Question 1

In the chapter opening vignette "Managing Human Resources at Synapse Group Inc.", the company has chosen a ____________ policy as its organization pay policy.

Accepted Answer

A)  lead 
B)  match the competition 
C)  lag 
D)  containment 
E)  none of the above

Question 2

How can an employer be sure that its employees are being paid at market level?

Accepted Answer

The answer of How can an employer be sure that...

Question 3

In terms of pay mix, high-level executives tend to have proportionately more of their total compensation in _____ than do lower levels of employees.

Accepted Answer

A)  benefits 
B)  base pay 
C)  incentives 
D)  "in-kind" payments 
E)  the pay mix for the various levels of employees is relatively similar until the CEO level

Question 4

Molly works as a market researcher for a manufacturer of baby products. She develops surveys, conducts personal interviews, and tabulates data. Bob is a customer service representative. He spends his days handling customer complaints and writing up the problems and how he solved them. He earns $.50 more per hour than Molly does. On the basis of the _____, Molly believes that she should be paid the same amount as Bob.

Accepted Answer

A)  the theory of comparable worth 
B)  work equality theory 
C)  Fair Labor Standards Act 
D)  Civil Rights Act 
E)  theory of gender-bias

Question 5

Total compensation can facilitate the organization's achievement of several strategic objectives. These include:

Accepted Answer

A)  Attracting, motivating, and retaining the talent required for a sustainable competitive advantage 
B)  Focusing the energy of employees on implementing the organization's particular competitive strategy 
C)  Improving productivity 
D)  Cost containment 
E)  all of the above

Question 6

To establish a prima facie case of wage discrimination under the Equal Pay Act, _____.

Accepted Answer

A)  the plaintiff needs to show that minority employees are paid less for substantially equal jobs 
B)  the plaintiff needs to show that female employees are paid less for substantially equal jobs 
C)  the defendant needs to show that white males are paid no more than minority and female employees doing substantially equal jobs 
D)  the defendant needs to show that there are no male-dominated or female-dominated jobs in the company 
E)  the plaintiff needs to show that female-dominated jobs as a category are paid less than male-dominated jobs as a category

Question 7

In a job-based pay system,

Accepted Answer

A)  People are paid according to the job they hold 
B)  training is essential to attain job flexibility and pay increases for all employees 
C)  pay remains constant unless skill proficiency increases 
D)  salary increases are tied to skill acquisition as measured by competency tests 
E)  unions control compensation levels

Question 8

Simon works for a furniture manufacturer. Since he is not eligible to receive overtime pay, you could assume that Simon:

Accepted Answer

A)  works on the assembly line 
B)  drives one of the company's delivery trucks 
C)  is in management 
D)  works as a secretary 
E)  works on the company's loading dock

Question 9

Employees who perceive their compensation to be lower than that earned by people in similar positions are most likely to:

Accepted Answer

A)  feel that what is good for the company is more important than what is good for the individual 
B)  focus on nonmonetary rewards 
C)  place greater importance on benefits than pay 
D)  feel underrewarded 
E)  feel over-rewarded

Question 10

__________________________ includes direct payments such as salary, wages, and bonuses, and indirect payments such as payments to cover benefits and services.

Accepted Answer

The answer of __________________________ includes direct payments such as salary,...

Exam 10: Developing an Approach to Total Compensation