Question 1

What is a pay policy line? What is its relevance?

Accepted Answer

Mathematically,a pay policy line shows t

Question 2

Cindy and Alex execute the same roles and responsibilities at their organization.However,Alex earns more than Cindy.Under the laws governing equal employment opportunity,which of the following statements will justify the organization's decision to pay Alex more than Cindy?

Accepted Answer

A)  Alex is white,and Cindy is black. 
B)  Alex has more experience than Cindy. 
C)  Cindy has a hearing impairment. 
D)  Men have more stamina,so they can work longer hours. 
E)  Cindy is an immigrant. 
A)  Alex is white,and Cindy is black. 
B)  Alex has more experience than Cindy. 
C)  Cindy has a hearing impairment. 
D)  Men have more stamina,so they can work longer hours. 
E)  Cindy is an immigrant.

Question 3

According to equity theory,employees evaluate job outcomes such as compensation in terms of outputs.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following best defines an organization's job structure?

Accepted Answer

A)  It consists of the relative pay for different jobs within the organization. 
B)  It is the average amount an organization pays for a particular job. 
C)  It comprises the characteristics of jobs that the organization values and chooses to pay. 
D)  It comprises regular pay,overtime pay,and bonuses. 
E)  It refers to the standard amount that employers must pay under federal and state law. 
A)  It consists of the relative pay for different jobs within the organization. 
B)  It is the average amount an organization pays for a particular job. 
C)  It comprises the characteristics of jobs that the organization values and chooses to pay. 
D)  It comprises regular pay,overtime pay,and bonuses. 
E)  It refers to the standard amount that employers must pay under federal and state law.

Question 5

Which of the following is a drawback of setting pay rates based strictly on a pay policy line?

Accepted Answer

A)  It increases the administrative burden of managing the compensation system. 
B)  Employees have difficulty interpreting regression analysis. 
C)  The estimated pay for a job may not reflect conditions in the labor market. 
D)  It increases the costs of surveying the market. 
E)  It groups jobs,which will result in rates of pay for individual jobs that precisely match the levels specified by the market. 
A)  It increases the administrative burden of managing the compensation system. 
B)  Employees have difficulty interpreting regression analysis. 
C)  The estimated pay for a job may not reflect conditions in the labor market. 
D)  It increases the costs of surveying the market. 
E)  It groups jobs,which will result in rates of pay for individual jobs that precisely match the levels specified by the market.

Question 6

The Davis-Bacon Act of 1931

Accepted Answer

A)  requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. 
B)  mandates that employers pay higher wages for overtime,defined as hours worked beyond 40 hours per week. 
C)  requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. 
D)  covers all government contractors receiving $10,000 or more in federal funds. 
E)  covers construction contractors that receive more than $2,000 in federal money. 
A)  requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. 
B)  mandates that employers pay higher wages for overtime,defined as hours worked beyond 40 hours per week. 
C)  requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. 
D)  covers all government contractors receiving $10,000 or more in federal funds. 
E)  covers construction contractors that receive more than $2,000 in federal money.

Question 7

Teno Industries Inc.is a manufacturing company based in Texas.In the year after Teno Industries implemented a comparable-worth policy,its expenses increased,and as a result,profits declined.What difficulty of comparable-worth policies does this example illustrate?

Accepted Answer

A)  The employer is at an economic disadvantage because of increased pay for some jobs. 
B)  The policy overlooks the undervalued work performed by women. 
C)  The policy uses job enrichment to establish a pay structure based on market rates. 
D)  The employer ignores the evaluation points for each job. 
E)  Employees in lower-paid jobs are encouraged to meet the goal of comparable worth. 
A)  The employer is at an economic disadvantage because of increased pay for some jobs. 
B)  The policy overlooks the undervalued work performed by women. 
C)  The policy uses job enrichment to establish a pay structure based on market rates. 
D)  The employer ignores the evaluation points for each job. 
E)  Employees in lower-paid jobs are encouraged to meet the goal of comparable worth.

Question 8

Product markets place an upper limit on the pay an organization will offer.This upper limit is significant when the organization's total costs are mainly comprised of labor costs,and when price is a significant factor for the organization's consumers.

Accepted Answer

A) True 
 B)False

Question 9

Pentrall,a healthcare company,provides a lower training rate to its employees belonging to the age group of 18 to 19 years.The rate is applicable for a period of 90 days.In this case,which of the following laws will justify the organization's decision to pay the lower pay?

