Question 1

How do organizations compare actual pay to pay structure?

Accepted Answer

As part of its management responsibility...

Question 2

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

Accepted Answer

Skill-based pay systems are pay structur...

Question 3

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.F) C) and E)
G) C) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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.F) A) and E)
G) C) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 rateF) A) and D)
G) A) and C)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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.F) C) and D)
G) B) and E)

Question 10

Define hourly wage,piecework rate,and salary.

Accepted Answer

The organization's pay structure should ...

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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.F) None of the above
G) C) and D)

Question 13

_____ 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 basisF) B) and C)
G) A) and E)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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.F) None of the above
G) B) and D)

Question 16

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.F) A) and E)
G) B) and E)

Question 17

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.F) B) and E)
G) C) and D)

Question 18

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.F) A) and B)
G) All of the above

Question 19

How does equity theory justify the high pay of CEOs?

Accepted Answer

The issue of executive pay is relevant t...

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.F) A) and C)
G) C) and D)

Exam 11: Establishing a Pay Structure

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The compa-ratio:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Define hourly wage,piecework rate,and salary.

Correct AnswerverifiedThe organization's pay structure should ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How does equity theory justify the high pay of CEOs?

Correct AnswerverifiedThe issue of executive pay is relevant t...View AnswerShow Answer

How do organizations compare actual pay to pay structure?

Correct AnswerverifiedAs part of its management responsibility...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A pay policy line:

Correct AnswerverifiedShow Answer

Which of the following is true of compensable factors?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedSkill-based pay systems are pay structur...View AnswerShow Answer

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The organization's pay structure should ...
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The issue of executive pay is relevant t...
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As part of its management responsibility...
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Skill-based pay systems are pay structur...
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