Question 1

David earns a base rate of $12 an hour and receives a weekly attendance award of $20.He works 40 hours this week.What would be his total compensation for the week?

Accepted Answer

A)   $480
B)   $600
C)   $500
D)   $520
E)   $250F) C) and D)
G) All of the above

Question 2

How do organizations compare actual pay to pay structure?

Accepted Answer

As part of its management responsibility...

Question 3

Cliff Stiff Inc.,a cement company,receives more than $2,000 in federal money.The company hires employees belonging to the age group of 25 to 40.The company is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936.Which of the following best explains the reason for the company being sued?

Accepted Answer

A)   The employees of the company are not being paid at rates at least equal to the prevailing wages in the area.
B)   Cement industry employees are being paid only 15% above the minimum wage.
C)   The company hires employees belonging to the age group of 25 to 30, and they are being employed in hazardous environments.
D)   Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate.
E)   Employees below the age of 25 are not being hired by the company.F) B) and C)
G) A) and B)

Question 4

An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.

Accepted Answer

A)   pay rates
B)   pay structure
C)   pay differentials
D)   pay grades
E)   pay rangesF) All of the above
G) A) and B)

Question 5

Under the FLSA,children aged 14 and 15 may not be employed outside school hours.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a disadvantage of skill-based pay systems?

Accepted Answer

A)   It makes organizations inflexible.
B)   It reduces employee empowerment.
C)   It does not guarantee that employees can use their new skills.
D)   It reduces opportunities for promoting employees.
E)   It does not contribute to job enrichment.F) A) and C)
G) A) and E)

Question 7

Which of the following is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job?

Accepted Answer

A)   Pay grade
B)   Pay range
C)   Pay differential
D)   Compa-ratio
E)   Compensation differentialF) A) and D)
G) A) and E)

Question 8

Joy Limon,a manufacturing company,has a job structure that focuses on higher pay for higher status.When the company's CEO decides that the company will need a new set of knowledge,skills,and abilities,he realizes that the existing pay structure may be rewarding the wrong behaviors.In this case,which of the following alternatives to job-based pay structures may help the organization to respond to this problem?

Accepted Answer

A)   Straight piecework plan
B)   Skill-based pay system
C)   Delayering
D)   Quality-based pay system
E)   BenchmarkingF) A) and B)
G) B) and E)

Question 9

Caroline,a researcher,believes that an organization needs to plan what they will pay employees in each job.Mark,her colleague,argues that an employee's pay should be independently negotiated.Which of the following statements will weaken Mark's argument?

Accepted Answer

A)   An unplanned approach will likely result in unfairness and dissatisfaction among the employees.
B)   Most of the employees prefer planned pay because negotiation with the management takes time.
C)   Independently negotiated pay will increase the workload and rivalry among the employees.
D)   When the pay is planned by the organization, it creates more employment opportunities.
E)   The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated.F) A) and D)
G) A) and C)

Question 10

Which of the following statements is true of the FLSA requirements for overtime pay?

Accepted Answer

A)   The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments.
B)   Time worked includes hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, and so on.
C)   Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours.
D)   Everyone is eligible for overtime pay.
E)   Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.F) A) and B)
G) A) and E)

Question 11

An organization's policies,rather than the wages,salaries,and bonuses that employees earn,determine the job structure and pay levels within that organization.

Accepted Answer

A) True 
 B)False

Question 12

How do employees judge the fairness of a pay structure?

Accepted Answer

Employees evaluate their pay relative to...

Question 13

Capnos Inc.,an insurance company incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

Accepted Answer

A)   Benchmarking
B)   Job evaluation
C)   Regression analysis
D)   Delayering
E)   Pay structuringF) A) and B)
G) C) and D)

Question 14

The pay offered by an organization is not limited by its presence in a product market.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a drawback of a minimum wage in terms of social policy?

Accepted Answer

A)   It assumes people will take differences in pay into account when they choose a career.
B)   It is one and a half times the employee's usual hourly rate.
C)   It applies only to the hours worked beyond 40 in one week.
D)   It places the employer at an economic disadvantage relative to employers that pay the living wage.
E)   It tends to be lower than the earnings required for a full time worker to rise above the poverty level.F) B) and E)
G) A) and B)

Question 16

Compa-ratio:

Accepted Answer

A)   is defined as the ratio of average pay to the midpoint of the pay range.
B)   is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade.
C)   can range from 0 to 100 percent.
D)   uses data from market-pay surveys.
E)   measures the degree to which new skills learnt are consistent with the increases in pay.F) A) and D)
G) B) and C)

Question 17

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Accepted Answer

A) True 
 B)False

Question 18

Spark Inc.,a manufacturing company,hires employees belonging to the age group of 14 to 25.However,the company ensures that employees belonging to the age group of 14 to 18 are employed in nonhazardous environment and for limited time periods.In this scenario,which of the following laws is complied by the company?

