______ refers to the fairness of pay rates across jobs within an organization.

QuestionAnswer Central tendency error Occurs when a rater gives all employees a score within a narrow range in the middle of the scale Forced distribution A performance appraisal method in which ratings of employees' performance are distributed along a bell-shaped curve. Strictness error Occurs when ratings of all employees fall at the low end of the scale. Halo effect Occurs when a rater scores an employee high on all job criteria because of performance in one area. Management by objectives MBO) A performance appraisal method that specifies the performance goals that an individual and manager mutually identify . Performance management A series of activities designed to ensure that the organization gets the performance I needs for its employees. Rater bias Occurs when a rater's values or prejudices distort the rating. Graphic rating scale A scale that allows the rater to mark an employee's performance on a continuum. Contrast error The tendency to rate people relative to others rather than against performance standards. Performance standards Define the expected levels of performance. Recency effect Occurs when a rater gives greater weight to recent events when appraising an individual's performance. Leniency error Occurs when the ratings of all employees fall at the high end of the scale.] Primacy effect Occurs when a rater gives greater weight to information received first when appraising an individual's performance.] Performance appraisal The process of determining how well employees do their job relative to a standard and communicating that information to the employee. False (T/F) In some countries such as China and Japan a 360° feedback appraisal process is commonly used True (T/F) Measuring performance requires the use of relevant criteria that focus on the most important aspects of employees' jobs. True (T/F) Performance appraisals have two uses: administrative and developmental. True (T/F) Frequent informal feedback to employees can prevent "surprises" during a formal performance review. True (T/F) The performance discussion should be held separately from any discussion about the employee's pay. True (T/F) Frequent informal feedback helps to eliminate any "surprises" during a formal performance review False (T/F) The best way to avoid any legal concerns regarding performance appraisals is to institute a forced distribution rating system. True (T/F) Most often, performance appraisals are only conducted by the employee's direct supervisor False (T/F) Most managers appreciate their evaluation by employees and receive the information positively True (T/F) Team or peer evaluations are useful in situations when the supervisor is unable to observe all employees' performance first hand. False (T/F) Generally, employees will rate themselves lower on their self-evaluation than their supervisor. False (T/F) Customers should never be a part of the appraisal process because they may not provide objective input on the performance behaviors of employees. False (T/F) Graphic rating scales are widely used because they encourage very few errors by the raters. False (T/F). The forced distribution method is a category rating method. True (T/F) A performance appraisal in which all employees are listed from highest to lowest in performance is called ranking. Performance-driven On the opposite end of the spectrum from an entitlement culture is a/an ____ culture Job duties Specific____identify the most important elements in a given job. Trait-based ____information identifies a characteristic of the employee such as attitude, initiative, or creativity. Behavior-based ________might be illustrated by a salesperson's verbal persuasion Results-based ____information considers employee accomplishments. Subjective ____measures require more judgment on the part of the evaluator and are more difficult to measure. Contaminated When job performance measures include irrelevant criteria, they are said to be____ Deficient Performance measures that leave out important job duties are considered____ Administrative Making job placement decisions on promotions, transfers, and demotions is a one of the____ uses of appraisals. Reinforce or change individual performance The purpose of developmental feedback is to ____ . Reviews completed appraisals for consistency What is a typical responsibility of the HR unit in regard to performance appraisals? Ninety days after employment, again at six months, and annually thereafter The common timing of performance appraisals for new employees is ____. Appraisal criteria that is job-related A legally defensible performance appraisal system should include____. Its use in identifying competent supervisors An advantage of employees rating managers is ____ The size of the differences among individuals is not well defined The primary drawback of the ranking method is that ____ Critical incident Keeping a record of all employees and listing highly favorable and unfavorable actions performed by an employee describes which performance appraisal method? Managers Management by objectives (MBO) has been most successful with which of the following? Continuing performance discussions ____is one of MBO's four stages. Narrative Which of the following appraisal method typically works best for developmental usage? Problems of varying standards What type of appraisal error has