Question 1

Wage rate has been the main issue negotiated by unions in collective bargaining.

Accepted Answer

A) True 
 B)False

Question 2

Which form of equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies?

Accepted Answer

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

Question 3

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 benefits 
C)  wage reimbursement 
D)  employee compensation

Question 4

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)  the fairness of an individual's pay as compared to a co-worker's pay for the same job 
C)  the perceived fairness of the processes and procedures used to make decisions about compensation 
D)  the use of salary surveys and job evaluation comparisons to monitor pay levels within an industry

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 questions is LEAST relevant to Homelife's decision to develop an aligned reward strategy?

Accepted Answer

A)  What compensation programs should Homelife use to reinforce necessary employee behaviors? 
B)  How well does Homelife's current compensation program match the company's strategic aims? 
C)  What compensation programs should Homelife use to reinforce desired employee behaviors? 
D)  What are the results of Homelife employee salary surveys in regards to wage satisfaction?

Question 6

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

The answer of What are the primary factors involved in...

Question 7

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)  piecework pay

Question 8

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)  internal 
B)  distributive 
C)  individual 
D)  procedural

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

In the broadest sense,comparable worth may mean comparing jobs that are very dissimilar such as nursing to fire fighting.

Accepted Answer

A) True 
 B)False

Question 11

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 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 plans to organize employees into teams, provide regular training, and frequently assess workers' skills and knowledge. 
D)  In an effort to save money, Homelife will be reducing the employee training budget over the next three years.

Question 12

Which of the following was enacted in 1931 for the purpose of setting wage rates for laborers and mechanics employed by contractors working for the federal government?

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

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 15

Beth,a small business owner,wants to ensure external equity when establishing pay rates.Beth should most likely ________.

Accepted Answer

A)  use wage curves to price each pay grade 
B)  compare performance appraisals 
C)  conduct a salary survey 
D)  check online pay sites

Question 16

Which of the following is LEAST likely a benefit of using competency based pay?

Accepted Answer

A)  supporting a firm's talent management process 
B)  developing an efficient and legally defensible wage curve 
C)  aiding in the implementation of a high-performance work system 
D)  encouraging the development of skills needed for a firm's strategic goals

Question 17

Due to federal legislation,greater opportunities for higher learning,and more women in the workforce,women in the U.S.earn approximately 90% as much as men.

Accepted Answer

A) True 
 B)False

Question 18

In a brief essay,discuss the purpose of job evaluations.Discuss the similarities and differences between job evaluations conducted for managerial positions and lower level positions at a firm.

Accepted Answer

The answer of In a brief essay,discuss the purpose of...

Question 19

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

Accepted Answer

A)  job classification method 
B)  job grading method 
C)  ranking method 
D)  point method

Question 20

Which of the following issues would LEAST likely be negotiated by unions?

Accepted Answer

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

Exam 11: Establishing Strategic Pay Plans

Wage rate has been the main issue negotiated by unions in collective bargaining.

Which form of equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies?

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

External equity refers to ________.

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?

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?

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?

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.

In the broadest sense,comparable worth may mean comparing jobs that are very dissimilar such as nursing to fire fighting.

Which of the following was enacted in 1931 for the purpose of setting wage rates for laborers and mechanics employed by contractors working for the federal government?

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

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

Beth,a small business owner,wants to ensure external equity when establishing pay rates.Beth should most likely ________.

Which of the following is LEAST likely a benefit of using competency based pay?

Due to federal legislation,greater opportunities for higher learning,and more women in the workforce,women in the U.S.earn approximately 90% as much as men.

In a brief essay,discuss the purpose of job evaluations.Discuss the similarities and differences between job evaluations conducted for managerial positions and lower level positions at a firm.

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

Which of the following issues would LEAST likely be negotiated by unions?