Question 1

Which of the following is a drawback of pay rates?

Accepted Answer

A)   It increases the administrative burden of managing the compensation system.
B)   It results in decreased promotional opportunities for employees.
C)   It results in some jobs being underpaid and others being overpaid.
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.F) D) and E)
G) A) and B)

Question 2

Los Amigo Inc.,a clothing manufacturer,believes that employees must be paid above the average market rate.The company aims to provide good customer service and to increase its sales.In this case,which of the following is most likely the reaction of employees working at Los Amigo?

Accepted Answer

A)   The employees will be motivated to work hard.
B)   The employees will put less effort at work.
C)   The employees will find their jobs less challenging.
D)   The employees will find a way to increase their outcomes by stealing.
E)   The employees will resign from their current jobs.F) B) and C)
G) B) and E)

Question 3

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 method called regression analysis.
C)   requires market-pay-rate data on all jobs in the organization.
D)   can seldom provide information on the market 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 D)
G) A) and B)

Question 4

Teno Industries Inc.is a manufacturing company based in Texas.Teno Industries implemented the comparable-worth policy to establish equal pay for all employees.However,the organization incurred losses of about $20 million.In this scenario,which of the following is most likely the reason for the failure of the comparable-worth policy?

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 pay structure based on market rate.
D)   The employer ignores consider the evaluation points for each job.
E)   The lower-paid jobs are encouraged to meet the goal of comparable worth.F) B) and D)
G) A) and B)

Question 5

The most common approach to pay differentials is to move an employee lower in the pay structure to compensate for increasing costs.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor?

Accepted Answer

A)   FLSA
B)   ADA
C)   FMLA
D)   ERISA
E)   EAPF) C) and E)
G) A) and D)

Question 7

Under the FLSA,exempt status of employees depends on their:

Accepted Answer

A)   job responsibilities and salary.
B)   organizational commitment.
C)   job title.
D)   work experience.
E)   job qualifications.F) All of the above
G) A) and D)

Question 8

Key jobs are uncommon and have unstable content,making them very difficult to evaluate using pay surveys.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true about pay ranges?

Accepted Answer

A)   Pay ranges are most common for blue-collar jobs and those covered by union contracts.
B)   Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points.
C)   Pay ranges generally are designed so that they do not overlap.
D)   The market rate or the pay policy line generally serves as the midpoint of a range for the job.
E)   The less overlap, the more flexibility in transferring employees among jobs.F) A) and E)
G) C) and E)

Question 10

Military pay often exceeds what service members would earn in their civilian jobs.

Accepted Answer

A) True 
 B)False

Question 11

Small Leaf Resort and Cresgrove Resort are established hotels in the hospitality industry.However,Small Leaf Resort has a larger net profit than that of Cresgrove Resort.In order to remain financially viable in the hospitality market,Cresgrove Resort decides to charge more for their rooms and other services.In this scenario,which of the following best explains the reason behind Cresgrove Resort incurring losses?

Accepted Answer

A)   Cresgrove Resort has high labor-related expenses.
B)   Cresgrove Resort hires employees belonging to the age group of 15 to 20.
C)   Cresgrove Resort has better quality and customer service than Small Leaf Resort.
D)   Cresgrove Resort considers its employees as resources.
E)   Cresgrove Resort's compa-ratio is less than 1.F) A) and C)
G) C) and D)

Question 12

According to the FLSA,which of the following individuals is most likely a nonexempt employee?

Accepted Answer

A)   The CEO
B)   A senior administrative employee
C)   An hourly paid employee
D)   An HR manager
E)   The director of marketingF) B) and E)
G) B) and D)

Question 13

Kazuri Inc.,a manufacturing company,bases employees' pay entirely on market forces.In this case,which of the following is a practical drawback faced by the company?

Accepted Answer

A)   Employees might conclude that the pay rates are unfair.
B)   Supervisors of the company will expect to receive lower pay because of less responsibility.
C)   The highly paid employees will likely be dissatisfied because of more work.
D)   The managers will participate in rotation of responsibilities because they receive lower pay.
E)   All employees will be categorized as exempt employees.F) C) and D)
G) A) and B)

Question 14

Which of the following U.S.organizations conducts an ongoing National Compensation Survey measuring wages,salaries,and benefits paid to the nation's employees?

Accepted Answer

A)   Bureau of Labor Statistics
B)   Society for Human Resource Management
C)   American Management Association
D)   AFL-CIO
E)   Bureau of Economic AnalysisF) A) and B)
G) B) and C) A

Question 15

Hamish Life,an insurance company,defines the difference in pay between an entry-level recruiter and an entry-level assembler,as well as the difference between an entry-level recruiter,the HR manager,and the organization's Vice President.Which of the following is being exemplified in this scenario?

Accepted Answer

A)   Straight piecework plan
B)   Job structure
C)   Merit pay system
D)   Pay differential
E)   Balanced scorecardF) B) and C)
G) None of the above B

Question 16

Which of the following is the result of combining more assignments into a single layer,thus giving managers more flexibility in making assignments and awarding pay increases?

