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) n 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) Time-off benefits include the following" a. holidays b. sic$ leave c. parental leave d. a and b e. a! b and c (e; easy) n most countries! public holidays include the following" a. &ew 'ear (ay b. )abor (ay or *ay (ay c. &ational (ay or ndependence (ay d. a and b e. a! b and c (e; easy) &on-financial payments li$e health and life insurance! pensions! time off with pay! and child care facilities are e,amples of _____. a. variable pay b. competency-based incentives c. benefits d. salary e. bonuses (c; easy)

2.

#.

%.

+.

2-1

Human Resource Management: An Asian Perspective (Second Edition

..

/hich of the following benefits is re0uired by law in most countries1 a. disability insurance b. wor$ers2 compensation c. paid time off for vacations and holidays d. health insurance e. pensions (b; moderate) 4olidays! vacations! sic$ leave and maternity leave are classified as _____ benefits. a. supplemental pay b. insurance c. retirement d. services e. premium (a; moderate) nsurance benefits provided by employers include the following" a. wor$ers2 compensation b. health insurance c. car insurance d. a and b e. a! b and c (d; moderate) /ho contributes funds to wor$ers2 compensation benefits1 a. each employee b. government c. employer d. insurance providers e. all of the above (c; moderate) 7ersonal 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) 8amily 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)

3.

5.

6.

1-.

11.

2-2

Chapter 13: Benefits and Services

12.

The goal of _____ is to provide prompt income and medical benefits to wor$related accident victims or their dependents! regardless of fault. a. severance pay b. sic$ leave c. the employment law d. wor$ers2 compensation e. life insurance scheme (d; moderate) /hich of the following benefits could be awarded as wor$ers2 compensation1 a. cash benefit b. medical services c. time off with pay d. time off without pay e. a and b (e; easy) /hich of the following conditions must be met for an in9ured employee to earn wor$ers2 compensation from his or her employer1 a. the in9ury must have occurred while the employee was on the 9ob b. the employee suffered the in9ury through no fault of his or her own c. the employee must have wor$ed 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) /hich of the following could contribute to the growing percentage of parttime wor$ers1 a. aging wor$force b. phased retirement programs c. desire to balance wor$ and family d. women in the wor$force e. all of the above (e; easy) _____ see$ to enable employees to better meet the demands of their family and wor$ lives. a. :ic$ leave b. 8amily-friendly benefits c. 7ay plans d. ;enefit management systems e. 7ension plans (b; easy)

1#.

1%.

1+.

1..

2-#

Human Resource Management: An Asian Perspective (Second Edition

13.

/hich of the following benefits is &<T classified as a type of family-friendly benefit1 a. sic$ leave b. child care c. elder care d. fitness facilities e. fle,ible wor$ schedules (a; moderate) =nother term used for fle,ible benefits plan is _____. a. variable pay plan b. cafeteria benefits plan c. matching plan d. e,ecutive per0uisite e. life plan (b; easy) =(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. e,ecutive per0uisite e. life plan (b; easy) The advantages of fle,ible benefits are" a. they encourage responsible usage by employees b. they cut down wastage of benefits that are not fully used c. they ma$e employees more aware of the dollar value of the benefits d. they ma$e employees appreciate the benefits better e. all of the above (e; moderate) :ome employers are reluctant to introduce fle,ible benefits because" a. e,tra costs are involved in introducing the benefits b. more administrative wor$ is needed c. there is a need to e,plain to employees the various choices available d. they do not see the advantages in offering the benefits e. all of the above (e; moderate)

15.

16.

2-.

21.

2-%

Chapter 13: Benefits and Services

22.

:u has opted to wor$ from 3 am to # pm so that she can be home when her son comes home from school in the afternoons. 4er company must offer _____ for her to have this option. a. variable pay b. e,ecutive per0uisites c. fle,time d. telecommuting e. compressed wor$wee$s (c; moderate) /hich fle,ible wor$ arrangement allows two or more people to share a single full-time 9ob1 a. fle,time b. compressed wor$wee$ c. 9ob sharing d. wor$ sharing e. telewor$ing (c; easy) /hich fle,ible wor$ arrangement helps to prevent company layoffs by allowing a group of employees to ta$e a temporary reduction in wor$ hours1 a. fle,time b. compressed wor$wee$ c. 9ob sharing d. wor$ sharing e. telewor$ing (d; easy) /hich fle,ible wor$ arrangement allows employees to wor$ from home using technology li$e computers and the nternet1 a. fle,time b. compressed wor$wee$ c. 9ob sharing d. wor$ sharing e. telewor$ing (e; easy)

2#.

2%.

2+.

True/ False 2.. 23. 25. 26. >7ay for time not wor$ed? is also called supplemental pay benefit. (T; easy) 7ay for time not wor$ed represents one of an employer2s most costly benefits. (T; easy) n some countries! )abor (ay is also called *ay (ay. (T; easy) 7arental leave is given to employees so that they can ta$e care of their parents. (8; moderate)

2-+

Human Resource Management: An Asian Perspective (Second Edition

#-. #1. #2. ##.

