Rewards And Pay Plans Complete Test Bank Chapter 11

File: Ch11, Chapter 11, Rewards and Pay Plans

TRUE-FALSE

Research finds that employees only value financial types of rewards, such as pay, which are designed to assist in maintaining employee commitment.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Intrinsic rewards include money, promotions, and benefits.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

An example of an extrinsic reward is health insurance.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

A commission is considered a performance-based reward.

Difficulty: Easy

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Federal legislation sets minimum wages but states may set their own which are higher that the federal minimum.

Difficulty: Hard

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

If an employer does not receive any immediate advantage from the work of an intern, the internship doesn’t need to be a paid position.

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Employees are considered “exempt” if they are paid overtime pay for working over 40 hours in a work week.

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

The Federal minimum wage is $7.25 per hour.

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

The FLSA identifies two primary categories of employees: full-time and part-time.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Wages tend to increase faster than the cost of living does.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Workers under 18 may not drive motor vehicles or use power equipment on the job.

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Employers must offer higher wages when unemployment rates are high to attract qualified workers.

Difficulty: Easy

Learning Objective 3: Identify external factors influencing compensation.

Employers may pay workers in different locations different wages for the same positions.

Difficulty: Easy

Learning Objective 3: Identify external factors influencing compensation.

Paying workers less than the prevailing wage in the area increases turnover and training costs.

Difficulty: Easy

Learning Objective 3: Identify external factors influencing compensation.

Compensation administration is the process of creating and managing an organization’s pay structure.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Job evaluation uses job analysis data to determine the value of a position relative others in the organization.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Compensation surveys are useful to determine if employees are happy with their wages and benefits.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Three basic methods of job evaluation are currently in use: ordering, classification, and point methods.

Difficulty: Easy

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Wage curves determine the point at which an employee enters a higher tax bracket.

Difficulty: Easy

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Organization-wide incentives aim to direct the efforts of all employees toward achieving overall organizational effectiveness.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

A downside to merit pay is that employees expect pay increases regardless of how well the company performs.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Piecework wages have been prohibited by the Fair Labor Standards Act.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Premium pay is used to encourage workers to take on extra shifts, work on holidays or work on short notice.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Pay of top corporate executives is often set by the board of directors.

Difficulty: Easy

Learning Objective 6: Discuss the elements of executive compensation and why they can be significantly higher than those of other employees.

Stock options are a reward for long-term increase in the value of the company.

Difficulty: Easy

Learning Objective 6: Discuss the elements of executive compensation and why they can be significantly higher than those of other employees.

Probably one of the most complex functions of international human resource management is the design and implementation of an equitable compensation program.

Difficulty: Medium

Learning Objective 7: List the considerations in creating an international compensation program.

MATCHING KEY TERMS AND DEFINITIONS

a) Team-based compensation

b) Extrinsic rewards

c) Compensation administration

d) Ordering method

e) Fair Labor Standards Act

f) Performance-based rewards

g) Wage structure

h) Differential

i) Organization-wide incentive

j) Classification method

k) Equal Pay Act

l) Merit pay

m) Golden parachute

n) Compensation surveys

o) Exempt

Rewards one gets from the employer, usually money, a promotion, or benefits.

Difficulty: Easy

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Commissions, piecework pay plans, incentive systems, group bonuses and other forms of merit pay.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Established requirements for minimum wage, overtime pay, and maximum hour requirement for most U.S. workers.

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

A professional employee whose job category is not required to meet FLSA standards, especially in the area of overtime pay.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Passed in 1963, this act mandates that organizations compensate men and women doing the same job in the organization with the same rate of pay.

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

The process of managing a company’s compensation program.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Used to gather factual data on pay practices among firms and companies within specific communities.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Evaluating jobs based on pre-determined job grades.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Establishing the value of jobs from highest to lowest.

Difficulty: Easy

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

A pay scale showing ranges of pay within each grade.

Difficulty: Easy

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

A motivation system that rewards all of an organization’s workers based on how well the entire group performed.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Pay based on how well the team performed.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

An increase in one’s pay, based on performance, that is usually given on an annual basis

Difficulty: Easy

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

A financial protection plan for executives in case they are severed from the organization.

Difficulty: Easy

Learning Objective 6: Discuss the elements of executive compensation and why they can be significantly higher than those of other employees.

Wage adjustment linked to cost of living to maintain standards of living for an expatriate employee.

Difficulty: Easy

Learning Objective 7: List the considerations in creating an international compensation program.

