DONT OPEN THIS PLZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

8/12/2019 DONT OPEN THIS PLZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

1/19

Chapter 11 Employee Benefits

MULTIPLE CHOICE

1. For which key reason do employers need to communicate the extent and value of the benefits theyprovide?a.

It is required by the law.

b.

Employees generally underestimate the value of the benefits offered.

c.

It immediately reduces the overall costs.

d.

he !" department needs this information for its newsletters.

#$%& ' (%& 1 "EF& )*+ ,'-& 1'/& !igher ,rder

0. hich would NOTbe considered a primary ob2ective of most benefits programs?a.

reducing turnover

b.

improving employee satisfaction

c.

retaining top3performing employees

d.

attracting and motivating employees

#$%& # (%& 1 "EF& )+4 ,'-& 1

'/& !igher ,rder

). Ideally5 which of the following should apply to an organi6ation7s benefits system?a.

It should mirror that of the competition5 so as to attract top applicants.

b.

It should be restricted to mandatory benefits.

c.

It should be aligned to the overall strategy of the organi6ation.

d.

It should be more than 84 percent of payroll costs5 so as to be competitive.

#$%& 9 (%& 1 "EF& )+4 ,'-& 1'/& !igher ,rder

:. hat is the approximate cost of benefits as a percentage of total payroll cost in 9anadianorgani6ations?a.

0* percent

b.

04;08 percent

c )4;)8 percent

9opyright < 041: $elson Education td. 1131


2/19

9hapter 11 Employee 'enefits.d.

== percent

#$%& ' (%& 1 "EF& )+4 ,'-& 1'/& "emember

8. hich of the following do employers often use to obtain employee input regarding benefits packages?a.

performance appraisals

b.

opinion surveys

c.

union reports

d.

psychological tests

#$%& ' (%& 1 "EF& )+1 ,'-& 1'/& !igher ,rder



3/19

9hapter 11 Employee 'enefits=. %usie -ones has definite preferences in terms of the benefits offered by her employer. %usie will be

able to select the benefits she values highly and avoid those she does not need or want if her employeroffers which benefit format?a.

an employee selection plan

b.

a flexible benefits plan

c

.

a benefit pool

d.

a modified benefits system

#$%& ' (%& 1 "EF& )+1 ,'-& 1'/& !igher ,rder

>. !ow has the diverse workforce impacted benefits programs?a.

by requiring benefit programs to consider family3friendly options

b.

by requiring lower out3of3pocket costs for employees

c.

by requiring greater pension contributions by employers

d.

by requiring benefits packages to cover part3time as well as full3time employees

#$%& # (%& 1 "EF& )+1 ,'-& 1'/& !igher ,rder

*. hich statement best describes flexible benefit plans?

a. hey are offered to employees who then must purchase each benefit they select.

b.

hey are favoured by employers because they reduce administration costs.

c.

hey are offered as a bonus to executives.

d.

hey allow employees to choose benefits suited to their needs.

#$%& (%& 1 "EF& )+1 ,'-& 1'/& !igher ,rder

+. /anagement at #'9 Inc. wants to introduce a new benefit that is not required by law. hat should itdo first?a.

develop an !"I% system to help with its administration

b.

establish that there is a need for it

c.

lobby the government to make it mandatory

9opyright < 041: $elson Education td. 113)


4/19

9hapter 11 Employee 'enefitsd.

hire a consulting firm to roll it out

#$%& ' (%& 1 "EF& )+1 ,'-& 1'/& !igher ,rder

14. /any organi6ations use the services of professional benefits vendors to administer their benefits. hatis this practice a form of?a.

freelancing

b.

merger

c.

outsourcing

d.

employee empowerment

#$%& 9 (%& 1 "EF& )+0 ,'-& 1'/& !igher ,rder

9opyright < 041: $elson Education td. 113:


5/19

9hapter 11 Employee 'enefits11. hich of the following is a fast5 convenient5 and interactive way employees can learn about or change

their benefits?a.

a benefits information packet

b.

personal benefit profiles

c.

infrequent information stations

d.

employee self3service @E%%A systems

#$%& (%& 1 "EF& )+) ,'-& 1'/& !igher ,rder

10. Breat (arcel Inc. has numerous office locations across 9anada5 including isolated areas with no accessto the Internet. hat would be the most efficient way for the company to communicate a new benefitto all its employees?a.

