Question 1

Total compensation can facilitate-or interfere with-achieving many different strategic objectives.

Accepted Answer

A) True 
 B)False

Question 2

What is the simplest job evaluation method?

Accepted Answer

The answer of What is the simplest job evaluation method?...

Question 3

An organizational pay policy that pays above the market rate is known as a _____ policy.

Accepted Answer

A)  lag 
B)  discriminatory 
C)  match 
D)  lead 
E)  advance 
A)  lag 
B)  discriminatory 
C)  match 
D)  lead 
E)  advance

Question 4

Which of the following statements about pay secrecy is true?

Accepted Answer

A)  The free open discussion of salaries and wages is the norm in U.S. business. 
B)  Perceived inequities may arise due to poor implementation of a well-designed compensation plan. 
C)  Pay secrecy makes life difficult for managers. 
D)  Compensation professionals and managers are the only ones who should have responsibility for designing the compensation system. 
E)  Managers typically abhor pay secrecy. 
A)  The free open discussion of salaries and wages is the norm in U.S. business. 
B)  Perceived inequities may arise due to poor implementation of a well-designed compensation plan. 
C)  Pay secrecy makes life difficult for managers. 
D)  Compensation professionals and managers are the only ones who should have responsibility for designing the compensation system. 
E)  Managers typically abhor pay secrecy.

Question 5

The simplest job evaluation method is:

Accepted Answer

A)  benchmarking 
B)  performance appraisals 
C)  the point rating method 
D)  job ranking 
E)  factor analysis 
A)  benchmarking 
B)  performance appraisals 
C)  the point rating method 
D)  job ranking 
E)  factor analysis

Question 6

Under the Fair Labor Standards Act, which of the following is most likely a nonexempt worker?

Accepted Answer

A)  a full-time retail clerk in a liquor store 
B)  a manager who supervises fifteen employees 
C)  a petroleum engineer working as an independent contractor 
D)  a tenured college professor 
E)  all of the above 
A)  a full-time retail clerk in a liquor store 
B)  a manager who supervises fifteen employees 
C)  a petroleum engineer working as an independent contractor 
D)  a tenured college professor 
E)  all of the above

Question 7

The Equal Pay Act allows several exceptions to equal pay for equal work. Which of the following is not such an exception?

Accepted Answer

A)  pay based on a valid seniority system 
B)  pay based on a valid merit system 
C)  pay based on performance quality 
D)  pay based on education level 
E)  all of these are exceptions to equal pay for equal work 
A)  pay based on a valid seniority system 
B)  pay based on a valid merit system 
C)  pay based on performance quality 
D)  pay based on education level 
E)  all of these are exceptions to equal pay for equal work

Question 8

What conditions would led employees to this believe pay inequities existed in their organization?

Accepted Answer

Low pay, pay secrecy

Question 9

What are benchmark jobs and how are they used for placing a specific job into a pay grade?

Accepted Answer

Benchmark jobs are common across a range

Question 10

Under what circumstances does the Fair Labor Standards Act permit an employer to pay subminimum wages?

Accepted Answer

A)  if the employee is under the age of 18 
B)  if the employee is an apprentice in a skilled occupation 
C)  if the employee is engaged in job sharing 
D)  if the employee is already receiving Social Security payments 
E)  if the employee is only working part-time 
A)  if the employee is under the age of 18 
B)  if the employee is an apprentice in a skilled occupation 
C)  if the employee is engaged in job sharing 
D)  if the employee is already receiving Social Security payments 
E)  if the employee is only working part-time

Question 11

Which of the following actions have various CEOs not taken in response to widespread public concern about unfair CEO pay?

Accepted Answer

A)  Cutting annual salary to $1 
B)  Returning incentive pay to employees in the form of company stock 
C)  Converting cash bonus to performance-linked shares 
D)  Agreeing to serve on the Sarbanes-Oxley Executive Compensation Board 
E)  None of these actions were taken by CEOs 
A)  Cutting annual salary to $1 
B)  Returning incentive pay to employees in the form of company stock 
C)  Converting cash bonus to performance-linked shares 
D)  Agreeing to serve on the Sarbanes-Oxley Executive Compensation Board 
E)  None of these actions were taken by CEOs

Question 12

Jolene is at the midpoint of her pay grade. Her firm has a pay policy of matching the market. If Jolene decided to look for a similar job in another company, she would find that her pay:

Accepted Answer

A)  is higher than the market average 
B)  is lower than the market average 
C)  is about the same as the market average 
D)  will be higher than the market in companies using broadbanding rather than traditional pay grades 
E)  will be higher than the market in companies using traditional pay grades 
A)  is higher than the market average 
B)  is lower than the market average 
C)  is about the same as the market average 
D)  will be higher than the market in companies using broadbanding rather than traditional pay grades 
E)  will be higher than the market in companies using traditional pay grades

Question 13

Factors that contribute to perceptions of pay unfairness include all EXCEPT:

Accepted Answer

A)  low pay 
B)  pay secrecy 
C)  executive compensation practices 
D)  internal exchange values 
E)  none of these 
A)  low pay 
B)  pay secrecy 
C)  executive compensation practices 
D)  internal exchange values 
E)  none of these

Question 14

After establishing a policy line for pay in the external market a company must decide on its own pay policy. Which of the following will affect the company's pay policy?

Accepted Answer

A)  the role of performance-based pay in the organization 
B)  the stage of the firm's development 
C)  the strength of union demands 
D)  the organizational culture 
E)  all of the above 
A)  the role of performance-based pay in the organization 
B)  the stage of the firm's development 
C)  the strength of union demands 
D)  the organizational culture 
E)  all of the above

Question 15

Why would a company pay less than the market rate?

Accepted Answer

A)  It has excellent benefits. 
B)  It is located in a highly-desirable part of the country, to which people are anxious to move. 
C)  It provides good job security. 
D)  The content of its job are very satisfying. 
E)  All of these are reasons to pay less than the market rate. 
A)  It has excellent benefits. 
B)  It is located in a highly-desirable part of the country, to which people are anxious to move. 
C)  It provides good job security. 
D)  The content of its job are very satisfying. 
E)  All of these are reasons to pay less than the market rate.

Question 16

Employee responses to feeling underrewarded include:

Accepted Answer

A)  leaving the organization 
B)  demanding a raise 
C)  stealing from the employer 
D)  restricting output 
E)  all are typical responses 
A)  leaving the organization 
B)  demanding a raise 
C)  stealing from the employer 
D)  restricting output 
E)  all are typical responses

Question 17

Low unemployment labor market conditions in an industry result in which of the following effects on compensation practices in that industry:

Accepted Answer

A)  higher pay that attracts new entrants 
B)  a shift to nonlabor alternative 
C)  an influx of job seekers 
D)  offshoring 
E)  All of the above are effects that occur in this market 
A)  higher pay that attracts new entrants 
B)  a shift to nonlabor alternative 
C)  an influx of job seekers 
D)  offshoring 
E)  All of the above are effects that occur in this market

Question 18

Typical inputs that employees give to organizations include:

Accepted Answer

A)  time 
B)  effort 
C)  experience 
D)  education 
E)  all of the above 
A)  time 
B)  effort 
C)  experience 
D)  education 
E)  all of the above

Question 19

Susan (Ph.D.), Peggy (MA) and Steve (BA) are all first grade teachers in a large urban school. Each of them teaches the same number of children in a typical classroom setting (not gifted or special needs children). Each of them have 10 years of classroom experience. All have received excellent performance evaluations in the past. Each is an organizational good citizen, helping wherever they are needed. Susan is paid $10,000 a year more than Peggy, who is paid $5,000 a year more than Steve. What type of pay system does the school probably use?

Accepted Answer

A)  an illegal one 
B)  market-based pay 
C)  point rating method 
D)  skill-based pay 
E)  Hays Guide Chart system 
A)  an illegal one 
B)  market-based pay 
C)  point rating method 
D)  skill-based pay 
E)  Hays Guide Chart system

Question 20

Meaghan Scott is the founder and owner of Homewood Farm Jams. Her company has six employees. For pay purposes, each employee is ranked according to his or her contribution to the firm's bottom line. What job evaluation method does Meaghan use?

