Question 1

Which of the following is true about the Consumer Price Index (CPI) ?

Accepted Answer

A)   It helps product markets place an upper limit on the pay an organization will offer.
B)   Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market.
C)   It helps organizations lure top-quality employees.
D)   The CPI helps control labor market's demand for pay increases.
E)   It helps organizations to compete with companies in other industries that hire similar employees.F) None of the above
G) A) and E)

Question 2

The equity of executive pay does not affect other employees.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true of the FLSA requirements for overtime pay?

Accepted Answer

A)   The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments.
B)   Time worked includes only hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, etc.
C)   Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours.
D)   Everyone is eligible for overtime pay.
E)   Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.F) None of the above
G) A) and B)

Question 4

Which of the following is a characteristic of delayering?

Accepted Answer

A)   It increases an organizations' flexibility.
B)   It increases the opportunities for promoting employees.
C)   It sets pay according to the employees' level of knowledge.
D)   It encourages a climate of learning.
E)   It helps employees use their knowledge and ideas more productively.F) A) and E)
G) B) and E)

Question 5

Which of the following is true of competition in product-markets?

Accepted Answer

A)   The cost of labor does not affect the product market as it is an insignificant part of an organization's costs.
B)   Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price.
C)   Organizations in a product market are competing to serve the same customers.
D)   Product markets place a lower limit on the pay an organization will offer its employees.
E)   Organizations must increase the cost of labor every quarter.F) B) and E)
G) A) and B)

Question 6

By combining more assignments into a single layer,organizations give managers more flexibility in making assignments and awarding pay increases which results in:

Accepted Answer

A)   outsourcing.
B)   broad bands.
C)   rightsizing.
D)   benchmarks.
E)   downsizing.F) B) and E)
G) A) and B) B

Question 7

Organizations in a product market compete to serve different customers.

Accepted Answer

A) True 
 B)False

Question 8

The laws governing Equal Employment Opportunity guarantee equal pay for men and women,whites and minorities,and other groups within the United States.

Accepted Answer

A) True 
 B)False

Question 9

The federal government tracks trends in the nation's cost of living with a measure known as the:

Accepted Answer

A)   Consumer Price Index.
B)   Living-Wage Index.
C)   Gross National Product Index.
D)   Exchange Rate Index.
E)   Employment Cost Index.F) D) and E)
G) B) and E)

Question 10

The Davis-Bacon Act of 1931:

Accepted Answer

A)   permits a lower "training wage," which employers may pay to workers under the age of 20 for a period of up to 90 days.
B)   requires that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week.
C)   requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality.
D)   covers all government contractors receiving $10,000 or more in federal funds.
E)   covers construction contractors that receive more than $2,000 in federal money.F) B) and D)
G) A) and D)

Question 11

Which of the following is true of key jobs?

Accepted Answer

A)   The organization usually has no survey data for key jobs.
B)   These are jobs that have highly unstable content.
C)   These are jobs that are unique among organizations and are rare to obtain.
D)   Organizations make the process of creating a pay structure more impractical by defining key jobs.
E)   A job with a higher evaluation score than a particular key job would receive higher pay than that key job.F) A) and E)
G) C) and D)

Question 12

Pay level is the average amount (including wages,salaries,and bonuses)the organization pays for a particular job.

Accepted Answer

A) True 
 B)False

Question 13

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Accepted Answer

The FLSA establishes a minimum wage and ...

Question 14

According to the FLSA,which of the following is most likely a nonexempt employee?

Accepted Answer

A)   CEO
B)   Senior administrative employee
C)   Hourly-paid employee
D)   Executive employee
E)   DirectorF) B) and D)
G) C) and D)

Question 15

What are the limitations of using a job-based pay structure?

Accepted Answer

Some of the limitations of job-based pay...

Question 16

How do employees judge the fairness of a pay structure?

Accepted Answer

Employees evaluate their pay relative to...

Question 17

When labor costs are a large part of an organization's total costs,the organization responds by increasing pay levels.

Accepted Answer

A) True 
 B)False  False

Question 18

Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?

Accepted Answer

A)   It does not focus on setting pay for groups of jobs.
B)   It does not make adjustments to a pay rate to reflect differences in labor markets.
C)   It discourages employees from gaining valuable experience through lateral career moves.
D)   It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills.
E)   It does not provide a precise definition of a job's responsibilities.F) B) and D)
G) A) and E)

Question 19

Pay ranges are most common for _____.

Accepted Answer

A)   white-collar jobs
B)   piece-rate jobs
C)   jobs that are covered by union contracts
D)   automotive workers
E)   construction workersF) C) and D)
G) B) and C) A

Question 20

Which of the following is true of labor markets?

Accepted Answer

A)   Organizations compete to sell labor in the labor market.
B)   Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job.
C)   Changes in the CPI do not affect the labor market.
D)   Cost-of-living considerations have little impact on labor-market rates.
E)   An organization's competitors in labor markets typically include only companies with different products.F) A) and B)
G) A) and C)

Exam 11: Establishing a Pay Structure

Which of the following is true about the Consumer Price Index (CPI) ?

Correct AnswerverifiedShow Answer

The equity of executive pay does not affect other employees.

Correct AnswerverifiedShow Answer

Which of the following statements is true of the FLSA requirements for overtime pay?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of delayering?

Correct AnswerverifiedShow Answer

Which of the following is true of competition in product-markets?

Correct AnswerverifiedShow Answer

By combining more assignments into a single layer,organizations give managers more flexibility in making assignments and awarding pay increases which results in:

Correct AnswerverifiedB

Organizations in a product market compete to serve different customers.

Correct AnswerverifiedShow Answer

The laws governing Equal Employment Opportunity guarantee equal pay for men and women,whites and minorities,and other groups within the United States.

Correct AnswerverifiedShow Answer

The federal government tracks trends in the nation's cost of living with a measure known as the:

Correct AnswerverifiedShow Answer

The Davis-Bacon Act of 1931:

Correct AnswerverifiedShow Answer

Which of the following is true of key jobs?

Correct AnswerverifiedShow Answer

Pay level is the average amount (including wages,salaries,and bonuses)the organization pays for a particular job.

Correct AnswerverifiedShow Answer

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Correct AnswerverifiedThe FLSA establishes a minimum wage and ...View AnswerShow Answer

According to the FLSA,which of the following is most likely a nonexempt employee?

Correct AnswerverifiedShow Answer

What are the limitations of using a job-based pay structure?

Correct AnswerverifiedSome of the limitations of job-based pay...View AnswerShow Answer

How do employees judge the fairness of a pay structure?

Correct AnswerverifiedEmployees evaluate their pay relative to...View AnswerShow Answer

When labor costs are a large part of an organization's total costs,the organization responds by increasing pay levels.

Correct AnswerverifiedFalse

Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?

Correct AnswerverifiedShow Answer

Pay ranges are most common for _____.

Correct AnswerverifiedA

Which of the following is true of labor markets?

Correct AnswerverifiedShow Answer

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B

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The FLSA establishes a minimum wage and ...
View Answer

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Some of the limitations of job-based pay...
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Employees evaluate their pay relative to...
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False

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A

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