Question 1

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to

Accepted Answer

A)   increase the overlap from one level to the next.
B)   reduce its compa-ratio to less than 1.
C)   implement a broadband pay structure.
D)   limit the overlap from one pay range to the next.
E)   use a fixed interval promotion policy.F) C) and D)
G) B) and C)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

How do organizations compare actual pay to pay structure?

Accepted Answer

As part of its management responsibility...

Question 4

Mark and Chloe hold the same position at Rue & West Bros.However,Mark earns more than Chloe.Which of the following will justify the organization's decision to pay Mark more than Chloe?

Accepted Answer

A)   Mark meets higher productivity targets than Chloe.
B)   Mark comes from an economically weaker background.
C)   Mark is male.
D)   Chloe is younger than Mark.
E)   Chloe is not a U.S.citizen.F) All of the above
G) None of the above

Question 5

Under the FLSA,which of the following statements is true of child labor?

Accepted Answer

A)   Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor.
B)   Children aged 14 and 15 may not be employed in any work associated with interstate commerce.
C)   The FLSA's restrictions on the use of child labor apply to children younger than 18.
D)   Children aged 18 and 19 may work only outside school hours,in jobs defined as nonhazardous,and for limited time periods.
E)   All the states have laws requiring working papers or work permits for minors.F) B) and D)
G) A) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following 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) None of the above
G) A) and B)

Question 8

Which of the following is a characteristic of delayering?

Accepted Answer

A)   It increases an organization's flexibility.
B)   It increases the opportunities for promoting employees.
C)   It sets pay according to the employees' level of knowledge.
D)   It encourages a climate of learning.
E)   It decreases the flexibility of managers in making assignments.F) A) and B)
G) A) and E)

Question 9

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 D)
G) B) and E)

Question 10

Organizations under pressure to cut labor costs may respond by

Accepted Answer

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

Question 11

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,an HR manager,and the vice president of the human resource department.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) C) and E)
G) B) and C)

Question 12

Pay level is the total amount an employee pays to the organization.

Accepted Answer

A) True 
 B)False

Question 13

Capnos Inc. ,an insurance company,incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

Accepted Answer

A)   benchmarking
B)   job evaluation
C)   regression analysis
D)   delayering
E)   pay structuringF) A) and E)
G) A) and B)

Question 14

If the average pay is below the midpoint of an organization,the compa-ratio is 1.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true about a product market?

Accepted Answer

A)   The cost of labor does not affect the product market because it is an insignificant part of an organization's costs.
B)   Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price.
C)   Organizations in a product market are competing to serve the same customers.
D)   Product markets typically place a lower limit on the pay an organization will offer its employees.
E)   Organizations in a product market must increase the cost of labor every quarter.F) C) and D)
G) B) and E)

Question 16

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following provisions is included in the Fair Labor Standards Act (FLSA) ?

Accepted Answer

A)   personal finance
B)   minimum wage
C)   wage discrimination
D)   environmental hazards
E)   retirement plansF) A) and B)
G) A) and C)

Question 18

Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

Accepted Answer

A)   bonus
B)   pay differential
C)   green-circle rate
D)   rank-and-file adjustment
E)   red-circle rateF) A) and B)
G) C) and E)

Question 19

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) A) and E)
G) D) and E)

Question 20

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

Accepted Answer

A)   John works the night shift,and night hours are less desirable for most workers.
B)   John is a U.S.citizen;therefore his pay should be higher than that of non-Americans.
C)   Lisa is pregnant;therefore her productivity is assumed to be lower.
D)   John is physically disabled;therefore he should be paid more than Lisa.
E)   Lisa lives in a location where living expenses are higher.F) B) and C)
G) A) and E)

Exam 12: Establishing a Pay Structure

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Mark and Chloe hold the same position at Rue & West Bros.However,Mark earns more than Chloe.Which of the following will justify the organization's decision to pay Mark more than Chloe?

Correct Answer
verified

Which of the following is a characteristic of delayering?

Correct Answer
verified

Which of the following statements is true about a product market?

Correct Answer
verified

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to

Correct Answer
verified

Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

Correct Answer
verified

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

Correct Answer
verified

Capnos Inc. ,an insurance company,incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

Correct Answer
verified

Which of the following is a set of possible pay rates defined by a minimum,maximum,and midpoint of pay for employees holding a particular job?

Correct Answer
verified

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

Correct Answer
verified

If the average pay is below the midpoint of an organization,the compa-ratio is 1.

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 provisions is included in the Fair Labor Standards Act (FLSA) ?

Correct Answer
verified

Correct Answer
verified

Organizations under pressure to cut labor costs may respond by

Correct Answer
verified

How do organizations compare actual pay to pay structure?

Correct Answer
verified
As part of its management responsibility...
View Answer

Under the FLSA,which of the following statements is true of child labor?

Correct Answer
verified

Pay level is the total amount an employee pays to the organization.

Correct Answer
verified

Exam 12: Establishing a Pay Structure

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mark and Chloe hold the same position at Rue & West Bros.However,Mark earns more than Chloe.Which of the following will justify the organization's decision to pay Mark more than Chloe?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of delayering?

Correct AnswerverifiedShow Answer

Which of the following statements is true about a product market?

Correct AnswerverifiedShow Answer

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to

Correct AnswerverifiedShow Answer

Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

Correct AnswerverifiedShow Answer

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

Correct AnswerverifiedShow Answer

Capnos Inc. ,an insurance company,incurred losses of about $100 million.To analyze its losses and to overcome them,the company began comparing its own practices against those of its successful competitors.In this scenario,which of the following procedures is adopted by Capnos?

Correct AnswerverifiedShow Answer

Which of the following 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

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

Correct AnswerverifiedShow Answer

If the average pay is below the midpoint of an organization,the compa-ratio is 1.

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 provisions is included in the Fair Labor Standards Act (FLSA) ?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Organizations under pressure to cut labor costs may respond by

Correct AnswerverifiedShow Answer

How do organizations compare actual pay to pay structure?

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

Under the FLSA,which of the following statements is true of child labor?

Correct AnswerverifiedShow Answer

Pay level is the total amount an employee pays to the organization.

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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As part of its management responsibility...
View Answer

Correct Answer
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Correct Answer
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