1. 1.

Encourage errors on the part of the rates, who may depend too heavily on
the form to define performance.
2. Tend to emphasise the rating instruments itself and its limitation
3. Descriptive words sometimes used in scales may have different meaning to
different raters (subjective) Drawbacks of forced distribution (Comparative
methods)
False
It should be Drawbacks of Graphic rating scale (Category scaling method)

2. -The ranking method lists all employees from highest to lowest in performance
drawbacks
-The sizes of the difference between individuals are not well-defined
-Ignores the possibility that the last-ranked individual in one group might be equal to
the top-ranked employee in a different group.
-Ranking task becomes too much is the group to be ranked is large. Graphic
rating scale (Category scaling method)

False

It should be Ranking (Comparative methods)

3. -Techniques for distributing ratings that are generated with any of the other
appraisal methods.
-The ratings of employee's performance are distributed along a bell-shaped curve.
-Function--> to deal with "rater inflation". Without a forced distribution, performance
appraisal ratings often do not approximate the normal distribution of the bell-shaped
curved. Forced distribution (Comparative methods)

True

4. -Designed to assess an employee's behaviors instead of other

characteristics.
-Describe specific examples of employee job behavior
-Behavior anchored rating scale (BARS), appraiser rates employee on factors that
are defined by behvaioral descriptions illustrating various dimensions along each
rating scale. Essay (Narrative methods)

False

It should be Behavioral rating scale (Category scaling method)

1. Performance appraisal method that specifies the performance goals that an
individual and manger identify together. Management by Objectives (MBO)
True

2. Occurs when ratings of all employees fall at the high end of the
scale. Leniency Error

True

3. Performance appraisal method in which all employees are listed from hight to
lowest in performance. Rater Bias

False

It should be Ranking

4. Occurs when a rater scored an employee high on all job criteria because of
performance in one area. Primacy Effect

False

It should be Halo Effect

5. Occurs when a rater gives all employees a score within a narrow range in the
middle of the scale. Contrast Error

False

It should be Central Tendency Error

1. The steps represent jobs from a particular job family that differ in terms of
complexity What is stair step pay
True

2. Job evaluations, compensation survey What are benchmark jobs

True

3. Where the employer will pay for certifications and compensate you and give
you a raise What is a pay range?

False

It should be What is pay for knowledge?

4. -select technique
-choose committee
-train members to evaluate
-document plan
-communicate with employees
-set up appeals process What are the 5 necessary steps of constructing a play
structure explained?

False

It should be What are the steps in the job evaluation process

5. Market based evaluation

Job content evaluation What are two job evaluation techniques?

True
1. refers to the level of specialization or expertise an employee brings to a
particular job. Depth of skills/knowledge

True

2. arithmetic mean and median. Advocates of person-focused pay programs

offers two key reasons that firms seeking competitive advantage should adopt this
form of compensation:

True

It should be Two types of central tendency measures are pertinent to

compensation

3. can lead to a distorted representation of the typical value. Three measure

of dispersion to be useful

False

It should be One or more outlines

4. Health insurance and retirement NCS

True

5. $19,00 per employee annually to provide discretionary benefits. September

2010 companies spent an average approaching

True
1. personality, attitudes, ksaos, bx's that enable an empl to fulfill job
requirements. aka, knowledge and skills. compensable factors

False
It should be competency

2. specialization or expertise Depth of skills or knowledge refers to the level of

_____ or _____ that an empl brings to a job

True

3. creating more intrinsically motivating and interesting work

environments. job enrichment

True

4. physical work. The workers' pay increases as they master new skills. Job
based pay compensates empl for:

False

It should be skill based pay is used mostly for employees who do what kind of
work?

5. single or multiple job eval techniques?

select job eval committee
train empl to conduct job evals
document job eval plan
communicate w employees
set up appeals process what are the 6 steps in the job eval process?

