Question 1

Which of the following is part of the benefits offered to employees?

Accepted Answer

A)   Stock options
B)   Unemployment compensation
C)   Salary
D)   Merit increases
E)   Bonuses

Question 2

Which of the following is the definition of compensable factors?

Accepted Answer

A)   They are jobs that are unique to organizations and that cannot be directly valued or compared through the use of market surveys.
B)   They are the characteristics of jobs that an organization values and chooses to pay for.
C)   They are the jobs that have relatively stable content and are common to many organizations.
D)   They are the factors that describe the relationship between a job's pay and its job evaluation points.
E)   They are the jobs that are of similar worth or content grouped together for pay administration purposes. B

Question 3

Why would an organization use benchmarking?

Accepted Answer

A)   To compete for talent
B)   To compete for market share
C)   To compete on costs
D)   To compete on product differentiation
E)   To compete for consumer loyalty

Question 4

Which of the following hypotheses argues that women were historically restricted to entering a small number of occupations and, as a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations?

Accepted Answer

A)   Macho hypothesis
B)   Strain hypothesis
C)   Crowding hypothesis
D)   Contact hypothesis
E)   Calibration hypothesis

Question 5

Ciara is doing a comparison of available workers to the number of available jobs for the unemployment commission, otherwise called a labor market competition.

Accepted Answer

A) True 
 B)False

Question 6

During the recent financial crisis, the U.S. government, as part of the ________, decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.

Accepted Answer

A)   NCUA Corporate Stabilization Program
B)   Troubled Asset Relief Program (TARP) 
C)   Public-Private Investment Program
D)   Lilly Ledbetter Fair Pay Act
E)   Emergency Economic Stabilization Act

Question 7

Under the Fair Labor Standards Act, nonexempt employees are eligible for overtime pay.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true about pay?

Accepted Answer

A)   Pay is not helpful when it comes to aligning employees' interests with those of the broader organization.
B)   Pay has a small impact on employee attitudes and behavior.
C)   From the employees' view, pay policies do not affect their standard of living.
D)   Companies often look for ways to reduce pay by jeopardizing their relationship with the workforce.
E)   Employees attach great importance to pay decisions when they evaluate their relationship with the organization. E

Question 9

Which of the following is a disadvantage of the pay grade approach?

Accepted Answer

A)   The administrative burden of setting separate rates of pay for numerous employees is increased.
B)   It is inflexible when it comes to moving employees from job to job.
C)   Demotions are not well received in a pay grade system when compared to a job-based system.
D)   It might give rise to some jobs being underpaid and some being overpaid.
E)   It does not recognize that performance difference in the higher levels has much impact on the organization. D

Question 10

Inventory levels can be dramatically reduced through just-in-time production, but suppliers need to be in close physical proximity for this to work.

Accepted Answer

A) True 
 B)False

Question 11

Darcy is frustrated by the ________ that has kept her from becoming the first woman to be the CEO at her company.

Accepted Answer

A)   departmentalization
B)   decentralization
C)   glass ceiling
D)   benchmarking
E)   centralization

Question 12

Which department enforces standards and guidelines put in place to minimize pay disparities found through regression analyses?

Accepted Answer

A)   Department of Justice
B)   Department of Labor
C)   Department of Law
D)   Bureau of Labor Statistics
E)   Department of Commerce

Question 13

Alpha Omega compares its practices set by management with the standard set in each unit as a benchmark.

Accepted Answer

A) True 
 B)False

Question 14

According to the study by Peter Cappelli and Peter Sherer, which of the following is true of two-tier wage plans?

Accepted Answer

A)   The plans are characterized by instances in which two employees doing different levels of jobs get the same pay.
B)   Lower-paid employees always move to the higher-paying tier.
C)   Lower-tier employees are more satisfied despite being paid less money for the same work.
D)   The employees in the lower tier have lower comparison standards than those in the higher tier.
E)   The lower-tier employees remain dissatisfied until they move into the higher-paying tier.

