Compensation Chapter 1 Quiz

Compensation refers to all forms of non-financial returns & intangible benefits employees receive as part of employment.

• True

• False

Pay for executives should be tied to:

• the company's financial performance

• the company's reputation

• the financial needs of the employee

• the cost of living index

Which of the following is NOT part of an employee's total compensation?

• paid vacation

• base pay

• health insurance

• relational returns

Total compensation includes psychological aspects of work such as recognition and status, and learning opportunities.

• True

• False

_____ includes cash compensation, benefits, and relational returns.

• Total compensation

• Total base pay

• Total incentives

• Total rewards

A merit increase is best described as:

• an increment to base pay that recognizes past work behaviour

• psychological returns employees believe they receive in the workplace

• a one-time reward for past performance that does not increase base pay

• compensation given to provide for items that are in short supply

Cost-of-living adjustment refers to percentage increment to base pay provided to employees based on their performance

• True

• False

Which of the following is a work/life program?

• stock options

• health insurance

• telecommuting

• cost-of-living adjustment

Internal alignment may be achieved by:

• creation of cross-functional departments

• comparing pay between jobs or skill levels inside a single organization

• compensating employees at above-market rates

• matching competitors' wage rates

Making contributions to Workers' Compensation is at discretion of the employer

• True

• False