online modules

b.

a meeting in a central location

c.

trips by the organi6ation7s top executive team to all the locations

d.

payroll inserts

#$%& (%& 1 "EF& )+) ,'-& 1'/& !igher ,rder

1). # large portion of an organi6ation7s total payroll is devoted to employee benefits and this figure hasrisen over the past few decades. hich of the following has NOTcontributed to this increasing cost?a.

additional benefits offered voluntarily by organi6ations

b.

legislation forcing employers to establish some benefits

c.

the use of online5 interactive benefits programs

d.

employers trying to match the competition

#$%& 9 (%& 1 "EF& )+: ,'-& 1'/& !igher ,rder

1:. hich of the following statements does NOTdescribe management concerns about benefits?a.

/anagement is concerned with union demands.

b.

/anagement is concerned with tax consequences.

c /anagement is concerned with the escalating cost of health care benefits.



6/19


/anagement is concerned with promoting a shift in mindset from self3responsibility toentitlement.

#$%& (%& 1 "EF& )+8 ,'-& 0'/& "emember

18. hich of the following is NOTnecessary for an organi6ation to consider when developing its benefitsprogram?a.

the associated costs

b.

tax consequences

c.

benefits other employers offer

d.

the globali6ation of benefits

#$%& (%& 1 "EF& )+8 ,'-& 0'/& !igher ,rder

9opyright < 041: $elson Education td. 113=


7/19

9hapter 11 Employee 'enefits1=. egally required employee benefits amount to about 10 percent of the benefits packages that 9anadian

employers provide. hich benefit is not required?a.

employer contributions

b.

employment insurance

c.

workers7 compensation insurance

d.

retirement savings

#$%& (%& 1 "EF& )+* ,'-& )'/& "emember

1>. hich of the following is NOTa benefit provided under 9((CD((?a.

retirement pensions

b.

sick leave benefits

c.

survivors7 benefits

d.

disability benefits

#$%& ' (%& 1 "EF& )+* ,'-& )'/& !igher ,rder

1*. he /eat %hop5 one of 9anada7s best employers according to a recent survey5 is considering ways tocontain its rising benefits costs. hat is NOTa wise option for the /eat %hop?

a. making contribution changes5 such as deductibles

b.

putting dollar limits on some benefits

c.

instituting flexible benefits

d.

making cuts to mandatory benefits

#$%& (%& 1 "EF& )+* ,'-& 0'/& !igher ,rder

1+. orkers7 compensation covers certain work3related examples of which of the following?a.

lawsuits

b.

misunderstandings

c.

pay inequities

d illnesses

9opyright < 041: $elson Education td. 113>


8/19

9hapter 11 Employee 'enefits.

#$%& (%& 1 "EF& )++ ,'-& )'/& !igher ,rder

04. hich statement does NOTdescribe workers7 compensation?

a. #ll employers pay the same premium rate to be eligible for workers7 compensation.

b.

Employers share collective liability5 though contributions may vary among employers inthe same industry.

c.

orkers7 compensation is based on loss of earnings.

d.

he system is no3fault and nonadversarial5 and thus offers no recourse to the courts.

#$%& # (%& 1 "EF& )++ ,'-& )'/& !igher ,rder

9opyright < 041: $elson Education td. 113*


9/19

9hapter 11 Employee 'enefits01. hich of the following is based on the theory that work3related accidents and illnesses should be

considered a cost of doing business and that employees should not bear the costs of their treatment?a.

workers7 compensation insurance

b.

paid sick time

c.

medical care benefits

d.

unpaid leave

#$%& # (%& 1 "EF& )++ ,'-& )'/& !igher ,rder

00. he growth in health care costs can be attributed to a number of factors. hich of the following is$, one of those factors?a.

an aging population

b.

costs associated with technological advances in medicine

c.

overuse of costly health care services

d.

the mandatory retirement age

#$%& (%& 1 "EF& :44 ,'-& :'/& !igher ,rder

0). hat are holiday pay5 sick leave5 and vacation pay examples of?

a. payment for time not worked

b.

benefits required by law

c.

categories of health care benefits

d.

unearned benefits

#$%& # (%& 1 "EF& :40 ,'-& 8'/& !igher ,rder

0:. 'ob -ones has 2ust been permanently laid off from his present position. !is company5 #9/E/anufacturing5 has issued 'ob a cheque that represents one month7s pay for every year 'ob worked at#9/E. hat does this cheque represent?a.

