Question 1

Which of the following job evaluation methods is associated with almost every comparable worth lawsuit?

Accepted Answer

D)Virtually every comparable worth case that reached a court involved the use of the point method of job evaluation.By assigning points to dissimilar jobs,point plans facilitate comparability ratings among different jobs.

Question 2

According to the FLSA,agricultural employees,live-in maids,and taxi drivers are always eligible for overtime pay.

Accepted Answer

However,certain employees are always exempt from overtime pay provisions.They include,among others,agricultural employees,live-in household employees,taxicab drivers,and motion picture theater employees.

Question 3

Employers prefer to give time off in lieu of overtime pay because they only have to grant the same number of hours off as the employee worked overtime,while overtime pay is calculated at 150% of normal pay.

Accepted Answer

According to the FLSA,both overtime pay and time off for overtime work must be calculated at the one-and-a-half times rate.

Question 4

Financial benefits like employer-paid insurance and vacations are not a part of employee compensation.

Accepted Answer

Employee compensation refers to all forms of pay going to employees and arising from their employment.It has two main components,direct financial payments (wages,salaries,incentives,commissions,and bonuses)and indirect financial payments (financial benefits like employer-paid insurance and vacations).

Question 5

Homelife,a national chain of high-end furniture stores,employs nearly 800 workers.In the past few years,the company's market share has dropped significantly,and employee turnover has increased.Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around.Historically,the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which of the following,if true,best supports the decision by Homelife executives to implement competency-based pay?

Accepted Answer

C)When used in conjunction with team-building and worker involvement programs,competency-based pay appears to lead to higher quality and lower absenteeism.Comparable worth and minority hiring are irrelevant to competency-based pay.

Question 6

Richard was recently offered a position as vice president of marketing at a national retail chain.As a top executive at the firm,Richard will most likely be compensated with all of the following EXCEPT ________.

Accepted Answer

C)Compensation for a company's top executives usually consists of four main elements: base pay,short-term incentives like bonuses,long-term incentives,and executive perks such as pension plans and supplemental life insurance.Sales commissions are not a typical compensation for top executives.

Question 7

What is the primary purpose of offering an executive stock options in a compensation package?

Accepted Answer

B)Long-term incentives aim to encourage the executive to take actions that drive up the value of the company's stock and include things like stock options; these generally give the executive the right to purchase stock at a specific price for a specific period.

Question 8

A company using competency-based pay compensates employees for all of the following EXCEPT ________.

Accepted Answer

B)Competency-based pay occurs when a firm pays wages based on an employee's knowledge,skills,behaviors,and abilities rather than for the job title that he or she holds.

Question 9

The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

Accepted Answer

The Equal Pay Act is an amendment to the Fair Labor Standards Act.The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

Question 10

Direct financial payments may be based on increments of time and on performance.

Accepted Answer

Direct financial payments include wages,salaries,and commissions.They may be based on time worked or on performance,such as units produced.

Question 11

Indirect payments that contribute to an employee's compensation include variable pay like commissions and bonuses.

Accepted Answer

Employee compensation refers to all forms of pay going to employees and arising from their employment.It has two main components,direct financial payments like salaries,commissions,and bonuses and indirect financial payments,which include health benefits.

Question 12

According to the Davis-Bacon Act,when employees work more than 40 hours per week,employers must pay overtime at a rate of at least one-and-a-half times the normal pay for any hours worked over 40 in a workweek.

Accepted Answer

According to provisions in the Fair Labor Standards Act,employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek.The Davis-Bacon Act sets wage rates for laborers employed by contractors working for the federal government.

Question 13

According to many experts,which of the following would most likely reduce the wage gap between men and women?

Accepted Answer

A)Education may reduce the wage gap.Studies suggest that schooling's impact on earnings is greater for females than for males,other things equal.This may be because education reduces the male-female earnings gap attributable to female discrimination.

Question 14

Because the minimum wage is set by the Fair Labor Standards Act,there is no variation from state to state in the minimum wage paid to hourly workers.

Accepted Answer

The FLSA sets a minimum wage,which sets a floor for employees covered by the act.Many states and cities have their own minimum wage laws,so the minimum wage varies from state to state.

Question 15

Portability rights refer to an employee's ability to transfer his or her vested rights from one organization to another.

Accepted Answer

ERISA sets regulations regarding vesting rights and portability rights.Vesting refers to the equity or ownership the employees build up in their pension plans should their employment terminate before retirement,and portability rights is an employee's ability to transfer his or her vested rights from one organization to another.

Question 16

Which of the following terms refers to the requirement to pay men and women equal wages for jobs of roughly equivalent value to the employer?

Accepted Answer

B)Comparable worth refers to the requirement to pay men and women equal wages for jobs that are of comparable (rather than strictly equal)value to the employer.Comparable worth may involve comparing quite dissimilar jobs.

Question 17

Which of the following questions is most relevant to developing a market competitive pay system?

Accepted Answer

B)With a market competitive pay system,the employer's actual pay rates are competitive with those in the relevant labor markets.Rankings are more relevant to the job evaluation method of setting pay rates.

Question 18

Which of the following is LEAST likely a benefit of using competency based pay?

Accepted Answer

B)First,paying for competencies enables companies to encourage employees to develop the competencies the companies require to achieve their strategic aims.Second,paying for measurable competencies provides a focus for the employer's talent management process.Third,traditional pay plans can backfire if a high-performance work system is your goal.

Question 19

Performance-based pay is more popular than time-based pay among most employers in the U.S.

Accepted Answer

Time-based pay is still the foundation of most employers' pay plans.Blue-collar workers get hourly or daily wages,for instance,and others,like managers,tend to be salaried and paid by the week,month,or year.The second direct payment option is to pay for performance,which ties compensation to the amount of production the worker turns out.

Question 20

________ means collapsing salary grades and ranges into just a few wide levels,each of which contains a relatively wide range of jobs and salary levels.

Accepted Answer

C)Broad banding means collapsing salary grades into just a few wide levels or bands,each of which contains a relatively wide range of jobs and pay levels.A company may create broadbands for all its jobs,or for specific groups such as managers or professionals.

Quiz 11: Establishing Strategic Pay Plans