Question 1

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Accepted Answer

The FLSA establishes a minimum wage and ...

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

Define job structure, pay level, and pay structure.

Accepted Answer

Job structure consists of the relative p...

Question 4

Which U.S. organization 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) All of the above
G) A) and E)

Question 5

What 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 C)
G) A) and D)

Question 6

GR Designs, a manufacturing company, hires employees ranging in age from 14 to 25. Which practice by GR would ensure that it complies with child labor laws?

Accepted Answer

A)   The employees are all paid the same amount.
B)   The teenage employees earn a training wage for the first year.
C)   Only the workers over 20 earn overtime pay.
D)   All the employees have part-time schedules.
E)   The employees aged 14 and 15 work only in office jobs and for limited time periods.F) None of the above
G) B) and C)

Question 7

What is skill-based pay? What are its advantages and disadvantages?

Accepted Answer

Skill-based pay systems are pay structur...

Question 8

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 9

Which federal law establishes a minimum wage and requirements for overtime pay and child labor?

Accepted Answer

A)   Fair Labor Standards Act
B)   Americans with Disabilities Act
C)   Family and Medical Leave Act
D)   Employee Retirement Income Security Act
E)   Equal Pay ActF) A) and B)
G) A) and E)

Question 10

Which statement 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) A) and E)

Question 11

What is a disadvantage of skill-based pay systems?

Accepted Answer

A)   It makes organizations inflexible.
B)   It reduces employee empowerment.
C)   It may result in paying employees for skills they don't use.
D)   It reduces opportunities for promoting employees.
E)   It limits the number of pay levels by delayering.F) A) and B)
G) A) and C)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees.

Accepted Answer

A) True 
 B)False

Question 14

Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the

Accepted Answer

A)   minimum and maximum wages fixed by the government.
B)   pay of federal contractors.
C)   organization's competitive environment.
D)   quality of employees.
E)   organization's global reputation.F) A) and B)
G) All of the above

Question 15

The ________ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

Accepted Answer

A)   Uniformed Services Employment and Reemployment Rights Act
B)   Fair Labor Standards Act
C)   Equal Employment Opportunity Act
D)   National Labor Relations Board
E)   Family and Medical Leave ActF) B) and D)
G) C) and E)

Question 16

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

Question 17

According to equity theory, employees evaluate job outcomes such as compensation in terms of outputs.

Accepted Answer

A) True 
 B)False

Question 18

What is benchmarking?

Accepted Answer

To compete for talent, organizations use...

Question 19

Which statement is true about labor markets?

Accepted Answer

A)   Organizations compete to sell labor in the labor market.
B)   Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job.
C)   Changes in the CPI do not affect the labor market.
D)   Cost-of-living considerations have little impact on labor-market rates.
E)   An organization's competitors in labor markets only include companies with different products.F) A) and E)
G) A) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 12: Establishing a Pay Structure

What is benchmarking?

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

Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees.

Correct AnswerverifiedShow Answer

Define job structure, pay level, and pay structure.

Correct AnswerverifiedJob structure consists of the relative p...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is skill-based pay? What are its advantages and disadvantages?

Correct AnswerverifiedSkill-based pay systems are pay structur...View AnswerShow Answer

Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the

Correct AnswerverifiedShow Answer

A pay policy line

Correct AnswerverifiedShow Answer

The ________ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

Correct AnswerverifiedShow Answer

According to equity theory, employees evaluate job outcomes such as compensation in terms of outputs.

Correct AnswerverifiedShow Answer

What 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

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Correct AnswerverifiedThe FLSA establishes a minimum wage and ...View AnswerShow Answer

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

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

GR Designs, a manufacturing company, hires employees ranging in age from 14 to 25. Which practice by GR would ensure that it complies with child labor laws?

Correct AnswerverifiedShow Answer

Which statement is true about labor markets?

Correct AnswerverifiedShow Answer

What is a disadvantage of skill-based pay systems?

Correct AnswerverifiedShow Answer

Which federal law establishes a minimum wage and requirements for overtime pay and child labor?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which statement is true about a product market?

Correct AnswerverifiedShow Answer

Correct Answer
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To compete for talent, organizations use...
View Answer

Correct Answer
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Correct Answer
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Job structure consists of the relative p...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Skill-based pay systems are pay structur...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
The FLSA establishes a minimum wage and ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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