Exam 12: Establishing a Pay Structure

Keegan, the human resource manager at R&S Inc., is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Keegan's idea be most valid?

How do organizations compare actual pay to pay structure?

Ty 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?

Which statement is true of the FLSA requirements for overtime pay?

Pay policies are one of the most important human resource tools for

What is a drawback of setting pay rates based strictly on a pay policy line?

Roger is the head of the insurance claims department. Roger works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which statement justifies the organization's decision not to give Roger's overtime pay?

Which statement is true of compensable factors?

A pay structure helps an organization achieve goals related to cost control.

At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size?

Rashana is a human resource specialist at Piper Co., a business consulting company. To support human resource planning, Rashana monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Rashana predict based on this information?

Ergo Co. is a manufacturing company based in Texas. In the year after Ergo Co. implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate?

Ron and Yin are welders working for two different divisions of the same company. Both have the same level of experience. However, Ron earns more than Yin. Under the Fair Labor Standards Act (FLSA), which statement justifies the organization's decision to pay Ron more than Yin?

Which statement is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936?

Overlapping ________ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.

Mighty Mixers, a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, Mighty Mixers 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 would most likely explain the reason for the company being sued?

Which statement is true about job-based pay structures?

Techniques., 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.

What will most likely be the result of using an unplanned approach, in which each employee's pay is independently negotiated?

Research on the effects of two-tier wage plans found that