Question 1

Which of the following statements is true of Equal Employment Opportunity laws?

Accepted Answer

A)  These laws guarantee equal pay for whites and minorities. 
B)  The goal of these laws is for employers to provide equal pay for equal work. 
C)  Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. 
D)  These laws guarantee equal pay for men and women. 
E)  Under these laws, employers cannot tie differences in pay to business-related considerations. 
A)  These laws guarantee equal pay for whites and minorities. 
B)  The goal of these laws is for employers to provide equal pay for equal work. 
C)  Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. 
D)  These laws guarantee equal pay for men and women. 
E)  Under these laws, employers cannot tie differences in pay to business-related considerations.

Question 2

Compensable factors are job characteristics that an organization values and chooses to pay for.

Accepted Answer

A) True 
 B)False

Question 3

Economic theory holds that the most profitable pay level,all things being equal,would be:

Accepted Answer

A)  below the market rate. 
B)  at the market rate. 
C)  above the market rate. 
D)  anywhere within (slightly above or slightly below) the market-rate range. 
E)  the pay level that is lower than that of the lowest paying organization. 
A)  below the market rate. 
B)  at the market rate. 
C)  above the market rate. 
D)  anywhere within (slightly above or slightly below) the market-rate range. 
E)  the pay level that is lower than that of the lowest paying organization.

Question 4

Pay policies are one of the most important human resource tools for:

Accepted Answer

A)  reducing competition in the product market. 
B)  automating routine activities. 
C)  persuading customers that high quality is worth a premium price. 
D)  making decisions about product pricing. 
E)  encouraging desired employee behaviors. 
A)  reducing competition in the product market. 
B)  automating routine activities. 
C)  persuading customers that high quality is worth a premium price. 
D)  making decisions about product pricing. 
E)  encouraging desired employee behaviors.

Question 5

The 1938 FLSA requires federal contractors to pay local or area prevailing wage rates.

Accepted Answer

A) True 
 B)False

Question 6

Define hourly wage,piecework rate,and salary.

Accepted Answer

The organization's pay structure should

Question 7

Which of the following is true of the Fair Labor Standards Act (FLSA)?

Accepted Answer

A)  The overtime rate under the FLSA is two and a half times the employee's hourly rate. 
B)  It requires federal contractors to pay less than the prevailing wage rate. 
C)  It permits a subminimum training wage equal to 95% of the minimum wage. 
D)  Nonexempt employees are covered by FLSA and include most hourly workers. 
E)  Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees. 
A)  The overtime rate under the FLSA is two and a half times the employee's hourly rate. 
B)  It requires federal contractors to pay less than the prevailing wage rate. 
C)  It permits a subminimum training wage equal to 95% of the minimum wage. 
D)  Nonexempt employees are covered by FLSA and include most hourly workers. 
E)  Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees.

Question 8

Paying a salary does not necessarily mean a job is exempt.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The compa-ratio:

Accepted Answer

A)  measures the degree to which actual pay is consistent with the pay policy. 
B)  is defined as average pay for the grade divided by the minimum pay for the grade. 
C)  can range from 0 to 100 percent. 
D)  uses data from market-pay surveys. 
E)  measures the degree to which new skills learnt are consistent with the increases in pay. 
A)  measures the degree to which actual pay is consistent with the pay policy. 
B)  is defined as average pay for the grade divided by the minimum pay for the grade. 
C)  can range from 0 to 100 percent. 
D)  uses data from market-pay surveys. 
E)  measures the degree to which new skills learnt are consistent with the increases in pay.

Question 11

_____ means that the employee is paid a given amount regardless of the number of hours worked or quality of the work.

Accepted Answer

A)  Pay level 
B)  Nonexemption 
C)  Pay policy line 
D)  Piecework rate 
E)  Salary basis 
A)  Pay level 
B)  Nonexemption 
C)  Pay policy line 
D)  Piecework rate 
E)  Salary basis

Question 12

How do organizations compare actual pay to pay structure?

Accepted Answer

As part of its management responsibility

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Issues affecting an organization's pay structure do not affect its general reputation.

Accepted Answer

A) True 
 B)False

Question 15

Following and studying changes in the _____ can help employers prepare for changes in the demands of the labor market.

