Question 1

What is the impact of the Fair Labor Standards Act and the Equal Pay Act on employee compensation?

Accepted Answer

Summary of suggested answer -
•FSLA - defines exempt and non-exempt. Sets minimum wage. Dictates overtime pay requirements.
•Equal Pay Act - prohibits pay discrimination between men and women. There are four exceptions-seniority, better job performance, productivity, and shift differential pay. Raises the issue of comparable worth.

Question 2

Additional Case 10.2
O'Donnell International is updating its job-based compensation system with a primary goal of achieving internal equity. Sean is responsible for gathering and organizing information concerning the tasks and duties of specific jobs. Susie is to determine the prerequisites for the successful accomplishment of each job analyzed. Jeff will work with three line managers to determine the compensable factors for specific lower-level jobs. The HR director, the president, and two VPs will review the information on management jobs in order to determine the compensable factors in each before putting all jobs at the firm into a job hierarchy.
-Refer to Additional Case 10.2. For Jeff to accomplish his task, he most likely needs to:

Accepted Answer

A) conduct the job evaluations. 
B) write the job descriptions. 
C) rate the worth of the jobs. 
D) create a job hierarchy. 
A) conduct the job evaluations. 
B) write the job descriptions. 
C) rate the worth of the jobs. 
D) create a job hierarchy. C

Question 3

Some companies, in order to dodge costs related to the Fair Labor Standards Act, will claim more exempt employees than nonexempt employees.

Accepted Answer

A) True 
 B)False  True

Question 4

An individual-centered compensation system:

Accepted Answer

A) focuses on employees' contribution and increases compensation based on the employee's ability to perform more duties successfully. 
B) assumes that the tasks being performed, and the contribution of those tasks to the company, provide the best criteria for setting the wage pay system. 
C) pays based on the number of hours during which the employees perform their assigned job. 
D) stresses the value and prestige of the job being performed. 
A) focuses on employees' contribution and increases compensation based on the employee's ability to perform more duties successfully. 
B) assumes that the tasks being performed, and the contribution of those tasks to the company, provide the best criteria for setting the wage pay system. 
C) pays based on the number of hours during which the employees perform their assigned job. 
D) stresses the value and prestige of the job being performed.

Question 5

Job compensation directly affects how much labor costs detract from or contribute to business profitability.

Accepted Answer

A) True 
 B)False

Question 6

Additional Case 10.2
O'Donnell International is updating its job-based compensation system with a primary goal of achieving internal equity. Sean is responsible for gathering and organizing information concerning the tasks and duties of specific jobs. Susie is to determine the prerequisites for the successful accomplishment of each job analyzed. Jeff will work with three line managers to determine the compensable factors for specific lower-level jobs. The HR director, the president, and two VPs will review the information on management jobs in order to determine the compensable factors in each before putting all jobs at the firm into a job hierarchy.
-Refer to Additional Case 10.2. Which of the following, if true, best supports the use of market data rather than internal job evaluations to determine the value of jobs at O'Donnell?

Accepted Answer

A) Turnover at O'Donnell is relatively low. 
B) Most jobs at O'Donnell are typical for the industry. 
C) The organizational structure at O'Donnell is flat. 
D) Most lower-level positions at O'Donnell are exempt. 
A) Turnover at O'Donnell is relatively low. 
B) Most jobs at O'Donnell are typical for the industry. 
C) The organizational structure at O'Donnell is flat. 
D) Most lower-level positions at O'Donnell are exempt.

Question 7

Which of the following is NOT a criticism of skill-based compensation systems?

Accepted Answer

A) Too much labor specialization 
B) Unspecific job qualifications 
C) Higher labor costs 
D) Workplace chaos 
A) Too much labor specialization 
B) Unspecific job qualifications 
C) Higher labor costs 
D) Workplace chaos

Question 8

Skill-based pay assumes that workers should be paid according to how flexible or capable they are at performing multiple tasks.

Accepted Answer

A) True 
 B)False

Question 9

The first step in achieving pay equity for job-based compensation plans is conducting a job analysis.

Accepted Answer

A) True 
 B)False

Question 10

A company designs its compensation system around the philosophy that employees exchange their skills and contributions for pay. As a consequence, employees feel fairly compensated when the ratio of their inputs and outputs is equivalent to those of other employees whose job demands are similar to their own. This company's compensation system is based on a ________ compensation model.

Accepted Answer

A) balanced equity 
B) labor market 
C) free market 
D) distributive justice 
A) balanced equity 
B) labor market 
C) free market 
D) distributive justice

Question 11

An individual-based pay policy works best in which of the following situations?

Accepted Answer

A) Employees may have many opportunities to learn new skills. 
B) Employees are expected to move up "through the ranks." 
C) Employee turnover is low and jobs don't change often. 
D) Jobs are standardized within the industry. 
A) Employees may have many opportunities to learn new skills. 
B) Employees are expected to move up "through the ranks." 
C) Employee turnover is low and jobs don't change often. 
D) Jobs are standardized within the industry.

Question 12

The ________ is the fundamental compensation law in the United States that requires employers to record earnings and hours worked by all covered employees, and to report this information to the U.S. Department of Labor.