FILL-IN THE BLANKS

Pride in one’s work and a sense of accomplishment are examples of ________ rewards.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

_________ consists of enhancing jobs by giving employees more opportunity to plan and control their work.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

__________ would likely include employees in professional and managerial jobs.

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

________ receive(s) certain protections under the FLSA.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

The __________ consists of breaking down jobs based on identifiable criteria and the degree to which these criteria exist on the job.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

_________ are used to gather factual data on pay practices among firms within specific communities.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

The three basic methods of job evaluation currently in use are ranking/order, classification, and _________ methods.

Difficulty: Easy

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

________ are motivation systems based on individual work performance.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

_________ for expatriates may include shipping household goods, legal clearance and shipment for pets, education allowances for children, and bodyguards.

Difficulty: Medium

Learning Objective 7: List the considerations in creating an international compensation program.

MULTIPLE-CHOICE

Which of the following is NOT an intrinsic source of employee motivation?

a) Increased responsibility

b) Pay raise

c) Increased employee autonomy

d) Tasks organized to allow individuals to complete activities

e) Performance feedback

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which of the following is an extrinsic source of employee motivation?

a) Increased responsibility

b) Impressive job title

c) Participation in decision-making

d) Opportunities for job growth

e) More interesting work

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Organizational reward systems are typically categorized as

a) financial versus extrinsic.

b) performance-driven versus performance-based.

c) hourly versus salaried.

d) intrinsic versus extrinsic.

e) membership-based versus extrinsic.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which of the following is NOT a performance-based financial reward?

a) Piecework

b) Labor market adjustment

c) Commission

d) Performance bonuses

e) Merit pay plans

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which of the following is NOT an implied membership-based financial reward?

a) Cost-of-living increases

b) Labor market adjustment

c) Time-in-rank increases

d) Business cards

e) Profit sharing

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Membership-based rewards include all of the following EXCEPT

a) cost-of-living increases.

b) pay for time not worked.

c) seniority benefits.

d) labor market adjustments.

e) piecework.

Difficulty: Easy

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which of the following is an explicit membership-based financial reward?

a) Commission

b) Performance bonuses

c) Incentive plans

d) Pay for time not worked

e) Profit sharing

Difficulty: Easy

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Keon, vice-president of human resources for a large manufacturing firm, wants to keep the reward system membership-based instead of moving to performance-based pay. Traditionally, most increases have been based on seniority. Why does he want to keep the membership-based system?

a) Membership-based pay increases commitment and loyalty.

b) All pay increases are membership-based due to work process reengineering.

c) The criteria area easier to measure with the membership-based system.

d) Performance based pay does not increase status awareness.

e) Under the ADA, all seniority raises are membership-based.

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which is NOT true of employees who earn tips?

a) Federal law allows their direct wage to fall significantly below minimum wage.

b) Employers may claim tip credit to make up for the difference between direct wage and minimum wage.

c) Employers are not required to pay the difference between tips received and minimum wage.

d) States may require direct wage above the federal minimum.

e) Supervisors are not allowed to participate in tip pools.

Difficulty: Hard

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which of the following reward systems is based on clear performance standards and objective measurements of performance?

a) Cost-of-living increases

b) Salary increases

c) Benefits

d) Group bonuses

e) Seniority based increases

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which of the following would be considered an intrinsic reward?

a) Recognition

b) Preferred work assignments

c) Volunteer opportunities

d) Casual dress

e) Meaningful work

Difficulty: Medium

Learning Objective 1: Differentiate between intrinsic and extrinsic rewards.

Which of the following has the greatest effect on initial salaries, but little effect on promotion and salary increases?

a) Walsh-Healy Act

b) Equal Pay Act of 1963

c) The Civil Rights Act

d) Fair Labor Standards Act

e) The Federal Minimum Wage Act

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

According to the Fair Labor Standards Act, which of the following would be considered exempt from receiving overtime?

a) Anyone who has the job title of supervisor.

b) Interns.

c) Restaurant employees.

d) An outside salesperson earning more than $684 per week.

e) Unionized employees.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Which act was passed in 1938 to establish laws outlining wage, overtime pay, and maximum hour requirement for most U.S. workers?

a) Equal Pay Act

b) Fair Labor Standards Act

c) Walsh-Healy Act

d) Civil Rights Act

e) Living Wage Act

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

What is the federal minimum wage under the Fair Labor Standard Act that began in July 2009?

a) $5.85

b) $6.55

c) $7.25

d) $8.15

e) $9.10

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Which is NOT true of internships?

a) The FLSA doesn’t specifically recognize internships.

b) Internships may be unpaid if the employer doesn’t directly benefit from the work of the intern.

c) Unpaid internships are allowed if the intern is entitled to a job at the end of the internship.

d) Employers get away with FLSA violations because interns rarely complain about abuses.

e) Minimum wage laws apply to internships with few exceptions.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Which of the following is NOT true of child labor under the FLSA?