Accepted Answer

A)  Living-Wage Index 
B)  Consumer Price Index 
C)  Gross National Product 
D)  Exchange Rate Index 
E)  interest rate 
A)  Living-Wage Index 
B)  Consumer Price Index 
C)  Gross National Product 
D)  Exchange Rate Index 
E)  interest rate

Question 16

A pay policy line:

Accepted Answer

A)  shows the mathematical relationship between the minimum pay and the maximum pay in an organization. 
B)  can be generated using a statistical procedure called regression analysis. 
C)  requires market-pay-rate data on all jobs in the organization. 
D)  can be used to estimate the minimum pay level for a given job evaluation. 
E)  reflects the pay structure in the market, which always matches rates in the organization. 
A)  shows the mathematical relationship between the minimum pay and the maximum pay in an organization. 
B)  can be generated using a statistical procedure called regression analysis. 
C)  requires market-pay-rate data on all jobs in the organization. 
D)  can be used to estimate the minimum pay level for a given job evaluation. 
E)  reflects the pay structure in the market, which always matches rates in the organization.

Question 17

How does equity theory justify the high pay of CEOs?

Accepted Answer

The issue of executive pay is relevant t

Question 18

Which of the following is true of compensable factors?

Accepted Answer

A)  They are generally statistically derived. 
B)  They are the characteristics of jobs that a firm values and chooses to pay for. 
C)  They refer to the factors that are important for setting the two-tier wage system. 
D)  They describe all aspects of the jobs being evaluated. 
E)  They are used to ensure equity among employees. 
A)  They are generally statistically derived. 
B)  They are the characteristics of jobs that a firm values and chooses to pay for. 
C)  They refer to the factors that are important for setting the two-tier wage system. 
D)  They describe all aspects of the jobs being evaluated. 
E)  They are used to ensure equity among employees.

Question 19

What is skill-based pay? What are its advantages and disadvantages?

Accepted Answer

Skill-based pay systems are pay structur

Question 20

The procedure in which an organization compares its own practices against those of successful competitors is known as:

Accepted Answer

A)  redlining. 
B)  poaching. 
C)  benchmarking. 
D)  profiling. 
E)  delayering. 
A)  redlining. 
B)  poaching. 
C)  benchmarking. 
D)  profiling. 
E)  delayering.

Which of the following statements is true of Equal Employment Opportunity laws?

Compensable factors are job characteristics that an organization values and chooses to pay for.

Economic theory holds that the most profitable pay level,all things being equal,would be:

Pay policies are one of the most important human resource tools for:

The 1938 FLSA requires federal contractors to pay local or area prevailing wage rates.

Define hourly wage,piecework rate,and salary.

Which of the following is true of the Fair Labor Standards Act (FLSA)?

Paying a salary does not necessarily mean a job is exempt.

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

The compa-ratio:

_____ means that the employee is paid a given amount regardless of the number of hours worked or quality of the work.

How do organizations compare actual pay to pay structure?

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

Issues affecting an organization's pay structure do not affect its general reputation.

Following and studying changes in the _____ can help employers prepare for changes in the demands of the labor market.

A pay policy line:

How does equity theory justify the high pay of CEOs?

Which of the following is true of compensable factors?

What is skill-based pay? What are its advantages and disadvantages?

The procedure in which an organization compares its own practices against those of successful competitors is known as:

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

Exam 11: Establishing a Pay Structure

Which of the following statements is true of Equal Employment Opportunity laws?

Compensable factors are job characteristics that an organization values and chooses to pay for.

Economic theory holds that the most profitable pay level,all things being equal,would be:

Pay policies are one of the most important human resource tools for:

The 1938 FLSA requires federal contractors to pay local or area prevailing wage rates.

Define hourly wage,piecework rate,and salary.

Which of the following is true of the Fair Labor Standards Act (FLSA)?

Paying a salary does not necessarily mean a job is exempt.

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

The compa-ratio:

_____ means that the employee is paid a given amount regardless of the number of hours worked or quality of the work.

How do organizations compare actual pay to pay structure?

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

Issues affecting an organization's pay structure do not affect its general reputation.

Following and studying changes in the _____ can help employers prepare for changes in the demands of the labor market.

A pay policy line:

How does equity theory justify the high pay of CEOs?

Which of the following is true of compensable factors?

What is skill-based pay? What are its advantages and disadvantages?

The procedure in which an organization compares its own practices against those of successful competitors is known as:

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