True
1. use market data to determine differences in job worth. use to set a rate that
isn't too high or low relative to market. external market based job eval
CORRECT
True

2. subjective
don't use job analysis or descriptions
don't incorporate objective scales indicating how different one job is from
another. What are the major limitations of ranking plans?

CORRECT

True

3. useful if there are more than 20 jobs to rate. comparing every job w every
other job and ranking them in pairs. job w most points is ranked highest, fewest
points ranked lowest. person focused pay programs that emphasize vertical skills
work well at which kind of companies?

False

It should be paired comparison technique - alt job content eval approach

4. reward managerial, service, or professional workers for successfully learning

specific curricula. person focused pay programs that emphasize vertical skills
work well at which kind of companies?

False

It should be pay for knowledge plans

5. 1. skill variety - diff tasks/skills

2. task identity - complete job from start to finish
3. autonomy - independence
4. feedback employees are more motivated to perform jobs that have a high
degree of core characteristics, such as:

True
1. job characteristics that companies establish relative pay rates from. skill,
effort, responsibility, working conditions compensable factors
True

2. refer to similar skills or knowledge. horizontal skills (horizontal knowledge)

True

3. 150 and 2000 more than half of the companies using person focused pay
programs have between __ & ___ employees.

True

4. training empl in one dept with critical skills they would need to px effectively in
other depts. Cross training. cross departmental models promote staffing flexibility
by:

True

5. orders jobs by extremes. judge value of jobs according to single criterion.

determine which job is most valuable, followed by which one least valuable. compare
each job with most and least valuable. alternation ranking - alt job content eval
approach

True
1. cost of living adjustments- periodic base pay increases that are founded on
changes in prices as recorded by the consumer price index FSLA
False
It should be COLA

2. includes both monetary and nonmonetary rewards

Based on seniority, performance levels, or knowledge and skills
Monetary compensation=core compensation
Non-monetary compensation- protection programs (med insurance), paid time off,
services (day care)
Non-monetary=employee benefits
All are a cost to the company Intrinsic Compensation

False

It should be Extrinsic Compensation

3. used mostly for employees who do physical work, increases these worker's
pay as they master new skills Job-based pay

False

It should be Skill-based pay

4. are protection programs that attempt to promote worker safety and health,
maintain family income streams, and assist families in crisis. The key legally required
benefits are mandated by the following laws: the social security act of 1935, various
state workers compensation laws, the FMLA of 1993, and the patient protection and
affordable care act of 2010 Baby Boomers

False

It should be Legally Required Benefits

5. systematic process for gathering, documenting, and analyzing, information in

order to describe jobs. Describe concept or duties, worker requirements, job context,
working requirements Job Evaluation

False

It should be Job Analysis

1. Reflect differences between human judgment and processes versus objective,
accurate assessments uncolored by bias, or other subjective, extraneous
influences. bias errors
False
It should be rating errors

2. Ask raters to evaluate each employee's traits or characteristics ( quality of

work, quantity of work, appearance, dependability ect.) strictness errors

False

It should be trait systems

3. Collective bargaining units negotiate formal contracts with employees and

provide quasi-judicial grievance procedures to adjudicate disputes between union
members and employers. job control unionism

True

4. Federal employees are subject to longevity pay. It classifies federal

government jobs into 15 classifications based on such factor as skill, education, and
experience levels. seniority and longevity pay systems

False

It should be general schedule (GS)

5. Supervisors compare each employee to every other employee; identifying the

better performer in each pair. rating errors

False

It should be paired comparison

1. Collect and then analyze competitors' compensation data Protection
Programs
False
It should be Compensation surveys

2. Requires job incumbents and their supervisors to identify performance

incidents that distinguish successful job performances from unsuccessful
ones. Critical Incident TechniquE