a) Employers may pay full-time students less than minimum wage.

b) Children 17 and under are prohibited from driving motor vehicles at work.

c) Children 17 and under are not allowed to use most cutting and power equipment at work.

d) Children 14 and 15 years old may work up to 3 hours a day on school days.

e) Children 14 and under are not allowed to work for pay under any circumstances.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Which of the following is NOT covered by the provisions of the FLSA?

a) Minimum wage

b) Overtime pay

c) Child labor

d) Retirement plans

e) Record keeping

Difficulty: Easy

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Opponents of an increase in minimum wage use all of these arguments EXCEPT:

a) Increased wage costs to employers make it difficult to compete globally.

b) Increased wage costs to employers reduce profitability and may reduce competition.

c) Increased wage costs to employers would reduce the number of employees hired.

d) Increased federal minimum wage isn’t necessary because many states already have higher minimum wage laws.

e) The U.S. already has the highest minimum wage among industrialized nations.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Proponents of an increase in minimum wage argue all of the following EXCEPT:

a) Wages lag behind the cost of living.

b) Young people and women are the most affected by low wages.

c) 75% of those earning minimum wage are in the service industry.

d) Education is a strong indicator of income.

e) The annual income of a single parent earning minimum wage is below the poverty level.

Difficulty: Medium

Learning Objective 2: Discuss how the Fair Labor Standards Act and other federal laws regulation influences compensation.

Which of these is NOT an external factor affecting compensation?

a) Geographic differences in locations.

b) Supply of workers in the local area.

c) Wages paid by others seeking workers.

d) Job evaluation in compensation.

e) Union employers in the area.

Difficulty: Hard

Learning Objective 3: Identify external factors influencing compensation.

When a non-unionized employee works in an organization that includes unionized workers, what type of advantage will the non-unionized employee gain?

a) Cost of living adjustments larger than those by the Department of Labor.

b) Less competition for jobs and promotion.

c) Increases that are less dependent on job evaluations.

d) Larger than normal wage curves.

e) Increased wages and benefits based on the “spillover” effect.

Difficulty: Medium

Learning Objective 3: Identify external factors influencing compensation.

Heather is the human resources administrator for a small electronics firm that currently has 27 employees. Until now, workers were paid whatever the CEO felt they were worth. Heather wants to start a job evaluation process. She wants to use the point method for all of these reasons except

a) It offers the greatest stability over time.

b) It can effectively address the comparable worth issue.

c) The methodology contributes to a minimum of rating error.

d) It is quick and inexpensive to develop.

e) It is the most widely used method.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Lisa, a compensation analyst for a large government agency, is completing a job evaluation for her organization. She is reviewing the grades that have been established by skills, knowledge and abilities because several managers have complained that the jobs no longer “fit” into the defined grades. What job evaluation method is Lisa using?

a) Ordering

b) Classification

c) Basic factors

d) Point method

e) Prioritization

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Which method evaluates jobs based on predetermined job grades?

a) Ordering method

b) Broad-banding method

c) Classification method

d) Point method

e) Group incentive method

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Dana, a compensation specialist for a large hospital in Phoenix is reviewing pay rates for nurses and nursing technicians in other health care organizations in the Phoenix area. She is also making sure her organization is giving as much vacation and shift differentials as her competition. What is she studying?

a) Wage structure

b) Compensation survey

c) Overtime pay review

d) Wage and hour law

e) Classification

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Edrian works for a bank that recently acquired his consulting firm. He has a “green-circled” job for the wage curve. His manager is likely to tell him:

a) You won’t get a raise until you get a promotion.

b) You won’t get a promotion for at least 3 years.

c) You will get a salary adjustment increase in your next paycheck.

d) You need to assess your skills and interests and find another job.

e) You are targeted for a 10% pay decrease.

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Criteria used in creating job evaluation plans include all of these EXCEPT:

a) Responsibility of the position.

b) Skill required by the position.

c) Physical demands of the position.

d) Intrinsic rewards provided by the position.

e) Complexity of the position.

Difficulty: Hard

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Shameka is the new compensation manager of a large manufacturing company. She is currently redesigning the pay structure. She wants to be able to break down jobs based on identifiable factors and the degree to which these criteria exist on the different jobs in her company. What job evaluation method should Shameka use?

a) Classification method

b) Point method

c) Ordering method

d) Ranking method

e) Broad-banding method

Difficulty: Hard

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

Which method breaks down jobs based on identifiable criteria and the degree to which these criteria exist on the job?

a) Ordering method

b) Broad-banding method

c) Classification method

d) Point method

e) Group incentive method

Difficulty: Medium

Learning Objective 4: Discuss job evaluation and how it is used to create pay structures.

