Dessler HRM Chapter 13

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					                                                         Chapter 13: Benefits and Services


Chapter 13: Benefits and Services

Multiple Choice

1.    The indirect financial and non-financial payments employees receive for
      continuing employment with the company are called _____.
      a. reimbursement
      b. employee compensation
      c. salary
      d. benefits
      e. remuneration
      (b; easy)

2.    In developing benefits programs, employers must deal with the following
      policy issue(s):
      a. what benefits to offer
      b. who should receive the benefits
      c. how to finance these benefits
      d. a and b
      e. a, b and c
      (e; easy)

3.    Time-off benefits include the following:
      a. holidays
      b. sick leave
      c. parental leave
      d. a and b
      e. a, b and c
      (e; easy)

4.    In most countries, public holidays include the following:
      a. New Year Day
      b. Labor Day or May Day
      c. National Day or Independence Day
      d. a and b
      e. a, b and c
      (e; easy)

5.    Non-financial payments like health and life insurance, pensions, time off with
      pay, and child care facilities are examples of _____.
      a. variable pay
      b. competency-based incentives
      c. benefits
      d. salary
      e. bonuses
      (c; easy)




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6.      Which of the following benefits is required by law in most countries?
        a. disability insurance
        b. workers’ compensation
        c. paid time off for vacations and holidays
        d. health insurance
        e. pensions
        (b; moderate)


7.      Holidays, vacations, sick leave and maternity leave are classified as _____
        benefits.
        a. supplemental pay
        b. insurance
        c. retirement
        d. services
        e. premium
        (a; moderate)

8.      Insurance benefits provided by employers include the following:
        a. workers’ compensation
        b. health insurance
        c. car insurance
        d. a and b
        e. a, b and c
        (d; moderate)

9.      Who contributes funds to workers’ compensation benefits?
        a. each employee
        b. government
        c. employer
        d. insurance providers
        e. all of the above
        (c; moderate)

10.     Personal services provided by many employers include the following:
        a. social facilities
        b. recreational facilities
        c. free food
        d. a and b
        e. a, b and c
        (d; moderate)

11.     Family friendly benefits provided by employers include the following:
        a. child care facilities
        b. elder care facilities
        c. fitness facilities
        d. a and b
        e. a, b and c
        (e; moderate)



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12.   The goal of _____ is to provide prompt income and medical benefits to work-
      related accident victims or their dependents, regardless of fault.
      a. severance pay
      b. sick leave
      c. the employment law
      d. workers’ compensation
      e. life insurance scheme
      (d; moderate)

13.   Which of the following benefits could be awarded as workers’ compensation?
      a. cash benefit
      b. medical services
      c. time off with pay
      d. time off without pay
      e. a and b
      (e; easy)

14.   Which of the following conditions must be met for an injured employee to
      earn workers’ compensation from his or her employer?
      a. the injury must have occurred while the employee was on the job
      b. the employee suffered the injury through no fault of his or her own
      c. the employee must have worked for a minimum of twelve months
      d. the employee must have been employed by that employer for a minimum
          of twelve months
      e. all of the above
      (a; difficult)

15.   Which of the following could contribute to the growing percentage of part-
      time workers?
      a. aging workforce
      b. phased retirement programs
      c. desire to balance work and family
      d. women in the workforce
      e. all of the above
      (e; easy)

16.   _____ seek to enable employees to better meet the demands of their family
      and work lives.
      a. Sick leave
      b. Family-friendly benefits
      c. Pay plans
      d. Benefit management systems
      e. Pension plans
      (b; easy)




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17.     Which of the following benefits is NOT classified as a type of family-friendly
        benefit?
        a. sick leave
        b. child care
        c. elder care
        d. fitness facilities
        e. flexible work schedules
        (a; moderate)

18.     Another term used for flexible benefits plan is _____.
        a. variable pay plan
        b. cafeteria benefits plan
        c. matching plan
        d. executive perquisite
        e. life plan
        (b; easy)

19.     A(n) _____ is one in which the employer gives each employee a benefits fund
        budget and lets the person spend it on the benefits he or she prefers.
        a. variable pay plan
        b. cafeteria benefits plan
        c. matching plan
        d. executive perquisite
        e. life plan
        (b; easy)

20.     The advantages of flexible benefits are:
        a. they encourage responsible usage by employees
        b. they cut down wastage of benefits that are not fully used
        c. they make employees more aware of the dollar value of the benefits
        d. they make employees appreciate the benefits better
        e. all of the above
        (e; moderate)

21.     Some employers are reluctant to introduce flexible benefits because:
        a. extra costs are involved in introducing the benefits
        b. more administrative work is needed
        c. there is a need to explain to employees the various choices available
        d. they do not see the advantages in offering the benefits
        e. all of the above
        (e; moderate)




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22.   Su has opted to work from 7 am to 3 pm so that she can be home when her son
      comes home from school in the afternoons. Her company must offer _____ for
      her to have this option.
      a. variable pay
      b. executive perquisites
      c. flextime
      d. telecommuting
      e. compressed workweeks
      (c; moderate)

