Deck 8: Compensation Programs

Question 1

The amount of money workers earn significantly affects their

A) perceptions of self-worth.
B) ability to change positions.
B) performance in training sessions.
C) chances of being promoted.

Answer 1

A

Question 2

Under federal law, income from tips can constitute what percentage of an employee's minimum pay rate?

A) 30%
B) 40%
C) 50%
D) 60%

Answer 2

C

Question 3

Which is an example of an intrinsic reward for an operation's employees?

A) Tips
B) Profit-sharing
C) Personal growth
D) Discounted meals

Answer 3

C

Question 4

When the minimum wage rates established by the federal, state, and city are not the same, the manager is required to pay the

A) city rate.
B) federal rate.
C) lowest of the three rates.
D) highest of the three rates.

Question 5

Managers seeking to develop compensation programs designed to link pay to employee performance will

A) establish a merit pay system.
B) include a tip pooling arrangement.
C) exclude a tip pooling arrangement.
D) pay wages higher than the local average.

Question 6

A hotel pays its housekeepers a fixed amount of money for each room a housekeeper cleans during his or her shift. What type of pay are this hotel's housekeepers receiving?

A) Hourly wage
B) Piecework wage
C) Minimum wage
D) Objective rate wage

Question 7

Who determines the size of a service charge imposed on guests in a food service operation?

A) Guests
B) Servers
C) Managers
D) Members of the operation's tip pool

Question 8

What is the lowest amount of money employees covered by the FLSA, state, or local laws may be paid by employers?

A) Base pay
B) Merit pay
C) Minimum wage
D) Prevailing wage

Question 9

When developing a total compensation system, which management action would include conducting a salary survey?

A) Categorizing of jobs
B) Linkage of pay to job performance
C) Management of internal pay equity
D) Comparison of employee pay to the local labor market

Question 10

A worker earns $10 per hour and works 45 hours in one week. What is the minimum amount this worker must be paid for the week's work?

A) $450
B) $475
C) $500
D) $525

Question 11

Who can control the tip money left by guests for their servers?

A) The servers
B) The managers of the servers
C) The owners of the business employing the servers
D) The taxing authority in the jurisdiction in which the servers are employed

Question 12

Which is an example of an extrinsic reward for an operation's employees?

A) Job security
B) Job freedom
C) Empowerment
D) Voluntary benefits

Question 13

When guests include a server tip while paying their bills with a credit or debit (payment) card

A) the tip must be placed in a tip pool.
B) the guest's server must receive 100% of the tip.
C) the guest's server must receive no less than 98% of the tip.
D) owners of the operation may reduce the tip by an amount equal to charges levied by the card company.

Question 14

If an employee is termed as being "exempt," this means that he or she is not

A) entitled to paid time-off.
B) eligible for unemployment benefits.
C) required to submit to a background check.
D) subject to the overtime provisions of the FLSA.

Question 15

In general, how many full-time staff members must a worker supervise if that worker is to be considered an exempt executive employee?

A) 1
B) 2
C) 3
D) 4

Question 16

When may "exempt" salaried workers' weekly or monthly pay be reduced?

A) When they are sent home from work early
B) When they are scheduled for three consecutive days off
C) When they have been suspended for a work place rule violation
D) When they work less than 40 hours in a single one-week pay period

Question 17

The pay range for a specific job category in a community is referred to as

A) a tip pool.
B) merit pay.
C) living wages.
D) the local wage rate.

Question 18

What is always true about a food service employee's tips?

A) They are taxable income.
B) They are nontaxable income.
C) They are controlled by managers.
D) They cannot include any mandatory tip pooling arrangements.

Question 19

Which classification of employees would typically be prohibited from participating in a tip-pooling arrangement?

A) Cooks
B) Bussers
C) Wait staff
D) Hostesses

Question 20

Which is a mandatory employee benefit?

A) Vacation pay
B) 40(k) program
C) Social Security
D) Discounted employee meals

Question 21

Organizations are exempt from the Patient Protection and Affordable Care Act (ACA) penalties if they have fewer than _________ full-time workers.

A) 25
B) 50
C) 75
D) 100

Question 22

Which is an example of a hospitality-specific employment benefit?

A) 401(k) program
B) Social Security
C) Discounted hotel room rates
D) Employee assistance programs

Question 23

Which law allows affected employees to retain their group health insurance coverage if they lose their jobs?

A) Fair Labor Standards Act
B) Occupational Safety and Health Act
C) Patient Protection and Affordable Care Act
D) Consolidated Omnibus Budget Reconciliation Act

Question 24

Employee assistance plans are designed to provide employees with

A) low-cost housing loans.
B) expanded health insurance coverage.
C) counseling for a variety of life issues.
D) paycheck advances with lower repayment terms.

Question 25

What role can intrinsic rewards play in an organization's overall compensation program?

A) They can increase worker pay.
B) They can serve as powerful motivators.
C) They can help employees achieve promotions more rapidly.
D) They can help reduce the cost of providing mandatory worker benefits.