7arental leave is given to employees so that they can ta$e care of their children (T; moderate) n some countries! &ational (ay may be $nown as ndependence (ay (T; easy) n most cases! if a public holiday falls on a :unday! the ne,t wor$ing day will be a holiday. (T; easy) @mployees may lose their annual leave entitlement in a year if they have been absent from wor$ without permission for many days in that year. (T; moderate) :ic$ leave provides pay to employees when they cannot wor$ due to illness. (T; easy) n most companies! most sic$ leave policies grant full pay only for a specified ma,imum number of sic$ days. (T; moderate). n :ingapore! all employees are entitled to 1% days of paid sic$ leave. (8; difficult) n :ingapore! only employees who have wor$ed for 12 months are entitled to 1% days of paid sic$ leave. (T; moderate) n :ingapore! to obtain sic$ leave! an employee may be e,amined by any doctor. (8; difficult) n :ingapore! to obtain sic$ leave! an employee must be e,amined by the company doctor or a government doctor. (T" easy) n :ingapore! an absent employee must inform the company within %5 hours otherwise that employee is deemed to be absent from wor$ without reasonable e,cuse. (T; moderate) *any companies have introduced parental leave because many of their employees are female wor$ers with children. (T" difficult) *any companies have introduced parental leave because it is a legal re0uirement (8" difficult) :everance pay is a one-time payment given when employees terminate their service. (T; easy) *any companies provide severance pay because it is a humantarian gesture. (T" moderate) n some =sian countries! companies provide severance pay because it is a legal re0uirement (T; difficult)

#%. #+. #.. #3. #5. #6. %-.

%1. %2. %#. %%. %+.

2-.

Chapter 13: Benefits and Services

%.. %3. %5. %6. +-. +1. +2. +#.

n many =sian countries! it is a legal re0uirement for employers to provide insurance benefits such as wor$ers2 compensation. (T; moderate) /or$ers2 compensation insurance covers only wor$-related accidents (T; difficult) n a wor$-related accident! a wor$er must not be at fault to claim under wor$ers2 compensation insurance (8; difficult). n a wor$-related accident! a wor$er may claim under wor$ers2 compensation insurance regardless of fault (T; moderate). n most countries! wor$ers2 compensation law sets a time limit within which the claim must be made. (T; moderate) n :ingapore! most wor$ers2 compensation claims must be made within 12 months. (T; moderate). /or$ers2 compensation benefits can be medical or monetary. (T; moderate) f an employee is in9ured at wor$ due to a blatant disregard for company safety policies! the company is not re0uired to pay wor$ers2 compensation. (8; difficult) n most =sian countries! there are laws that protect pregnant women at the wor$place. (T; easy) n Ahina! under the )abor )aw! employers should ta$e special care when female wor$ers enter their menstrual period. (T; moderate) n Ahina! under the )abor )aw! employers should ta$e special care when female wor$ers become pregnant. (T; moderate) n Ahina! female wor$ers are entitled to .- days of maternity leave with pay. (T; easy) n most =sian countries! pregnant female wor$ers cannot be dismissed. (T; moderate) n most =sian countries! pregnant female wor$ers are entitled maternity leave. (T; moderate) n ndonesia! if pregnant women cannot do their normal wor$ because of pregnancy! they may be dismissed. (8; moderate). n ndonesia! if pregnant women cannot do their normal wor$ because of pregnancy! they must be offered suitable alternative wor$ (T; moderate). n most countries! it is a legal re0uirement for employers to provide group life insurance for their employees. (8; difficult)

+%. ++. +.. +3. +5. +6. .-. .1. .2.

2-3

Human Resource Management: An Asian Perspective (Second Edition

.#. .%.

n many =sian countries! part time employees do not receive medical benefits. (T; difficult) n many =sian countries! it is a legal re0uirement for employers to provide subsidiBed transport to their employees who stay very far from the wor$place. (8; moderate; 1#C1#) n many companies! subsidiBed transport is provided to low-wage employees as an added benefit. (T; difficult) n some companies! employers provide their senior managers with company cars as an added benefit. (T; moderate) n some =sian countries! companies provide educational subsidies to their employees because it is a legal re0uirement. (8; moderate) Tuition refund is a form of educational subsidy. (T; easy) Aompanies provide family-friendly benefits because there are more women in the wor$place. (T; moderate) Aompanies provide family-friendly benefits because it is a legal re0uirement. (8; moderate) Ahildcare facility is an e,ample of a family-friendly benefit. (T; easy) @ldercare benefit is an e,ample of family-friendly benefit (T; moderate) )unchtime tal$ on parenting and child development is an e,ample of familyfriendly benefit (T; difficult) The effect of fle,time for most employees is to give them about one hour of leeway before 6 am or after + pm. (T; moderate) n most =sian countries! help from relatives! grand parents and in-laws is a common arrangement for wor$ing mothers to ta$e care of their children. (T; moderate) Dnder the cafeteria approach! employees may choose those benefits that they need. (T; easy) 8le,ible benefit programs ma$e it easier for employers to introduce new benefits. (T; moderate) *any employees are not aware of the costs of benefits and services they receive from their companies. (T; moderate) The purpose of a fle,ible benefit plan is to meet the diverse needs of employees. (T; easy)

.+. ... .3. .5. .6. 3-. 31. 32. 3#. 3%. 3+.

