Question 1

The Equal Pay Act prohibits compensation discrimination between men and women doing substantially the same job, EXCEPT when:

Accepted Answer

A) the pay differential is due to gender. 
B) the titles of the jobs in question are different. 
C) there is no apparent disparate impact from the practice. 
D) the base pay for the job is minimum wage. 
E) seniority or productivity are the basis for the differential. 
A) the pay differential is due to gender. 
B) the titles of the jobs in question are different. 
C) there is no apparent disparate impact from the practice. 
D) the base pay for the job is minimum wage. 
E) seniority or productivity are the basis for the differential.

Question 2

Balancing equity ensures that employees with seniority will receive greater compensation than more recent hires.

Accepted Answer

A) True 
 B)False

Question 3

Above-market compensation policies are more likely to:

Accepted Answer

A) create an impression of innovation and success. 
B) improve employee morale and reduce employee turnover. 
C) affect employee cooperation more than any other business policy. 
D) reduce barriers between people who need to work closely together. 
A) create an impression of innovation and success. 
B) improve employee morale and reduce employee turnover. 
C) affect employee cooperation more than any other business policy. 
D) reduce barriers between people who need to work closely together.

Question 4

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. What is the best way to address O'Donnell's key concern?

Accepted Answer

A) Conducting a market survey 
B) Referring to the Hay system 
C) Conducting a job evaluation 
D) Initiating a TQM program 
A) Conducting a market survey 
B) Referring to the Hay system 
C) Conducting a job evaluation 
D) Initiating a TQM program

Question 5

Pay incentives make up the greatest percentage of total compensation for employees.

Accepted Answer

A) True 
 B)False

Question 6

Describe the reasons a company would choose below-market or above-market compensation policy and the advantages and disadvantages of open versus secret pay policies.

Accepted Answer

Summary of suggested answer -
General fa

Question 7

Egalitarian compensation systems are:

Accepted Answer

A) problematic because of increased tensions between co-workers. 
B) more common in older businesses with mature products. 
C) important to developing a more stable work force. 
D) becoming common in competitive environments. 
A) problematic because of increased tensions between co-workers. 
B) more common in older businesses with mature products. 
C) important to developing a more stable work force. 
D) becoming common in competitive environments.

Question 8

An exempt employee:

Accepted Answer

A) works as a temporary employee. 
B) is more costly to a firm than a nonexempt employee. 
C) is not covered by the Fair Labor Standards Act. 
D) works part time rather than full time. 
A) works as a temporary employee. 
B) is more costly to a firm than a nonexempt employee. 
C) is not covered by the Fair Labor Standards Act. 
D) works part time rather than full time.

Question 9

Base compensation refers to:

Accepted Answer

A) health insurance and time off. 
B) fixed pay received on a regular basis. 
C) perks determined by status within the company. 
D) bonuses that underpin the employee's total compensation. 
A) health insurance and time off. 
B) fixed pay received on a regular basis. 
C) perks determined by status within the company. 
D) bonuses that underpin the employee's total compensation.

Question 10

Job-based compensation plans have the advantage of:

Accepted Answer

A) being objective, data-based systems. 
B) having a bureaucratic and definitive structure. 
C) appearing rational and systematic, thereby minimizing employee complaints. 
D) focusing on the three most important compensable factors, depth, breadth, and vertical skills. 
A) being objective, data-based systems. 
B) having a bureaucratic and definitive structure. 
C) appearing rational and systematic, thereby minimizing employee complaints. 
D) focusing on the three most important compensable factors, depth, breadth, and vertical skills.

Question 11

Define the concepts of internal and external equity, describing two basic models a company may use, and explain how the objectives of internal and external equity can conflict.

Accepted Answer

•Definitions - internal equity, perceive

Question 12

In the opening case in Chapter 10, a secretary complains that janitors make more money than she does. Her complaints and Dr. Smith's response show that Sigma's compensation system:

Accepted Answer

A) may lack internal equity. 
B) is a decentralized pay system. 
C) relies on individual-based pay. 
D) uses variable pay to induce performance. 
A) may lack internal equity. 
B) is a decentralized pay system. 
C) relies on individual-based pay. 
D) uses variable pay to induce performance.

Question 13

A performance-contingent compensation system bases pay upon:

Accepted Answer

A) employee status. 
B) specified hours. 
C) required skills. 
D) units produced. 
A) employee status. 
B) specified hours. 
C) required skills. 
D) units produced.