'ob7s unused vacation pay

b.

'ob7s unused holiday pay

c 'ob7s severance pay

9opyright < 041: $elson Education td. 113+


10/19


'ob7s unused sick leave

#$%& 9 (%& 1 "EF& :40 ,'-& 8'/& !igher ,rder

08. # key issue in the 044+ oronto municipal workers7 strike related to the use of banked sick days. !owis the accumulation of sick days generally regarded in the literature?a.

as part of an incentive plan

b.

as pay for time not worked

c.

as a mandatory benefit

d.

as a form of pension

#$%& ' (%& 1 "EF& :40 ,'-& 8'/& !igher ,rder



11/19

9hapter 11 Employee 'enefits0=. ,mar /orales5 an older employee5 is considering an early retirement package that his employer has

offered it includes improved benefits and cash bonuses. hat is the term for this type of inducement?a.

silver handshake

b.

golden parachute

c.

platinum cushion

d.

severance pay

#$%& # (%& 1 "EF& :4) ,'-& ='/& "emember

0>. hat is NOTa common reason why employees take early retirement?a.

health

b.

personal finances

c.

2ob satisfaction

d.

executive perquisites

#$%& (%& 1 "EF& :4) ,'-& ='/& !igher ,rder

0*. (olaroid allows employees the opportunity to try out retirement with a leave program5 or graduallyreduce their work hours as they approach retirement age. hat is this an example of?

a. severance leave

b.

a preretirement program

c.

family3friendly benefits

d.

9((CD((

#$%& ' (%& 1 "EF& :4) ,'-& ='/& !igher ,rder

0+. /ost pension plans are now viewed as providing deferred income that employees accumulate duringtheir working life and that belongs to them after a specified number of years of service. hat view isthis based on?a.

provincial law

b.

a pay3as3you3go philosophy

c a reward philosophy



12/19


an earnings philosophy

#$%& (%& 1 "EF& :4: ,'-& ='/& !igher ,rder

)4. 'ob -indal works for "# Gision Inc. he employer deducts money every month from 'ob7spaycheque for his pension plan. "# Gision matches this amount for his pension. hat type of plan isthis?a.

a defined3benefit plan

b.

a defined3contribution plan

c.

a contributory plan

d.

a noncontributory plan

#$%& 9 (%& 1 "EF& :4: ,'-& >'/& !igher ,rder

)1. ommy ee remembers his grandfather telling him how working in the coal mines was a tough 2ob andthat if you left the employer before retirement age you did not get your pension. hich of thefollowing applies to this type of pension?a.

It is a form of reverse discrimination.

b.

It is based on a reward philosophy.

c. It is a defined3benefit plan.

d.

It is based on an earnings philosophy.

#$%& ' (%& 1 "EF& :4: ,'-& ='/& !igher ,rder

)0. %tella Gickram will receive a pension of H05844 per month if she continues to work with #'9 /ediauntil she retires. %he is now :8 years old. hat type of plan is this?a

.

a contributory plan

b.

a noncontributory plan

c.

a defined3contribution plan

d.

a defined3benefit plan



13/19

9hapter 11 Employee 'enefits#$%& (%& 1 "EF& :4: ,'-& >'/& !igher ,rder

)). In 9anada5 registered retirement savings plans @""%(sA have grown significantly over the past fewyears. hat is a key reason for this growth?a.

/inimum wage earners now have more disposable income and they are contributing.

b.

he funds accumulate tax3free until they are withdrawn.

c.

he rich;poor gap is narrowing5 thus people have more money to invest.

d.

""%(s are a part of stock plans5 which are growing.

