Deck 10: Compensation: An Overview

Question 1

________ are company employees from foreign sites who come to the United States on assignment or for training.

A) Glopatriates
B) Inpatriates
C) Transpatriates
D) E9's

Answer 1

B

Question 2

For a salary survey to be useful,employees should not be involved in choosing the organizations to be surveyed.

Answer 2

False

Question 3

At least 3,500 scholarly articles have been written about pay satisfaction,so it is easy to find convincing evidence that workers' satisfaction leads to increased productivity.

Answer 3

False

Question 4

Generation ___ has the highest percentage of members that have finished high school and college.

A) X
B) Y
C) Z
D) me

Question 5

The pay level is decided by managers who compare the pay of people working inside the organization with those outside it.

Question 6

Child labor laws forbid 16- and 17-year-olds from being employed in hazardous occupations.

Question 7

The Wagner Act mandates that wage rates be frozen during an union's contract negotiation period.

Question 8

The Federal Wage Garnishment Act prohibits an employer from firing an employee if the employee has his/her pay garnished only once.

Question 9

The more competitive the situation,the more able an organization is to pay higher wages.

Question 10

What a person is paid indicates his or her worth to an organization.

Question 11

Diversity is limited to the demographic characteristics of the workforce.

Question 12

About 92 percent of nonsupervisory farm workers are covered by the Fair Labor Standards Act.

Question 13

The classification system groups a set of jobs together into a grade or classification,then ranks these sets of jobs by the number of employees performing the job.

Question 14

The low cost of living in developing countries allows organizations to pay foreign workers less than American workers.

Question 15

Compensation should be _____________.

A) adequate
B) equitable
C) balanced
D) All of the above are correct.

Question 16

The percentage increase in average weekly earnings in the U.S.is closely related to the percentage change in productivity plus the percentage change in _______________.

A) the consumer price index
B) unemployment
C) college enrollment
D) new hires

Question 17

If an hourly worker is called to work,he/she must paid for a minimum number of hours (typically at least two hours).

Question 18

A pay class always has multiple pay rates

Question 19

Broadbanding give managers more flexibility in moving employees through the pay structures.

Question 20

When pay is considered _________,it is enough it help an employee feel secure and aid him or her in satisfying basic needs.

A) adequate
B) livable
C) secure
D) All of the above are correct.

Question 21

The _______________ granted the president of the United States the authority to impose wage and price controls in times of national necessity.

A) Wage Stabilization Act
B) Defense Production Act
C) Economic Stabilization Act
D) Fair Labor Standards Act

Question 22

The ____________ requires employers who have contracts with the federal government of $2,500 per year or more,or who provide services to federal agencies as contractors or subcontractors,to pay prevailing wages and fringe benefits to their employees.

A) Walsh-Healy Act of 1936
B) The Davis-Bacon Act of 1931
C) McNamara-O'Hara Service Contract Act
D) Fair Labor Standards Act of 1938.

Question 23

The _____________ requires firms doing business with the federal government to pay wages at least equal to the industry minimum.

A) Walsh-Healy Act of 1936
B) The Davis-Bacon Act of 1931
C) McNamara-O'Hara Service Contract Act
D) Fair Labor Standards Act of 1938.

Question 24

In 1938,the minimum wage was set at _______________ per hour.

A) 25 cents
B) 50 cents
C) one dollar
D) two dollars

Question 25

When filing a claim under the Equal Pay Act,all the plaintiff has to do is to prove that _____ making more for doing the same job.

A) one man
B) one woman
C) one man or one woman
D) the average man

Question 26

The FLSA covers business ______________.

A) with two or more employees
B) that are engaged in interstate commerce
C) that hold federal contracts
D) Both A and B

Question 27

Wages include base pay plus:

A) Holiday pay
B) Overtime pay
C) Clothing reimbursement
D) All of the choices are correct.

Question 28

Employers of _______________ must pay a cash wage of at least $2.13 per hour.

A) farm workers
B) temporary workers
C) workers who get tips
D) workers under the age of 17

Question 29

Which of the following groups are exempt from both the minimum wage and overtime provisions of the FLSA.

A) Employees of seasonal amusment or recreational establishments.
B) Employees of motion picture theaters.
C) Farm workers.
D) All of the above are correct.