True

3. To recognize differences in the relative worth among a set of jobs to establish

pay differentials accordingly. Job evaluation

True

4. States that employees' knowledge and skills generate productive capital

(human capital). Human Capital Theory

True

5. Provides employees with pay for time when they are not working (i.e. vacation
time). Sales Value of Production

False

It should be Paid time off

1. a specific kind of behavioral system, displays illustrations of positive incidents
(or behaviors) of job performance for various job dimensions; the evaluator rates the
employee on each behavior according to the extent to which the employee performs
in a manner consistent with each behavioral description behavioral systems
False
It should be behavioral observation scale

2. incorporate several sources of pertinent information to give a more complete

(and presumably) less biased assessment of job performance; examples of pertinent
sources include supervisor, coworkers, and clients. longevity pay

False

It should be 360 degree performance appraisal methods

3. clearly define the relative value of each job among all jobs within a company;
this ordered set of jobs represents the job structure or hierarchy; companies rely on
a simple, yet fundamental, principle for building internally consistent compensation
systems: jobs that require greater qualifications, more responsibilities, and more
complex duties should be paid more highly than jobs that require lesser
qualifications, fewer responsibilities, and less complex job duties. illegal
discriminatory bias

False

It should be internally consistent compensation systems

4. occurs when a rater (ex: supervisor) makes an initial favorable or unfavorable

judgment about an employee and then ignores of distorts the employee's actual
performance based on this impression first impression effect

True

5. refers to the tendency on the part of the raters to judge employees favorably
that they perceive as similar to themselves similar to me effect

CORRECT

True
1. unique skills that qualifies an applicant for a job Compensation
False
It should be Competency

2. (exploit opportunities where you have a strength) Strategic Compensation

False

It should be Strengths & Opportunities

3. Focuses on gaining competitive advantage by being the lowest-cost producer

of a product or service within the marketplace, while selling the product or service at
a price advantage relative to the industry average Incentive Pay

False

It should be Lowest-Cost Strategy or Cost Leadership

4. everyone kind of is lumped together, either good or bad Errors of Leniency

False

It should be Error of Central Tendency

5. can't do anything wrong in their eyes Positive Halo Effect

True
1. 1. To get desired behaviors from employees
2. To achieve the first goal within a set of constraints Errors of Leniency

False
It should be Goals of Performance Management

2. A tool that helps us connect the SWOT all the way down through the
organization and measure how well we are performing Illegal Discriminatory Bias

CORRECT

False

It should be Balanced Scorecard

3. reflects employees psychological mind-sets that result from performing their

jobs Intrinsic Compensation

CORRECT

True

4. unique skills that qualifies an applicant for a job Competency

CORRECT

True

5. pay a portion of company's profits to employees, separate from base pay,

cost-of-living adjustments, or permanent merit pay increases (current-cash, deferred-
trust) Profit sharing plans

True
1. Appropriate when job requires creativity, have long-term focus, demand
cooperation and independence, and involve risk-taking When is Differentiation
appropriate?
CORRECT
True

2. rewards employees for partially or completely attaining a predetermined work

objective
Defined as compensation, other than base wages or salaries, which fluctuates
according to employees attainment of some standard Positive Halo Effect

CORRECT

False

It should be Incentive Pay

3. includes both monetary and nonmonetary rewards

o Compensation professional are responsible for this
o Establish monetary compensation programs to reward employees according to
their job performance levels or for learning job-related knowledge or skills
o Monetarycore compensation; nonmonetaryemployee benefits Intrinsic
Compensation

CORRECT

False

It should be Extrinsic Compensation

4. Pay increases based on performance

Reward excellent effort or results
Motivate future performance
Helps retain valued employees Merit Pay Programs

CORRECT

True

5. refers to the minimum pay increase that employees will see as making a
meaningful change in compensation Just-meaningful pay increase

INCORRECT

False

THE ANSWER

True
1. when you rate someone too high or too low or strictness Errors of Leniency
True

2. hold everyone to your standard and what you think should be done (like
people who are similar to them) Positive Halo Effect

