Question 1

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Accepted Answer

The FLSA establishes a minimum wage and requirements for overtime pay and child labor:
1)Minimum Wage: At the federal level,the 1938 FLSA establishes a minimum wage that is now $7.25 per hour.The FLSA also permits a lower "training wage," which employers may pay to workers under the age of 20 for a period of up to 90 days.This wage represents about 85 percent of the minimum wage.Some states have laws specifying minimum wages,and in these states,employers must pay whichever rate is higher.
2)Overtime Pay: The overtime rate under the FLSA is one and a half times the employee's usual hourly rate,including any bonuses and piece-rate payments.The overtime rate applies to the hours worked beyond 40 in one week.Time worked includes not only hours spent on production or sales,but also time on such activities as attending required classes,cleaning up the work site,or traveling between work sites.In addition,overtime is required whether or not the employer specifically asked or expected the employee to work the extra hours.Under the FLSA,executives,professionals,administrative personnel,and highly compensated white-collar employees are exempt from the overtime pay requirements.
3)Child Labor: The FLSA restricts the use of child labor,with the aim of protecting children's health,safety,and educational opportunities.The restrictions apply to children younger than 18.Under the FLSA,children aged 16 and 17 may not be employed in hazardous occupations,while children aged 14 and 15 may work only outside school hours in jobs defined as nonhazardous and for limited periods of time.A child under age 14 may not be employed in any work associated with interstate commerce,except work performed in a nonhazardous job for a business entirely owned by the child's parent or guardian.A few additional exemptions from this ban include acting,babysitting,and delivering newspapers to consumers.

Question 2

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to:

Accepted Answer

A)  increase the overlap from one level to the next. 
B)  reduce its compa-ratio to less than 1. 
C)  implement a broad-band pay structure. 
D)  limit the overlap from one pay range to the next. 
E)  use a fixed interval promotion policy. 
A)  increase the overlap from one level to the next. 
B)  reduce its compa-ratio to less than 1. 
C)  implement a broad-band pay structure. 
D)  limit the overlap from one pay range to the next. 
E)  use a fixed interval promotion policy. D

Question 3

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936,federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.The calculation of prevailing rates must be based on _____ percent of the local labor force.

Accepted Answer

A)  2 
B)  5 
C)  10 
D)  20 
E)  30 
A)  2 
B)  5 
C)  10 
D)  20 
E)  30 E

Question 4

A graphed line showing the mathematical relationship between job evaluation points and pay rate is termed as a(n):

Accepted Answer

A)  job evaluation line. 
B)  pay policy line. 
C)  equity line. 
D)  aggregate income line. 
E)  comprehensive appraisal line. 
A)  job evaluation line. 
B)  pay policy line. 
C)  equity line. 
D)  aggregate income line. 
E)  comprehensive appraisal line.

Question 5

Which of the following is true of pay ranges?

Accepted Answer

A)  Pay ranges are most common for blue-collar jobs and those covered by union contracts. 
B)  Pay ranges are often widest for employees who are at lower levels in terms of their job evaluation points. 
C)  Pay ranges generally are designed so that they do not overlap. 
D)  The market rate or the pay policy line generally serves as the midpoint of a range for the job. 
E)  The less overlap, the more flexibility in transferring employees among jobs. 
A)  Pay ranges are most common for blue-collar jobs and those covered by union contracts. 
B)  Pay ranges are often widest for employees who are at lower levels in terms of their job evaluation points. 
C)  Pay ranges generally are designed so that they do not overlap. 
D)  The market rate or the pay policy line generally serves as the midpoint of a range for the job. 
E)  The less overlap, the more flexibility in transferring employees among jobs.

Question 6

Assuming that the pay structure is well planned to support the organization's goals,the compa-ratios should be close to:

Accepted Answer

A)  0.5. 
B)  1.5. 
C)  2. 
D)  1. 
E)  0. 
A)  0.5. 
B)  1.5. 
C)  2. 
D)  1. 
E)  0.