#$%& ' (%& 1 "EF& :4: ,'-& >'/& "emember

):. hich type of pension plan with fixed payouts is falling out of use?

a. contributory plan

b.

registered retirement savings plan @""%(A

c.

defined3benefit plan

d.

defined3contribution plan

#$%& 9 (%& 1 "EF& :4: ,'-& >'/& !igher ,rder

)8. -ames 9allaghan has worked full3time for '9 /etals for four years. !e has learned from the !"manager that his earned pension benefits cannot be revoked by the employer. hy is this so?a.

because the employer expects him to work until retirement

b.

because the benefits are vested

c.

because the union would strike if they are revoked

d.

because the benefits are defined

#$%& ' (%& 1 "EF& :48 ,'-& >'/& !igher ,rder

9opyright < 041: $elson Education td. 1131)


14/19

9hapter 11 Employee 'enefits)=. From a pension perspective5 what is a key issue concerning the aging of baby boomers in 9anada?

a.

here are more demands for dental benefits.

b.

'aby boomers are leaving management5 thus there is a loss to the !" managers whooversee this benefit.

c.

here are fewer contributions to the pension fund by younger generations and morewithdrawals for funding pensions for baby boomers5 thus putting the fund at risk ofdepletion.

d.

ounger generations are demanding reduced pensions for those leaving the workforce.

#$%& 9 (%& 1 "EF& :48 ,'-& >'/& !igher ,rder

)>. hat does vesting guarantee?a.

withdrawal of benefits at any time

b.

accrued pension benefits at retirement age

c.

automatic funding of pension plans

d.

selection of pension options

#$%& ' (%& 1 "EF& :48 ,'-& >'/& !igher ,rder

)*. Employer3sponsored employee assistance programs @E#(sA are created to help workers overcomehurdles in their personal lives. hich employee is the most likely to receive help under a typical E#(?

a. -ohn -ones5 who needs assistance to overcome a chemical dependency problem.

b.

%teve 'rown5 who needs legal help in a personal bankruptcy proceeding.

c.

9indy %avage5 who needs a list of qualified daycare facilities near the office.

d.

ate -ohnson5 who needs help choosing an appropriate /.'.#. program.

#$%& # (%& 1 "EF& :4= ,'-& *'/& !igher ,rder

)+. hich of the following is $, a potential advantage of family3friendly benefits?a.

they help to attract valuable employees

b.

they provide higher base pay5 which helps with family budgets

c.

they allow employees to manage their time better

d they help to reduce workplace interruptions that affect productivity

9opyright < 041: $elson Education td. 1131:


15/19


#$%& ' (%& 1 "EF& :4= ,'-& *'/& !igher ,rder

:4. hich of the following is $, an example of family3friendly benefits?

a. employer3provided childcare services

b.

flexible work hours

c.

subsidi6ed dependant care

d.

increased overtime requirements

#$%& (%& 1 "EF& :4> ,'-& *'/& !igher ,rder



16/19

9hapter 11 Employee 'enefits:1. hich of the following is $, a benefit of family3friendly programs?

a.

increasing the risk of unioni6ation

b.

reducing tardiness

c.

improving productivity

d

.

reducing employee absenteeism

#$%& # (%& 1 "EF& :4> ,'-& *'/& !igher ,rder

:0. hat do mildly ill childcare facilities provide?a.

tax benefits

b.

medical supervision

c.

a negative investment

d.

telecommuting facilities for working parents with ill children

#$%& ' (%& 1 "EF& :4* ,'-& *'/& "emember

:). !ow are childcare programs and eldercare programs similar?a.

Jnder both programs5 most of the caregivers are men.

b. 'oth types of programs typically offer on3site care facilities.

c.

'oth programs try to maintain or increase productivity by assisting employees with theirresponsibilities outside the workplace.

d.

'oth programs offer substantial income tax benefits to employees.

#$%& 9 (%& 1 "EF& :4* ,'-& *'/& "emember

::. he collective bargaining agreement between #9/E Inc. and the union 9J(# 144) ocal requires the

employer to provide a limited vision care package. orkers are demanding more. ho will determineany new package?a.

the union and the government

b.

the government

c.

the employer and the union

d the employer

9opyright < 041: $elson Education td. 1131=


17/19


#$%& 9 (%& 1 "EF& Entire chapter ,'-& ) '/& !igher ,rder

:8. 9anada has experienced a growth in the proportion of part3time workers @versus full3timeA over the

past decade. hat is a key reason for this growth?a.

/any full3time 2obs are outsourced overseas.

b.

he government is forcing firms to hire on a part3time basis.

c.

Jnions prefer workers to have part3time 2obs.

d.

Employers tend to save on compensation costs as many part3time workers do not receivevoluntary benefits.

#$%& (%& 1 "EF& Entire chapter

,'-& : '/& !igher ,rder

9opyright < 041: $elson Education td. 1131>


18/19

9hapter 11 Employee 'enefits

1. hat considerations should an organi6ation make in implementing an effective benefits program?

#$%&'enefits are an established and integral part of the total compensation package. In order to have asound benefits program5 there are certain basic considerations. It is essential that a program be basedon specific ob2ectives that are compatible with the organi6ation7s philosophy and policies5 as well asaffordable. hrough committees and surveys5 a benefits package can be developed to meet employees7needs. hrough the use of flexible benefit plans5 employees are able to choose those benefits that arebest suited to their individual needs. #n important factor in how employees view the program is thefull communication of benefits information through meetings5 printed materials5 and annualpersonali6ed statements of benefits.

(%& 1 "EF& )+43)+0 ,'-& 1 '/& !igher ,rder

9opyright < 041: $elson Education td. 1131*


19/19

9hapter 11 Employee 'enefits0. escribe some of the ways employers have been trying to contain health care benefit costs.

#$%&he cost of health care programs has become the ma2or concern in the area of employee benefits.%everal approaches can be used to contain health care costs5 including reduction in coverage5 increasedcoordination of benefits5 and increased deductibles. Employee assistance programs @E#(sA andwellness programs can also help cut the costs of health care benefits.

(%& 1 "EF& )+=3)+*K:44 ,'-& 0K: '/& "emember

). 9ompare and contrast the risks to the employee in regard to defined3contribution and defined3benefitpension plans.

#$%&In a defined3benefit pension plan5 retiring employees are guaranteed a particular payment level @i.e.5the retirement benefit is LdefinedMA. !owever5 in a defined3contribution pension plan5 the onlyguarantee to employees is that the employer will contribute a set dollar amount on their behalf to thepension plan @i.e.5 the contribution is LdefinedMA. hile the pension benefits under a defined3benefitplan are fixed5 the pension benefits of the defined3contribution plan vary according to the success of

the plan7s investments @i.e.5 superior investment decisions will yield greater pension payments thanmediocre or poor decisionsA.

Jnder the defined3benefit plan5 retiree risk is largely limited to whether the fund is properly fundedand whatever effects inflation will have on their fixed pension cheques. Jnder the defined3contributionplan5 retiree risk is associated with the general risks and rewards of investments5 the quality ofinvestment advice5 and the risks commonly associated with the defined3benefit plans.

(%& 1 "EF& :4: ,'-& > '/& !igher ,rder

:. Explain the concept of family3friendly benefits. $ame and discuss at least five of these benefitsemployers offer their employees.

#$%&/any organi6ations are seeking to create a family3friendly organi6ational environment that allowsemployees to balance work and personal needs. here are a wide variety of family3friendly benefitsthat organi6ations may offer. o help workers cope with a wide variety of problems that interfere withthe way they perform their 2obs5 organi6ations have developed employee assistance programs. heseprograms provide diagnosis5 counselling5 and referral for advice or treatment when necessary forproblems related to alcohol or drug abuse5 emotional difficulties5 and financial or family difficulties.Jsually the organi6ation coversNin part or totallyNcosts of tuition5 books5 and related fees. heincreased employment of employees with dependent children andCor eldercare responsibilities hascreated an unprecedented demand for childcare and eldercare arrangements. In response5 manyorgani6ations provide financial assistance and on3site childcare centres and support for eldercare. In

addition5 many organi6ations are implementing employee3accumulated leave days for dependant careand extended leave policies for child3 andCor eldercare. In addition5 organi6ations may also offer accessto legal services5 financial planning5 housing and moving expenses5 transportation pooling5 creditunions5 recreational and social services5 and work3at3home arrangementsCtelecommuting to offersavings to employees and reduce stress.

(%& 1 "EF& :4=3:4+ ,'-& * '/& "emember

9 i ht < 041: $ l Ed ti td 11 1+

DONT OPEN THIS PLZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

Documents

Transcript of DONT OPEN THIS PLZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