Question 1

Which of the following provisions is included in the Fair Labor Standards Act (FLSA)?

Accepted Answer

A)  personal finance 
B)  minimum wage 
C)  wage discrimination 
D)  environmental hazards 
E)  retirement plans 
A)  personal finance 
B)  minimum wage 
C)  wage discrimination 
D)  environmental hazards 
E)  retirement plans

Question 2

Organizations under pressure to cut labor costs may respond by

Accepted Answer

A)  retaining staff levels. 
B)  providing pay increases to prevent employee turnover. 
C)  postponing hiring decisions. 
D)  requiring employees to bear less of the cost of benefits such as insurance premiums. 
E)  avoiding automation of routine tasks. 
A)  retaining staff levels. 
B)  providing pay increases to prevent employee turnover. 
C)  postponing hiring decisions. 
D)  requiring employees to bear less of the cost of benefits such as insurance premiums. 
E)  avoiding automation of routine tasks.

Question 3

Pay level is the total amount an employee pays to the organization.

Accepted Answer

A) True 
 B)False

Question 4

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

Accepted Answer

A) True 
 B)False

Question 5

Hamish Life,an insurance company,defines the difference in pay between an entry-level recruiter and an entry-level assembler,as well as the difference between an entry-level recruiter,an HR manager,and the vice president of the human resource department.Which of the following is being exemplified in this scenario?

Accepted Answer

A)  straight piecework plan 
B)  job structure 
C)  merit pay system 
D)  pay differential 
E)  balanced scorecard 
A)  straight piecework plan 
B)  job structure 
C)  merit pay system 
D)  pay differential 
E)  balanced scorecard

Question 6

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 broadband 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 broadband pay structure. 
D)  limit the overlap from one pay range to the next. 
E)  use a fixed interval promotion policy.

Question 7

Which of the following is a characteristic of delayering?

Accepted Answer

A)  It increases an organization's flexibility. 
B)  It increases the opportunities for promoting employees. 
C)  It sets pay according to the employees' level of knowledge. 
D)  It encourages a climate of learning. 
E)  It decreases the flexibility of managers in making assignments. 
A)  It increases an organization's flexibility. 
B)  It increases the opportunities for promoting employees. 
C)  It sets pay according to the employees' level of knowledge. 
D)  It encourages a climate of learning. 
E)  It decreases the flexibility of managers in making assignments.

Question 8

Which of the following statements is true about a product market?

Accepted Answer

A)  The cost of labor does not affect the product market because it is an insignificant part of an organization's costs. 
B)  Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price. 
C)  Organizations in a product market are competing to serve the same customers. 
D)  Product markets typically place a lower limit on the pay an organization will offer its employees. 
E)  Organizations in a product market must increase the cost of labor every quarter. 
A)  The cost of labor does not affect the product market because it is an insignificant part of an organization's costs. 
B)  Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price. 
C)  Organizations in a product market are competing to serve the same customers. 
D)  Product markets typically place a lower limit on the pay an organization will offer its employees. 
E)  Organizations in a product market must increase the cost of labor every quarter.

Question 9

Which of the following 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 10

Key jobs are uncommon and have unstable content,making them very difficult to evaluate using pay surveys.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Mark and Chloe hold the same position at Rue & West Bros.However,Mark earns more than Chloe.Which of the following will justify the organization's decision to pay Mark more than Chloe?

Accepted Answer

A)  Mark meets higher productivity targets than Chloe. 
B)  Mark comes from an economically weaker background. 
C)  Mark is male. 
D)  Chloe is younger than Mark. 
E)  Chloe is not a U.S.citizen. 
A)  Mark meets higher productivity targets than Chloe. 
B)  Mark comes from an economically weaker background. 
C)  Mark is male. 
D)  Chloe is younger than Mark. 
E)  Chloe is not a U.S.citizen.

Question 13

Military pay often exceeds what service members would earn in their civilian jobs.