Accepted Answer

A)   Laws governing equal employment opportunity
B)   Fair Labor Standards Act (FLS
A)   of minimum wage
C)   Fair Labor Standards Act (FLS
A)   of overtime
D)   Laws governing prevailing wages
E)   Fair Labor Standards Act (FLS
A)   of child laborF) C) and E)
G) B) and E)

Question 19

Ramon Inc.,a software company,uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization.The company then compares the evaluation points awarded to each job with the pay for each job.If jobs have the same number of evaluation points,but are not paid equally,the pay of the lower-paid job is raised.Based on the scenario,identify the policy adopted by the company.

Accepted Answer

A)   Comparable-worth policy
B)   Minimum wage policy
C)   Average pay policy
D)   Merit pay policy
E)   Piecework rate policyF) C) and E)
G) C) and D)

Question 20

Which of the following is a drawback of a comparable-worth policy?

Accepted Answer

A)   A free-market economy assumes people will not take differences in pay into account when they choose a career.
B)   Employees may conclude that pay rates are unfair.
C)   The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate.
D)   Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure.
E)   Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.F) None of the above
G) C) and D)

Exam 12: Establishing a Pay Structure

Correct Answer
verified

Which of the following is a drawback of a comparable-worth policy?

Correct Answer
verified

Under the FLSA,children aged 14 and 15 may not be employed outside school hours.

Correct Answer
verified

Which of the following is a drawback of a minimum wage in terms of social policy?

Correct Answer
verified

Correct Answer
verified

An organization's policies,rather than the wages,salaries,and bonuses that employees earn,determine the job structure and pay levels within that organization.

Correct Answer
verified

How do employees judge the fairness of a pay structure?

Correct Answer
verified
Employees evaluate their pay relative to...
View Answer

David earns a base rate of $12 an hour and receives a weekly attendance award of $20.He works 40 hours this week.What would be his total compensation for the week?

Correct Answer
verified

The pay offered by an organization is not limited by its presence in a product market.

Correct Answer
verified

Which of the following is a disadvantage of skill-based pay systems?

Correct Answer
verified

Correct Answer
verified

Which of the following statements is true of the FLSA requirements for overtime pay?

Correct Answer
verified

An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.

Correct Answer
verified

Which of the following is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job?

Correct Answer
verified

Capnos Inc.,an insurance company incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

Correct Answer
verified

Caroline,a researcher,believes that an organization needs to plan what they will pay employees in each job.Mark,her colleague,argues that an employee's pay should be independently negotiated.Which of the following statements will weaken Mark's argument?

Correct Answer
verified

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Correct Answer
verified

How do organizations compare actual pay to pay structure?

Correct Answer
verified
As part of its management responsibility...
View Answer

Compa-ratio:

Correct Answer
verified

Correct Answer
verified

Exam 12: Establishing a Pay Structure

Correct AnswerverifiedShow Answer

Which of the following is a drawback of a comparable-worth policy?

Correct AnswerverifiedShow Answer

Under the FLSA,children aged 14 and 15 may not be employed outside school hours.

Correct AnswerverifiedShow Answer

Which of the following is a drawback of a minimum wage in terms of social policy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An organization's policies,rather than the wages,salaries,and bonuses that employees earn,determine the job structure and pay levels within that organization.

Correct AnswerverifiedShow Answer

How do employees judge the fairness of a pay structure?

Correct AnswerverifiedEmployees evaluate their pay relative to...View AnswerShow Answer

David earns a base rate of $12 an hour and receives a weekly attendance award of $20.He works 40 hours this week.What would be his total compensation for the week?

Correct AnswerverifiedShow Answer

The pay offered by an organization is not limited by its presence in a product market.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of skill-based pay systems?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is true of the FLSA requirements for overtime pay?

Correct AnswerverifiedShow Answer

An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.

Correct AnswerverifiedShow Answer

Which of the following is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job?

Correct AnswerverifiedShow Answer

Capnos Inc.,an insurance company incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

Correct AnswerverifiedShow Answer

Caroline,a researcher,believes that an organization needs to plan what they will pay employees in each job.Mark,her colleague,argues that an employee's pay should be independently negotiated.Which of the following statements will weaken Mark's argument?

Correct AnswerverifiedShow Answer

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Correct AnswerverifiedShow Answer

How do organizations compare actual pay to pay structure?

Correct AnswerverifiedAs part of its management responsibility...View AnswerShow Answer

Compa-ratio:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Employees evaluate their pay relative to...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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As part of its management responsibility...
View Answer

Correct Answer
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Correct Answer
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