Accepted Answer

A)  laws governing equal employment opportunity 
B)  Fair Labor Standards Act (FLS
A) provisions for minimum wage 
C)  Fair Labor Standards Act (FLS
A) provisions for overtime 
D)  laws governing prevailing wages 
E)  Fair Labor Standards Act (FLS
A) provisions for child labor 
A)  laws governing equal employment opportunity 
B)  Fair Labor Standards Act (FLS
A) provisions for minimum wage 
C)  Fair Labor Standards Act (FLS
A) provisions for overtime 
D)  laws governing prevailing wages 
E)  Fair Labor Standards Act (FLS
A) provisions for child labor

Question 10

The laws governing Equal Employment Opportunity guarantee equal pay for all employees of an organization.

Accepted Answer

A) True 
 B)False

Question 11

When job structure conflicts with market data,organizations should base their pay only on market forces because this approach does not have any practical drawbacks.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a disadvantage of skill-based pay systems?

Accepted Answer

A)  It makes organizations inflexible. 
B)  It reduces employee empowerment. 
C)  It may result in paying employees for skills they don't use. 
D)  It reduces opportunities for promoting employees. 
E)  It limits the number of pay levels by delayering. 
A)  It makes organizations inflexible. 
B)  It reduces employee empowerment. 
C)  It may result in paying employees for skills they don't use. 
D)  It reduces opportunities for promoting employees. 
E)  It limits the number of pay levels by delayering.

Question 13

Under the FLSA,children aged 14 and 15 may not be employed outside school hours.

Accepted Answer

A) True 
 B)False

Question 14

John is the head of the insurance claims department.John works for longer hours than his subordinates,however,he is not paid overtime for working more than 40 hours per week.Under the FLSA,which of the following will justify the organization's decision not to give John overtime pay?

Accepted Answer

A)  John is not a U.S.citizen. 
B)  John comes from an economically strong background. 
C)  John is unmarried. 
D)  John is considered as an exempt employee. 
E)  John has lower educational qualifications than his subordinates. 
A)  John is not a U.S.citizen. 
B)  John comes from an economically strong background. 
C)  John is unmarried. 
D)  John is considered as an exempt employee. 
E)  John has lower educational qualifications than his subordinates.

Question 15

Which of the following statements is true of the FLSA requirements for overtime pay?

Accepted Answer

A)  The overtime rate is one and a half times the employee's hourly rate,excluding any bonuses or piece-rate payments. 
B)  Time worked includes hours spent on production or sales,but not on activities such as attending required classes,cleaning up the work site,and so on. 
C)  Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. 
D)  Everyone is eligible for overtime pay. 
E)  Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay. 
A)  The overtime rate is one and a half times the employee's hourly rate,excluding any bonuses or piece-rate payments. 
B)  Time worked includes hours spent on production or sales,but not on activities such as attending required classes,cleaning up the work site,and so on. 
C)  Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. 
D)  Everyone is eligible for overtime pay. 
E)  Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.

Question 16

Organizations use pay surveys to benchmark compensation.

Accepted Answer

A) True 
 B)False

Question 17

Pay ranges are most common for _____.

Accepted Answer

A)  white-collar jobs 
B)  piece-rate jobs 
C)  jobs that are covered by union contracts 
D)  automotive workers 
E)  construction workers 
A)  white-collar jobs 
B)  piece-rate jobs 
C)  jobs that are covered by union contracts 
D)  automotive workers 
E)  construction workers

Question 18

Which of the following statements is true about labor markets?

Accepted Answer

A)  Organizations compete to sell labor in the labor market. 
B)  Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. 
C)  Changes in the CPI do not affect the labor market. 
D)  Cost-of-living considerations have little impact on labor-market rates. 
E)  An organization's competitors in labor markets only include companies with different products. 
A)  Organizations compete to sell labor in the labor market. 
B)  Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. 
C)  Changes in the CPI do not affect the labor market. 
D)  Cost-of-living considerations have little impact on labor-market rates. 
E)  An organization's competitors in labor markets only include companies with different products.

Question 19

Instruck Inc.is a real estate firm based in Colorado.The company ensures that employees' pay is dependent on what they are capable of doing.The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas.This,in turn,ensures job enrichment.Based on this information,identify the pay structure being utilized by Instruck.

Accepted Answer

A)  straight piecework plan 
B)  skill-based pay systems 
C)  merit pay system 
D)  differential piece rates 
E)  standard hour plan 
A)  straight piecework plan 
B)  skill-based pay systems 
C)  merit pay system 
D)  differential piece rates 
E)  standard hour plan

Question 20

Perlis Inc.is a whole-foods distributor.Its human resource department gathers the following data for computing compa-ratios of some positions.Based on the data,for which position is Perlis most likely underpaying for human resources?

