Question 1

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 2

Some employees at Opal Coin, a clothing manufacturer, investigate pay rates on Salary.com and learn that Opal Coin has been paying them significantly more than the national average for their jobs. In this case, what is the most likely reaction of the employees at Opal Coin?

Accepted Answer

A)  The employees will conclude that there must be regional differences in pay. 
B)  The employees will be motivated to work much harder. 
C)  The employees will find their jobs less challenging. 
D)  The employees will find a way to increase their outcomes by stealing. 
E)  The employees' attitudes and behaviors will continue unchanged. 
A)  The employees will conclude that there must be regional differences in pay. 
B)  The employees will be motivated to work much harder. 
C)  The employees will find their jobs less challenging. 
D)  The employees will find a way to increase their outcomes by stealing. 
E)  The employees' attitudes and behaviors will continue unchanged.

Question 3

Skill-based pay systems do not support empowerment of employees.

Accepted Answer

A) True 
 B)False

Question 4

Under the FLSA, exempt status of employees depends on their

Accepted Answer

A)  job responsibilities and salary. 
B)  organizational commitment. 
C)  job title. 
D)  work experience. 
E)  job qualifications. 
A)  job responsibilities and salary. 
B)  organizational commitment. 
C)  job title. 
D)  work experience. 
E)  job qualifications.

Question 5

Ring Associates, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler, as well as the difference between an entry-level recruiter, an HR manager, and the vice president of the human resource department. What is being exemplified in this scenario?

Accepted Answer

A)  straight piecework plan 
B)  job structure 
C)  merit pay system 
D)  pay differential 
E)  balanced scorecard 
A)  straight piecework plan 
B)  job structure 
C)  merit pay system 
D)  pay differential 
E)  balanced scorecard

Question 6

According to ________, people measure outcomes such as pay in terms of their inputs.

Accepted Answer

A)  expectancy theory 
B)  equity theory 
C)  retributive justice theory 
D)  progressive justice theory 
E)  economic theory 
A)  expectancy theory 
B)  equity theory 
C)  retributive justice theory 
D)  progressive justice theory 
E)  economic theory

Question 7

Organizations use pay surveys to benchmark compensation.

Accepted Answer

A) True 
 B)False

Question 8

What 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. 
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.

Question 9

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 learned are consistent with the increases in pay. 
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 learned are consistent with the increases in pay.

Question 10

List three limitations of using a job-based pay structure.

Accepted Answer

Some of the limitations of job-based pay

Question 11

What is a pay policy line? What is its relevance?

Accepted Answer

Mathematically, a pay policy line shows

Question 12

Which element establishes an organization's pay structure?

Accepted Answer

A)  pay ranges and pay differentials 
B)  cost control and equity 
C)  legal requirements and job descriptions 
D)  individual salaries of its employees 
E)  job structure and pay level 
A)  pay ranges and pay differentials 
B)  cost control and equity 
C)  legal requirements and job descriptions 
D)  individual salaries of its employees 
E)  job structure and pay level

Question 13

Willow Producers is a manufacturing company based in Iowa. The employees of Willow Products are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which law is the organization abiding by in this scenario?

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)  product market laws 
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)  product market laws

Question 14

Employees' conclusions about equity depend on

Accepted Answer

A)  what they choose as a standard of comparison. 
B)  how much money they think the company CEO makes. 
C)  what level of income they believe they should be at by this point in their lives. 
D)  what benefits they receive. 
E)  if they think they can bargain for a higher rate of pay. 
A)  what they choose as a standard of comparison. 
B)  how much money they think the company CEO makes. 
C)  what level of income they believe they should be at by this point in their lives. 
D)  what benefits they receive. 
E)  if they think they can bargain for a higher rate of pay.

Question 15

Quey Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30 percent of the local labor force. In this case, which law does the company comply with?

Accepted Answer

A)  the Lloyd-La Follette Act of 1912 
B)  the Smith-Connally Act of 1943 
C)  the Julie Jargon Act of 1940 and the Eric Morath Act of 1945 
D)  the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936 
E)  the Humphrey-Hawkins Full Employment Act 
A)  the Lloyd-La Follette Act of 1912 
B)  the Smith-Connally Act of 1943 
C)  the Julie Jargon Act of 1940 and the Eric Morath Act of 1945 
D)  the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936 
E)  the Humphrey-Hawkins Full Employment Act

Question 16

Which statement is true of equal employment opportunity laws?

Accepted Answer

A)  These laws guarantee equal pay for whites and minorities. 
B)  The goal of these laws is for employers to provide equal pay for equal work. 
C)  Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. 
D)  These laws guarantee equal pay for men and women. 
E)  Under these laws, employers cannot tie differences in pay to business-related considerations. 
A)  These laws guarantee equal pay for whites and minorities. 
B)  The goal of these laws is for employers to provide equal pay for equal work. 
C)  Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. 
D)  These laws guarantee equal pay for men and women. 
E)  Under these laws, employers cannot tie differences in pay to business-related considerations.

