Exam 9: Managing Compensation

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Equity theory is also referred to as distributive fairness.

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The Equal Pay Act prohibits wage discrimination based on:

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The expectancy theory of motivation predicts that one's level of motivation depends on the attractiveness of the rewards sought by employees and the probability of obtaining those rewards.

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An advantage of competence-based pay from the employee's perspective is that there is no limit to what they can earn by learning new skills.

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While most managers agree that pay should be linked to performance,employees do not.

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A job evaluation system that seeks to measure a job's worth through its value to the organization is known as:

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Because management positions are more difficult to evaluate and involve certain demands not found in jobs at the lower levels,some organizations do not attempt to include them in their job evaluation programs for hourly employees.

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Pay levels are limited in part by profitability of the firm and productivity of employees.

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Competence-based pay systems represent a fundamental change in the attitude of management regarding how work should be organized and how employees should be paid for their work efforts.

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What are some of the factors that can influence wage rates in a firm?

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Seniority,merit,and individual incentive plans are factors affected under the Equal Pay Act.

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Discuss some of the common goals of a strategic compensation policy.

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A major criticism of competence-based pay systems is that after achieving the top wage,employees may be reluctant to continue their educational training.

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Managers group similar jobs into a pay grade in order to help with the setting of wages for all jobs.

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Because of its focus,the Hay profile method is most useful for evaluating which type of jobs?

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Which of the following is an example of a nonfinancial compensation?

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Nonexempt employees are not covered by overtime requirements under the Fair Labor Standards Act.

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_____ is a pay system in which employees are paid according to the number of units they produce.

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The Fair Labor Standards Act permits employers to pay a "training wage" of _____ per hour for employees younger than the age of twenty during their first ninety days of employment,provided their employment does not displace other workers.

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Red circle rates above the maximum for the range can result because:

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