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Test Bank for Compensation, 10 Edition : Milkovich
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ch1
1. Which of the following includes restrictions on executive pay that are designed to discourage executives
from taking "unnecessary and excessive risks"?
A. 62%
B. 70%
C. 80%
D. 90%
3. Hourly compensation costs for manufacturing workers are higher in than the U.S.
A. Norway
B. Japan
C. Spain
D. Singapore
4. Hourly compensation costs for manufacturing workers are lower in than the U.S.
A. Korea
B. Norway
C. Sweden
D. Netherlands
5. When executives decide where to locate a manufacturing plant, the most important consideration is:
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A. Managers
B. Employees
C. Society
D. Stockholders
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7. would be most concerned about compensation as a major expense.
A. Managers
B. Employees
C. Society
D. Stockholders
8. The primary reason compensation is important to managers is because:
A. A return
B. An entitlement
C. A reward
D. An investment
10. The degree to which pay influences individual and aggregate motivation among the employees at any point
in time is referred to as:
A. sorting effect.
B. incentive effect.
C. motivational effect.
D. directional effect.
11. In China, compensation, dai yu, has come to mean
A. Short-term incentives
B. Recognition and status
C. Work-life balance
D. Income protection
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14. Which of the following are given as increments to the base pay in recognition of past work behavior?
A. Base pay
B. Cost-of-living adjustments
C. Merit pay
D. Incentives
15. Which form of pay is likely to be least expensive for employers?
A. Incentive
B. Merit pay
C. Cost-of-living adjustments
D. Base pay
16. Employees who want to be sure their good performance will be rewarded will prefer
A. merit pay.
B. team incentives.
C. individual incentives.
D. across-the-board pay increases.
17. Variable pay may also be called
A. exempt
B. non-exempt
C. stock options
D. incentives
18. Which of the following is the largest component in an executive pay package?
A. Base pay
B. Stock options
C. Merit pay
D. Perks
19. A company that says its relatively low starting pay will be offset by larger future pay increases is using the
concept of .
A. present-value
B. merit pay
C. incentives
D. deferred benefits
20. All of the following have direct financial costs for an employer except:
A. benefits
B. relational returns
C. work-life balance
D. income protection
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21. Which of the following is not an objective in the pay model?
A. Fairness
B. Compliance
C. Efficiency
D. Productivity
22. Costs are to management as is to alignment.
A. work analysis
B. communication
C. surveys
D. merit guidelines
23. Market definitions are to competitiveness as performance based is to .
A. alignment
B. compliance
C. efficiency
D. contributions
24. Which of the following is not a policy in the pay model?
A. Fairness
B. Competitiveness
C. Contributions
D. Alignment
25. Performance, quality, customers, stockholders and costs are components of which of the objectives of the
pay model?
A. Fairness
B. Compliance
C. Efficiency
D. Competitiveness
26. implies that the way a pay decision is made may be as important to employees as the results of that
decision.
A. Fairness
B. Compliance
C. Efficiency
D. Competitiveness
27. refers to comparisons among jobs or skills inside a single organization.
A. External competitiveness
B. Internal alignment
C. Pay structure
D. Equitable contributions
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28. Which of the following policy choices has the greatest effect on employees' decisions to stay with the
organization and to seek additional training and responsibilities?
A. External competitiveness
B. Employee contributions
C. Internal alignment
D. Job evaluation
29. Managers seek internal alignment within their organization by:
A. internal alignment
B. external competitiveness
C. contributions
D. management
31. Sam's Club matches the pay of other similar businesses, Whole Foods uses base pay and team incentives
and Medtronic emphasizes work and life balance. These illustrate pay policy choices.
A. cost control
B. internal alignment
C. contributions
D. external competitiveness
32. Choices among pay for performance, flat rate pay and profit sharing are examples of policy
decisions.