likely occurred when a supervisor interprets performance requirements differently for employees performing similar jobs? Similar-to-me A manager who holds an MBA, and who rates his employees who also hold MBAs higher than those who do not is an example of a ____error Sampling error An error that occurs when a manager rates a person's performance as "poor," based only on the 5% ofwork he/she actually sees is an example of a____ Ensure that both parties agree in all areas Which is something recommended against when conducting an appraisal interview? "Here are your strengths and weaknesses, and here is a way to develop for the future." Performance appraisal can be described best by which of the following sentiments from a supervisor's viewpoint? Market pricing The use of market pay data to identify the relative value of jobs based on what other employers pay for similar jobs. Job evaluation A formal, systematic means to identify the relative worth of jobs within an organization. Benchmark jobs Jobs found in many organizations. Pay survey Collections of data on compensation rates for workers performing similar jobs in other organizations. Job family A group of jobs having common organizational characteristics. Pay grades Groupings of individual jobs having approximately the same job worth. Lump-sum increase (LSI) A one-time payment of all or part of a yearly pay increase. Compa-ratio The pay level divided by the midpoint of the pay range. Seniority Time spent in the organization or on a particular job. Pay-for-performance philosophy Requires that compensation changes reflect performance differences. Entitlement philosophy Assumes that individuals who have worked another year are entitled to pay increases, with little regard for performance differences. Living wage One (pay) that is supposed to meet the basic needs of a worker's family. Compensable factor A job value commonly present throughout a group of jobs. Market banding Grouping jobs into pay grades based on similar market survey amounts. True (T/F) Intrinsic rewards often include praise for completing a project or meeting performance objectives. False (T/F) The HR unit is typically responsible for identifying job descriptions and compensation concerns. True (T/F) Pay secrecy policies have been found to violate the National Labor Relations Act. True (T/F) A downside to using a first quartile compensation approach is that higher turnover is more likely. False (T/F) The global market approach to compensation requires minimal flexibility or administrative effort. False (T/F) A tax equalization plan attempts to ensure that U.S. expatriates do not pay any more or less in taxes than what is required to be paid in their assignment location country. True (T/F) One factor used in identifying someone as an independent contractor is whether or not they provide services to other firms. False (T/F) A firm with a federal construction contract of $1,000 would have to comply with the Davis-Bacon Act. False (T/F) If equity is the perceived fairness between what a person does (inputs) and what a person receives (outcomes). then pay equity means that all employees are paid the same for the same amount of work performed. True (T/F) A garnishment is a court order in which a portion of an employee's wages is set aside to pay a debt owed a creditor. True (T/F) The primary advantage to market pricing is that it is not distorted by "internal" job evaluation. True (T/F) Broadbanding involves using fewer pay grades with much broader ranges than traditional compensation systems. False (T/F) Red-circled employees are paid below the range of the job, while green-circled employees are paid above the range of the job. True (T/F) An employee with a compa-ratio of90 is paid below the midpoint of the salary range. False (T/F) Merit increases can be defined as across-the-board increases given to all employees. Matching the compensation offered by competitors Which of the following is not a strategic compensation objective? Cost effectiveness, Performance enhancement, Matching the compensation offered by competitors, Legal compliance base pay; variable pay An hourly wage is categorized as _____ , and a bonus is a form of ____ . Wages; salaries _____ are payments directly calculated on the amount of time worked, and ____ are consistent payments made each pay period regardless of the number of hours worked. Indirect compensation A benefit is a form of in that employees receive the tangible value of the rewards without receiving the actual cash. Cost of living raises The entitlement philosophy of compensation is characterized by _____ . Performance-oriented The total rewards approach reflects which types of philosophy? Revenue - operating expense- pay and benefits = adjusted profit I pay and benefits The return on human capital invested can be determined using what formula? Fair Labor Standards Act Which of the following is not an equity consideration identified in the text? Procedural justice; distributive justice In relation to internal equity, _____ is the perceived fairness of the processes and procedures used to make decisions about employees, and_____ is the perceived fairness in the distribution of outcomes. Second Most employers position their pay programs in the ____quartile of their market as identified by data from surveys of other employers' compensation plans Third Which quartile strategy is the most aggressive? Competency-based pay ____ rewards individuals for the capabilities they demonstrate and acquire. Balance-sheet; global market The _____ approach to compensation equalizes cost differences between international and domestic jobs,while the_____ approach is more comprehensive in providing base pay, incentives, benefits, and relocation expenses, regardless of the country. Expatriates A tax-equalization plan is a compensation plan used to protect ___ from negative tax consequences. 16 The child labor provisions of the FLSA set the minimum age for employment with unlimited hours at years. Salaried non-exempt employees _____ are paid a consistent payment for the standard workweek but are subject to the overtime provisions of the FLSA. $215 Gross pay under the Fair Labor Standards Act for an employee paid $5.00/hour who worked 12 hours on Monday, 10 hours on Tuesday, 12 hours on Wednesday, and 8 hours on Thursday would be for the week. Restricted Compensatory time off given to hourly employees in lieu of payment for extra time worked is _____ in the private sector. Point method Which of the following evaluation methods breaks down jobs into various components and assigns weights to these components? Ranking method Which of the following job evaluation methods is more appropriate in smaller organizations with relatively few jobs Factor comparison Which job evaluation method is the most difficult to use? Market line A_____ shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates. It is consistent with growing the use of jobs that are multi-dimensional One of the major reasons why employers find broadbanding beneficial is because ____ Labor market pay levels increase more than current employees' pay adjustments Pay compression occurs primarily because ____ They reduce the compounding effect of base pay escalation in succeeding years One advantage of lump-sum increases (LSI) is___ Non-contributory plan A pension plan in which all the funds for pension benefits are provided by the employer. Defined-benefit plan One in which an employee is promised a pension amount based on age and service. Paid-time-off (PTO) plans Combines all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay. Workers' compensation Security benefits provided to persons injured on the job. 40 l (k) plan An agreement in which a percentage of an employee's pay is withheld and invested in a tax deferred account. Cash balance plan A retirement program in which benefits are based on an accumulation of annual company contributions plus interest credited each year. Pension plan A retirement program established and funded by the employer and employees. Flexible spending accounts Benefits plans that allow employees to contribute pre-tax dollars to fund certain additional benefits. Defined-contribution plan One in which the employer makes an annual payment to an employee's pension account. Flexible benefits plan One that allows employees to select the benefits they prefer from groups of benefits established by the employer Severance pay A security benefit voluntarily offered by employers to individuals whose jobs are eliminated or who leave by mutual agreement with their employers. Stock purchase plan A plan in which the corporation provides matching funds equal to the amount invested by the employee for the purchase of stock in the company. Managed care Approaches that monitor and reduce medical costs through restrictions and market system alternatives. Contributory plan A pension plan in which the money for pension benefits is paid in by both employees and employers. False (T/F) A benefit is an indirect reward given to an employee or group of employees for their satisfactory performance. True (T/F) The primary reasons executives se for offering benefits is to attract and retain talent and meet responsibilities of employees. False (T/F) Employers in the United States offers some of the highest amounts of annual leave I vacation of many developed countries. False (T/F) Benefits generally are not taxed as income to employees. False (T/F) While benefits communication is important, employees generally understand the values and costs associated with the benefits they receive from their employers. True (T/F) Mandated benefits for the future are likely to include universal health-care coverage. True (T/F) An example of a government-mandated benefit is the Family Medical Leave Act. False (T/F) Supplemental Unemployment Benefits (SUB) is mandated by law. True (T/F) Both HMOs•and PPOs are part of what are known as "managed care" plans. True (T/F) A high-deductive health plan with federal tax advantages is called a health savings account(HSA). True (T/F) The administrative burden imposed by the federal government for pension plans has discouraged many employers from offering them to employees. True (T/F) Non-contributory pension plans are preferred by employees and unions because the employer is responsible for all contributions. True (T/F) The Family and Medical Leave Act only applies to private employers. False (T/F) A serious health condition is one requiring in-patient, hospital, hospice, or residential medical care or continuing physical care. False (T/F) Employers are required to provide pay for such established holidays as Labor Day, Memorial Day, Christmas, and the Fourth of July. 30-40% Employee benefits cost employers about ____ of payroll costs Cafeteria benefit plans allow employees