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Chapter 9

MHR 523 Chapter 9 Test Bank

Human Resources
Course Code
MHR 523
Ted Mock

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Student: ___________________________________________________________________________
1. Compensation systems are intended to do all the following except
A. satisfy employees
B. tie rewards to the achievement of company objectives
C. reimburse employees for their work
D. motivate employees
E. replace performance appraisals
2. With compensation programs, dissatisfaction can arise because employee needs are affected by
A. absolute rates of pay only
B. corporate culture
C. relative rates of pay only
D. job analysis
E. both absolute and relative rates of pay
3. Absolute pay levels primarily serve such employee needs as
A. esteem needs
B. physiological needs only
C. security needs only
D. both physiological and security needs
E. belonging needs
4. Relative pay levels serve such employee needs as
A. physiological and security needs
B. social and esteem needs
C. basic survival needs
D. health needs
E. love and affection needs
5. Among the objectives of effective compensation management are all the following except
A. ensure equity
B. control costs
C. reward desired behaviour
D. set performance appraisal systems
E. retain present employees

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6. Two major objectives of compensation management are to reward desired behaviour and control costs.
Human resource specialists often find that
A. these two goals are always mutually exclusive
B. these two objectives can often be in conflict
C. these two objectives are seldom in conflict
D. the two objectives are one and the same
E. it is usually impossible to reward desired behaviour
7. Effective compensation management has the all following objectives except
A. to reward desired behaviour
B. to encourage unproductive employees to leave
C. to ensure internal equity
D. to attract qualified applicants
E. to ensure external equity
8. Regardless of all the tradeoffs involved in compensation management, an overriding objective is
A. to maintain internal equity
B. to further administrative efficiency
C. to maintain legal compliance
D. control costs
E. develop satisfied employees
9. All of the below are steps that compensation specialists go through to set wages/salaries for each job, except
A. job analysis information
B. wage and salary surveys
C. demographic lifestyle analysis
D. job evaluation
E. pricing jobs
10. A systematic procedure to determine the relative worth or value of jobs is called
A. job evaluation
B. job analysis
C. job standard measurement
D. performance evaluation
E. job intrinsic valuation determination

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11. Job evaluation methods can include all the below except
A. job ranking
B. job grading
C. job classification
D. point system
E. job analysis
12. The most commonly used job evaluation method today is, by far, the
A. job ranking method
B. point system
C. the job grading method
D. the job analysis system
E. job description method
13. The reason that the point system has become the major job evaluation method is because of
A. the fact that it provides the best information regarding job values
B. the Charter of Rights and Freedoms
C. the Human Rights Act
D. the ease with which it can be developed and applied
E. its relative inexpensiveness when compared to other systems
14. The point system for job evaluation is the most widely used system in Canada due to
A. the need to conform to pay equity legislation
B. the fact that it is the simplest and most cost effective to develop
C. its being a far more simple system than either job ranking or job grading
D. the need to conform to pay equity legislation and the provision, relatively, of the best information about job
E. the fact that generic computerized plans can be purchased
15. The job ranking method of job evaluation is
A. the simplest method, but the least precise
B. a complex and yet imprecise method
C. a complex but very precise method
D. a simple and relatively precise method
E. the only method that relies on the allocation of points for every job
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