Accepted Answer

Fair Labor

Question 13

A company using a labor market model holds the philosophy that:

Accepted Answer

A) the wage rate for any given job is set at the point where the supply of labor equals the demand for that labor in the marketplace. 
B) internal equity is more important than external equity in a balanced labor market. 
C) egalitarian pay policies are more effective than elitist policies when labor demand is high. 
D) nonmonetary rewards are more effective motivators than monetary rewards. 
A) the wage rate for any given job is set at the point where the supply of labor equals the demand for that labor in the marketplace. 
B) internal equity is more important than external equity in a balanced labor market. 
C) egalitarian pay policies are more effective than elitist policies when labor demand is high. 
D) nonmonetary rewards are more effective motivators than monetary rewards.

Question 14

Michele is determining the value of different jobs in a medium-sized contracting company. She is most likely:

Accepted Answer

A) performing job analysis. 
B) conducting a job evaluation. 
C) trying to achieve internal equity. 
D) determining job specifications. 
A) performing job analysis. 
B) conducting a job evaluation. 
C) trying to achieve internal equity. 
D) determining job specifications.

Question 15

Job specifications:

Accepted Answer

A) require the rating of each position described. 
B) list all the compensable factors of a particular job. 
C) consist of worker characteristics necessary for successful performance. 
D) identify, define, and describe each job in terms of its duties, responsibilities, and working conditions. 
A) require the rating of each position described. 
B) list all the compensable factors of a particular job. 
C) consist of worker characteristics necessary for successful performance. 
D) identify, define, and describe each job in terms of its duties, responsibilities, and working conditions.

Question 16

Job banding entails replacing narrowly defined job descriptions with broad categories of related jobs.

Accepted Answer

A) True 
 B)False

Question 17

Job-based compensation:

Accepted Answer

A) is less appropriate at higher levels in a firm. 
B) is the most objective of all compensation systems. 
C) is less bureaucratic and inflexible than other systems. 
D) has less bias toward women than skill-based compensation systems. 
A) is less appropriate at higher levels in a firm. 
B) is the most objective of all compensation systems. 
C) is less bureaucratic and inflexible than other systems. 
D) has less bias toward women than skill-based compensation systems.

Question 18

A job-based pay system works best where jobs don't change often, when a great deal of training is required to learn a job, and when employees expect to move up through the system over time.

Accepted Answer

A) True 
 B)False

Question 19

In order to achieve external equity, a company must first benchmark key jobs.

Accepted Answer

A) True 
 B)False

Question 20

The line, "Grade 2, Clerk-Typist, $12.35 hr.," is most likely from a:

Accepted Answer

A) job-based pay structure. 
B) skill-based pay structure. 
C) decentralized pay system. 
D) knowledge-based pay system. 
A) job-based pay structure. 
B) skill-based pay structure. 
C) decentralized pay system. 
D) knowledge-based pay system.

What is the impact of the Fair Labor Standards Act and the Equal Pay Act on employee compensation?

Some companies, in order to dodge costs related to the Fair Labor Standards Act, will claim more exempt employees than nonexempt employees.

An individual-centered compensation system:

Job compensation directly affects how much labor costs detract from or contribute to business profitability.

Which of the following is NOT a criticism of skill-based compensation systems?

Skill-based pay assumes that workers should be paid according to how flexible or capable they are at performing multiple tasks.

The first step in achieving pay equity for job-based compensation plans is conducting a job analysis.

An individual-based pay policy works best in which of the following situations?

The ________ is the fundamental compensation law in the United States that requires employers to record earnings and hours worked by all covered employees, and to report this information to the U.S. Department of Labor.

A company using a labor market model holds the philosophy that:

Michele is determining the value of different jobs in a medium-sized contracting company. She is most likely:

Job specifications:

Job banding entails replacing narrowly defined job descriptions with broad categories of related jobs.

Job-based compensation:

A job-based pay system works best where jobs don't change often, when a great deal of training is required to learn a job, and when employees expect to move up through the system over time.

In order to achieve external equity, a company must first benchmark key jobs.

The line, "Grade 2, Clerk-Typist, $12.35 hr.," is most likely from a:

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters

Exam 10: Managing Compensation

What is the impact of the Fair Labor Standards Act and the Equal Pay Act on employee compensation?

Some companies, in order to dodge costs related to the Fair Labor Standards Act, will claim more exempt employees than nonexempt employees.

An individual-centered compensation system:

Job compensation directly affects how much labor costs detract from or contribute to business profitability.

Which of the following is NOT a criticism of skill-based compensation systems?

Skill-based pay assumes that workers should be paid according to how flexible or capable they are at performing multiple tasks.

The first step in achieving pay equity for job-based compensation plans is conducting a job analysis.

An individual-based pay policy works best in which of the following situations?

The ________ is the fundamental compensation law in the United States that requires employers to record earnings and hours worked by all covered employees, and to report this information to the U.S. Department of Labor.

A company using a labor market model holds the philosophy that:

Michele is determining the value of different jobs in a medium-sized contracting company. She is most likely:

Job specifications:

Job banding entails replacing narrowly defined job descriptions with broad categories of related jobs.

Job-based compensation:

A job-based pay system works best where jobs don't change often, when a great deal of training is required to learn a job, and when employees expect to move up through the system over time.

In order to achieve external equity, a company must first benchmark key jobs.

The line, "Grade 2, Clerk-Typist, $12.35 hr.," is most likely from a:

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Rewarding Performance

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters