Exam 9: Managing Compensation

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Broadbanding refers to collapsing many traditional salary grades into a few wide salary bands.

(True/False)
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Employees who earn pay for hourly work are referred to as salary earners.

(True/False)
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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.

(True/False)
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Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust.

(True/False)
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The relationship between the relative worth of jobs and their wage rates can be represented by means of a:

(Multiple Choice)
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Wages of unionized employees are generally higher than those of nonunion employees.

(True/False)
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Wages gained through collective bargaining extend:

(Multiple Choice)
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The Fair Labor Standards Act prohibits the employment of those between the ages of ____ in hazardous occupations such as mining,logging,and meatpacking.

(Multiple Choice)
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Which of the following compensation options would not qualify under the term pay-for-performance?

(Multiple Choice)
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The job ranking system ranks jobs on the basis of relative worth and can be done by a single person familiar with all jobs.

(True/False)
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There is reason to believe that pay secrecy can do all of the following except:

(Multiple Choice)
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Red circle rates are above the maximum for the pay range and are often frozen until the range shifts upward due to inflation.

(True/False)
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Employers wishing to encourage employees to accept a promotion to a job in a higher grade would:

(Multiple Choice)
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Which of the following is NOT an internal factor affecting the pay mix?

(Multiple Choice)
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The federal wage law that may require government contractors to pay overtime for work more than eight hours a day is:

(Multiple Choice)
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Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.

(True/False)
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Seniority,merit,and individual incentive plans are factors affected under the Equal Pay Act.

(True/False)
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Explain competence-based pay including its advantages and disadvantages.Include in your discussion the practice of broadbanding.

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The consumer price index is available in separate indexes by size of city and region of the country.

(True/False)
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Discuss some of the common goals of a strategic compensation policy.

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