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Copyright © 2017 Pearson Education, Inc.
Human Resource Management, 15e (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 benefits
C) wage reimbursement
D) employee compensation
Answer: D
Explanation: D) 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).
Difficulty: Easy
Chapter: 11
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 11.1 List the basic factors determining pay rates.
2) Which of the following is NOT a type of direct financial payment?
A) wages
B) insurance
C) incentives
D) commissions
Answer: B
Explanation: B) 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).
Difficulty: Easy
Chapter: 11
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 11.1 List the basic factors determining pay rates.