What is the incentive plan that uses a mathematical formula to determine employee bonuses?

a) IMPROSHARE

b) Scanlon Plan

c) Broad-banding

d) FLSA

e) Ordering

Difficulty: Easy

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

All of these are characteristics of piecework pay plans EXCEPT

a) It is commonly used in manufacturing.

b) It typically does not include any hourly rate.

c) Workers earn specific rate for each unit produced up to a specified standard.

d) Incentives may be based on time saved as well as units produced.

e) Higher rates may be paid for units produced over the specified standard.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Which of the following types of variable pay is most commonly used for sales workers?

a) Commissions

b) Bonuses

c) Merit pay

d) Competency-based pay

e) Premium pay

Difficulty: Easy

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Rayshard works for an automobile salvage firm. Last year he started going to monthly meetings with managers and coworkers to evaluate labor-saving ideas. One idea, raising the crane level by 8 feet to clear the building, saved them $2 million. Each of the employees received a $200 bonus for the implementation of that idea. What kind of compensation system is used?

a) Piecework

b) Time-saving bonus

c) Merit pay

d) Scanlon Plan

e) Group incentive

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Al’s company just instituted a new compensation program for managers. Pay is based on competencies such as leadership, problem solving and strategic planning. Pay levels are preset and reflect the degree of competency. What kind of compensation system was used?

a) Broad-banding

b) Scanlon Plan

c) Piece rate

d) Ordering

e) IMPROSHARE

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Team-based compensation plans are effective in all of these situations EXCEPT

a) Teams share a clear purpose and goals.

b) Team members communicate effectively with each other.

c) Team members compete with each other.

d) Resources are plentiful.

e) Rewards must be significant and worthwhile.

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Andres is the general manager of a plant that manufactures tires. He wants to introduce a plant-wide incentive program focusing on cooperation between management and employees through sharing problems, goals, and ideas. What incentive system should Andres use?

a) Scanlon plan

b) Competency-based plan

c) Merit pay

d) Stock options

e) Piecework plan

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

As the HR manager of Company XYZ., Victoria is currently working on the reward system. She wants to be able to pay and reward employees based on their skills, knowledge, and behaviors. What pay system should Victoria use?

a) Scanlon plan

b) IMPROSHARE

c) Profit sharing

d) Competency-based plan

e) Point method

Difficulty: Medium

Learning Objective 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Which type of long-term incentive makes up the largest portion of an executive’s pay?

a) Base salary

b) Stock options

c) Bonuses based on sales

d) Benefits

e) Golden parachutes

Difficulty: Medium

Learning Objective 6: Discuss the elements of executive compensation and why they can be significantly higher than those of other employees.

What type of compensation plan would be appropriate for employees who have tasks that are interdependent and require cooperation by all team members?

a) Merit pay

b) Bonuses

c) Competency-based plans

d) Organization-wide incentives

e) Group incentive plans

Difficulty: Medium

Learning Objective 6: Discuss the elements of executive compensation and why they can be significantly higher than those of other employees.

Which of the following is NOT a factor that is considered in the balance sheet approach to international compensation?

a) Base pay

b) Differentials

c) Golden parachute

d) Incentives

e) Assistance programs

Difficulty: Easy

Learning Objective 7: List the considerations in creating an international compensation program.

International compensation packages typically include four factors, base bay, differentials, incentives and assistance programs. This approach is referred to as

a) broadband.

b) golden parachute.

c) balance sheet.

d) expatriate.

e) classification.

Difficulty: Medium

Learning Objective 7: List the considerations in creating an international compensation program.

Jon, a U.S. petroleum engineer, moved his family to Saudi Arabia for a two-year assignment. The company provided him a travel allotment, a food allowance of $1000 a month, and $2000 a month for housing to maintain his standard of living. What kind of pay factor was used?

a) Base pay

b) Differentials

c) Bonuses

d) Incentives

e) Assistance programs

Difficulty: Medium

Learning Objective 7: List the considerations in creating an international compensation program.

Jean, a geologic specialist, agreed to accept an overseas assignment for her company after the company agreed to store her yacht, provide security service 24/7, and arrange for Mimi, her cat, to go with her. What kind of pay factor was used?

a) Base pay

b) Differentials

c) Bonuses

d) Incentives

e) Assistance programs

Difficulty: Medium

Learning Objective 7: List the considerations in creating an international compensation program.

Cesar, a satellite architect, accepted an overseas assignment for his company when the company agreed to provide a car and chauffeur, a beach villa, a sailboat, and a lump sum payment of $600,000. What kind of pay factor was used?

a) Base pay

b) Differentials

c) Bonuses

d) Incentives

e) Assistance programs

Difficulty: Medium

Learning Objective 7: List the considerations in creating an international compensation program.