Accepted Answer

A)  shipping clerks: average salary of $22,000,range midpoint of $24,000 
B)  inventory clerks: average salary of $20,000,range midpoint of $30,000 
C)  order packers: average salary of $24,000,range midpoint of $22,000 
D)  purchasing agents: average salary of $30,000,range midpoint of $20,000 
E)  warehouse workers: average salary of $20,000,range midpoint of $20,000 
A)  shipping clerks: average salary of $22,000,range midpoint of $24,000 
B)  inventory clerks: average salary of $20,000,range midpoint of $30,000 
C)  order packers: average salary of $24,000,range midpoint of $22,000 
D)  purchasing agents: average salary of $30,000,range midpoint of $20,000 
E)  warehouse workers: average salary of $20,000,range midpoint of $20,000

What is a pay policy line? What is its relevance?

Cindy and Alex execute the same roles and responsibilities at their organization.However,Alex earns more than Cindy.Under the laws governing equal employment opportunity,which of the following statements will justify the organization's decision to pay Alex more than Cindy?

According to equity theory,employees evaluate job outcomes such as compensation in terms of outputs.

Which of the following best defines an organization's job structure?

Which of the following is a drawback of setting pay rates based strictly on a pay policy line?

The Davis-Bacon Act of 1931

Teno Industries Inc.is a manufacturing company based in Texas.In the year after Teno Industries implemented a comparable-worth policy,its expenses increased,and as a result,profits declined.What difficulty of comparable-worth policies does this example illustrate?

Product markets place an upper limit on the pay an organization will offer.This upper limit is significant when the organization's total costs are mainly comprised of labor costs,and when price is a significant factor for the organization's consumers.

Pentrall,a healthcare company,provides a lower training rate to its employees belonging to the age group of 18 to 19 years.The rate is applicable for a period of 90 days.In this case,which of the following laws will justify the organization's decision to pay the lower pay?

The laws governing Equal Employment Opportunity guarantee equal pay for all employees of an organization.

When job structure conflicts with market data,organizations should base their pay only on market forces because this approach does not have any practical drawbacks.

Which of the following is a disadvantage of skill-based pay systems?

Under the FLSA,children aged 14 and 15 may not be employed outside school hours.

John is the head of the insurance claims department.John works for longer hours than his subordinates,however,he is not paid overtime for working more than 40 hours per week.Under the FLSA,which of the following will justify the organization's decision not to give John overtime pay?

Which of the following statements is true of the FLSA requirements for overtime pay?

Organizations use pay surveys to benchmark compensation.

Pay ranges are most common for _____.

Which of the following statements is true about labor markets?

Perlis Inc.is a whole-foods distributor.Its human resource department gathers the following data for computing compa-ratios of some positions.Based on the data,for which position is Perlis most likely underpaying for human resources?

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

What is a pay policy line? What is its relevance?

Cindy and Alex execute the same roles and responsibilities at their organization.However,Alex earns more than Cindy.Under the laws governing equal employment opportunity,which of the following statements will justify the organization's decision to pay Alex more than Cindy?

According to equity theory,employees evaluate job outcomes such as compensation in terms of outputs.

Which of the following best defines an organization's job structure?

Which of the following is a drawback of setting pay rates based strictly on a pay policy line?

The Davis-Bacon Act of 1931

Teno Industries Inc.is a manufacturing company based in Texas.In the year after Teno Industries implemented a comparable-worth policy,its expenses increased,and as a result,profits declined.What difficulty of comparable-worth policies does this example illustrate?

Product markets place an upper limit on the pay an organization will offer.This upper limit is significant when the organization's total costs are mainly comprised of labor costs,and when price is a significant factor for the organization's consumers.

Pentrall,a healthcare company,provides a lower training rate to its employees belonging to the age group of 18 to 19 years.The rate is applicable for a period of 90 days.In this case,which of the following laws will justify the organization's decision to pay the lower pay?

The laws governing Equal Employment Opportunity guarantee equal pay for all employees of an organization.

When job structure conflicts with market data,organizations should base their pay only on market forces because this approach does not have any practical drawbacks.

Which of the following is a disadvantage of skill-based pay systems?

Under the FLSA,children aged 14 and 15 may not be employed outside school hours.

John is the head of the insurance claims department.John works for longer hours than his subordinates,however,he is not paid overtime for working more than 40 hours per week.Under the FLSA,which of the following will justify the organization's decision not to give John overtime pay?

Which of the following statements is true of the FLSA requirements for overtime pay?

Organizations use pay surveys to benchmark compensation.

Pay ranges are most common for _____.

Which of the following statements is true about labor markets?

Perlis Inc.is a whole-foods distributor.Its human resource department gathers the following data for computing compa-ratios of some positions.Based on the data,for which position is Perlis most likely underpaying for human resources?

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