Question 1

________ 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.

Accepted Answer

A)  Comparable worth 
B)  Strategic compensation 
C)  Job evaluation 
D)  Broadbanding 
E)  Job grading

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which law makes it illegal to discriminate against any individual with respect to compensation because of race,color,religion,sex,or national origin?

Accepted Answer

A)  Fair Labor Standards Act 
B)  Title VII of the Civil Rights Act 
C)  Wagner Act 
D)  Equal Pay Act 
E)  Taft-Hartley Act

Question 4

Which of the following is the best source for managers to use when determining whether or not a position is exempt or nonexempt under the Fair Labor Standards Act?

Accepted Answer

A)  organizational chart 
B)  performance appraisal 
C)  HR metric 
D)  business plan 
E)  job description

Question 5

The purpose of the wage curve is to ________.

Accepted Answer

A)  show the relationship between the value of the job and the current average pay rates 
B)  equate jobs of similar difficulty or importance as established by job evaluation 
C)  choose benchmark jobs within each pay grade 
D)  cluster jobs into logical groupings 
E)  assign pay rates to pay grades

Question 6

The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following has historically been the primary issue in collective bargaining?

Accepted Answer

A)  safety 
B)  wage rates 
C)  income security 
D)  health care benefits 
E)  cost-of-living adjustments

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

In most cases,the majority of the voting members on a job evaluation committee are ________.

Accepted Answer

A)  managers 
B)  employees 
C)  HR specialists 
D)  industry experts 
E)  union representatives

Question 10

What are the advantages for employers of claiming that someone doing work for them is an independent contractor rather than an employee?

Accepted Answer

The answer of What are the advantages for employers of...

Question 11

Which of the following is used to maintain internal equity?

Accepted Answer

A)  job analysis comparisons 
B)  organizational charts 
C)  incentive pay 
D)  salary surveys 
E)  HR scorecards

Question 12

Which of the following best defines internal equity?

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 compensation decisions 
E)  the use of salary surveys and job evaluation comparisons to monitor pay levels within an industry

Question 13

John is a sales representative in a jewelry store.He typically works 40 hours per week and his pay is completely based on his sales.He earns a 5% commission for every sale he makes.Which of the following terms best describes John's situation?

Accepted Answer

A)  performance-based compensation 
B)  indirect financial compensation 
C)  time-based compensation 
D)  salaried plus incentives 
E)  piecework pay

Question 14

Jack worked 6 hours of overtime this week but has decided to take time off instead of overtime pay.How many hours will Jack receive in time off from work?

Accepted Answer

A)  3 hours 
B)  6 hours 
C)  9 hours 
D)  12 hours 
E)  18 hours

Question 15

Jill works as a cashier at a grocery store.She earns $10 an hour (or $400 for a 40-hour week).Last week,she worked 46 hours.What is the minimum amount that Jill earned last week?

Accepted Answer

A)  $430 
B)  $460 
C)  $490 
D)  $520 
E)  $550

Question 16

Direct financial payments include all of the following EXCEPT ________.

Accepted Answer

A)  wages 
B)  insurance 
C)  salaries 
D)  incentives 
E)  commissions

Question 17

Direct financial payments may be based on increments of time and on performance.

Accepted Answer

A) True 
 B)False

Question 18

A company using competency-based pay compensates employees for all of the following EXCEPT ________.

Accepted Answer

A)  behaviors 
B)  job title 
C)  knowledge 
D)  skills 
E)  abilities

Question 19

Audrey is a lawyer in a mid-size firm in Chicago.She recently learned that another lawyer who joined the firm at the same time earns a lower salary than she does.Which form of equity is most relevant to Audrey's situation?

Accepted Answer

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

Question 20

According to the Davis-Bacon Act,when employees work more than 40 hours per week,employers must pay overtime at a rate of at least one and a half times the normal pay for any hours worked over 40 in a workweek.

Accepted Answer

A) True 
 B)False

Exam 11: Establishing Strategic Pay Plans

________ 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.

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

Which law makes it illegal to discriminate against any individual with respect to compensation because of race,color,religion,sex,or national origin?

Which of the following is the best source for managers to use when determining whether or not a position is exempt or nonexempt under the Fair Labor Standards Act?

The purpose of the wage curve is to ________.

The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

Which of the following has historically been the primary issue in collective bargaining?

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.

In most cases,the majority of the voting members on a job evaluation committee are ________.

What are the advantages for employers of claiming that someone doing work for them is an independent contractor rather than an employee?

Which of the following is used to maintain internal equity?

Which of the following best defines internal equity?

John is a sales representative in a jewelry store.He typically works 40 hours per week and his pay is completely based on his sales.He earns a 5% commission for every sale he makes.Which of the following terms best describes John's situation?

Jack worked 6 hours of overtime this week but has decided to take time off instead of overtime pay.How many hours will Jack receive in time off from work?

Jill works as a cashier at a grocery store.She earns $10 an hour (or $400 for a 40-hour week) .Last week,she worked 46 hours.What is the minimum amount that Jill earned last week?

Direct financial payments include all of the following EXCEPT ________.

Direct financial payments may be based on increments of time and on performance.

A company using competency-based pay compensates employees for all of the following EXCEPT ________.

Audrey is a lawyer in a mid-size firm in Chicago.She recently learned that another lawyer who joined the firm at the same time earns a lower salary than she does.Which form of equity is most relevant to Audrey's situation?

According to the Davis-Bacon Act,when employees work more than 40 hours per week,employers must pay overtime at a rate of at least one and a half times the normal pay for any hours worked over 40 in a workweek.