Question 1

Which of the following job evaluation methods is associated with almost every comparable worth lawsuit?

Accepted Answer

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

Question 2

If the current rate being paid for a job falls significantly below the wage line,what step should be taken by an employer?

Accepted Answer

A)   enact a pay freeze for that job
B)   assess a decrease in wages
C)   conduct a job evaluation
D)   pay a one-time bonus
E)   provide a pay raise E

Question 3

The Equal Pay Act focuses on three compensable factors-know-how,problem solving,and accountability.

Accepted Answer

A) True 
 B)False  False

Question 4

What are your compensation options if you are an employer who needs to transfer an employee from a low cost-of-living area to a high cost-of-living area?

Accepted Answer

The answer of What are your compensation options if you...

Question 5

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 argument that Homelife executives should primarily address internal equity issues when developing a new compensation plan?

Accepted Answer

A)   Most of Homelife's former employees are now employed at competitor's stores in similar positions.
B)   Homelife employees receive annual performance appraisals at which time they set career goals.
C)   Salary surveys indicate dissatisfaction among the Homelife managers in different departments.
D)   Online pay sites show the pay range for sales associates at both Homelife and its competitors.
E)   Homelife pays its sales managers commissions in addition to base salaries and health benefits.

Question 6

Broadbanding and competency-based pay are increasingly popular among employers because both methods eliminate the need for evaluating the worth of one job relative to others.

Accepted Answer

A) True 
 B)False

Question 7

Trevor,a sales manager at IBM,recently learned that an IBM human resources manager with comparable responsibilities and spans of control earns a higher salary than Trevor.Which form of equity is of most concern to Trevor?

Accepted Answer

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

Question 8

Which of the following best describes the factor comparison method of job evaluation?

Accepted Answer

A)   identifying several compensable factors and the degree to which each factor is present in the job
B)   ranking each job relative to all other jobs based on several compensable factors
C)   determining the most important compensable factors for a specific job
D)   categorizing jobs into groups, grades, and classes
E)   classifying each job based on an overall factor

Question 9

The point method of job evaluation is the most frequently used job evaluation method,but it is also associated with lawsuits involving comparable worth.In a brief essay,explain the point method of job evaluation and why it is problematic for firms in regards to comparable worth.

Accepted Answer

The answer of The point method of job evaluation is...

Question 10

What are the five main elements of a competency-based pay plan?

Accepted Answer

The answer of What are the five main elements of...

Question 11

All of the following are typical ways that employers address cost-of-living differentials EXCEPT ________.

Accepted Answer

A)   paying a differential for ongoing costs plus a lump sum amount
B)   paying a nonrecurring amount spread over 1 to 3 years
C)   paying a nonrecurring, lump sum amount
D)   raising an employee's base salary
E)   raising commission percentages

Question 12

Which of the following is used to anchor the employer's pay scale?

Accepted Answer

A)   job aid
B)   grades
C)   job metric
D)   benchmark job
E)   human resource metric

Question 13

What are the key differences between competency-based pay and traditional job-based pay? Which method would you prefer if you were an employee? Why?

Accepted Answer

The answer of What are the key differences between competency-based...

Question 14

Unions typically negotiate all of the following issues EXCEPT ________.

Accepted Answer

A)   wage rates
B)   income security
C)   time off with pay
D)   health care benefits
E)   unpaid medical leave

Question 15

Which of the following terms refers to a compensation plan that advances a firm's strategic goals?

Accepted Answer

A)   portability rights
B)   strategic management
C)   performance pay plan
D)   aligned reward strategy
E)   workers' compensation package

Question 16

Which form of equity refers to the fairness of an individual's pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company,based on each individual's performance?

Accepted Answer

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

Question 17

The ________ sets basic labor standards for employees working on any government contract that amounts to more than $10,000.

Accepted Answer

A)   Davis-Bacon Act
B)   Walsh-Healey Public Contract
C)   Fair Wages Act
D)   Civil Rights Act
E)   Fair Labor Standards Act

Question 18

Which of the following is the primary cause of salary compression?

Accepted Answer

A)   taxes
B)   inflation
C)   interest rates
D)   collective bargaining
E)   government regulations

Question 19

Salary surveys are used by firms to collect data on employee benefits as well as wage rates for the purpose of pricing jobs.

Accepted Answer

A) True 
 B)False

Question 20

Most organizations use a market-pricing approach when determining compensation for professional employees such as engineers and scientists.

Accepted Answer

A) True 
 B)False

Exam 11: Establishing Strategic Pay Plans

Which of the following job evaluation methods is associated with almost every comparable worth lawsuit?

If the current rate being paid for a job falls significantly below the wage line,what step should be taken by an employer?

The Equal Pay Act focuses on three compensable factors-know-how,problem solving,and accountability.

What are your compensation options if you are an employer who needs to transfer an employee from a low cost-of-living area to a high cost-of-living area?

Broadbanding and competency-based pay are increasingly popular among employers because both methods eliminate the need for evaluating the worth of one job relative to others.

Trevor,a sales manager at IBM,recently learned that an IBM human resources manager with comparable responsibilities and spans of control earns a higher salary than Trevor.Which form of equity is of most concern to Trevor?

Which of the following best describes the factor comparison method of job evaluation?

The point method of job evaluation is the most frequently used job evaluation method,but it is also associated with lawsuits involving comparable worth.In a brief essay,explain the point method of job evaluation and why it is problematic for firms in regards to comparable worth.

What are the five main elements of a competency-based pay plan?

All of the following are typical ways that employers address cost-of-living differentials EXCEPT ________.

Which of the following is used to anchor the employer's pay scale?

What are the key differences between competency-based pay and traditional job-based pay? Which method would you prefer if you were an employee? Why?

Unions typically negotiate all of the following issues EXCEPT ________.

Which of the following terms refers to a compensation plan that advances a firm's strategic goals?

Which form of equity refers to the fairness of an individual's pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company,based on each individual's performance?

The ________ sets basic labor standards for employees working on any government contract that amounts to more than $10,000.

Which of the following is the primary cause of salary compression?

Salary surveys are used by firms to collect data on employee benefits as well as wage rates for the purpose of pricing jobs.

Most organizations use a market-pricing approach when determining compensation for professional employees such as engineers and scientists.