Accepted Answer

A)   Outsourcing
B)   Broad bands
C)   Rightsizing
D)   Benchmarks
E)   DownsizingF) B) and D)
G) A) and B) B

Question 17

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

Accepted Answer

A)   Skill-based pay provides a way to ensure that employees can use their new skills.
B)   Gathering market data about skill-based pay is easy.
C)   Skill-based pay ensures that the employer pays the employee for learning skills that benefit the employer.
D)   Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures.
E)   Skill-based pay does not require records related to skills, training, and knowledge acquired.F) A) and B)
G) B) and C)

Question 18

The upper limit that product markets place on the pay offered by an organization 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 19

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

Question 20

Pentrall,a healthcare company,provides a lower training rate to its employees belonging to the age group of 18 to 20 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)   of minimum wage
C)   Fair Labor Standards Act (FLS
A)   of overtime
D)   Laws governing prevailing wages
E)   Fair Labor Standards Act (FLS
A)   of child laborF) A) and E)
G) A) and B)

Exam 12: Establishing a Pay Structure

Which of the following is a drawback of pay rates?

Correct Answer
verified

Los Amigo Inc.,a clothing manufacturer,believes that employees must be paid above the average market rate.The company aims to provide good customer service and to increase its sales.In this case,which of the following is most likely the reaction of employees working at Los Amigo?

Correct Answer
verified

A pay policy line:

Correct Answer
verified

Correct Answer
verified

The most common approach to pay differentials is to move an employee lower in the pay structure to compensate for increasing costs.

Correct Answer
verified

Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor?

Correct Answer
verified

Under the FLSA,exempt status of employees depends on their:

Correct Answer
verified

Key jobs are uncommon and have unstable content,making them very difficult to evaluate using pay surveys.

Correct Answer
verified

Which of the following statements is true about pay ranges?

Correct Answer
verified

Military pay often exceeds what service members would earn in their civilian jobs.

Correct Answer
verified

Correct Answer
verified

According to the FLSA,which of the following individuals is most likely a nonexempt employee?

Correct Answer
verified

Kazuri Inc.,a manufacturing company,bases employees' pay entirely on market forces.In this case,which of the following is a practical drawback faced by the company?

Correct Answer
verified

Which of the following U.S.organizations conducts an ongoing National Compensation Survey measuring wages,salaries,and benefits paid to the nation's employees?

Correct Answer
verified
A

Hamish Life,an insurance company,defines the difference in pay between an entry-level recruiter and an entry-level assembler,as well as the difference between an entry-level recruiter,the HR manager,and the organization's Vice President.Which of the following is being exemplified in this scenario?

Correct Answer
verified
B

Which of the following is the result of combining more assignments into a single layer,thus giving managers more flexibility in making assignments and awarding pay increases?

Correct Answer
verified
B

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

Correct Answer
verified

The upper limit that product markets place on the pay offered by an organization 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.

Correct Answer
verified

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

Correct Answer
verified

Pentrall,a healthcare company,provides a lower training rate to its employees belonging to the age group of 18 to 20 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?

Correct Answer
verified

Exam 12: Establishing a Pay Structure

Which of the following is a drawback of pay rates?

Correct AnswerverifiedShow Answer

Los Amigo Inc.,a clothing manufacturer,believes that employees must be paid above the average market rate.The company aims to provide good customer service and to increase its sales.In this case,which of the following is most likely the reaction of employees working at Los Amigo?

Correct AnswerverifiedShow Answer

A pay policy line:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The most common approach to pay differentials is to move an employee lower in the pay structure to compensate for increasing costs.

Correct AnswerverifiedShow Answer

Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor?

Correct AnswerverifiedShow Answer

Under the FLSA,exempt status of employees depends on their:

Correct AnswerverifiedShow Answer

Key jobs are uncommon and have unstable content,making them very difficult to evaluate using pay surveys.

Correct AnswerverifiedShow Answer

Which of the following statements is true about pay ranges?

Correct AnswerverifiedShow Answer

Military pay often exceeds what service members would earn in their civilian jobs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the FLSA,which of the following individuals is most likely a nonexempt employee?

Correct AnswerverifiedShow Answer

Kazuri Inc.,a manufacturing company,bases employees' pay entirely on market forces.In this case,which of the following is a practical drawback faced by the company?

Correct AnswerverifiedShow Answer

Which of the following U.S.organizations conducts an ongoing National Compensation Survey measuring wages,salaries,and benefits paid to the nation's employees?

Correct AnswerverifiedA

Hamish Life,an insurance company,defines the difference in pay between an entry-level recruiter and an entry-level assembler,as well as the difference between an entry-level recruiter,the HR manager,and the organization's Vice President.Which of the following is being exemplified in this scenario?

Correct AnswerverifiedB

Which of the following is the result of combining more assignments into a single layer,thus giving managers more flexibility in making assignments and awarding pay increases?

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

The upper limit that product markets place on the pay offered by an organization 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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Pentrall,a healthcare company,provides a lower training rate to its employees belonging to the age group of 18 to 20 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?

Correct AnswerverifiedShow Answer

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A

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B

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B

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