3.. 33. 35. 36.

2-5

Chapter 13: Benefits and Services

5-. 51. 52. 5#. 5%. 5+. 5.. 53. 55. 56. 6-. 61. 62. 6#. 6%. 6+.

/hen introducing a fle,ible benefit program! a company should get views from its employees. (T; moderate) /hen introducing a fle,ible benefit program! a company should advice its employees how to choose the various optional benefits. (T; moderate) /hen introducing a fle,ible benefit program! a company should e,plain to employees that the scheme is not an e,cuse to cut costs. (T; moderate) 8le,ible wor$ schedules tend to have negative effects on employee productivity! 9ob satisfaction! and absenteeism. (8; moderate) The more fle,ible a wor$ schedule! the greater the effectiveness of the program. (8; difficult) Aompressed wor$wee$ applies to employees li$e airline pilots! nurses and doctors. (T; moderate) Eob sharing allows two or more people to share a single full-time 9ob. (T; easy; p. +-+) /hen groups of employees accept a temporary reduction in wor$ hours in order to prevent layoffs! the employees are 9ob sharing. (8; moderate; p. +-+) 8le,time allows employees to wor$ at home with computers! phones! fa,es! and the nternet. (8; easy) n a telewor$ing arrangement! employees wor$ from their home. (T; easy) Telewor$ing arrangement is suitable only for certain 9obs. (T; moderate). :ome benefits such as wor$ers2 compensation are re0uired by law. (T; moderate) :ome benefits have become part of a salary pac$age as a result of demand from trade unions. (T; moderate). Aompulsory benefits are those re0uired by law. (T; easy) The costs of providing benefits are borne by employees. (8; difficult) ;enefits such as sports facilities are not obvious to most employees. (T; moderate)

2-6

Human Resource Management: An Asian Perspective (Second Edition

Essay/ Short Answer 6.. /hat policy issues must employers address when developing benefit plans1 &ame five issues. (moderate) =nswer" n developing benefit plans! employers must address numerous policy issues including 1) what benefits to offer; 2) who receives coverage; #) whether to include retirees in the plan; %) whether to deny benefits to employees during the initial >probationary? periods; +) how to finance benefits; .) the degree of employee choice in determining benefits; 3) costcontainment procedures; and 5) how to communicate benefits options to employees. 63. @,plain the purpose of sic$ leaves and why sic$ leave pay causes difficulties for many employers. (easy) =nswer" :ic$ leave provides pay to employees when they are out of wor$ due to illness. *ost sic$ leave policies grant full pay for a set number of sic$ days and the sic$ days accumulate over time. The problem with sic$ leave is that many employees use sic$ leave for reasons other than illness. :ome use the days as vacation or to ta$e care of family issues! personal needs! and stress. 65. /hy do employers provide severance pay to employees who are being terminated1 <ffer at least three reasons. /hat standards guide the amount of severance pay offered1 (moderate) =nswer" :everance pay is a one-time payment offered when terminating an employee. There are several reasons for a firm to offer severance pay. t shows good will to the employee. t is good public relations. t is fair since most employees e,pect to receive notice in advance of an employee leaving to offer the same sort of notice to the employee. t can protect the company from litigation from disgruntled former employees. The amounts vary from one to two wee$s to as much as #6 wee$s. The pay can be provided in one lump-sum payment or by continuing salary for a set time period. *any firms establish severance pay at the rate of one wee$ of severance pay for each year of service. 66. /hy are family-friendly benefits increasingly valuable to employees1 /hat are some e,amples of family-friendly benefits1 (moderate) =nswer" There are many trends that increase the value of family-friendly benefits. There are more households in which both adults wor$. *ore women are in the wor$force while also struggling to fulfill familial obligations. 7eople are wor$ing harder and longer with less time to manage life outside of wor$. 8amily-friendly benefits can vary from organiBation to organiBation. :ome e,amples include child care! elder care! fitness facilities! and concierge services.

21-

Chapter 13: Benefits and Services

1--.

n introducing a fle,ible benefit plan! what $ind of preparation should a company ma$e1 (moderate) =nswer" The company should" (a) e,plain the purpose of the plan! (c) get views from employees! (c) advice its employees how to choose the various optional benefits! (d) e,plain to employees that the scheme is not an e,cuse to cut costs

1-1.

The ob9ective of a fle,ible benefit plan is to meet the diverse needs of employees. @,plain. (moderate) =nswer" @mployees have diverse needs. :ome are single and need to socialiBe. <thers are married with children. <thers have to ta$e care of aged parents. <lder employees need more medical benefits.

211