Question 30

The FLSA forbids Individuals under the age of ___ from working in hazardous occupations.

A) 21
B) 18
C) 17
D) 14

Question 31

The ____________ requires the payment of minimum prevailing wages of the locality to workers engaged in federally sponsored public works.

A) Walsh-Healy Act of 1936
B) The Davis-Bacon Act of 1931
C) McNamara-O'Hara Service Contract Act
D) Fair Labor Standards Act of 1938.

Question 32

The concept of _________ (sometimes called pay equity)attempts to prove that employers systematically discriminate by paying women less than their work is intrinsically worth,versus what they pay men who work in equally valuable positions-and to remedy this situation.

A) equal pay
B) comparable worth
C) comparable pay
D) job equity

Question 33

Which of the following is not a provision within the Fair Labor Standards Act?

A) Minimum wage
B) Overtime
C) Wage Stabilization Admendment of 1942
D) The Equal Pay Act of 1963

Question 34

An employee classified as a manager,technical,or professional who is paid on an hourly basis is considered _______________.

A) exempt
B) nonexempt
C) on call
D) underpaid

Question 35

According to the FLSA,child labor is any economic activity performed by an individual under ___ years of age.

A) 14
B) 15
C) 16
D) 18

Question 36

The FLSA has provisions covering ________.

A) minimum wage
B) overtime
C) child labor
D) All of the above are correct.

Question 37

When applying the provisions of the Equal Pay Act,four elements are used to establish the equality of positions.These elements include: _______________.

A) skill and effort
B) responsibility
C) working conditions
D) All of the above.

Question 38

Certain _______________ may legally be paid less than minimum wage.

A) students
B) disabled employees
C) apprentices
D) All of the choices are correct.

Question 39

The FLSA forbids employing minors under the age of 14 in ______________.

A) any job
B) agricultural jobs
C) nonagricultural jobs
D) nonfamily jobs.

Question 40

In 2010,the average woman earned 77 percent of the earnings of the average:

A) White male
B) Immigrant
C) Temporary worker
D) African-American male

Question 41

Pay for a particular position should be set relative to all of the following groups except:

A) Employees working on similar jobs in other organizations
B) Employees hired to do the job on a temporary basis
C) Employees working on different jobs within the organization
D) Employees working on the same job within the organization

Question 42

Herzberg suggests that:

A) increasing pay will increase worker satisfaction.
B) increasing pay will increase productivity.
C) pay prevents workers from being demotivated
D) Both A and C are correct.

Question 43

The Federal Wage Garnishment Act (1970)allows the employer to _________.

A) deduct as much from the paycheck as required by court orders for alimony or child support,debts due for taxes,or bankruptcy court rulings
B) deduct up to half from the paycheck as required by court orders for alimony or child support,debts due for taxes,or bankruptcy court rulings
C) deduct up to one third from the paycheck as required by court orders for alimony or child support,debts due for taxes,or bankruptcy court rulings
D) deduct as much from the paycheck as required by a secured creditor

Question 44

Several factors affect the choice of pay-level strategy,they include __________.

A) the motivation and attitude of management
B) ethical orientation of management
C) the organization's ability to pay
D) All of the above are correct.

Question 45

Herzberg applied his hygiene theory to pay and reached the conclusion that pay simply prevents works from being _____.

A) demotivated
B) motivated
C) hungry
D) in a state of disequlibrum

Question 46

The clearest indication of worker satisfaction may be patterns of absenteeism and ___________.

A) turnover
B) promotion
C) training
D) hiring

Question 47

When conducting a wage survey,a minimum of __________ of the jobs should be matched with market data to ensure an equitable evaluation of the firm's compensation system.

A) half
B) 30 percent
C) 10 percent
D) None of the above,all jobs must be included.

Question 48

The term comparable worth __________.

A) is unambiguous in meaning
B) is defined by a variety of federal statutes
C) means different things to different people
D) Both A and B are correct.

Question 49

________ developed a model based on equity theory to help explain dissatisfaction and satisfaction with pay.

A) Edward Lawler
B) Fredrick Herzberg
C) Adam Smith
D) Walsh and Healy

Question 50

According to the __________ approach,wages should be kept at the subsistence level so that workers would be motivated to be highly productive.

