Question 1

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

Accepted Answer

A)   A pay structure that rewards employees for winning promotions will encourage them to gain valuable experience through lateral career moves.
B)   Their focus on higher pay for higher status can work in favor of efforts for empowerment.
C)   They typically reward desired behaviors,particularly in a rapidly changing environment.
D)   Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork.
E)   They always encourage flexibility,innovation,quality,and customer service. D

Question 2

The Walsh-Healy Public Contracts Act of 1936

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)   covers construction contractors that receive more than $2,000 in federal money.
D)   requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing local wage rates.
E)   covers all government contractors receiving $10,000 or more in federal funds. E

Question 3

In a product market,different organizations have exclusive customer bases.

Accepted Answer

A) True 
 B)False  False

Question 4

The pay offered by an organization is not limited by its presence in a product market.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a disadvantage of broad bands?

Accepted Answer

A)   They reduce managers' flexibility in making assignments.
B)   They always result in pay decreases.
C)   They increase the number of levels in the organization's job structure.
D)   They reduce the opportunities for promoting employees.
E)   They discourage employees from gaining valuable experience through lateral career moves.

Question 6

Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Thomas and Alex are welders working for two different divisions of the same company.Both have the same level of experience.However,Thomas earns more than Alex.Under the Fair Labor Standards Act (FLSA),which of the following will justify the organization's decision to pay Thomas more than Alex?

Accepted Answer

A)   Thomas lives in a location where living expenses are higher
B)   Alex is younger than Thomas
C)   Thomas is a U.S.citizen
D)   Alex is physically disabled
E)   Alex works the night shift

Question 9

Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936?

Accepted Answer

A)   Under these laws,individuals aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor.
B)   Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.
C)   The overtime rate applies to the hours worked beyond 45 in one week.
D)   Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days.
E)   Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate.

Question 10

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

Accepted Answer

The answer of What is skill-based pay? What are its...

Question 11

Joy Limon,a manufacturing company,has a pay structure based on job descriptions.As the company moves toward customizing production to meet customers' specific needs,it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees.In this case,which of the following alternatives to job-based pay structures would best help the organization to respond to this problem?

Accepted Answer

A)   straight piecework plan
B)   skill-based pay system
C)   delayering
D)   quality-based pay system
E)   benchmarking

Question 12

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Accepted Answer

A) True 
 B)False

Question 13

An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.

Accepted Answer

A)   pay rates
B)   pay structure
C)   pay differentials
D)   pay grades
E)   pay ranges

Question 14

How does equity theory explain how workers are likely to interpret the high pay of CEOs?

Accepted Answer

The answer of How does equity theory explain how workers...

Question 15

Which of the following is a drawback of a minimum wage in terms of social policy?

Accepted Answer

A)   It assumes people will take differences in pay into account when they choose a career.
B)   It is one and a half times the employee's usual hourly rate.
C)   It applies only to the hours worked beyond 40 in one week.
D)   It places the employer at an economic disadvantage relative to employers that pay the living wage.
E)   It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.

Question 16

Define job structure,pay level,and pay structure.

Accepted Answer

The answer of Define job structure,pay level,and pay structure....

Question 17

Which of the following is an advantage of a two-tier wage system?

Accepted Answer

A)   It helps move jobs out of the country.
B)   It helps eliminate jobs without any legal hassles.
C)   It helps reduce labor costs without cutting employees' existing salaries.
D)   It helps provide more pay to new employees.
E)   It provides better standards for benchmarking.

Question 18

Employees' conclusions about equity depend on

Accepted Answer

A)   what they choose as a standard of comparison.
B)   how much money they think the company CEO makes.
C)   what level of income they believe they should be at by this point in their lives.
D)   what benefits they receive.
E)   if they think they can bargain for a higher rate of pay.

Question 19

Which of the following statements is true about 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)   The FLSA permits federal contractors to pay less than the prevailing wage rate.
C)   The FLSA 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 20

Guangli is a human resource specialist at Quasio Inc. ,a business consulting company.To support human resource planning,Guangli monitors trends in the Consumer Price Index.In recent months,the CPI has been rising at an increasing rate.What can Guangli predict based on this information?

Accepted Answer

A)   A rising cost of living will lead workers in the labor market to seek higher pay.
B)   A falling cost of living will cause workers to leave the labor market.
C)   A rise in employment costs will lead companies to demand more labor.
D)   Competitors in Quasio's product markets will hold wages steady.
E)   Uncertainty about prices will cause workers to accept lower-paying jobs.

Exam 12: Establishing a Pay Structure

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

The Walsh-Healy Public Contracts Act of 1936

In a product market,different organizations have exclusive customer bases.

The pay offered by an organization is not limited by its presence in a product market.

Which of the following is a disadvantage of broad bands?

Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees.

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

Thomas and Alex are welders working for two different divisions of the same company.Both have the same level of experience.However,Thomas earns more than Alex.Under the Fair Labor Standards Act (FLSA) ,which of the following will justify the organization's decision to pay Thomas more than Alex?

Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936?

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

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.

How does equity theory explain how workers are likely to interpret the high pay of CEOs?

Which of the following is a drawback of a minimum wage in terms of social policy?

Define job structure,pay level,and pay structure.

Which of the following is an advantage of a two-tier wage system?

Employees' conclusions about equity depend on

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

Guangli is a human resource specialist at Quasio Inc. ,a business consulting company.To support human resource planning,Guangli monitors trends in the Consumer Price Index.In recent months,the CPI has been rising at an increasing rate.What can Guangli predict based on this information?