Exam 10: Managing Compensation

An egalitarian pay system strives to place most of their employees under the same compensation plan,while elitist pay systems establish different compensation plans based on employees' organizational level.

When implementing a job-based compensation plan,it is best that a company:

Indirect compensation in a pay mix typically includes:

While the Fair Labor Standards Act dictates that employers pay workers overtime for each hour they work over 40 hours in a week,it does not dictate the rate they must be paid.Employers may pay anywhere from 1/2 to 2 times their regular wage.

A(n)________ is a pay plan in which different compensation systems are established for employees or groups at different organizational levels.

A compensation system that assumes that employees should be compensated based upon their abilities,potential,and flexibility to perform multiple tasks is a(n)________ compensation system.

The Equal Pay Act prohibits compensation discrimination between men and women doing substantially the same job,EXCEPT when:

Additional Case 10.1 Brighton Manufacturing is reviewing its compensation system. The CEO wants employees to be paid wages and benefits comparable to Brighton's competitors. He wants a system that allows for maximum flexibility in reassigning workers to different jobs without requiring compensation adjustments each time. The Finance VP suggests that the company link compensation costs more closely to productivity and profit. When profits are down, compensation costs should be reduced as well. The Finance VP also believes that employees should be paid for what they produce, not for their time, and the compensation program should apply to all employees equally. The VP of HR suggests that the key to the company's success is their employees and advocates an individual-based compensation plan. People should be paid for their skills or knowledge, not just because they are fulfilling certain jobs. The VP of HR also feels that it would be simpler to implement a compensation system by level rather than by job. -Refer to Additional Case 10.1.Which of the following,if true,best supports the compensation plan advocated by the VP of HR?

Which of the following affects most pay structures in the United States?

If management wants the compensation system to reinforce a traditional organizational structure and stability within the company,a(n)________ compensation system is the best choice.

When conducting a job evaluation,it is most important to remind employees that:

Balancing equity ensures that employees with seniority will receive greater compensation than more recent hires.

Pay openness would work best in which of the following situations?

Organizations that emphasize nonmonetary rewards are often trying to encourage and reinforce individual achievement and responsibility among employees.

Some companies,in order to dodge costs related to the Fair Labor Standards Act,will claim more exempt employees than nonexempt employees.

Michele is determining the value of different jobs in a medium-sized contracting company.She is most likely:

Advocates of skill-based pay argue that it:

Job-based compensation plans place strong consideration on the nature of the business.

What is the impact of the Fair Labor Standards Act and the Equal Pay Act on employee compensation?

Azzi recently went through company training on using a new computer system,and she has recently received her Associates of Arts degree in Accounting.Her company is raising her salary in response to her new abilities and is giving her new,related responsibilities.The company probably uses a job-based pay system.