Test Bank all Chapter

Strategic Compensation A Human Resource Management Approach, 10e Joseph Martocchio

(Test Bank all Chapter)

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1 Copyright © 2020 Pearson Education, Inc.

Strategic Compensation: A Human Resource Management Approach, 10e (Martocchio)

Chapter 1 Strategic Compensation: A Component of Human Resource Systems

1) ________ refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies.

• Extrinsic compensation
• Strategic compensation
• Strategic analysis
• Intrinsic compensation

Answer: B

Difficulty: Moderate

Skill: Concept

AACSB: Analytical Thinking

LO: 1.1: Define strategic compensation.

2) Protection programs are what type of compensation benefits?

• external
• non-monetary rewards
• internal
• monetary

Answer: B

Difficulty: Moderate

Skill: Concept

AACSB: Analytical Thinking

LO: 1.1: Define strategic compensation.

3) Which of the following is an example of a core compensation?

• medical insurance
• vacations
• day care assistance
• monetary compensation

Answer: D

Difficulty: Easy

Skill: Concept

AACSB: Reflective Thinking

LO: 1.1: Define strategic compensation.

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2 Copyright © 2020 Pearson Education, Inc.4) Since the economic recession (2007-2009) ended, fewer companies have offered pay increases, and those that do are offering lower amounts. Approximately, how much have pay increases been?

• less than 2 percent
• 2 percent up to 2.9 percent
• 3 percent up to 3.8 percent
• 4 percent or more

Answer: C

Difficulty: Challenging

Skill: Concept

AACSB: Reflective Thinking

LO: 1.1: Define strategic compensation.

5) This concept describes a company's success when the company acquires or develops capabilities that facilitate outperforming the competition.

• differentiation
• capital
• compensation practices
• competitive advantage

Answer: D

Difficulty: Easy

Skill: Concept

AACSB: Reflective Thinking

LO: 1.1: Define strategic compensation.

6) Which of the following refers to the planned use of company resources-financial capital, equipment capital, and human capital-to promote and sustain competitive advantage?

• strategic analysis
• comparative analysis
• 360 degree analysis
• competitive business strategy

Answer: D

Difficulty: Moderate

Skill: Concept

AACSB: Analytical Thinking

LO: 1.1: Define strategic compensation.

7) ________ compensation refers to the mental state of employees as a result of their performance on the job.

Answer: Intrinsic

Difficulty: Moderate

Skill: Concept

AACSB: Reflective Thinking

LO: 1.1: Define strategic compensation.

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3 Copyright © 2020 Pearson Education, Inc.8) Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs. Together, both intrinsic and extrinsic compensation describe a company's total compensation system. Briefly describe both types of rewards and indicate the professionals who are responsible for managing them.Answer: Intrinsic compensation reflects employees' psychological mind-sets that result from performing their jobs. Extrinsic compensation includes both monetary and nonmonetary rewards.Organizational development professionals promote intrinsic compensation through effective job design. Compensation professionals are responsible for extrinsic compensation. Extrinsic compensation includes both monetary and nonmonetary rewards. Compensation professionals establish monetary compensation programs to reward employees according to their job performance levels or for learning job-related knowledge or skills. Nonmonetary rewards include protection programs (e.g., medical insurance), paid time off (e.g., vacations), and services (e.g., day care assistance). Most compensation professionals refer to nonmonetary rewards as employee benefits.

Difficulty: Moderate

Skill: Concept

AACSB: Analytical Thinking

LO: 1.1: Define strategic compensation.

9) Which of following enables companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation?

• capital
• assets
• competency
• human capital

Answer: A

Difficulty: Moderate

Skill: Concept

AACSB: Analytical Thinking

LO: 1.2: Summarize the role of compensation as a strategic business partner.

10) As a strategic business partner, HR and compensation professionals today need to think most like whom?

• vice president of human resources
• chief financial officer (CFO)
• chief executive officer (CEO)
• comptroller

Answer: C

Difficulty: Moderate

Skill: Concept

AACSB: Application of Knowledge

LO: 1.2: Summarize the role of compensation as a strategic business partner.

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