False

It should be Similar to Me Effect

3. Focuses on gaining competitive advantage by being the lowest-cost producer

of a product or service within the marketplace, while selling the product or service at
a price advantage relative to the industry average Weaknesses & Threats

False

It should be Lowest-Cost Strategy or Cost Leadership

4. Represents both the intrinsic and extrinsic rewards employees receive for
performing their jobs; together make up a company's total compensation
system Compensable Factors

False

It should be Compensation

5. they cant contribute because they aren't smart enough which leads to feelings
of inequity Incentive Pay

False

It should be Free-rider effect

1. Three provisions
1. Minimum Wage
2. Overtime
3. Child Labor Fair Labor Standards Act of 1938 (FLSA)
True

2. An amendment to Title VII of the Civil Rights Act of 1964. The PDA prohibits
disparate impact discrimination against pregnant women for all employment
practices Pregnancy Discrimination of 1978 (PDA)

True

3. Used mostly for employees who perform physical work, increases these
workers' pay as they master new skills Skill-based Pay

True

4. Monetary and non-monetary rewards Intrinsic Compensation

False

It should be Extrinsic Compensation

5. Rewards managerial, service, or professional workers for successfully

learning specific curricula Pay-for-knowledge

True

6. Protects older workers age 40 and over from illegal discrimination Age
Discrimination in Employment 1876 (ADEA)

True
1. A more accurate gauge, Clearer Standards, Feedback, Independent
Dimensions, Consistency. Advantages to BARS
True

2. ranks employees from best to worst on a specific trait, choosing highest, then
lowest, until all are ranked. The Alternation Ranking Method

True

3. A supervisor keeps a record of uncommonly good and/or undesirable

examples of an employee's work-related behavior. The supervisor then reviews the
record with the employee at predetermined times. Critical Incident Method

True

4. In Performance appraisal, the problem that occurs when a supervisor's rating

of a subordinate on one trait biases the rating of that person on other traits. Halo
Effect

True

5. Turnover is an expensive cost for organizations. Understanding more about

the costs and causes of turnover is important. There are tangible and intangible
costs associated with turnover. Reducing turnover requires identifying and managing
the reasons for both voluntary and involuntary turnover.Voluntary turnover occurs for
many reasons. Top reasons include job dissatisfaction, poor pay or health-care
benefits, few promotional opportunities, and inadequate work-life balance. Any
retention strategy begins with identifying the specific causes of turnover within a
particular company. Bias

False

It should be Turnover
1. 1. Setting work standards 2. Assessing actual performance relative to
standards 3. Providing feedback to employee regarding
performance Performance Appraisal Process
CORRECT
True

2. a performance appraisal technique that uses multiple raters including peers,

employees reporting to the appraisee, supervisors and customers 360 degree
appraisal

CORRECT

True

3. Performance assesment - separates employees into performance

brackets Forced Distribution Method

CORRECT

True

4. Performance assessment - keeps record of behaviour, reviews with

employees Critical Incident Method

CORRECT

True

5. includes goal setting, pay for performance, training and development, career
mgmt and disciplinary action Performance Appraisal Process

CORRECT

False

It should be Performance Management

1. Having a method to help managers and employees to see the link between
their goals and those of their department and company Central Tendency
False
It should be Goal Alignment

2. -Know the problems

-Use the right tool

-Keep a diary

-Get agreement on a plan

-Ensure fairness

-Appraisals and the law Guidelines for Effective Appraisals

True

3. Recency effects involve letting what the employee has done recently blind the
manager to the employee's performance over the entire year. Recency Effects

True

4. The appraisal lets the boss and subordinate develop a plan for correcting any
deficiencies while reinforcing those things the employee does correctly. Appraisals
are a useful career planning tool. Appraisal's Integral Role with Employers

True

5. Ranks employees from best to worst on a specific trait, choosing highest, then
lowest, until all are ranked Alternation Ranking (Performance Appraisal Tool)

True