HRM 430 Midterm Exam

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HRM 430 Midterm Exam


Questin 1.Question :(TCO 1) Which type of compensation program is based, in part, on the human capital theory?
Student Answer: Merit pay
 Seniority pay
 Incentive pay
 Skill-based pay


Question 2.Question :(TCO 1) Which theory states that employees’ knowledge and skills generate productive capital?
Student Answer: Job characteristics theory
 Expectancy theory
 Equity theory
 Human capital theory
Question 3.Question :(TCO 1) Which constituency group turns to compensation professionals for advice about setting appropriate pay rates for jobs?
Student Answer: Employees
 Line managers
Question 4.Question :(TCO 1) Which of the following are the three broad categories of discretionary benefits?
Student Answer: Welfare practices, services, paid time off
 Protection programs, paid time off, services
 Paid time off, welfare practices, and protection programs
 Services, protection programs, welfare practices

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Question 5.Question :(TCO 5) When designing pay-for-knowledge programs, which of the following would be considered part of the transition matters phase?
Student Answer: Grouping skills
 Aligning pay with the knowledge structure
 Skill types
Question 6.Question :(TCO 5) Which of the following examples is not considered as a compensable work activity?
Student Answer: An employee takes a 15-minute rest during work time.
 An employee attends an employer-mandated training.
 A firefighter plays checkers while waiting for an alarm.
 An employee travels from home before the regular workday and returns to his or her home at the end of the workday.


Question 7.Question :(TCO 7) Which performance appraisal error reflects the tendency to rate every employee at the low end of the rating scale, regardless of actual performance?
Student Answer: Negative halo error
 Error of central tendency
 Contrast errors
 Errors of strictness
Question 8.Question :(TCO 7) Which of the following performance measures corresponds to individual/group/company-wide incentive plans respectively?
Student Answer: Customer satisfaction/quantity of work/market share
 Customer satisfaction/market share/quality of work
 Quantity of work/market share/customer satisfaction
 Quality of work output/customer satisfaction/market share
Question 9.Question :(TCO 7) According to the job characteristics theory, this core characteristic refers to the amount of freedom, independence, and discretion the employee enjoys in determining how to do the job.
Student Answer: Feedback
 Task identity
 Skill variety
Question 10.Question :(TCO 5) The Americans with Disabilities Act of 1990 (ADA) applies to companies that employ at least how many workers?
Student Answer: 20
Questin 11.Question :(TCO 5) The term trainee is defined by which act?
Student Answer: FMLA
 Equal Pay Act
Question 12.Question :(TCO 5) Compensation differentials between men and women performing substantially similar work fall under the purview of which piece of legislation?
Student Answer: Equal Pay Act of 1963
 Age Discrimination in Employment Act of 1967
 Americans with Disabilities Act of 1990
 Civil Rights Act of 1964
Questin 13.Question :(TCO 4) Which of the following is true concerning merit pay programs?
Student Answer: Cost-of-living adjustments are considered merit increases.
 They are most popular with public sector employers.
 Accurate performance appraisals are key to effective programs.
 Appraisals are based on objective criteria only.
Question 14.Question :(TCO 4) Which comparison system requires the rater to place a specific number of employees into groups that represent the entire range of performances?
Student Answer: Forced distribution
 Paired comparison
 The critical incident technique
Question 15.Question :(TCO 4) Management by objectives is one method of which type of performance appraisal?
Student Answer: 360-degree performance appraisal
 Goal-focused system
 Goal-oriented system
 Behaviorally anchored system

Question 1.Question :(TCO 4) A manager expects high levels of performance from a newly hired employee. A year later, the manager rates this employee’s job performance higher than the actual performance due to his initial belief. What kind of rater error was made by the manager?
Student Answer: First-impression effect
 Contrast errors
 Positive halo effect
 Negative halo effect
Question 2.Question :(TCO 4) These are the four core characteristics of the job characteristics theory.
Student Answer: Feedback, task variety, skill variety, autonomy
 Knowledge, skill identity, autonomy, feedback
 Skill variety, task identity, autonomy, feedback
 Skill identity, autonomy, task variety, feedback
Question 3.Question :(TCO 4) Teams that have members learn scheduling, coordinating, training, and leading others are emphasized in what type of work team?
Student Answer: Self-regulating work groups
 Supervisory work teams
 Management teams
 Nonsupervised work teams
Question 4.Question :(TCO 4) When a filing clerk is trained to maintain employee attendance records, it is an example of acquiring which type of skills?
Student Answer: Horizontal
 Depth of
 Breadth of
Question 5.Question :(TCO 4) Which person-focused model links pay levels to increased knowledge and skills within the same general job category?
Student Answer: Stair-step model
 Skill blocks model
 job-point accrual model
 cross-departmental model
Question 6.Question :(TCO 8) Which gain-sharing program is based on a labor hour ratio and has a buy-back provision?
Student Answer: Rucker
 Scanlon plan
 Management incentive plan


Question 7.Question :(TCO 8) These profit-sharing plans award cash to employees on a quarterly or annual basis as part of their regular compensation.
Student Answer: Current profit-sharing plans
 Anticipated profit-sharing plans
 Deferred profit-sharing plans
 Recent profit-sharing plans
Question 8.Question :(TCO 8) Customer satisfaction, labor cost savings, materials cost savings, and reductions in accidents were listed as typical performance measures for which type of incentive plan?
Student Answer: Individual
Question 9.Question :(TCO 2) These two are job evaluation techniques.
Student Answer: Market based and job context
 Market context and job based
 Market based and job content
 Market context and job content
Question 10.Question :(TCO 2) Which of the following are critical components in the job analysis process?
Student Answer: Selecting and training analysts, choosing a single versus a multiple job description technique, choosing a job analysis program
 Choosing a single versus a multiple job analysis technique, choosing a job analysis program, writing a job description
 Choosing a job analysis program, writing a job description, selecting and training analysts
 Choosing a single versus a multiple job description technique, selecting and training analysts, writing a job description
Question 11.Question :(TCO 3) What represents the relationship between a company’s valuation of jobs based on job evaluation and the valuation of jobs within the external market, as assessed by compensation surveys?
Student Answer: Pay range
 Pay grade
 Market pay line
 Market-competitive pay structure
Question 12.Question :(TCO 3) When examining competitors’ compensation offerings, this term is used to describe the percentage of employer compensation costs that are applied to compensation and benefits.
Student Answer: Mix
 Standard percentile
 Nominal dollars
Question 13.Question :(TCO 6) Which pay structure reflects the increasing organizational trend toward flatter, less hierarchical corporate structures?
Student Answer: Two-tier pay structure
 Market-competitive pay structure
 Internally consistent pay structure
Question 14.Question :(TCO 6) If the company adopts a market lag policy, how will that company’s pay range midpoint compare to the market average?
Student Answer: The midpoint will be the same as the market average.
 Not enough information to determine
 The midpoint will be higher than the market average.
 The midpoint will be lower than the market average.
Question 15.Question :(TCO 8) Which type of individual incentive plan requires the achievement of multiple complex objectives without compromising the quality and quantity of output generated by employees?
Student Answer: Piecework plans
 Referral plans
 Management incentive plans
 Behavior encouragement plans




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