HRCI SPHR Practice Test - Questions Answers, Page 8

List of questions
Question 71

Beth is a nonexempt employee and she earns $17.45 per hour in her job. She has worked 40 hours this week, but management has requested that Beth work seven more hours this weekend. What is the total payment, before taxes, that Beth will be due for her work this week?
$820.15
$698
$1,230.22
$881.22
Answer option D is correct.
Beth will earn seven hours of overtime pay at $16.175 per hour, plus her regular 40 hours of pay of $698.
Answer option A is incorrect. $820.15 does not reflect Beth's overtime for the week.
Answer option B is incorrect. $698 doesn't include the overtime pay.
Answer option C is incorrect. $1,230.22 counts all of the hours Beth has worked as overtime pay.
Chapter: Compensation and Benefits
Objective: Compensation
Question 72

Which of the following are the benefits of gainsharing programs?
Each correct answer represents a complete solution. Choose all that apply.
Aligns employees to organizational goals
Helps the organization to achieve improvement in key performance measures
Enhances the focus and awareness of employees
Employees are paid on the basis of group performance rather than individual performan
Answer options A, B, and C are correct.
The benefits of gainsharing programs are as follows:
1. Aligns employees to organizational goals
2. Helps the organization to achieve improvement in key performance measures
3. Enhances the focus and awareness of employees
What is gainsharing?
Gainsharing is a system of management used by a business to get higher levels of performance through the involvement and participation of its people. As performance improves, employees share financially in the gain (improvement). Gainsharing is about people working smarter together and not just working harder.
Answer option D is incorrect. This is a disadvantage of gainsharing programs.
Chapter: Compensation and Benefits
Question 73

As a HR Professional you must understand the laws and regulations, which affect employee compensation. Which of the following was the first to address a minimum wage for employees?
Davis-Bacon Act
Walsh-Healey Public Contracts Act
Fair Labor Standards Act
Portal-to-Portal Act
Answer option A is correct.
In 1931, the Davis-Bacon Act, was the first piece of legislation to actually establish a minimum wage. The act was, however, limited to the construction industry.
Answer option B is incorrect. The Walsh-Healey Public Contracts Act, addressed contractors with the federal government that exceed $10,000 to pay an established minimum wage to workers, employed through the contract. This act was passed in 1936.
Answer option C is incorrect. The Fair Labor Standards Act, was passed in 1938, addressed minimum wage, overtime pay, child labor, and record keeping.
Answer option D is incorrect. The Portal-to-Portal Act of 1947, clarified hours of working for the purpose of minimum wage and overtime pay.
Chapter: Compensation and Benefits
Objective: Compensation
Question 74

John earns $45,200 per year as a mechanic in your organization. The $42,500 per year does not include earnings John may have through shift differentials, benefits, overtime, incentives, and bonuses. Which one of the following terms best describes the $45,200 per year that John earns?
Variable pay
Hygiene factor pay
Base pay
Market-demand pay
Answer option C is correct.
John's base pay is the fixed rate of pay he earns for performing his job in your organization.
Answer option A is incorrect. Variable pay is the total pay John earns through variable programs, such as commissions or bonuses.
Answer option B is incorrect. This isn't a valid term for employee compensation.
Answer option D is incorrect. Market-demand describes the market average for pay, for someone in John's role as a mechanic.
Chapter: Compensation and Benefits
Objective: Compensation
Question 75

What is the compa-ratio for an employee that earns $75,000 per year, but the midpoint for the role is $85,000 per year?
88 percent
113 percent
$10,000 difference
1:88
Answer option A is correct.
The compa-ratio helps organizations determine how closely an employee's pay is in synch with market. You must also consider the length of employment, service, skills, and other factors in the decision for compensation. The ratio is found by dividing the employees' salary ($75,000) by the midpoint for the role ($80,000) for the ratio of 88 percent.
Answer option B is incorrect. 113 percent is the inverted formula by dividing $80,000 by $75,000.
Answer option C is incorrect. $10,000 is the difference of the two values, but this isn't the compa-ratio.
Answer option D is incorrect. This isn't a valid figure for the question.
Chapter: Compensation and Benefits
Objective: Compensation
Question 76

