Human Resource Management

Human Resource Management, 12e (Dessler)

Chapter 11 Establishing Strategic Pay Plans

1) Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment?

A) salary

B) employee compensation

C) wage reimbursement

D) employee benefits

E) remuneration

Answer: B

Explanation: Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations).

Diff: 1 Page Ref: 386

Chapter: 11

Objective: 1

Skill: Concept

2) Direct financial payments include all of the following EXCEPT ________.

A) wages

B) insurance

C) salaries

D) incentives

E) commissions

Answer: B

Explanation: Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations).

Diff: 1 Page Ref: 386

Chapter: 11

Objective: 1

Skill: Concept

3) Which of the following terms refers to pay in the form of financial benefits, such as insurance?

A) direct financial payments

B) out-of-pocket expenses

C) indirect financial payments

D) sales commission

E) merit raise

Answer: C

Explanation: Employee compensation has two main components: direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations).

Diff: 1 Page Ref: 386, 387

Chapter: 11

Objective: 1

Skill: Concept

4) John is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a 5% commission for...