Question 17

What is an advantage of a two-tier wage system?

Accepted Answer

A)  It helps move jobs out of the country. 
B)  It helps eliminate jobs without any legal hassles. 
C)  It helps reduce labor costs without cutting employees' existing salaries. 
D)  It helps provide more pay to new employees. 
E)  It provides better standards for benchmarking. 
A)  It helps move jobs out of the country. 
B)  It helps eliminate jobs without any legal hassles. 
C)  It helps reduce labor costs without cutting employees' existing salaries. 
D)  It helps provide more pay to new employees. 
E)  It provides better standards for benchmarking.

Question 18

What is a characteristic of delayering?

Accepted Answer

A)  It increases an organization's flexibility. 
B)  It increases the opportunities for promoting employees. 
C)  It sets pay according to the employees' level of knowledge. 
D)  It encourages a climate of learning. 
E)  It decreases the flexibility of managers in making assignments. 
A)  It increases an organization's flexibility. 
B)  It increases the opportunities for promoting employees. 
C)  It sets pay according to the employees' level of knowledge. 
D)  It encourages a climate of learning. 
E)  It decreases the flexibility of managers in making assignments.

Question 19

Fresher Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Fresher Inc. most likely underpaying for human resources?

Accepted Answer

A)  shipping clerks: average salary of $22,000, range midpoint of $24,000 
B)  inventory clerks: average salary of $20,000, range midpoint of $30,000 
C)  order packers: average salary of $24,000, range midpoint of $22,000 
D)  purchasing agents: average salary of $30,000, range midpoint of $25,000 
E)  warehouse workers: average salary of $20,000, range midpoint of $20,000 
A)  shipping clerks: average salary of $22,000, range midpoint of $24,000 
B)  inventory clerks: average salary of $20,000, range midpoint of $30,000 
C)  order packers: average salary of $24,000, range midpoint of $22,000 
D)  purchasing agents: average salary of $30,000, range midpoint of $25,000 
E)  warehouse workers: average salary of $20,000, range midpoint of $20,000

Question 20

Issues affecting an organization's pay structure do not affect its reputation in general.

Accepted Answer

A) True 
 B)False

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

Some employees at Opal Coin, a clothing manufacturer, investigate pay rates on Salary.com and learn that Opal Coin has been paying them significantly more than the national average for their jobs. In this case, what is the most likely reaction of the employees at Opal Coin?

Skill-based pay systems do not support empowerment of employees.

Under the FLSA, exempt status of employees depends on their

According to ________, people measure outcomes such as pay in terms of their inputs.

Organizations use pay surveys to benchmark compensation.

What is a drawback of a minimum wage in terms of social policy?

Compa-ratio

List three limitations of using a job-based pay structure.

What is a pay policy line? What is its relevance?

Which element establishes an organization's pay structure?

Willow Producers is a manufacturing company based in Iowa. The employees of Willow Products are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which law is the organization abiding by in this scenario?

Employees' conclusions about equity depend on

Which statement is true of equal employment opportunity laws?

What is an advantage of a two-tier wage system?

What is a characteristic of delayering?

Fresher Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Fresher Inc. most likely underpaying for human resources?

Issues affecting an organization's pay structure do not affect its reputation in general.

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Recognizing Employee Contributions With Pay

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Filters

Exam 12: Establishing a Pay Structure

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

Some employees at Opal Coin, a clothing manufacturer, investigate pay rates on Salary.com and learn that Opal Coin has been paying them significantly more than the national average for their jobs. In this case, what is the most likely reaction of the employees at Opal Coin?

Skill-based pay systems do not support empowerment of employees.

Under the FLSA, exempt status of employees depends on their

According to ________, people measure outcomes such as pay in terms of their inputs.

Organizations use pay surveys to benchmark compensation.

What is a drawback of a minimum wage in terms of social policy?

Compa-ratio

List three limitations of using a job-based pay structure.

What is a pay policy line? What is its relevance?

Which element establishes an organization's pay structure?

Willow Producers is a manufacturing company based in Iowa. The employees of Willow Products are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which law is the organization abiding by in this scenario?

Employees' conclusions about equity depend on

Which statement is true of equal employment opportunity laws?

What is an advantage of a two-tier wage system?

What is a characteristic of delayering?

Fresher Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Fresher Inc. most likely underpaying for human resources?

Issues affecting an organization's pay structure do not affect its reputation in general.

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Recognizing Employee Contributions With Pay

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Filters