreads

represent a measure of the range of pay rates paid across an entire organization.

attract individualistic employees

Organizations that link pay to individual performance are more likely to

feedback comes primarily from the supervisor

A characteristic of most merit pay programs is

They tend to increase labor costs over the long run

Criticisms of traditional merit pay programs include all but one of the following. Name the exception

Individual incentive pay programs are quite common in organizations

Which of the following is not true of individual incentive pay programs?


The pay-for-performance program that does not use a bonus payment as a payment method is

stock options

A(n) _____ plan gives employees the opportunity to buy the company's stock at a previously fixed price.

Tracking financial results while monitoring progress

In recognition of the fact that every pay plan has its advantages and disadvantages, companies are generally taking all but one of the following actions. Name the exception.


The _____ tax rate is the percentage of additional earnings that goes to taxes.

Public group insurance

Which of the following is not a category of benefits programs?

To offset lost income during a labor dispute

Which one of the following is not a major objective of the unemployment insurance program?

the employer's profitability.

The workers' compensation cost to an employer is based on all of the following except

Social Security

From which source do most retirees receive most of their retirement income?


_____ requires employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff.

Number of dependents

Which of the following is not typically a factor used to determine retirement benefit levels of employees under a defined benefit retirement plan?


Collective bargaining resolves disputes through .


Which of the following is an example of a craft union employee?

right-to-work law

The type of union security provision that makes mandatory union membership illegal is the

diversity issues

Unions have hurt their own cause in all of the following ways except

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