Question 1

Job-based pay structure

Accepted Answer

A) discourages topdown decision-making. 
B) encourages lateral employee movement. 
C) discourages promotion-seeking behavior. 
D) encourages a lack of initiative on the part of employees. 
E) discourages performance evaluation by the manager.

Question 2

Which of the following is a disadvantage of the pay grade approach?

Accepted Answer

A) The administrative burden of setting separate rates of pay for numerous employees is increased. 
B) It is inflexible when it comes to moving employees from job to job. 
C) Demotions are not well received in a pay grade system when compared to a job-based system. 
D) It might give rise to some jobs being underpaid and some being overpaid. 
E) It does not recognize that performance difference in the higher levels has much impact on the organization.

Question 3

Why would an organization use benchmarking?

Accepted Answer

A) To compete for talent 
B) To compete for market share 
C) To compete on costs 
D) To compete on product differentiation 
E) To compete for consumer loyalty

Question 4

As per the Fair Labor Standards Act,the current minimum wage stands at

Accepted Answer

A) $8.85 per hour. 
B) $9.40 per hour. 
C) $7.25 per hour. 
D) $10.50 per hour. 
E) $8.30 per hour.

Question 5

According to the ________,a person (p)compares her own ratio of perceived outcomes to perceived inputs to the ratio of a comparison other (o).

Accepted Answer

A) reinforcement theory 
B) predicted outcome value theory 
C) social exchange theory 
D) equity theory 
E) expectancy theory

Question 6

Compare and contrast key jobs with nonkey jobs.

Accepted Answer

The answer of Compare and contrast key jobs with nonkey...

Question 7

Explain the role of employee participation in compensation decision-making.

Accepted Answer

The answer of Explain the role of employee participation in...

Question 8

Which of the following is a likely consequence of an internal equity perception?

Accepted Answer

A) Attraction of efficient employees 
B) Retention of quality employees 
C) Labor costs 
D) Job rotation 
E) Pay scales of competitors

Question 9

Differentiate between pay level and job structure with an example.

Accepted Answer

The answer of Differentiate between pay level and job structure...

Question 10

Which of the following hypotheses argues that women were historically restricted to entering a small number of occupations and,as a result,the supply of workers far exceeded demand,resulting in lower pay for such occupations?

Accepted Answer

A) Macho hypothesis 
B) Strain hypothesis 
C) Crowding hypothesis 
D) Contact hypothesis 
E) Calibration hypothesis

Question 11

Skill-based pay systems are not suitable for increasing demands that changing technology continues to bring.

Accepted Answer

A) True 
 B)False

Question 12

Gamma Ray Inc.wants to use a regression analysis to determine its

Accepted Answer

A) range spread. 
B) compa-ratio. 
C) rate range. 
D) pay policy line. 
E) pay grades.

Question 13

Which of the following is a likely consequence of external equity perception?

Accepted Answer

A) Job rotation 
B) Transfer 
C) Retention 
D) Promotion 
E) Cooperation among employees

Question 14

Which of the following statements is true about the Fair Labor Standards Act (FLSA)?

Accepted Answer

A) The current minimum wage set by the FLSA is $5.25 per hour. 
B) It states that employees cannot be made to work overtime. 
C) Exempt employees are eligible for overtime pay. 
D) It exempts executive,professional,and administrative occupations from FLSA coverage. 
E) Under FLSA,exempt status is independent of job responsibilities and salary.

Question 15

Using the equity theory describe how employees perceive fairness.

Accepted Answer

The answer of Using the equity theory describe how employees...

Question 16

Which of the following is part of the benefits offered to employees?

Accepted Answer

A) Stock options 
B) Unemployment compensation 
C) Salary 
D) Merit increases 
E) Bonuses

Question 17

Which of the following is true of labor market competition?

Accepted Answer

A) The labor market focuses primarily on competing through providing a quality product or service at a competitive price in the market. 
B) The labor market places an upper bound on labor costs and compensation. 
C) The upper bound placed by the labor market is more constrictive when labor costs are a very small share of the total costs. 
D) An indirect payment such as Social Security,a major component of labor costs,is not included in calculating the average cost of an employee. 
E) Labor market competition places a lower bound on pay levels.

Question 18

Which of the following is true of a job-based pay structure?

Accepted Answer

A) It encourages employee initiatives. 
B) It allows the organization to take advantage of the skills of those closest to production. 
C) It encourages lateral movement of employees. 
D) It reinforces a top-down decision-making process. 
E) It discourages promotion-seeking behavior.

Question 19

Which of the following best describes a broad band in job-based pay structures?

Accepted Answer

A) The distance between the minimum and maximum pay in a grade 
B) The wider grouping of jobs accomplished through delayering 
C) An index of the correspondence between actual and intended pay 
D) A mathematical expression that describes the relationship between a job's pay and its job evaluation points 
E) The characteristics of jobs that an organization values and chooses to pay for

Question 20

Title VII of the Civil Rights Act focuses on equal pay for jobs of equal content,while the Equal Pay Act of 1963 focuses on equal pay for jobs of equal value or worth.

Accepted Answer