Question 1

What is benchmarking?

Accepted Answer

To compete for talent,organizations use ...

Question 2

A rate of pay for each unit produced is known as:

Accepted Answer

A)   yearly pay.
B)   salary.
C)   hourly wage.
D)   piecework rate.
E)   monthly pay.F) A) and E)
G) A) and D)

Question 3

Decisions about how to respond to the economic forces of product markets and labor markets limit an organization's choices about:

Accepted Answer

A)   pay rates.
B)   pay structure.
C)   pay differentials.
D)   pay grades.
E)   pay ranges.F) All of the above
G) A) and E)

Question 4

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 only 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.F) A) and B)
G) A) and C)

Question 5

_____ play the most significant role in communication because they interact with their employees each day.

Accepted Answer

A)   CEOs
B)   Directors
C)   Subordinates
D)   HR professionals
E)   ManagersF) A) and C)
G) All of the above

Question 6

Identify the legal requirement(s) for developing a pay structure.

Accepted Answer

A)   Product markets
B)   High-quality workforce
C)   Equity and fairness
D)   Overtime pay
E)   Pay differentialsF) A) and E)
G) A) and D)

Question 7

From an economic standpoint,identify the drawback of a comparable-worth policy.

Accepted Answer

A)   A free-market economy assumes people will not take differences in pay into account when they choose a career.
B)   Employees may conclude that pay rates are unfair.
C)   The pay policy line reflects the pay structure in the market, which does not always match rates in the organization.
D)   Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure.
E)   Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.F) C) and D)
G) A) and B)

Question 8

A drawback of pay rates is that they:

Accepted Answer

A)   increase the administrative burden of managing the compensation system.
B)   result in decreased promotional opportunities for employees.
C)   result in some jobs being underpaid and others being overpaid.
D)   increase the costs of surveying the market.
E)   grouping jobs will result in rates of pay for individual jobs that precisely match the levels specified by the market.F) All of the above
G) B) and D)

Question 9

According to equity theory,people measure outcomes such as pay in terms of their outputs.

Accepted Answer

A) True 
 B)False

Question 10

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 ranksF) C) and D)
G) A) and E)

Question 11

The Walsh-Healy Public Contracts Act of 1936:

Accepted Answer

A)   permits a lower "training wage," which employers may pay to workers under the age of 20 for a period of up to 90 days.
B)   requires 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 wage rates found prevailing in the locality.
E)   covers all government contractors receiving $10,000 or more in federal funds.F) All of the above
G) A) and C)

Question 12

Organizations under pressure to cut labor costs may respond by:

Accepted Answer

A)   retaining staff levels.
B)   hiking pay levels to prevent employee turnover.
C)   postponing hiring decisions.
D)   requiring employees to bear less of the cost of benefits such as insurance premiums.
E)   increasing staff levels.F) None of the above
G) A) and D)

Question 13

Which of the following would act as a market force during the development of a pay structure?

Accepted Answer

A)   Restrictions on child labor
B)   Meeting principles of fairness
C)   Providing equal pay for equal work
D)   Paying atleast the minimum wage established by law
E)   Obtaining human resources in labor marketsF) A) and E)
G) All of the above

Question 14

In terms of compensation,benchmarking involves the use of pay surveys.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   The ambiguous definition of a job's responsibilities can contribute to an attitude that some activities "are not in my job description," at the expense of inflexibility.
B)   Their focus on higher pay for higher status can work in favor of efforts of empowerment.
C)   They usually 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 innovation and customer service.F) C) and E)
G) B) and D)

Question 16

Key jobs have relatively unstable content and are uncommon to many organizations.

Accepted Answer

A) True 
 B)False

Question 17

_____ 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 differentialF) B) and D)
G) A) and B)

Question 18

An example of a typical compensable factor is:

Accepted Answer

A)   social status.
B)   education.
C)   longevity.
D)   gender.
E)   religion.F) A) and E)
G) B) and C)

Question 19

In states that have laws specifying minimum wages,employers must pay whichever rate is higher-the federal or state.

Accepted Answer

A) True 
 B)False

Question 20

Under the FLSA,children aged 14 and 15 may not be employed in any work associated with interstate commerce.

Accepted Answer

A) True 
 B)False

Exam 11: Establishing a Pay Structure

_____ play the most significant role in communication because they interact with their employees each day.

Correct AnswerverifiedShow Answer

Key jobs have relatively unstable content and are uncommon to many organizations.

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In states that have laws specifying minimum wages,employers must pay whichever rate is higher-the federal or state.

Correct AnswerverifiedShow Answer

What is benchmarking?

Correct AnswerverifiedTo compete for talent,organizations use ...View AnswerShow Answer

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

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From an economic standpoint,identify the drawback of a comparable-worth policy.

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A drawback of pay rates is that they:

Correct AnswerverifiedShow Answer

Organizations under pressure to cut labor costs may respond by:

Correct AnswerverifiedShow Answer

Identify the legal requirement(s) for developing a pay structure.

Correct AnswerverifiedShow Answer

Which of the following would act as a market force during the development of a pay structure?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Decisions about how to respond to the economic forces of product markets and labor markets limit an organization's choices about:

Correct AnswerverifiedShow Answer

An example of a typical compensable factor is:

Correct AnswerverifiedShow Answer

In terms of compensation,benchmarking involves the use of pay surveys.

Correct AnswerverifiedShow Answer

_____ is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job.

Correct AnswerverifiedShow Answer

A rate of pay for each unit produced is known as:

Correct AnswerverifiedShow Answer

According to equity theory,people measure outcomes such as pay in terms of their outputs.

Correct AnswerverifiedShow Answer

Under the FLSA,children aged 14 and 15 may not be employed in any work associated with interstate commerce.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Walsh-Healy Public Contracts Act of 1936:

Correct AnswerverifiedShow Answer

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To compete for talent,organizations use ...
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