Question 1

External equity refers to ________.

Accepted Answer

A)  how a job's pay rate in one company compares to the job's pay rate in other companies 
B)  how fair the job's pay rate is, when compared to other jobs within the same company 
C)  the fairness of an individual's pay as compared to a coworker's pay for the same job 
D)  the perceived fairness of the processes and procedures used to make decisions about compensation 
E)  the use of salary surveys and job evaluation comparisons to monitor pay levels within an industry 
A)  how a job's pay rate in one company compares to the job's pay rate in other companies 
B)  how fair the job's pay rate is, when compared to other jobs within the same company 
C)  the fairness of an individual's pay as compared to a coworker's pay for the same job 
D)  the perceived fairness of the processes and procedures used to make decisions about compensation 
E)  the use of salary surveys and job evaluation comparisons to monitor pay levels within an industry

Question 2

Which form of equity refers to the perceived fairness of the processes used to make decisions regarding the allocation of pay?

Accepted Answer

A)  external 
B)  internal 
C)  distributive 
D)  individual 
E)  procedural 
A)  external 
B)  internal 
C)  distributive 
D)  individual 
E)  procedural

Question 3

When using the job classification method of job evaluation,raters categorize jobs into groups of similar jobs called ________.

Accepted Answer

A)  classes 
B)  grades 
C)  sections 
D)  schedules 
E)  cohorts 
A)  classes 
B)  grades 
C)  sections 
D)  schedules 
E)  cohorts

Question 4

Jennifer has worked at Bank of America for six years as a loan officer.Tina was recently hired by Bank of America as a loan officer,and Tina's salary is higher than Jennifer's salary.Which of the following terms best describes this situation?

Accepted Answer

A)  wage curve 
B)  salary compression 
C)  age discrimination 
D)  market expansion 
E)  reward strategy 
A)  wage curve 
B)  salary compression 
C)  age discrimination 
D)  market expansion 
E)  reward strategy

Question 5

Most expatriate salaries are set using the host-country base pay.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment?

Accepted Answer

A)  salary 
B)  employee compensation 
C)  wage reimbursement 
D)  employee benefits 
E)  remuneration 
A)  salary 
B)  employee compensation 
C)  wage reimbursement 
D)  employee benefits 
E)  remuneration

Question 7

Managers use performance appraisals and incentive pay to maintain ________ equity.

Accepted Answer

A)  internal 
B)  external 
C)  individual 
D)  procedural 
E)  group 
A)  internal 
B)  external 
C)  individual 
D)  procedural 
E)  group

Question 8

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

A) True 
 B)False

Question 9

The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid,job-protected leave for the birth of a child only applies to women.

Accepted Answer

A) True 
 B)False

Question 10

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,supports the decision by Homelife executives to implement competency-based pay?

Accepted Answer

A)  Homelife will be using the comparable worth method of determining pay to avoid legal problems. 
B)  Most Homelife managers are men, but executives hope to increase the number of minority women working for the company. 
C)  Homelife sales associates currently receive base salaries in addition to sales commissions, but they have monthly sales quotas. 
D)  Homelife plans to organize employees into teams, provide regular training, and frequently assess workers' skills and knowledge. 
E)  In an effort to save money, Homelife will be reducing the employee training budget over the next three years. 
A)  Homelife will be using the comparable worth method of determining pay to avoid legal problems. 
B)  Most Homelife managers are men, but executives hope to increase the number of minority women working for the company. 
C)  Homelife sales associates currently receive base salaries in addition to sales commissions, but they have monthly sales quotas. 
D)  Homelife plans to organize employees into teams, provide regular training, and frequently assess workers' skills and knowledge. 
E)  In an effort to save money, Homelife will be reducing the employee training budget over the next three years.

Question 11

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

Accepted Answer

A)  experience 
B)  education 
C)  union intervention 
D)  federal legislation 
E)  competency-based pay 
A)  experience 
B)  education 
C)  union intervention 
D)  federal legislation 
E)  competency-based pay

Question 12

External equity refers to how fair the job's pay rate is,when compared to other jobs within the same company.

Accepted Answer

A) True 
 B)False

Question 13

What are the two primary components of computer-aided job evaluations?

Accepted Answer

A)  benchmark jobs and statistical models 
B)  compensable factors and benchmark jobs 
C)  grade definitions and factor comparisons 
D)  structured questionnaires and statistical models 
E)  structured questionnaires and grade definitions 
A)  benchmark jobs and statistical models 
B)  compensable factors and benchmark jobs 
C)  grade definitions and factor comparisons 
D)  structured questionnaires and statistical models 
E)  structured questionnaires and grade definitions

Question 14

What are the primary factors involved in determining compensation for a firm's CEO? What reasons best explain compensation reductions for top executives in recent years?

Accepted Answer

For a CEO position,job evaluation typica

Question 15

The typical penalty for an employer that misclassifies an employee as an independent contractor is a fine of up to $5,000.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

All of the following laws influence compensation decisions EXCEPT the ________.

Accepted Answer

A)  Americans with Disabilities Act 
B)  Labor Management Relations Act 
C)  Employer Retirement Income Security Act 
D)  Family and Medical Leave Act 
E)  Age Discrimination in Employment Act 
A)  Americans with Disabilities Act 
B)  Labor Management Relations Act 
C)  Employer Retirement Income Security Act 
D)  Family and Medical Leave Act 
E)  Age Discrimination in Employment Act

Question 18

Which of the following factors has the LEAST effect on the design of an organization's pay plan?

Accepted Answer

A)  legal 
B)  union 
C)  equity 
D)  company vision 
E)  company policy 
A)  legal 
B)  union 
C)  equity 
D)  company vision 
E)  company policy

Question 19

Which of the following is NOT one of the typical methods used by job evaluation committees to determine the worth of a job?

Accepted Answer

A)  ranking method 
B)  point method 
C)  job classification 
D)  paired comparison 
E)  factor comparison 
A)  ranking method 
B)  point method 
C)  job classification 
D)  paired comparison 
E)  factor comparison

Question 20

What is the first step in the process of establishing pay rates to ensure external equity?

Accepted Answer

A)  using wage curves to price each pay grade 
B)  analyzing a scatter plot of employee pay 
C)  comparing performance appraisals 
D)  conducting a salary survey 
E)  checking online pay sites 
A)  using wage curves to price each pay grade 
B)  analyzing a scatter plot of employee pay 
C)  comparing performance appraisals 
D)  conducting a salary survey 
E)  checking online pay sites

External equity refers to ________.

Which form of equity refers to the perceived fairness of the processes used to make decisions regarding the allocation of pay?

When using the job classification method of job evaluation,raters categorize jobs into groups of similar jobs called ________.

Jennifer has worked at Bank of America for six years as a loan officer.Tina was recently hired by Bank of America as a loan officer,and Tina's salary is higher than Jennifer's salary.Which of the following terms best describes this situation?

Most expatriate salaries are set using the host-country base pay.

Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment?

Managers use performance appraisals and incentive pay to maintain ________ equity.

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.

The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid,job-protected leave for the birth of a child only applies to women.

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

External equity refers to how fair the job's pay rate is,when compared to other jobs within the same company.

What are the two primary components of computer-aided job evaluations?

What are the primary factors involved in determining compensation for a firm's CEO? What reasons best explain compensation reductions for top executives in recent years?

The typical penalty for an employer that misclassifies an employee as an independent contractor is a fine of up to $5,000.

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

All of the following laws influence compensation decisions EXCEPT the ________.

Which of the following factors has the LEAST effect on the design of an organization's pay plan?

Which of the following is NOT one of the typical methods used by job evaluation committees to determine the worth of a job?

What is the first step in the process of establishing pay rates to ensure external equity?

Introduction to Human Resource Management

Equal Opportunity and the Law

The Manager's Role in Strategic Human Resource Management

Job Analysis

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Coaching, Careers, and Talent Management

Pay for Performance and Financial Incentives

Benefits and Services

Ethics, Justice, and Fair Treatment in HR Management

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

Managing Human Resources in Entrepreneurial Firms

Filters

Exam 11: Establishing Strategic Pay Plans

External equity refers to ________.

Which form of equity refers to the perceived fairness of the processes used to make decisions regarding the allocation of pay?

When using the job classification method of job evaluation,raters categorize jobs into groups of similar jobs called ________.

Jennifer has worked at Bank of America for six years as a loan officer.Tina was recently hired by Bank of America as a loan officer,and Tina's salary is higher than Jennifer's salary.Which of the following terms best describes this situation?

Most expatriate salaries are set using the host-country base pay.

Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment?

Managers use performance appraisals and incentive pay to maintain ________ equity.

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.

The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid,job-protected leave for the birth of a child only applies to women.

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

External equity refers to how fair the job's pay rate is,when compared to other jobs within the same company.

What are the two primary components of computer-aided job evaluations?

What are the primary factors involved in determining compensation for a firm's CEO? What reasons best explain compensation reductions for top executives in recent years?

The typical penalty for an employer that misclassifies an employee as an independent contractor is a fine of up to $5,000.

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

All of the following laws influence compensation decisions EXCEPT the ________.

Which of the following factors has the LEAST effect on the design of an organization's pay plan?

Which of the following is NOT one of the typical methods used by job evaluation committees to determine the worth of a job?

What is the first step in the process of establishing pay rates to ensure external equity?

Introduction to Human Resource Management

Equal Opportunity and the Law

The Manager's Role in Strategic Human Resource Management

Job Analysis

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Coaching, Careers, and Talent Management

Pay for Performance and Financial Incentives

Benefits and Services

Ethics, Justice, and Fair Treatment in HR Management

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

Managing Human Resources in Entrepreneurial Firms

Filters