23.   Which flexible work arrangement allows two or more people to share a single
      full-time job?
      a. flextime
      b. compressed workweek
      c. job sharing
      d. work sharing
      e. teleworking
      (c; easy)

24.   Which flexible work arrangement helps to prevent company layoffs by
      allowing a group of employees to take a temporary reduction in work hours?
      a. flextime
      b. compressed workweek
      c. job sharing
      d. work sharing
      e. teleworking
      (d; easy)

25.   Which flexible work arrangement allows employees to work from home using
      technology like computers and the Internet?
      a. flextime
      b. compressed workweek
      c. job sharing
      d. work sharing
      e. teleworking
      (e; easy)

True/ False

26.   “Pay for time not worked” is also called supplemental pay benefit. (T; easy)

27.   Pay for time not worked represents one of an employer’s most costly benefits.
      (T; easy)

28.   In some countries, Labor Day is also called May Day. (T; easy)

29.   Parental leave is given to employees so that they can take care of their parents.
      (F; moderate)




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30.     Parental leave is given to employees so that they can take care of their children
        (T; moderate)

31.     In some countries, National Day may be known as Independence Day (T;
        easy)

32.     In most cases, if a public holiday falls on a Sunday, the next working day will
        be a holiday. (T; easy)

33.     Employees may lose their annual leave entitlement in a year if they have been
        absent from work without permission for many days in that year. (T;
        moderate)

34.     Sick leave provides pay to employees when they cannot work due to illness.
        (T; easy)

35.     In most companies, most sick leave policies grant full pay only for a specified
        maximum number of sick days. (T; moderate).

36.     In Singapore, all employees are entitled to 14 days of paid sick leave. (F;
        difficult)

37.     In Singapore, only employees who have worked for 12 months are entitled to
        14 days of paid sick leave. (T; moderate)

38.     In Singapore, to obtain sick leave, an employee may be examined by any
        doctor. (F; difficult)

39.     In Singapore, to obtain sick leave, an employee must be examined by the
        company doctor or a government doctor. (T: easy)

40.     In Singapore, an absent employee must inform the company within 48 hours
        otherwise that employee is deemed to be absent from work without reasonable
        excuse. (T; moderate)

41.     Many companies have introduced parental leave because many of their
        employees are female workers with children. (T: difficult)

42.     Many companies have introduced parental leave because it is a legal
        requirement (F: difficult)

43.     Severance pay is a one-time payment given when employees terminate their
        service. (T; easy)

44.     Many companies provide severance pay because it is a humantarian gesture.
        (T: moderate)

45.     In some Asian countries, companies provide severance pay because it is a
        legal requirement (T; difficult)



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46.   In many Asian countries, it is a legal requirement for employers to provide
      insurance benefits such as workers’ compensation. (T; moderate)

47.   Workers’ compensation insurance covers only work-related accidents (T;
      difficult)

48.   In a work-related accident, a worker must not be at fault to claim under
      workers’ compensation insurance (F; difficult).

49.   In a work-related accident, a worker may claim under workers’ compensation
      insurance regardless of fault (T; moderate).

50.   In most countries, workers’ compensation law sets a time limit within which
      the claim must be made. (T; moderate)

51.   In Singapore, most workers’ compensation claims must be made within 12
      months. (T; moderate).

52.   Workers’ compensation benefits can be medical or monetary. (T; moderate)

53.   If an employee is injured at work due to a blatant disregard for company safety
      policies, the company is not required to pay workers’ compensation. (F;
      difficult)

54.   In most Asian countries, there are laws that protect pregnant women at the
      workplace. (T; easy)

55.   In China, under the Labor Law, employers should take special care when
      female workers enter their menstrual period. (T; moderate)

56.   In China, under the Labor Law, employers should take special care when
      female workers become pregnant. (T; moderate)

57.   In China, female workers are entitled to 60 days of maternity leave with pay.
      (T; easy)

58.   In most Asian countries, pregnant female workers cannot be dismissed. (T;
      moderate)

59.   In most Asian countries, pregnant female workers are entitled maternity leave.
      (T; moderate)

60.   In Indonesia, if pregnant women cannot do their normal work because of
      pregnancy, they may be dismissed. (F; moderate).

61.   In Indonesia, if pregnant women cannot do their normal work because of
      pregnancy, they must be offered suitable alternative work (T; moderate).

62.   In most countries, it is a legal requirement for employers to provide group life
      insurance for their employees. (F; difficult)


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63.     In many Asian countries, part time employees do not receive medical benefits.
        (T; difficult)

64.     In many Asian countries, it is a legal requirement for employers to provide
        subsidized transport to their employees who stay very far from the workplace.
        (F; moderate; 13/13)

65.     In many companies, subsidized transport is provided to low-wage employees
        as an added benefit. (T; difficult)

66.     In some companies, employers provide their senior managers with company
        cars as an added benefit. (T; moderate)

67.     In some Asian countries, companies provide educational subsidies to their
        employees because it is a legal requirement. (F; moderate)

