50. Which statement best describes current compensation practices and expectations related to the key criteria for evaluating the success of a compensation system. a. It is realistic to expect that a reward system will achieve all eight of the effectiveness criteria. b. Continuing evaluation of the effectiveness of the reward and compensation system is crucial for most organizations. c. Successful organizations all have equitable reward systems. d. Most firms have found the right answers to the compensation puzzle. 51. To expand your scope as an HR practitioner, you recently transferred from a smaller manufacturing firm to a larger one and discovered that, although entirely different, both compensation systems are effective. How is this possible? a. Both companies have well-trained managers. b. Both companies do similar work and hire the same kinds of employees. c. Both systems fit the organization and its strategy. d. Both take a universal approach using the best practices of Canadas top employers. 52. What do employees receive under an employee stock bonus plan? a. shares at no cost to themselves b. the cash value of phantom shares c. a bonus equivalent to the increase in their share value d. free financial advice on stocks 53. Which of the following is not a Legal Constraints on Compensation Strategy a. Employment Standards Act b. Collective Agreements c. Human Rights Legislation d. Employment Equity Act 54. Which of the following best explains why medical and dental coverage can be purchased more cheaply by the employer than the employee? a. Indexation b. Economies of scale c. Utility d. Dividends 55. In the article, Fun and games at the exhibition, a. the reward system used by this company ends up creating a workforce of honest, irresponsible employees b. the reward system used by this company ends up creating a workforce of dishonest, irresponsible employees c. the reward system used by this company ends up creating a workforce of dishonest, responsible employees d. the reward system used by this company ends up creating a workforce of honest, responsible employees 56. Which of the following items is not a component of the compensation strategy? a. Employee benefits b. Employment security c. Base pay d. Performance pay 57. Which of the following dimensions is not a structural variable? a. job design b. coordination/departmentation c. reward systems d. corporate strategy 58. Which of the following management strategies is likely to benefit from a suggestion bonus system set on a group basis? a. innovator management strategy b. classical management strategy c. human relations management strategy d. high-involvement management strategy 59. Which of the following management strategies is likely to benefit the most from using a gain-sharing plan as part of their compensation strategy? a. human relations management strategy b. classical management strategy c. any management strategy operating in a dynamic environment d. high-involvement management strategy 60. Minimum wage is defined by: a. Employment Standards Act b. Collective Agreements c. Human Rights Legislation d. Employment Equity Act