Accepted Answer

A)  the benchmarking method 
B)  the performance appraisal method 
C)  the point rating method 
D)  the job ranking method 
E)  the factor analysis method 
A)  the benchmarking method 
B)  the performance appraisal method 
C)  the point rating method 
D)  the job ranking method 
E)  the factor analysis method

Total compensation can facilitate-or interfere with-achieving many different strategic objectives.

What is the simplest job evaluation method?

An organizational pay policy that pays above the market rate is known as a _____ policy.

Which of the following statements about pay secrecy is true?

The simplest job evaluation method is:

Under the Fair Labor Standards Act, which of the following is most likely a nonexempt worker?

The Equal Pay Act allows several exceptions to equal pay for equal work. Which of the following is not such an exception?

What conditions would led employees to this believe pay inequities existed in their organization?

What are benchmark jobs and how are they used for placing a specific job into a pay grade?

Under what circumstances does the Fair Labor Standards Act permit an employer to pay subminimum wages?

Which of the following actions have various CEOs not taken in response to widespread public concern about unfair CEO pay?

Jolene is at the midpoint of her pay grade. Her firm has a pay policy of matching the market. If Jolene decided to look for a similar job in another company, she would find that her pay:

Factors that contribute to perceptions of pay unfairness include all EXCEPT:

After establishing a policy line for pay in the external market a company must decide on its own pay policy. Which of the following will affect the company's pay policy?

Why would a company pay less than the market rate?

Employee responses to feeling underrewarded include:

Low unemployment labor market conditions in an industry result in which of the following effects on compensation practices in that industry:

Typical inputs that employees give to organizations include:

Meaghan Scott is the founder and owner of Homewood Farm Jams. Her company has six employees. For pay purposes, each employee is ranked according to his or her contribution to the firm's bottom line. What job evaluation method does Meaghan use?

Managing Human Resources

Understanding the External and Organizational Environments

Ensuring Fair Treatment and Legal Compliance

HR Planning for Alignment and Change

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Using Performance-Based Pay to Achieve Strategic Objectives

Providing Benefits and Services

Promoting Safety, Health, and Well-Being in the Workplace

Understanding Unionization and Collective Bargaining

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Exam 10: Developing an Approach to Total Compensation

Total compensation can facilitate-or interfere with-achieving many different strategic objectives.

What is the simplest job evaluation method?

An organizational pay policy that pays above the market rate is known as a _____ policy.

Which of the following statements about pay secrecy is true?

The simplest job evaluation method is:

Under the Fair Labor Standards Act, which of the following is most likely a nonexempt worker?

The Equal Pay Act allows several exceptions to equal pay for equal work. Which of the following is not such an exception?

What conditions would led employees to this believe pay inequities existed in their organization?

What are benchmark jobs and how are they used for placing a specific job into a pay grade?

Under what circumstances does the Fair Labor Standards Act permit an employer to pay subminimum wages?

Which of the following actions have various CEOs not taken in response to widespread public concern about unfair CEO pay?

Jolene is at the midpoint of her pay grade. Her firm has a pay policy of matching the market. If Jolene decided to look for a similar job in another company, she would find that her pay:

Factors that contribute to perceptions of pay unfairness include all EXCEPT:

After establishing a policy line for pay in the external market a company must decide on its own pay policy. Which of the following will affect the company's pay policy?

Why would a company pay less than the market rate?

Employee responses to feeling underrewarded include:

Low unemployment labor market conditions in an industry result in which of the following effects on compensation practices in that industry:

Typical inputs that employees give to organizations include:

Meaghan Scott is the founder and owner of Homewood Farm Jams. Her company has six employees. For pay purposes, each employee is ranked according to his or her contribution to the firm's bottom line. What job evaluation method does Meaghan use?

Managing Human Resources

Understanding the External and Organizational Environments

Ensuring Fair Treatment and Legal Compliance

HR Planning for Alignment and Change

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Using Performance-Based Pay to Achieve Strategic Objectives

Providing Benefits and Services

Promoting Safety, Health, and Well-Being in the Workplace

Understanding Unionization and Collective Bargaining

Filters