HRM 430 Midterm Exam


HRM 430 Midterm Exam 
(TCO 1) Which theory states that employees’ knowledge and skills generate productive capital?…


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HRM 430 Midterm Exam

HRM 430 Midterm Exam


(TCO 1) Compensation represents both _____ rewards.

Intrinsic and extrinsic

Introverted and extroverted

Income and outcome

Enter and exit

(TCO 1) Which theory states that employees’ knowledge and skills generate productive capital?

Job characteristics theory

Expectancy theory

Equity theory

Human capital theory

(TCO 1) Which constituency group turns to compensation professionals for advice about setting appropriate pay rates for jobs?


Line managers



(TCO 1) What is a planned effort to facilitate employees’ learning of job-related knowledge, skills, or behaviors?


Labor-management relations

Career development

Performance appraisal

(TCO 5) According to the U.S. Bureau of Labor Statistics, which of the following is projected through the year 2012?

The percentage of women in the workforce will decrease.

The percentage of Asian people in the workforce will decrease.

Total employment will decrease about 15%.

Total employment will increase about 15%.

(TCO 5) Which one of these issues is not addressed by the Fair Labor Standards Act of 1938?

Overtime pay

Child labor provisions

Executive compensation

Minimum wage

(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?

Negative halo error

Error of central tendency

Contrast errors

Errors of strictness

(TCO 7) Gunther Rohn was rewarded for making a suggestion that saved Ewe and Eye Electronics thousands of dollars. Which type of incentive compensation approach might have worked best?

Gain-sharing plan

Group incentive programs

Employee stock ownership plan

Management incentive plans

(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.



Task identity

Skill variety

(TCO 5) Age discrimination of employees of federal contractors is prohibited by which executive order?





(TCO 5) What are the revised guidelines introduced in 2004 for determining whether jobs are exempt from FLSA overtime pay provisions?

Overtime Nonexempt Rules

Glass Ceiling Act

Fair Pay Rules

Bennett Amendment

(TCO 5) Which legislation removed barriers to free commerce and restored equality of bargaining power?

Civil Rights Act of 1964

Equal Pay Act of 1963

Age Discrimination in Employment Act of 1967

National Labor Relations Act of 1935

(TCO 4) The federal government’s General Schedule is an example of what kind of pay system?

Merit pay

Seniority-based pay

Knowledge-based pay

Longevity pay

(TCO 4) This occurs when a rater generalizes good performance behavior in one aspect of the job to all aspects of the job.

Similar-to-me effect

First-impression effect

Positive halo effect

Negative halo effect

(TCO 4) Management by objectives is one method of which type of performance appraisal?

360-degree performance appraisal

Goal-focused system

Goal-oriented system

Behaviorally anchored system

(TCO 4) Which performance appraisal system is based on writing performance behaviors as expectations, not as observed incidents?





(TCO 4) These are the four core characteristics of the job characteristics theory.

Feedback, task variety, skill variety, autonomy

Knowledge, skill identity, autonomy, feedback

Skill variety, task identity, autonomy, feedback

Skill identity, autonomy, task variety, feedback

(TCO 4) These are four pay-for-knowledge programs.

Cross-departmental training systems, skill blocks model, job-point accrual model, breadth-of-skills model

Stair-step model, skill blocks model, job-point accrual model, cross-departmental training systems

Job-point accrual model, cross-sectional training system, stair-step model, skill blocks model

Cross-skills training system, stair-step model, job-point accrual model, skill blocks model

(TCO 4) Which of the following are the main reasons for the increased costs associated with pay-for-knowledge programs?

Increased compensation benefits, higher training costs, increased overhead costs

Higher payroll costs, increased overhead costs, higher training costs

Increased overhead costs, increased compensation benefits, higher payroll costs

Increased compensation benefits, higher training costs, and higher payroll costs

(TCO 4) Which person-focused model links pay levels to increased knowledge and skills within the same general job category?

Stair-step model

Skill blocks model

Job-point accrual model

Cross-departmental model

(TCO 8) Which gain-sharing program is based on a labor hour ratio and has a buy-back provision?



Scanlon plan

Management incentive plan

(TCO 8) Which gain-sharing plan focuses on lowering the percentage of labor costs using a value-added formula?

Rucker plan

Scanlon plan

Behavior encouragement plan


(TCO 8) This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal.

Fluctuating first dollar of profits

Differed first dollar of profits

Graduated first dollar of profits

Fixed first dollar of profits

(TCO 2) These two are job evaluation techniques.

Market based and job context

Market context and job based

Market based and job content

Market context and job content

(TCO 2) Which unit in the job analysis process is the smallest?





(TCO 3) This BLS survey provides the quarterly measure of changes in labor and compensation costs, and is used as the principle economic indicator for the Federal Reserve.

National Compensation Survey

Employment Cost Index

Employer Costs for Employee Compensation

National Benefit Index

(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.



Standard percentile

Nominal dollars

(TCO 6) Which pay structure reflects the increasing organizational trend toward flatter, less hierarchical corporate structures?

Two-tier pay structure


Market-competitive pay structure

Internally consistent pay structure

(TCO 6) These represent the horizontal dimension of pay structures.

Pay ranges

Pay grades

Job evaluation points

Pay spreads

(TCO 8) Which of the following is a characteristic of the Scanlon plan?

Gain-sharing formulas are based on the ratio between labor costs and productivity levels.

Gain-sharing formulas are based on the ratio between labor costs and production costs.

Gain-sharing formulas are based on the ratio between production costs and sales value of production.

Gain-sharing formulas are based on the ratio between labor costs and sales value of production.

HRM 430 Midterm Exam