to select the benefits they prefer from groups of benefits established by the employer. Adverse selection A situation in which only the higher-risk employees select and use certain benefits is called____ Voluntary security SUBs and severance pay would be examples of which category of benefits? Voluntary financial benefits Credit unions, relocation assistance, life insurance, and educational assistance are all examples of____ It requires cash benefits, medical care, and rehabilitation services for injuries that occur within the scope of employment What is the scope of workers' compensation? Required security Unemployment compensation is a/an ____ benefit. Uninsured workers and retirees Two major groups of workers that have contributed to the increasing health benefits costs are____ Co-payment A____ is an employee's portion of the cost of insurance premiums, medical care, and prescription drugs. Preferred provider organization (PPO) A/An____ is a health-care provider that contracts with an employer to supply healthcare services at competitive rates. Health maintenance organization (HMO) A plan that provides services for a fixed period on a pre-paid basis is a/an ___ Consumer-driven health plan (CDP) A/An____ is one that provides employer financial contributions to employees to cover their own health-related expenses. Health reimbursement arrangement A health plan in which the employer sets aside money in an account to help employees pay for qualified medical expenses, and to which the employee does not contribute, is called a____ To provide continued health care coverage for 18 to 36 months depending on the qualifying circumstances The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers____ Life insurance Flexible spending accounts may be used to purchase which of the following? OTC drugs, Household goods, Life insurance, Auto insurance Are not; 50% Organizations ____required to offer pension plans to employees, but/and less than ____ of U.S. workers are covered by them. Vesting An employee's right to receive certain benefits from a pension plan is called ____ Portable A pension plan feature allowing workers to move their pension benefits from one employer to another is Employee Retirement Income Security The ____Act regulates private pension plans in order to assure that employees who put money into them or depend on a pension for retirement funds actually receive the money when they retire Most employees cannot be forced to retire at a specific age According to a 1986 amendment to the Age Discrimination in Employment Act, ____ 12; 12 The Family and Medical Leave Act (FMLA) requires employers to allow eligible employees to take a total of ____weeks' leave in a(n) ____month period. Insurance Paid holidays, paid vacation, and paid sick leave are all examples of _____ benefits. Co-determination A practice whereby union or worker representatives are given positions on a company's board of directors. Union A formal association of workers that promotes the interests of its members through collective action. Federation A group of autonomous unions. Right-to-work laws State laws that prohibit requiring employees to join unions as a condition of obtaining or continuing employment. Collective bargaining A process whereby representatives of management and workers negotiate over wages, hours, and other terms and conditions of employment. Open shop A firm in which workers are not required to join or pay dues to a union. Union authorization card A card signed by an employee to designate a union as his or her collective bargaining agent. Union steward An employee elected to serve as the first-line representative of unionized workers. Management rights Rights reserved so that the employer can manage, direct, and control its business. Strike Work stoppage in which union members refuse to work in order to put pressure on an employer. Business agent A full-time union official who operates the union office and assists union members. Bargaining unit Employees eligible to select a single union to represent and bargain collectively for them. Closed shop A firm that requires individuals to join a union before they can be hired. Decertification A process whereby a union is removed as the representative of a group of employees. False (T/F) Countries such as Norway and Italy have very low union membership, as compared to other countries like France and the United States. True (T/F) One potential reason for the decline in unions is the success they have achieved in getting important worker issues passed into laws True (T/F) A craft union is one whose members do one type of work, often using specialized skills and training. False (T/F) The most prominent federation in the United States is the AFL-CIO, which is a confederation of national and international unions. False (T/F) A union steward is usually appointed by the business agent for the local union. True (T/F) The Norris-LaGuardia Act gave workers some rights to organize and restricted the issuance of court injunctions in labor disputes. True (T/F) The Wagner Act was considered to be pro-union as opposed to pro-management. True (T/F) Interfering with, restraining, or coercing employees in the exercise of their right to organize is considered an unfair labor practice. True (T/F) A national emergency strike is one that would affect the national economy significantly, and can only be declared by the President