A) hungry man
B) economic man
C) rational man
D) intrinsic man

Question 51

Increasing payroll costs and global competition have caused managers in the U.S.to seek ways to increase productivity by linking compensation to employees' _______________.

A) seniority
B) ability
C) job title
D) performance

Question 52

Frederick Taylor urged managers to learn to design jobs properly and then link pay directly to:

A) Quality
B) Hours worked
C) Measurable productivity
D) Employee satisfaction

Question 53

The Code of Hammurabi,from the 18^th century,documents the use of _______________.

A) minimum wage
B) fixed wages
C) incentive rewards
D) All of the choices are correct.

Question 54

Which of the following is not one of the three basic pay-level strategies?

A) High
B) Low
C) Neutral
D) Comparable

Question 55

According to the __________ approach,the more money each individual made,the harder he or she would work;or output would increase as wages rose.

A) hungry man
B) economic man
C) rational man
D) intrinsic man

Question 56

What is the primary objective of the pay-level decision?

A) To keep the organization competitive in the labor market
B) To keep payroll costs down
C) To bring job satisfaction up to acceptable levels
D) To reduce the number of pay levels

Question 57

The first profit sharing plan in the United States was established in ________.

A) 1934
B) 1894
C) 1834
D) 1794

Question 58

Relative deprivation theory suggests that pay dissatisfaction is a function of all of the following except:

A) Past expectations of receiving more rewards
B) A discrepancy between what employees want and what they get
C) High expectations for the future
D) A feeling of not being personally responsible for poor results

Question 59

The first minimum wage law was passed in the united states in what year?

A) 1912
B) 1931
C) 1936
D) 1942

Question 60

Pay surveys are typically used to collect data about compensation paid to employees by all employers in a(n)_______________.

A) geographic area
B) industry
C) occupational group
D) All of the choices are correct.

Question 61

The text includes all of the following methods to acquire competitive salary information following except:

A) Purchasing an existing survey.
B) Joining an existing survey.
C) Using wages posted in classified advertisements.
D) Collecting information from proxy statements.

Question 62

_______________ can increase flexibility by allowing employees to move among a wider range of job tasks without having to adjust pay with each move.

A) Delamination
B) Delayering
C) Leveling
D) Flattening

Question 63

What is the most negative aspect of the factor comparison method?

A) Cost
B) Complexity
C) Lack of subjectivity
D) Development time

Question 64

The greatest number of job evaluation plans use the _________.

A) factor comparison method
B) point system
C) job-ranking method
D) broadbanding method

Question 65

What are the four provisions of the Fair Labor Standards Act?

Question 66

Instead of analyzing the full complexity of jobs by evaluating parts of jobs,the ________ has the evaluator rank-order whole jobs.

A) whole job method
B) factor ranking system
C) job-ranking method
D) broadbanding method

Question 67

The five universal job factors considered when applying the factor comparison method include all of the following except:

A) Seniority.
B) Skills.
C) Physical effort.
D) Mental effort.

Question 68

Why was the Fair Labor Standards Act of 1938 passed?

Question 69

All of the following are typical of the factors used for job evaluation except:

A) Education
B) Longevity
C) Experience
D) Work hazards

Question 70

The factor comparison method,originated by Eugene Benge,considers ____ universal job factors.

A) four
B) five
C) eight
D) ten

Question 71

What are the four elements that are used to establish the equality of positions?

Question 72

What are the differences between wage freezes,wage controls and wage guidelines.

Question 73

Who may be paid an "opportunity wage"?

Question 74

If federal and state employment laws conflict,which one applies?

Question 75

Why should exempt workers who are paid for being on call not receive hourly pay?

Question 76

What was the intended purpose of the Equal Pay Act of 1963?

Question 77

The _______________ is the most frequently used and least expensive method of obtaining a salary survey.

A) telephone inquiry
B) personal interview
C) mailed questionnaire
D) intercept method

Question 78

A _______________ is a grouping of a variety of jobs that are similar in terms of difficulty and responsibility.

A) pay curve
B) layer
C) pay range
D) pay class

Question 79

Why did early economists feel that wages should be kept at a subsistence level?

Question 80

What are the three characteristics of the typical minimum wage worker?