Question 1

What is the advantage of two-tier wage systems?

Accepted Answer

A)   They help in moving jobs out of the country.
B)   They help in closing down jobs without any legal hassles.
C)   They cut labor costs without cutting employees' existing salaries.
D)   They provide more pay to new employees.
E)   They provide better standards of benchmarking.F) C) and D)
G) D) and E)

Question 2

Which of the following permits a lower training wage,which employers may pay to workers under the age of 20 for a period of up to 90 days?

Accepted Answer

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

Question 3

The Fair Labor Standards Act (FLSA) includes provisions for:

Accepted Answer

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

Question 4

The National Compensation Survey is an ongoing activity of the:

Accepted Answer

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

Question 5

Compensable factors are job characteristics that an organization values and chooses to pay for.

Accepted Answer

A) True 
 B)False

Question 6

How do employees judge the fairness of a pay structure?

Accepted Answer

Employees evaluate their pay relative to...

Question 7

According to _____,people measure outcomes such as pay in terms of their inputs.

Accepted Answer

A)   the pay policy line
B)   equity theory
C)   retributive justice theory
D)   progressive justice theory
E)   economic theoryF) C) and D)
G) B) and C)

Question 8

Which of the following is a disadvantage of skill-based pay systems?

Accepted Answer

A)   Lesser paperwork
B)   Reduced employee empowerment
C)   No guarantee that employees can use their new skills
D)   Reduced opportunities for promoting employees
E)   Discouraged job enrichmentF) A) and C)
G) A) and B)

Question 9

The Davis-Bacon Act of 1931:

Accepted Answer

A)   permits a lower "training wage," which employers may pay to workers under the age of 20 for a period of up to 90 days.
B)   requires that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week.
C)   requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality.
D)   covers all government contractors receiving $10,000 or more in federal funds.
E)   covers construction contractors that receive more than $2,000 in federal money.F) A) and B)
G) None of the above

Question 10

Define job structure,pay level,and pay structure.

Accepted Answer

Job structure consists of the relative p...

Question 11

Paying a salary does not necessarily mean a job is exempt.

Accepted Answer

A) True 
 B)False

Question 12

Organizations in a product market compete to serve different customers.

Accepted Answer

A) True 
 B)False

Question 13

An organization's job structure consists of:

Accepted Answer

A)   the relative pay for different jobs within the organization.
B)   the average amount an organization pays for a particular job.
C)   the characteristics of jobs that the organization values and chooses to pay for.
D)   regular pay, overtime pay, and bonuses.
E)   the standard amount that employers must pay under federal and state law.F) B) and D)
G) B) and E)

Question 14

Skill-based pay systems support efforts to empower employees and enrich jobs.

Accepted Answer

A) True 
 B)False

Question 15

When labor costs are a large part of an organization's total costs,the organization responds by increasing pay levels.

Accepted Answer

A) True 
 B)False

Question 16

The procedure in which an organization compares its own practices against those of successful competitors is known as:

Accepted Answer

A)   redlining.
B)   poaching.
C)   benchmarking.
D)   profiling.
E)   delayering.F) A) and B)
G) B) and E)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Under the FLSA,exempt status of an employee depends on his/her:

Accepted Answer

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

Question 19

Which of the following is a drawback of a minimum wage in terms of social policy?

Accepted Answer

A)   It assumes people will take differences in pay into account when they choose a career.
B)   It is only one and a half times the employee's usual hourly rate.
C)   It applies only to the hours worked beyond 40 in one week.
D)   It places the employer at an economic disadvantage relative to employers that pay the living wage.
E)   It tends to be lower than the earnings required for a full time worker to rise above the poverty level.F) None of the above
G) B) and C)

Question 20

From an economic standpoint,identify the drawback of a comparable-worth policy.

Accepted Answer

A)   A free-market economy assumes people will not take differences in pay into account when they choose a career.
B)   Employees may conclude that pay rates are unfair.
C)   The pay policy line reflects the pay structure in the market, which does not always match rates in the organization.
D)   Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure.
E)   Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.F) All of the above
G) A) and D)

Exam 11: Establishing a Pay Structure

The Fair Labor Standards Act (FLSA) includes provisions for:

Correct AnswerverifiedShow Answer

Organizations in a product market compete to serve different customers.

Correct AnswerverifiedShow Answer

Which of the following permits a lower training wage,which employers may pay to workers under the age of 20 for a period of up to 90 days?

Correct AnswerverifiedShow Answer

The procedure in which an organization compares its own practices against those of successful competitors is known as:

Correct AnswerverifiedShow Answer

The National Compensation Survey is an ongoing activity of the:

Correct AnswerverifiedShow Answer

When labor costs are a large part of an organization's total costs,the organization responds by increasing pay levels.

Correct AnswerverifiedShow Answer

Skill-based pay systems support efforts to empower employees and enrich jobs.

Correct AnswerverifiedShow Answer

How do employees judge the fairness of a pay structure?

Correct AnswerverifiedEmployees evaluate their pay relative to...View AnswerShow Answer

Under the FLSA,exempt status of an employee depends on his/her:

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

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of skill-based pay systems?

Correct AnswerverifiedShow Answer

Paying a salary does not necessarily mean a job is exempt.

Correct AnswerverifiedShow Answer

Define job structure,pay level,and pay structure.

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

An organization's job structure consists of:

Correct AnswerverifiedShow Answer

Compensable factors are job characteristics that an organization values and chooses to pay for.

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From an economic standpoint,identify the drawback of a comparable-worth policy.

Correct AnswerverifiedShow Answer

The Davis-Bacon Act of 1931:

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Which of the following is a drawback of a minimum wage in terms of social policy?

Correct AnswerverifiedShow Answer

What is the advantage of two-tier wage systems?

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According to _____,people measure outcomes such as pay in terms of their inputs.

Correct AnswerverifiedShow Answer

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Employees evaluate their pay relative to...
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Job structure consists of the relative p...
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