of the United States. True (T/F) The Taft-Hartley Act generally outlaws the closed shop, which requires individuals to join a union before they can be hired. False (T/F) A bargaining unit consists of all employees in a specified department or business unit. False (T/F) Certification means that the NLRB approves the contract negotiated by union and management representatives. True (T/F) To start the decertification processes, 30% of the employees in the bargaining unit must sign authorization cards before an election can be held. True (T/F) A mandatory issue is a collective bargaining issue identified specifically by labor laws or court decisions as subject to bargaining. False (T/F) Managers in a unionized workforce need not be concerned with complaints unless they are put into writing, and thereby creating a grievance. Management What is the primary determinant of whether or not employees unionize? Attempting to unionize contingent and part-time workers Unions have attempted to counteract the overall decline in membership by ___ Industrial union A union that includes many persons working in the same industry or company, regardless of the jobs held, is a/an ___ Organize skilled craft workers One of the major aims of the American Federation of Labor was to ____ Railway Labor Act Railroad and airline employees were given the right to organize and bargain collectively by the____ Wagner Act The National Labor Relations Board was established by the ____ . Taft-Hartley Act Which of the following Acts is considered to be pro-management? Wagner Act, Taft-Hartley Act, Landrum-Griffin Act, National Industrial Recovery Act To prohibit closed shops What is the purpose of right-to-work laws? Landrum-Griffin Act The act dealing with internal union democracy and the rights of individual union members is the____ salting A practice in which unions hire and pay people to apply for jobs at certain companies, and, when they are hired, they begin organizing efforts is called 30% A minimum of ____ of employees in the relevant work unit must sign authorization cards in order to schedule a representation election. 101 In the representation election process, if 300 employees are in the identified unit and 200 of those persons vote in the election, the number of votes necessary for the union to win the election is____ . Promise employees pay increases if they vote against the union What is a tactics considered an unfair labor practice by management? Forbid the distribution of union literature during work hours in work areas During a union organizing effort, a manager can legally ____ It is an unfair labor practice to refuse to bargain Once certified, an employer must bargain with the union because ___ 30; in the bargaining unit To decertify a union, ____ % of the employees ____ must sign decertification authorization cards before an election can be held Union security provisions Contract provisions that aid unions in obtaining and retaining members are called___ Giving preference to union members when hiring employees What is a bargaining issues that would require either party to take illegal action? Ratification The process by which union members vote to accept the terms of a negotiated labor agreement is called___ Arbitration ___is a process that uses a neutral third party to make a decision Conciliation; mediation A process by which a third party attempts to keep union and management negotiators talking so they can reach a voluntary settlement is called___ ; whereas, a process whereby a third party helps negotiators reach a settlement is called ___ Unfair labor practice ____ strikes occur when union members, with union support, walk away from their jobs over what they feel are illegal employer actions Wildcat A/An ____ strike occurs during the life of the collective bargaining agreement without approval of union leadership and violates a no-strike clause in a labor contract Lockout The shutdown of company operations undertaken by management to prevent union members from working is a/an ____. Weingarten A .unionized employee generally has a right to union representation if he or she is being questioned by management and if discipline may result. These are called the _____ rights

What refers to the process used to make pay decisions?

Compensation management is the process of managing, analyzing, and determining the salary, incentives, and benefits each employee receives.

Which term refers to the concept of equal pay for work of equal value?

Equal Pay for Equal Work Pay Equity is equal pay for work of equal value. The Pay Equity Act requires employers to pay female jobs at least the same as male jobs if they are of comparable value.

Which of the following refers to the perceived fairness of the pay structure within a firm?

Distributive justice refers to the perceived fairness of the amounts of compensation employees receive; procedural justice refers to the perceived fairness of the means used to determine those amounts (cf. Folger, 1977).

What kind of pay structure emphasizes people's unique competencies and skills when determining pay?

Skill-based pay focuses on a person's abilities and experience on a particular topic when determining their pay. Job-based pay, however, focuses on a person's titles or responsibilities. This means that rather than looking at a person's skills, the company determines the person's salary based on their responsibilities.