A. internal alignment
B. efficiency
C. employee contributions
D. management
33. Which of the following decisions directly affects employees' attitudes and work behaviors?
A. Employee contributions
B. Internal alignment
C. External competitiveness
D. Management
34. According to the text, which of the following decisions should be made jointly?
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35. Which of the following decisions answers the "So What" question?
A. Internal alignment
B. Employee contributions
C. External competitiveness
D. Management
36. If an organization allows workers to get rewards such as stock options due to illegal and unethical means,
this reflects a failure of which policy choice?
A. Internal alignment
B. Efficiency
C. Employee contributions
D. Management
37. You are an HR manager and your boss has told you to find the best way to raise job performance. After
some research you find that produce(s) the largest and most reliable performance increases.
A. standard deviation
B. analysis of variance
C. correlation coefficient
D. regression analysis
40. The best way to establish is to account for competing explanations, either statistically or through
control groups.
A. causation
B. profitability
C. correlation coefficient
D. internal alignment
41. The U.S. has the highest hourly compensation costs for manufacturing workers of any industrialized nation.
True False
42. Since the U.S. has the highest hourly compensation costs for manufacturing workers of any industrialized
nation, executives could minimize total labor costs by producing in low cost countries such as China and
Mexico.
True False
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43. Compensation is important to managers' success because it is a major cost and it influences employee
behavior.
True False
44. Challenging work and employment security are examples of total compensation.
True False
45. Employees classified as non-exempt under FLSA are paid a salary, not wages.
True False
46. If you often had to work 50 or more hours per week at an assembly job, you would probably prefer to that
your job is classified as exempt under the FLSA.
True False
47. Most U. S. firms use merit pay increases.
True False
48. A bonus promised by your boss if costs are below your budget is a merit increase.
True False
49. In practice, there is no real difference between merit pay increases and cost-of-living adjustments.
True False
50. Base wage reflects both the value of the work and individual employee skills and experience.
True False
51. A major challenge facing most employers is the rising cost of health care benefits.
True False
52. The most important of the pay model policies for assuring fairness is contributions.
True False
53. The objective of compliance suggests the way a pay decision is made may be as important to employees as
the results of that decision.
True False
54. If an objective is to increase customer satisfaction, then incentive programs and merit pay might be used to
pay for performance.
True False
55. The objective of procedural fairness suggests the way a pay decision is made may be as important to
employees as the results of that decision.
True False
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56. Internal alignment refers to comparisons among jobs or skill levels inside a single organization.
True False
57. Contributions refers to employees' perceptions of the fairness of pay differences among different jobs
within their organization.
True False
58. External competitiveness decisions focus on both pay levels.
True False
59. Management of the pay system focuses on cost control and employee perceptions of fairness since they are
most important to management.
True False
60. The policy choice of management means ensuring that the right people get the right pay for achieving the
right objectives in the right way.
True False
61. Since HR research contains information useful to managers, most managers read research in HR,
management and compensation journals.
True False
62. Management and HR research has conclusively shown that goal setting and job enrichment produce the
largest and most reliable increases in job performance.
True False
63. Monetary incentives produce the biggest increases in job performance.
True False
64. An important criteria for determining the value of research is whether the research is useful.
True False
65. An important criteria for determining the value of research is/are there alternative explanations for the
research findings?
True False
66. In judging the value of research, an important guideline is that the research was conducted by Ph D
researchers.
True False
67. A study found that there is only a very small amount of change in CEO pay is related to changes in
company performance.
True False
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68. A study of IBM showed that their long-standing policy of no layoffs was the major cause of their strong
profits.
True False
69. Causality is one of the most difficult questions to answer and continues to be an important and sometimes
perplexing problem for researchers.
True False
70. The R2 is different form correlation in that it tells us what percentage of the variation is accounted for by
the variables we are using to predict or explain.
True False
71. Compensations differ with perspective. What are the different perspectives of compensation described in
the text?
73. What are the different ways in which employees see compensation?
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74. What are the different ways in which pay can influence employee motivation and behavior?
76. Write short notes on the different types of cash compensations discussed in the text.
77. Write short notes on the different types of benefits discussed in the text.
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79. Explain the compensation objectives of the pay model.
80. List and define the different policy decisions of the pay model.
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ch1 Key
1. (p. 4) C
2. (p. 4) D
3. (p. 5) A
4. (p. 5) A
5. (p. 5-6) B
6. (p. 6) D
7. (p. 7) A
8. (p. 8) B
9. (p. 8) D
10. (p. 9) B
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33. (p. 20) A
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68. (p. 24) FALSE
71. (p. 4) The text describes compensation from the perspective of a member of society, a stockholder, a manager, and an employee.
72. (p. 6) Stockholders are interested in how employees are paid. Using stock to pay employees creates a sense of ownership which improves
performance and increase stockholder wealth. However, granting employees too much ownership dilutes stockholder wealth.
Stockholders have a particular interest in executive pay. The interests of executives are aligned with those of shareholders who hope that company
performance will be higher.
73. (p. 8) Employees see compensation as a return in an exchange between their employer and themselves, as an entitlement for being an employee of
the company, or as a reward for a job well done.
74. (p. 9) Pay can influence employee motivation and behavior in two ways:
i. Pay can affect the motivational intensity, direction, and persistence of current employees. The degree to which pay influences individual and
aggregate motivation among the employees at any point in time is referred to as incentive effect.
ii. Pay can also have an indirect, but important influence, via, a sorting effect. Different types of pay strategies cause different types of people to
apply to and stay with an organization.
76. (p. 11-12) i. Base pay is the cash compensation that an employer pays for the work performed. It tends to reflect the value of the work or skills and
generally ignores differences attributable to individual employees.
ii. Merit increases are given as increments to the base pay in recognition of past work behavior. Some assessment of past performance is made, with
or without a formal performance evaluation program, and the size of the increase is varied with performance.
iii. Cost-of-living adjustments give the same increases as merit, but to everyone, regardless of performance.
iv. Incentives tie pay increases directly to performance but differ from merit adjustments in two ways. Incentives can be tied to the performance of an
individual employee, a team of employees, a total business unit, or some combination of individual, team, and unit.
Incentives are one-time payments and do not permanently increase labor costs. When performance declines, incentive pay automatically declines,
too. Consequently, incentives are frequently referred to as variable pay.
v. Long-term incentives are intended to focus employee efforts on multiyear results. Typically they are in the form of stock ownership or options to
buy stock at specified, advantageous prices.
77. (p. 13-14) i. In the United States, employers must pay into a fund that provides income replacement for workers who become disabled or
unemployed. Employers also make half the contributions to Social Security. (Employees pay the other half.) Different countries have different lists of
mandatory benefits. Medical insurance, retirement programs, life insurance, and savings plans are common benefits.
ii. Programs that help employees better integrate their work/life balance include time away from work (vacations, jury duty), access to services
to meet specific needs (drug counseling, financial planning, referrals for child and elder care), and flexible work arrangements (telecommuting,
nontraditional schedules, nonpaid time off).
iii. Allowances often grow out of whatever is in short supply and differ from region to region.
78. (p. 15) The pay model contains three basic building blocks:
i. the compensation objective,
ii. the policies that form the foundation of the compensation system, and
iii. the techniques that make up the compensation system.
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The Project Gutenberg eBook of The
evolution of climate
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Author: C. E. P. Brooks
Language: English
BY
C. E. P. BROOKS,
M.Sc., F.R.A.I., F.R.Met.Soc.
WITH A PREFACE BY
Preface 5
Introduction 11
I. Factors of Climate and the Causes of Climatic Fluctuations 15
II. The Climatic Record as a Whole 32
III. Conditions before the Quaternary Ice Age 42
IV. The Great Ice Age 47
V. The Glacial History of Northern and Central Europe 55
VI. The Mediterranean Regions during the Glacial Period 68
VII. Asia during the Glacial Period 76
VIII. The Glacial History of North America 86
IX. Central and South America 97
X. Africa 103
XI. Australia and New Zealand 109
XII. The Glaciation of Antarctica 114
XIII. The Close of the Ice Age—The Continental Phase 118
XIV. The Post-Glacial Optimum of Climate 127
XV. The Forest Period of Western Europe 136
XVI. The “Classical” Rainfall Maximum, 1800 b.c. to a.d. 500 140
XVII. The Climatic Fluctuations since a.d. 500 149
XVIII. Climatic Fluctuations and the Evolution of Man 159
XIX. Climate and History 162
Appendix—The Factors of Temperature 166
Index 169
INTRODUCTION
The following study is an attempt to reconstruct in some detail the
sequence of climatic changes through which the world passed during
that important stage of its geological history which is variously
known as the Ice Age or Glacial Period, the Pleistocene, the
Quaternary, or the Human Period. That time saw the growth of
humanity from a primitive stage but little removed from the higher
animals to the beginnings of a complicated civilization, and it saw
that human life spread from its cradle or cradles to the ends of the
earth; it saw the configuration of the globe passing through a series
of modifications which ended by establishing the physical geography
of the present day. Finally, it saw a series of startling changes of
climate which almost merit the term “Revolutions” of the old
catastrophic geologists, at the conclusion of which we can trace the
gradual development of the climatic conditions of the present day. In
short, it is a period of immense interest which has a personal
application lacking in the remoter parts of geological time, and for
that reason it is worthy of the fullest study.
On the geological side the literature of the Ice Age is immense,
and is beyond the power of any one man to master. Volumes might
be, and not infrequently have been, written on the glacial geology of
areas limited to a few square miles, or even on the deposits of a
single section. On the archæological side the literature is not yet so
voluminous, but is technical and conflicting in a high degree. It is
only when we seek the contributions of competent meteorologists
that we find a serious gap in the literature. Nor is this surprising, for
meteorologists are still so much occupied with the present vagaries
of the weather, that few of them have time to extend their
researches into the geological past. Yet this is eminently a case
where the past is the key to the present, and it may be that the
solution of many problems which meteorologists have hitherto faced
in vain will yet be suggested by studies of the climatic changes of
the Ice Age.
The writer’s excuse for setting down his views is that he is
intensely interested in all three sciences—geology, anthropology, and
meteorology. The combination of these three subjects naturally
ended in specialization on their common meeting place, and led him
to hope that he could assist his fellow geologists and anthropologists
by acquainting them with some of the bearings of meteorology on
their subject, and could open out to his fellow meteorologists a
fascinating branch of their science.
The Quaternary, however, was not the only geological period to
exhibit the phenomena of an Ice Age, and in order that we may
more fully understand the status of the Quaternary Ice Age in the
long succession of geological climates, and also to avoid the charge
of presenting part of the evidence only, a brief discussion of the
climates of the earlier periods has been attempted. The plan of the
work is as follows: Chapter I deals generally with the causes of
climatic fluctuations and with the meteorology of an Ice Age.
Chapter II gives a brief account of the climatic record as a whole,
and Chapter III deals with the Tertiary period considered as leading
up to the Quaternary Ice Age. Chapter IV discusses the subdivisions
of the Glacial period, and the conflict between advocates of one and
of repeated glaciations. Chapters V to XII give brief accounts, from
the standpoint of a meteorologist, of the glacial history of Northern
Europe, the Mediterranean Region, Asia, North and South America,
Africa, Australia, and the South Polar regions. In Chapters XIII to XV
post-Glacial climatology is considered. Chapters XVI and XVII deal
with the major climatic fluctuations of the “historic” period, and
finally, in Chapters XVIII and XIX, is a short discussion of the
influence of climate on the evolution and history of man. A brief
bibliography concludes each chapter.
THE EVOLUTION OF CLIMATE
CHAPTER I
F L U C T U AT I O N S
Calculated Fall.
Locality. Author. Inferred Fall.
Jan. July. Mean.