Question 7

Product markets do not place any limit on the pay an organization will offer.

Accepted Answer

A) True 
 B)False

Question 8

An employee who earns a base rate of $10 an hour and receives a weekly attendance award of $20 works 50 hours this week (Overtime pay is required,whether or not the employer specifically asked or expected the employee to work more than 40 hours).His/her total compensation for the week will be:

Accepted Answer

A)  $550.00. 
B)  $557.50. 
C)  $570.00. 
D)  $577.50. 
E)  $505.00. 
A)  $550.00. 
B)  $557.50. 
C)  $570.00. 
D)  $577.50. 
E)  $505.00.

Question 9

Which of the following is true about the Consumer Price Index (CPI)?

Accepted Answer

A)  It helps product markets place an upper limit on the pay an organization will offer. 
B)  Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. 
C)  It helps organizations lure top-quality employees. 
D)  The CPI helps control labor market's demand for pay increases. 
E)  It helps organizations to compete with companies in other industries that hire similar employees. 
A)  It helps product markets place an upper limit on the pay an organization will offer. 
B)  Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. 
C)  It helps organizations lure top-quality employees. 
D)  The CPI helps control labor market's demand for pay increases. 
E)  It helps organizations to compete with companies in other industries that hire similar employees.

Question 10

A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.

Accepted Answer

A)  bonus 
B)  pay differential 
C)  green-circle rate 
D)  rank-and-file adjustment 
E)  red-circle rate 
A)  bonus 
B)  pay differential 
C)  green-circle rate 
D)  rank-and-file adjustment 
E)  red-circle rate

Question 11

_____ play the most significant role in communication because they interact with their employees each day.

Accepted Answer

A)  CEOs 
B)  Directors 
C)  Subordinates 
D)  HR professionals 
E)  Managers 
A)  CEOs 
B)  Directors 
C)  Subordinates 
D)  HR professionals 
E)  Managers

Question 12

The comparable-worth policy:

Accepted Answer

A)  advocates remedies for any undervaluation of jobs based on market-pay data. 
B)  is designed to reduce the wage gap between women and minority groups. 
C)  has been consistently upheld in court rulings. 
D)  uses job evaluation of an organization's jobs in terms of such criteria as their difficulty. 
E)  is the only non-controversial pay policy. 
A)  advocates remedies for any undervaluation of jobs based on market-pay data. 
B)  is designed to reduce the wage gap between women and minority groups. 
C)  has been consistently upheld in court rulings. 
D)  uses job evaluation of an organization's jobs in terms of such criteria as their difficulty. 
E)  is the only non-controversial pay policy.

Question 13

_____ is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job.

Accepted Answer

A)  Pay grade 
B)  Pay range 
C)  Pay differential 
D)  Compa-ratio 
E)  Compensation differential 
A)  Pay grade 
B)  Pay range 
C)  Pay differential 
D)  Compa-ratio 
E)  Compensation differential

Question 14

_____ is an administrative procedure for measuring the relative worth of an organization's jobs.

Accepted Answer

A)  Job analysis 
B)  Job determination 
C)  Job evaluation 
D)  Job identification 
E)  Job description 
A)  Job analysis 
B)  Job determination 
C)  Job evaluation 
D)  Job identification 
E)  Job description

Question 15

_____ provide the basis for decisions about relative internal worth.

Accepted Answer

A)  Benchmarks 
B)  Pay structures 
C)  Job evaluations 
D)  Pay rates 
E)  Two-tier wage systems 
A)  Benchmarks 
B)  Pay structures 
C)  Job evaluations 
D)  Pay rates 
E)  Two-tier wage systems

Question 16

Identify the legal requirement(s)for developing a pay structure.

Accepted Answer

A)  Product markets 
B)  High-quality workforce 
C)  Equity and fairness 
D)  Overtime pay 
E)  Pay differentials 
A)  Product markets 
B)  High-quality workforce 
C)  Equity and fairness 
D)  Overtime pay 
E)  Pay differentials

Question 17

Under the FLSA,which of the following statements is true of child labor?