Accepted Answer

A) True 
 B)False

Question 14

Capnos Inc. ,an insurance company,incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

Accepted Answer

A)  benchmarking 
B)  job evaluation 
C)  regression analysis 
D)  delayering 
E)  pay structuring 
A)  benchmarking 
B)  job evaluation 
C)  regression analysis 
D)  delayering 
E)  pay structuring

Question 15

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

Accepted Answer

A)  John works the night shift,and night hours are less desirable for most workers. 
B)  John is a U.S.citizen;therefore his pay should be higher than that of non-Americans. 
C)  Lisa is pregnant;therefore her productivity is assumed to be lower. 
D)  John is physically disabled;therefore he should be paid more than Lisa. 
E)  Lisa lives in a location where living expenses are higher. 
A)  John works the night shift,and night hours are less desirable for most workers. 
B)  John is a U.S.citizen;therefore his pay should be higher than that of non-Americans. 
C)  Lisa is pregnant;therefore her productivity is assumed to be lower. 
D)  John is physically disabled;therefore he should be paid more than Lisa. 
E)  Lisa lives in a location where living expenses are higher.

Question 16

How do organizations compare actual pay to pay structure?

Accepted Answer

As part of its management responsibility

Question 17

Which of the following 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 18

Which of the following statements is true about skill-based pay?

Accepted Answer

A)  Skill-based pay provides a way to ensure that employees can use their new skills. 
B)  Gathering market data about skill-based pay is easy. 
C)  Skill-based pay ensures that the employer pays the employee for learning skills that benefit the employer. 
D)  Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. 
E)  Skill-based pay does not require records related to skills,training,and knowledge acquired. 
A)  Skill-based pay provides a way to ensure that employees can use their new skills. 
B)  Gathering market data about skill-based pay is easy. 
C)  Skill-based pay ensures that the employer pays the employee for learning skills that benefit the employer. 
D)  Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. 
E)  Skill-based pay does not require records related to skills,training,and knowledge acquired.

Question 19

If the average pay is below the midpoint of an organization,the compa-ratio is 1.

Accepted Answer

A) True 
 B)False

Question 20

According to the FLSA,which of the following individuals is most likely a nonexempt employee?

Accepted Answer

A)  the CEO 
B)  a senior administrative employee 
C)  an hourly paid employee 
D)  an HR manager 
E)  the director of marketing 
A)  the CEO 
B)  a senior administrative employee 
C)  an hourly paid employee 
D)  an HR manager 
E)  the director of marketing

Which of the following provisions is included in the Fair Labor Standards Act (FLSA)?

Organizations under pressure to cut labor costs may respond by

Pay level is the total amount an employee pays to the organization.

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

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

Which of the following is a characteristic of delayering?

Which of the following statements is true about a product market?

Which of the following is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job?

Key jobs are uncommon and have unstable content,making them very difficult to evaluate using pay surveys.

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

Mark and Chloe hold the same position at Rue & West Bros.However,Mark earns more than Chloe.Which of the following will justify the organization's decision to pay Mark more than Chloe?

Military pay often exceeds what service members would earn in their civilian jobs.

Capnos Inc. ,an insurance company,incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

How do organizations compare actual pay to pay structure?

Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

Which of the following statements is true about skill-based pay?

If the average pay is below the midpoint of an organization,the compa-ratio is 1.

According to the FLSA,which of the following individuals is most likely a nonexempt employee?

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

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Recognizing Employee Contributions With Pay

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Filters

Exam 12: Establishing a Pay Structure

Which of the following provisions is included in the Fair Labor Standards Act (FLSA)?

Organizations under pressure to cut labor costs may respond by

Pay level is the total amount an employee pays to the organization.

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

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

Which of the following is a characteristic of delayering?

Which of the following statements is true about a product market?

Which of the following is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job?

Key jobs are uncommon and have unstable content,making them very difficult to evaluate using pay surveys.

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

Mark and Chloe hold the same position at Rue & West Bros.However,Mark earns more than Chloe.Which of the following will justify the organization's decision to pay Mark more than Chloe?

Military pay often exceeds what service members would earn in their civilian jobs.

Capnos Inc. ,an insurance company,incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

How do organizations compare actual pay to pay structure?

Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

Which of the following statements is true about skill-based pay?

If the average pay is below the midpoint of an organization,the compa-ratio is 1.

According to the FLSA,which of the following individuals is most likely a nonexempt employee?

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

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Recognizing Employee Contributions With Pay

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Filters