Which of the following is an example of a nonqualified deferred-compensation plan?
An excess-deferral plan
A target-benefit plan
A money-purchase plan
A cash-balance plan
Answer option A is correct.
An excess-deferral plan makes up the difference between what an executive could have contributed to a qualified plan if there had not been a limit on contributions and how much was actually contributed because of the discrimination test required by ERISA. These plans are nonqualified because they are not protected by ERISA; they are limited to a small group of executives or highly compensated employees. A target-benefit plan (B) is a hybrid with elements of defined-benefit and money-purchase plans. A money-purchase plan (C) defers a fixed percentage of employee earnings. A cash-balance plan (D) combines elements of defined-benefit and defined-contribution plans. See Chapter 6 for more information.
Chapter: Compensation and Benefits
Objective: Benefits
Question 77

COBRA, the Consolidated Omnibus Budget Reconciliation Act, requires some organizations to offer continuation of group health care coverage to employees and family members based on certain qualifying events. How many employees must exist within an organization for COBRA requirements to be enforced?
10
20
50
100
Answer option B is correct.
Consolidated Omnibus Budget Reconciliation Act (COBRA) requires all organizations with 20 or more employees to participate.
Answer options A, C, and D are incorrect. Organizations with less than 20 employees are not required to participate in COBRA. The value for participation is 20 employees or more.
Chapter: Compensation and Benefits
Objective: Benefits
Question 78

Your organization is looking for methods to improve communication between the management and the employees within the company. Which one of the following methods is best described as a small but representative sampling of employees - led in a conversation by a neutral moderator about an identified topic?
Pilot group
Focus group
Workshop
Brainstorming session
Answer option B is correct.
A focus group is often used to find an employee-driven solution to a problem. Focus groups typically, but not always, include sampling of employees from across the organization. Focus groups should be led by neutral moderators, rather than members of the management.
What are focus groups?
Focus groups are directed conversations for gathering ideas, opinions about a product, service, problem, or opportunity.
Answer option A is incorrect. A pilot group is a collection of employees who will test a new software, impart training, or other implementation, and provide feedback on their experience. Pilot groups ,often, are the control groups to determine how the software, training, or implementation will go in the rest of the organization.
Answer option C is incorrect. A workshop isn't usually a sampling of employees from across the organization, though it could be. A workshop is designed to define requirements, solve a specific problem, or to create goals for an objective. Workshops aren't usually led by a neutral moderator like in a focus group.
Answer option D is incorrect. A brainstorming session isn't led by a neutral moderator. These sessions aim to generate as many ideas as possible for softwares, products, services, or other solutions.
Chapter: Employee and Labor Relations
Objective: Employee Relations
Question 79

What is the difference between organizational culture and organizational climate?
There is no difference; the terms may be used interchangeably.
Organizational culture discusses the learning of the organization. Organizational climate discusses how well the learning happens.
Organizational culture defines the values of the company. Organizational climate defines the implementation of the values.
Organization climate is the sense of hostility. Organization culture is the sense of hospitality.
Answer option C is correct.
Organizational climate and culture are related. Climate is how people feel about the organization; culture is why they feel that way about the organization.
Answer option A is incorrect. Culture and climate is more than just the organization's attitude to learning.
Answer option B is incorrect. This choice is close, but climate and culture are from people's perspectives and interpretations, not the organization.
Answer option D is incorrect. This isn't a valid choice as culture and climate are more than hostility and hospitality.
Chapter: Employee and Labor Relations
Objective: Employee Relations
Question 80

All of the following reasons for termination of an employee are examples of wrongful termination except for which one?
Violation of company policy
Being a member of a protected class
Whistleblower
Filing a worker's compensation claim
Answer option A is correct.
If an employee violates a company policy then there is justification for terminating an employee.
Answer option B is incorrect. A person cannot be fired for being a member of a protected class.
Answer option C is incorrect. A person that reports unlawful or unsafe conditions is considered to be a whistleblower - and cannot be fired for doing so.
Answer option D is incorrect. Filing a worker's compensation claim is not a valid reason for terminating an employee.
Chapter: Employee and Labor Relations
Objective: Employee Relations
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