Question 15

Which of the following concepts addresses the fact that different employees in the same job may have different pay rates?

Accepted Answer

A)   Range spread
B)   Rate ranges
C)   Key jobs
D)   Compensable factors
E)   Pay grades

Question 16

Which of the following best describes a broad band in job-based pay structures?

Accepted Answer

A)   The distance between the minimum and maximum pay in a grade
B)   The wider grouping of jobs accomplished through delayering
C)   An index of the correspondence between actual and intended pay
D)   A mathematical expression that describes the relationship between a job's pay and its job evaluation points
E)   The characteristics of jobs that an organization values and chooses to pay for

Question 17

Which of the following is part of the cash compensation offered to employees?

Accepted Answer

A)   Paid vacation
B)   Unemployment compensation
C)   Health insurance
D)   Stock options
E)   Retirement plans

Question 18

Differentiate between pay level and job structure with an example.

Accepted Answer

Salary level decisions can be broken int...

Question 19

As per the Fair Labor Standards Act, the current minimum wage stands at

Accepted Answer

A)   $8.85 per hour.
B)   $9.40 per hour.
C)   $7.25 per hour.
D)   $10.50 per hour.
E)   $8.30 per hour.

Question 20

Which of the following is true of labor market competition?

Accepted Answer

A)   The labor market focuses primarily on competing through providing a quality product or service at a competitive price in the market.
B)   The labor market places an upper bound on labor costs and compensation.
C)   The upper bound placed by the labor market is more constrictive when labor costs are a very small share of the total costs.
D)   An indirect payment such as Social Security, a major component of labor costs, is not included in calculating the average cost of an employee.
E)   Labor market competition places a lower bound on pay levels.

Exam 11: Pay Structure Decisions

Which of the following is part of the benefits offered to employees?

Correct AnswerverifiedShow Answer

Which of the following is the definition of compensable factors?

Correct AnswerverifiedB

Why would an organization use benchmarking?

Correct AnswerverifiedShow Answer

Which of the following hypotheses argues that women were historically restricted to entering a small number of occupations and, as a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations?

Correct AnswerverifiedShow Answer

Ciara is doing a comparison of available workers to the number of available jobs for the unemployment commission, otherwise called a labor market competition.

Correct AnswerverifiedShow Answer

During the recent financial crisis, the U.S. government, as part of the ________, decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.

Correct AnswerverifiedShow Answer

Under the Fair Labor Standards Act, nonexempt employees are eligible for overtime pay.

Correct AnswerverifiedShow Answer

Which of the following is true about pay?

Correct AnswerverifiedE

Which of the following is a disadvantage of the pay grade approach?

Correct AnswerverifiedD

Inventory levels can be dramatically reduced through just-in-time production, but suppliers need to be in close physical proximity for this to work.

Correct AnswerverifiedShow Answer

Darcy is frustrated by the ________ that has kept her from becoming the first woman to be the CEO at her company.

Correct AnswerverifiedShow Answer

Which department enforces standards and guidelines put in place to minimize pay disparities found through regression analyses?

Correct AnswerverifiedShow Answer

Alpha Omega compares its practices set by management with the standard set in each unit as a benchmark.

Correct AnswerverifiedShow Answer

According to the study by Peter Cappelli and Peter Sherer, which of the following is true of two-tier wage plans?

Correct AnswerverifiedShow Answer

Which of the following concepts addresses the fact that different employees in the same job may have different pay rates?

Correct AnswerverifiedShow Answer

Which of the following best describes a broad band in job-based pay structures?

Correct AnswerverifiedShow Answer

Which of the following is part of the cash compensation offered to employees?

Correct AnswerverifiedShow Answer

Differentiate between pay level and job structure with an example.

Correct AnswerverifiedSalary level decisions can be broken int...View AnswerShow Answer

As per the Fair Labor Standards Act, the current minimum wage stands at

Correct AnswerverifiedShow Answer

Which of the following is true of labor market competition?

Correct AnswerverifiedShow Answer

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B

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E

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D

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Salary level decisions can be broken int...
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