Exam 10: Developing an Approach to Total Compensation

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Public outcries about CEO pay have prompted government actions that are designed to increase the transparency and fairness of such pay. Which of the following required actions was not contained in the Dodd-Frank Act of 2010:

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The design of a total compensation system is shaped by the organizational environment.

(True/False)
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Although it is illegal for employers to forbid employee discussions of pay, keeping pay secret is the norm in many U.S. organizations.

(True/False)
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Comment on the following statement: "Job evaluation and job analysis are actually synonyms?"

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An organization's strategic objectives often have important implications for the design and implementation of its compensation system.

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An employee who is being paid below the minimum,

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Total compensation refers to the monetary and nonmonetary rewards offered to employees.

(True/False)
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Employees who focus only on the base salary will perceive the pay to be unfairly low.

(True/False)
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The theory of comparable worth states that:

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Employers can maximize satisfaction with pay by involving employees in pay system design.

(True/False)
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Which of the following work-related activities must be counted when determining whether a person has worked for more than 40 hours?

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The Dukes v. Wal-Mart Stores lawsuit:

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The presence of unions in an industry results in which of the following effects on compensation practices in that industry EXCEPT:

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Line managers:

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In the feature Managing with Ethics: Fostering Ethics at Payless Shoesource, Payless adopted a code of ethics that addresses:

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The most widely used method of job evaluation is:

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In a skill-based pay system,

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Ensuring total compensation is consistent with legal requirements is the responsibility of:

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Maxine's supervisor overheard her discussing her dissatisfaction with her pay with an outside vendor who was stocking the vending machines in the employee break room. The firm has a pay secrecy policy. What action can her supervisor?

(Multiple Choice)
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What is the most widely used method for job evaluations?

(Short Answer)
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