Accepted Answer

A)  Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. 
B)  Children aged 14 and 15 may not be employed in any work associated with interstate commerce. 
C)  The FLSA's restrictions on the use of child labor apply to children younger than 18. 
D)  Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. 
E)  All the states have laws requiring working papers or work permits for minors. 
A)  Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. 
B)  Children aged 14 and 15 may not be employed in any work associated with interstate commerce. 
C)  The FLSA's restrictions on the use of child labor apply to children younger than 18. 
D)  Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. 
E)  All the states have laws requiring working papers or work permits for minors.

Question 18

When job structure and market data conflict,organizations should base their pay only on market forces because this is the only approach that does not have any practical drawbacks.

Accepted Answer

A) True 
 B)False

Question 19

In terms of compensation,benchmarking involves the use of pay surveys.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  pay rates 
B)  pay ranges 
C)  pay policies 
D)  pay differentials 
E)  pay ranks 
A)  pay rates 
B)  pay ranges 
C)  pay policies 
D)  pay differentials 
E)  pay ranks

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to:

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936,federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.The calculation of prevailing rates must be based on _____ percent of the local labor force.

A graphed line showing the mathematical relationship between job evaluation points and pay rate is termed as a(n):

Which of the following is true of pay ranges?

Assuming that the pay structure is well planned to support the organization's goals,the compa-ratios should be close to:

Product markets do not place any limit on the pay an organization will offer.

An employee who earns a base rate of $10 an hour and receives a weekly attendance award of $20 works 50 hours this week (Overtime pay is required,whether or not the employer specifically asked or expected the employee to work more than 40 hours).His/her total compensation for the week will be:

Which of the following is true about the Consumer Price Index (CPI)?

A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.

_____ play the most significant role in communication because they interact with their employees each day.

The comparable-worth policy:

_____ is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job.

_____ is an administrative procedure for measuring the relative worth of an organization's jobs.

_____ provide the basis for decisions about relative internal worth.

Identify the legal requirement(s)for developing a pay structure.

Under the FLSA,which of the following statements is true of child labor?

When job structure and market data conflict,organizations should base their pay only on market forces because this is the only approach that does not have any practical drawbacks.

In terms of compensation,benchmarking involves the use of pay surveys.

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

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Managing Employees Performance

Developing Employees for Future Success

Separating and Retaining Employees

Recognizing Employee Contributions With Pay

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Creating and Maintaining High-Performance Organizations

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Exam 11: Establishing a Pay Structure

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to:

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936,federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.The calculation of prevailing rates must be based on _____ percent of the local labor force.

A graphed line showing the mathematical relationship between job evaluation points and pay rate is termed as a(n):

Which of the following is true of pay ranges?

Assuming that the pay structure is well planned to support the organization's goals,the compa-ratios should be close to:

Product markets do not place any limit on the pay an organization will offer.

An employee who earns a base rate of $10 an hour and receives a weekly attendance award of $20 works 50 hours this week (Overtime pay is required,whether or not the employer specifically asked or expected the employee to work more than 40 hours).His/her total compensation for the week will be:

Which of the following is true about the Consumer Price Index (CPI)?

A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.

_____ play the most significant role in communication because they interact with their employees each day.

The comparable-worth policy:

_____ is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job.

_____ is an administrative procedure for measuring the relative worth of an organization's jobs.

_____ provide the basis for decisions about relative internal worth.

Identify the legal requirement(s)for developing a pay structure.

Under the FLSA,which of the following statements is true of child labor?

When job structure and market data conflict,organizations should base their pay only on market forces because this is the only approach that does not have any practical drawbacks.

In terms of compensation,benchmarking involves the use of pay surveys.

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

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Managing Employees Performance

Developing Employees for Future Success

Separating and Retaining Employees

Recognizing Employee Contributions With Pay

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Creating and Maintaining High-Performance Organizations

Filters