68.     Tuition refund is a form of educational subsidy. (T; easy)

69.     Companies provide family-friendly benefits because there are more women in
        the workplace. (T; moderate)

70.     Companies provide family-friendly benefits because it is a legal requirement.
        (F; moderate)

71.     Childcare facility is an example of a family-friendly benefit. (T; easy)

72.     Eldercare benefit is an example of family-friendly benefit (T; moderate)

73.     Lunchtime talk on parenting and child development is an example of family-
        friendly benefit (T; difficult)

74.     The effect of flextime for most employees is to give them about one hour of
        leeway before 9 am or after 5 pm. (T; moderate)

75.     In most Asian countries, help from relatives, grand parents and in-laws is a
        common arrangement for working mothers to take care of their children. (T;
        moderate)

76.     Under the cafeteria approach, employees may choose those benefits that they
        need. (T; easy)

77.     Flexible benefit programs make it easier for employers to introduce new
        benefits. (T; moderate)

78.     Many employees are not aware of the costs of benefits and services they
        receive from their companies. (T; moderate)

79.     The purpose of a flexible benefit plan is to meet the diverse needs of
        employees. (T; easy)


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80.   When introducing a flexible benefit program, a company should get views
      from its employees. (T; moderate)

81.   When introducing a flexible benefit program, a company should advice its
      employees how to choose the various optional benefits. (T; moderate)

82.   When introducing a flexible benefit program, a company should explain to
      employees that the scheme is not an excuse to cut costs. (T; moderate)

83.   Flexible work schedules tend to have negative effects on employee
      productivity, job satisfaction, and absenteeism. (F; moderate)

84.   The more flexible a work schedule, the greater the effectiveness of the
      program. (F; difficult)

85.   Compressed workweek applies to employees like airline pilots, nurses and
      doctors. (T; moderate)

86.   Job sharing allows two or more people to share a single full-time job. (T; easy;
      p. 505)

87.   When groups of employees accept a temporary reduction in work hours in
      order to prevent layoffs, the employees are job sharing. (F; moderate; p. 505)

88.   Flextime allows employees to work at home with computers, phones, faxes,
      and the Internet. (F; easy)

89.   In a teleworking arrangement, employees work from their home. (T; easy)

90.   Teleworking arrangement is suitable only for certain jobs. (T; moderate).

91.   Some benefits such as workers’ compensation are required by law. (T;
      moderate)

92.   Some benefits have become part of a salary package as a result of demand
      from trade unions. (T; moderate).

93.   Compulsory benefits are those required by law. (T; easy)

94.   The costs of providing benefits are borne by employees. (F; difficult)

95.   Benefits such as sports facilities are not obvious to most employees. (T;
      moderate)




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Essay/ Short Answer

96.     What policy issues must employers address when developing benefit plans?
        Name five issues. (moderate)

        Answer: In developing benefit plans, employers must address numerous
        policy issues including 1) what benefits to offer; 2) who receives coverage; 3)
        whether to include retirees in the plan; 4) whether to deny benefits to
        employees during the initial “probationary” periods; 5) how to finance
        benefits; 6) the degree of employee choice in determining benefits; 7) cost-
        containment procedures; and 8) how to communicate benefits options to
        employees.

97.     Explain the purpose of sick leaves and why sick leave pay causes difficulties
        for many employers. (easy)

        Answer: Sick leave provides pay to employees when they are out of work due
        to illness. Most sick leave policies grant full pay for a set number of sick days
        and the sick days accumulate over time. The problem with sick leave is that
        many employees use sick leave for reasons other than illness. Some use the
        days as vacation or to take care of family issues, personal needs, and stress.

98.     Why do employers provide severance pay to employees who are being
        terminated? Offer at least three reasons. What standards guide the amount of
        severance pay offered? (moderate)

        Answer: Severance pay is a one-time payment offered when terminating an
        employee. There are several reasons for a firm to offer severance pay. It shows
        good will to the employee. It is good public relations. It is fair since most
        employees expect to receive notice in advance of an employee leaving to offer
        the same sort of notice to the employee. It can protect the company from
        litigation from disgruntled former employees. The amounts vary from one to
        two weeks to as much as 39 weeks. The pay can be provided in one lump-sum
        payment or by continuing salary for a set time period. Many firms establish
        severance pay at the rate of one week of severance pay for each year of service.

99.     Why are family-friendly benefits increasingly valuable to employees? What
        are some examples of family-friendly benefits? (moderate)

        Answer: There are many trends that increase the value of family-friendly
        benefits. There are more households in which both adults work. More women
        are in the workforce while also struggling to fulfill familial obligations. People
        are working harder and longer with less time to manage life outside of work.
        Family-friendly benefits can vary from organization to organization. Some
        examples include child care, elder care, fitness facilities, and concierge
        services.




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100.   In introducing a flexible benefit plan, what kind of preparation should a
       company make? (moderate)

       Answer: The company should: (a) explain the purpose of the plan, (c) get
       views from employees, (c) advice its employees how to choose the various
       optional benefits, (d) explain to employees that the scheme is not an excuse to
       cut costs

101.   The objective of a flexible benefit plan is to meet the diverse needs of
       employees. Explain. (moderate)

       Answer: Employees have diverse needs. Some are single and need to socialize.
       Others are married with children. Others have to take care of aged parents.
       Older employees need more medical benefits.




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