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) B) and C)
G) A) and D)

Question 2

The laws governing equal employment opportunity guarantee equal pay for all employees of an organization.

Accepted Answer

A) True 
 B)False

Question 3

Which statement is true about the Consumer Price Index (CPI) ?

Accepted Answer

A)   The CPI helps organizations in the product markets decide an upper limit on the pay they will offer.
B)   Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market.
C)   The CPI helps organizations lure top-quality employees.
D)   The CPI helps control labor markets' demand for pay increases.
E)   The CPI helps organizations to compete with companies in other industries that hire similar employees.F) B) and D)
G) D) and E)

Question 4

Heightened Homes is a real estate firm based in Texas. The company ensures that employees' pay is dependent on what they are capable of doing. The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas. This, in turn, ensures job enrichment. Based on this information, identify the pay structure being utilized by Heightened Homes.

Accepted Answer

A)   straight piecework plan
B)   skill-based pay systems
C)   merit pay system
D)   differential piece rates
E)   standard hour planF) D) and E)
G) B) and E)

Question 5

Which provision 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 E)
G) A) and D)

Question 6

Malto Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, what 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) A) and B)
G) All of the above

Question 7

Which statement 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) B) and D)
G) B) and C)

Question 8

An organization's choices about ________ are limited by its response to the economic forces of product markets and labor markets.

Accepted Answer

A)   pay rates
B)   pay structure
C)   pay differentials
D)   pay grades
E)   pay rangesF) B) and C)
G) A) and D)

Question 9

Pay ranges are most common for

Accepted Answer

A)   white-collar jobs.
B)   piece-rate jobs.
C)   jobs that are covered by union contracts.
D)   automotive workers.
E)   construction workers.F) B) and D)
G) A) and B)

Question 10

The Walsh-Healy Public Contracts Act of 1936

Accepted Answer

A)   requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days.
B)   mandates 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 prevailing local wage rates.
E)   covers all government contractors receiving $10,000 or more in federal funds.F) B) and D)
G) C) and E)

Question 11

Mercia, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which law justifies the organization's decision to pay the lower pay?

Accepted Answer

A)   laws governing equal employment opportunity
B)   Fair Labor Standards Act (FLS
A)   provisions for minimum wage
C)   Fair Labor Standards Act (FLS
A)   provisions for overtime
D)   laws governing prevailing wages
E)   Fair Labor Standards Act (FLS
A)   provisions for child laborF) B) and E)
G) C) and D)

Question 12

What is a disadvantage of broad bands?

Accepted Answer

A)   They reduce managers' flexibility in making assignments.
B)   They always result in pay decreases.
C)   They increase the number of levels in the organization's job structure.
D)   They reduce the opportunities for promoting employees.
E)   They discourage employees from gaining valuable experience through lateral career moves.F) A) and E)
G) A) and D)

Question 13

Connor and McKenzie hold the same position at Delta Inc. However, Connor earns more than McKenzie. Which statement justifies the organization's decision to pay Connor more than McKenzie?

Accepted Answer

A)   Connor meets higher productivity targets than McKenzie.
B)   Connor comes from an economically weaker background.
C)   McKenzie is male.
D)   McKenzie is younger than Connor.
E)   McKenzie is not a U.S. citizen.F) All of the above
G) A) and B)

Question 14

What 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) C) and E)
G) A) and B)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Abbel Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which statement is true about Abbel Inc.?

Accepted Answer

A)   It considers its employees as resources.
B)   It gives the least importance to profits.
C)   It is a customer-friendly firm.
D)   It tries to keep its labor costs minimal.
E)   It helps employees find higher-paying jobs.F) C) and D)
G) A) and E)

Question 17

How does equity theory explain how workers are likely to interpret the high pay of CEOs?

Accepted Answer

The issue of executive pay is relevant t...

Question 18

The equity of executive pay affects a select few of an organization's employees.

Accepted Answer

A) True 
 B)False

Question 19

Under the FLSA, which statement 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) A) and B)
G) C) and D)

Question 20

MTX Co., a manufacturing company, has a pay structure based on job descriptions. As the company moves toward customizing production to meet customers' specific needs, it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees. In this case, which alternative to job-based pay structures would best help the organization to respond to this problem?

Accepted Answer

A)   straight piecework plan
B)   skill-based pay system
C)   delayering
D)   quality-based pay system
E)   benchmarkingF) D) and E)
G) B) and E)

Exam 12: Establishing a Pay Structure

What is a disadvantage of broad bands?

Correct Answer
verified

An organization's choices about ________ are limited by its response to the economic forces of product markets and labor markets.

Correct Answer
verified

Correct Answer
verified

The Walsh-Healy Public Contracts Act of 1936

Correct Answer
verified

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

Correct Answer
verified

Abbel Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which statement is true about Abbel Inc.?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

How does equity theory explain how workers are likely to interpret the high pay of CEOs?

Correct Answer
verified
The issue of executive pay is relevant t...
View Answer

The equity of executive pay affects a select few of an organization's employees.

Correct Answer
verified

Connor and McKenzie hold the same position at Delta Inc. However, Connor earns more than McKenzie. Which statement justifies the organization's decision to pay Connor more than McKenzie?

Correct Answer
verified

What 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

Correct Answer
verified

Mercia, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which law justifies the organization's decision to pay the lower pay?

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 statement is true about skill-based pay?

Correct Answer
verified

Under the FLSA, which statement is true of child labor?

Correct Answer
verified

Pay ranges are most common for

Correct Answer
verified

Which statement is true about the Consumer Price Index (CPI) ?

Correct Answer
verified

The laws governing equal employment opportunity guarantee equal pay for all employees of an organization.

Correct Answer
verified

Exam 12: Establishing a Pay Structure

What is a disadvantage of broad bands?

Correct AnswerverifiedShow Answer

An organization's choices about ________ are limited by its response to the economic forces of product markets and labor markets.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Walsh-Healy Public Contracts Act of 1936

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Abbel Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which statement is true about Abbel Inc.?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How does equity theory explain how workers are likely to interpret the high pay of CEOs?

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

The equity of executive pay affects a select few of an organization's employees.

Correct AnswerverifiedShow Answer

Connor and McKenzie hold the same position at Delta Inc. However, Connor earns more than McKenzie. Which statement justifies the organization's decision to pay Connor more than McKenzie?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Mercia, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which law justifies the organization's decision to pay the lower pay?

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 statement is true about skill-based pay?

Correct AnswerverifiedShow Answer

Under the FLSA, which statement is true of child labor?

Correct AnswerverifiedShow Answer

Pay ranges are most common for

Correct AnswerverifiedShow Answer

Which statement is true about the Consumer Price Index (CPI) ?

Correct AnswerverifiedShow Answer

The laws governing equal employment opportunity guarantee equal pay for all employees of an organization.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The issue of executive pay is relevant t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified