Question 1

Atena Technologies, a software company greatly reduced the bureaucratic nature of its pay structure, by going from 3,000 job titles and 12 pay grades to a simpler 1,000 jobs and 5 pay grades. In this example, Atena Technologies used:

Accepted Answer

In response to the problems caused by job-based pay structures, some organizations are delayering, or reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases.

Question 2

Title VII of the Civil Rights Act:

Accepted Answer

Comparable worth (or pay equity)is a public policy that advocates remedies for any undervaluation of women's jobs. The idea is to obtain equal pay, not just for jobs of equal content (already mandated by the Equal Pay Act of 1963)but for jobs of equal value or worth, on the basis of Title VII of the Civil Rights Act.

Question 3

Which of the following is true of a job-based pay structure?

Accepted Answer

Job-based pay structures may encourage bureaucracy. The job description sets out specific tasks and activities for which the incumbent is responsible and, by implication, those for which the incumbent is not responsible. Although this facilitates performance evaluation and control by the manager, it can also encourage a lack of flexibility and a lack of initiative on the part of employees.

Question 4

The Executive Order 11246 is enforced by the:

Accepted Answer

Although comparable worth is not mandated in the U.S. private sector, the Department of Labor (Office of Federal Contracts Compliance)which enforces Executive Order 11246, put into place new enforcement standards and guidelines in 2006 that prohibit race or sex-based "systemic compensation discrimination."

Question 5

Which of the following is true of delayering and banding?

Accepted Answer

One possible disadvantage of delayering and banding is a reduced opportunity for promotion. Broad bands, with their greater spread between pay minimums and maximums, can also lead to weaker budgetary control and rising labor costs.

Question 6

A study by Peter Cappelli and Peter Sherer on the effects of two-tier wage plans has found that:

Accepted Answer

A study by Peter Cappelli and Peter Sherer found that the lower-paid employees were more satisfied on average. Apparently, those in the lower tier used different (lower)comparison standards than those in the higher tier. The lower-tier employees compared their jobs with unemployment or lower-paying jobs they had managed to avoid. As a result, they were more satisfied, despite being paid less money for the same work.

Question 7

One indicator of productivity is gross domestic product per person. The gross domestic product refers to the:

Accepted Answer

Any consideration of where to locate production is based on the data on comparative productivity and unit labor costs. One indicator of productivity is gross domestic product (or total output of the economy)per person.

Question 8

A broad band:

Accepted Answer

In response to the problems caused by job-based pay structures, some organizations are delayering, or reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases. These broader groupings of jobs are also known as broad bands.

Question 9

_____ refers to the process of reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases.

Accepted Answer

In response to the problems caused by job-based pay structures, some organizations are delayering, or reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases.

Question 10

Typically, which of the following human resource tools is used to measure pay equity?

Accepted Answer

The idea behind the comparable worth policy is to obtain equal pay, not just for jobs of equal content (already mandated by the Equal Pay Act of 1963)but for jobs of equal value or worth, on the basis of Title VII of the Civil Rights Act. Typically, job evaluation is used to measure worth.

Question 11

Job-based pay structure:

Accepted Answer

The hierarchical nature of job-based pay structures reinforces a top-down decision making and information flow as well as status differentials, which do not lend themselves to taking advantage of the skills and knowledge of those closest to production.

Question 12

_____ is a public policy that advocates remedies for any undervaluation of women's jobs.

Accepted Answer

Comparable worth (or pay equity)is a public policy that advocates remedies for any undervaluation of women's jobs. The idea is to obtain equal pay, not just for jobs of equal content (already mandated by the Equal Pay Act of 1963)but for jobs of equal value or worth, on the basis of Title VII of the Civil Rights Act.

Question 13

Which of the following phenomena allows women and minorities to come within sight of the top echelons of management, but not advance to them?

Accepted Answer

A "glass ceiling" is a phenomenon that allows women (and minorities)to come within sight of the top echelons of management, but not advance to them.

Question 14

Actual pay is lagging behind the pay policy when the compa-ratio is:

Accepted Answer

The compa-ratio directly assesses the degree to which actual pay is consistent with the pay policy. A compa-ratio less than 1.00 suggests that actual pay is lagging behind the policy, whereas a compa-ratio greater than 1.00 indicates that pay (and costs)exceeds that of the policy.

Question 15

The two-tier wage plan supports the _____ through its focus on the way employees compare their pay with other jobs and the need for managers to take this into consideration.

Accepted Answer

The two-tier wage plan supports the equity theory through its focus on the way employees compare their pay with other jobs and the need for managers to take this into consideration. Employees increasingly have access to salary survey information, which is likely to result in more comparisons and thus a greater need for effective communication.

Question 16

During the recent financial crisis, the U.S. government, as part of the _____, decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.

Accepted Answer

The issue of executive pay has been given widespread attention in the press. During the recent financial crisis, the U.S. government, as part of the Troubled Asset Relief Program (TARP), decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.

Question 17

Which of the following pays is similar to pay structures based on individual characteristics such as skill or knowledge but usually refers to a plan that covers exempt employees?

Accepted Answer

One of the responses to job-based pay structure problems has been to move away from linking pay to jobs and toward building structures based on individual characteristics such as skill or knowledge. Competency-based pay is similar but usually refers to a plan that covers exempt employees (such as managers).

Question 18

Which of the following equal employment opportunity regulation prohibits sex- and race-based differences in employment outcomes such as pay, unless justified by business necessity?

Accepted Answer

Equal employment opportunity (EEO)regulation (such as Title VII of the Civil Rights Act)prohibits sex- and race-based differences in employment outcomes such as pay, unless justified by business necessity (like pay differences stemming from differences in job performance). In addition to regulatory pressures, organizations must deal with changing labor market and demographic realities.

Question 19

Which of the following hypotheses argues that women were historically restricted to entering a small number of occupations and as a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations?

Accepted Answer

The "crowding" hypothesis argues that women were historically restricted to entering a small number of occupations. As a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations.

Question 20

Which of the following is true of skill-based pay?

Accepted Answer

An important potential advantage of skill-based pay is its contribution to increased worker flexibility, which in turn facilitates the decentralization of decision making to those who are most knowledgeable. It also provides the opportunity for leaner staffing levels because employee turnover or absenteeism can now be covered by current employees who are multiskilled.

Quiz 11: Pay Structure Decisions