Question 14

An important tool for companies seeking to maintain external equity is the use of:

Accepted Answer

A) job analysis. 
B) job hierarchies. 
C) Hay rating scales. 
D) market survey data. 
A) job analysis. 
B) job hierarchies. 
C) Hay rating scales. 
D) market survey data.

Question 15

The process of achieving internal equity involves six steps. Enumerate and explain this process.

Accepted Answer

Summary of suggested answer -
•Steps - 1

Question 16

While the Fair Labor Standards Act dictates that employers pay workers overtime for each hour they work over 40 hours in a week, it does not dictate the rate they must be paid. Employers may pay anywhere from 1/2 to 2 times their regular wage.

Accepted Answer

A) True 
 B)False

Question 17

An emphasis on external equity is most important for:

Accepted Answer

A) large, global corporations. 
B) established firms in highly stable markets. 
C) newer, smaller firms in quickly changing markets. 
D) privately owned firms in highly competitive industries. 
A) large, global corporations. 
B) established firms in highly stable markets. 
C) newer, smaller firms in quickly changing markets. 
D) privately owned firms in highly competitive industries.

Question 18

The package of quantifiable rewards an employee receives for his/her labors is called ________.

Accepted Answer

The answer of The package of quantifiable rewards an employee...

Question 19

Companies that pay employees at rates above the market are generally:

Accepted Answer

A) small start-up companies. 
B) involved in global expansion. 
C) companies that struggle financially. 
D) larger companies in less competitive industries. 
A) small start-up companies. 
B) involved in global expansion. 
C) companies that struggle financially. 
D) larger companies in less competitive industries.

Question 20

What is comparable worth? What role does job evaluation play in arguments for and against comparable worth?

Accepted Answer

Comparable worth calls for comparable pa

The Equal Pay Act prohibits compensation discrimination between men and women doing substantially the same job, EXCEPT when:

Balancing equity ensures that employees with seniority will receive greater compensation than more recent hires.

Above-market compensation policies are more likely to:

Pay incentives make up the greatest percentage of total compensation for employees.

Describe the reasons a company would choose below-market or above-market compensation policy and the advantages and disadvantages of open versus secret pay policies.

Egalitarian compensation systems are:

An exempt employee:

Base compensation refers to:

Job-based compensation plans have the advantage of:

Define the concepts of internal and external equity, describing two basic models a company may use, and explain how the objectives of internal and external equity can conflict.

In the opening case in Chapter 10, a secretary complains that janitors make more money than she does. Her complaints and Dr. Smith's response show that Sigma's compensation system:

A performance-contingent compensation system bases pay upon:

An important tool for companies seeking to maintain external equity is the use of:

The process of achieving internal equity involves six steps. Enumerate and explain this process.

While the Fair Labor Standards Act dictates that employers pay workers overtime for each hour they work over 40 hours in a week, it does not dictate the rate they must be paid. Employers may pay anywhere from 1/2 to 2 times their regular wage.

An emphasis on external equity is most important for:

The package of quantifiable rewards an employee receives for his/her labors is called ________.

Companies that pay employees at rates above the market are generally:

What is comparable worth? What role does job evaluation play in arguments for and against comparable worth?

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

The Equal Pay Act prohibits compensation discrimination between men and women doing substantially the same job, EXCEPT when:

Balancing equity ensures that employees with seniority will receive greater compensation than more recent hires.

Above-market compensation policies are more likely to:

Pay incentives make up the greatest percentage of total compensation for employees.

Describe the reasons a company would choose below-market or above-market compensation policy and the advantages and disadvantages of open versus secret pay policies.

Egalitarian compensation systems are:

An exempt employee:

Base compensation refers to:

Job-based compensation plans have the advantage of:

Define the concepts of internal and external equity, describing two basic models a company may use, and explain how the objectives of internal and external equity can conflict.

In the opening case in Chapter 10, a secretary complains that janitors make more money than she does. Her complaints and Dr. Smith's response show that Sigma's compensation system:

A performance-contingent compensation system bases pay upon:

An important tool for companies seeking to maintain external equity is the use of:

The process of achieving internal equity involves six steps. Enumerate and explain this process.

While the Fair Labor Standards Act dictates that employers pay workers overtime for each hour they work over 40 hours in a week, it does not dictate the rate they must be paid. Employers may pay anywhere from 1/2 to 2 times their regular wage.

An emphasis on external equity is most important for:

The package of quantifiable rewards an employee receives for his/her labors is called ________.

Companies that pay employees at rates above the market are generally:

What is comparable worth? What role does job evaluation play in arguments for and against comparable worth?

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