Exam 11: Establishing Strategic Pay Plans

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

Which form of equity refers to the fairness of a job's pay rate in comparison to other jobs within the same company?

Which of the following terms refers to the ownership employees build up in their pension plans should their employment with a firm end prior to retirement?

Which of the following is NOT one of the compensable factors emphasized in the Equal Pay Act?

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 argument that Homelife should distribute salary surveys before establishing new pay rates?

The primary advantage of broad banding is that it provides greater flexibility into employee assignments.

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

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.

What type of equity is a manager most likely trying to maintain through the use of performance appraisals and incentive pay?

Central basic factors that establish how several jobs compare to one another and that determine the pay for each job are called ________.

Which of the following is true for employers who use independent contractors?

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

An advantage of the job classification method is that the objective nature of the system makes it easy to write the class and grade descriptions.

According to the court system,the test that distinguishes an independent contractor from an employee is whether or not the firm provides the worker with health insurance benefits.

________ 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.

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

Anita,a manager at a department store,needs to determine whether one of her employees is exempt or nonexempt under the Fair Labor Standards Act.Which of the following would be the best resource for Anita?

What are the two primary ways to make direct financial payments to employees? How does compensation for managers or professionals differ from compensation for clerical or production workers at a firm?

Large corporations are more likely than small businesses to use a market-based approach to setting pay rates because it is easier for a large firm to conduct formal job evaluations.

Which job evaluation method is a quantitative technique involving the identification of several compensable factors and the degree to which each of these factors is present in the job?