Question 1

An organization's job structure and pay levels are policies of the organization,rather than the amount a particular employee earns.

Accepted Answer

A) True 
 B)False

Question 2

The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

Accepted Answer

A)   USERRA
B)   FLSA
C)   EEOA
D)   NLRB
E)   FMLAF) A) and D)
G) C) and D)

Question 3

A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.

Accepted Answer

A)   bonus
B)   pay differential
C)   green-circle rate
D)   rank-and-file adjustment
E)   red-circle rateF) B) and E)
G) A) and D)

Question 4

Which of the following permits a lower training wage,which employers may pay to workers under the age of 20 for a period of up to 90 days?

Accepted Answer

A)   FLSA
B)   ADA
C)   FMLA
D)   ERISA
E)   ADEAF) A) and B)
G) None of the above

Question 5

The size of the range of pay levels based on labor and product markets depends on:

Accepted Answer

A)   the minimum and maximum wages fixed by the government.
B)   the pay of federal contractors.
C)   an organization's competitive environment.
D)   the quality of employees.
E)   an organization's global reputation.F) A) and B)
G) A) and E)

Question 6

Which of the following is true according to the Walsh-Healy Public Contracts Act of 1936?

Accepted Answer

A)   Under the Walsh-Healy Public Contracts Act, children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor.
B)   Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.
C)   The overtime rate applies to the hours worked beyond 45 in one week.
D)   Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days.
E)   Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate.F) B) and E)
G) A) and D)

Question 7

Under the FLSA,which of the following statements is true of child labor?

Accepted Answer

A)   Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor.
B)   Children aged 14 and 15 may not be employed in any work associated with interstate commerce.
C)   The FLSA's restrictions on the use of child labor apply to children younger than 18.
D)   Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods.
E)   All the states have laws requiring working papers or work permits for minors.F) A) and B)
G) B) and E)

Question 8

Skill-based pay systems support efforts to empower employees and enrich jobs.

Accepted Answer

A) True 
 B)False

Question 9

Research on the effects of two-tier wage plans found that:

Accepted Answer

A)   lower-paid employees were less satisfied on average than higher-paid employees.
B)   lower-paid employees were more satisfied on average than higher-paid employees since they made comparisons with lower-paying alternatives for themselves.
C)   lower-paid employees expected to be promoted into the second tier in a short time span.
D)   equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other.
E)   both existing employees and new employees have a similar pay rate.F) A) and B)
G) None of the above

Question 10

A company that views employees as resources is most likely to pay the employees _____.

Accepted Answer

A)   at market rates
B)   below the market rates
C)   above the market rates
D)   only minimum wages
E)   overtime rates only if they meet certain targetsF) C) and E)
G) A) and E)

Question 11

_____ provide the basis for decisions about relative internal worth.

Accepted Answer

A)   Benchmarks
B)   Pay structures
C)   Job evaluations
D)   Pay rates
E)   Two-tier wage systemsF) B) and E)
G) A) and C)

Question 12

The comparable-worth policy:

Accepted Answer

A)   advocates remedies for any undervaluation of jobs based on market-pay data.
B)   is designed to reduce the wage gap between women and minority groups.
C)   has been consistently upheld in court rulings.
D)   uses job evaluation of an organization's jobs in terms of such criteria as their difficulty.
E)   is the only non-controversial pay policy.F) A) and C)
G) B) and E)

Question 13

Which of the following is a disadvantage of skill-based pay systems?

Accepted Answer

A)   Lesser paperwork
B)   Reduced employee empowerment
C)   No guarantee that employees can use their new skills
D)   Reduced opportunities for promoting employees
E)   Discouraged job enrichmentF) B) and D)
G) C) and D)

Question 14

According to _____,people measure outcomes such as pay in terms of their inputs.

Accepted Answer

A)   the pay policy line
B)   equity theory
C)   retributive justice theory
D)   progressive justice theory
E)   economic theoryF) D) and E)
G) A) and E)

Question 15

Under the FLSA,exempt status of an employee depends on his/her:

Accepted Answer

A)   job responsibilities and salary.
B)   organizational commitment.
C)   job title.
D)   work experience.
E)   job qualifications.F) B) and D)
G) A) and D)

Question 16

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936,federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.The calculation of prevailing rates must be based on _____ percent of the local labor force.

Accepted Answer

A)   2
B)   5
C)   10
D)   20
E)   30F) A) and C)
G) A) and B)

Question 17

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to:

Accepted Answer

A)   increase the overlap from one level to the next.
B)   reduce its compa-ratio to less than 1.
C)   implement a broad-band pay structure.
D)   limit the overlap from one pay range to the next.
E)   use a fixed interval promotion policy.F) A) and D)
G) All of the above

Question 18

An organization's job structure consists of:

Accepted Answer

A)   the relative pay for different jobs within the organization.
B)   the average amount an organization pays for a particular job.
C)   the characteristics of jobs that the organization values and chooses to pay for.
D)   regular pay, overtime pay, and bonuses.
E)   the standard amount that employers must pay under federal and state law.F) B) and D)
G) None of the above

Question 19

When job structure and market data conflict,organizations should base their pay only on market forces because this is the only approach that does not have any practical drawbacks.

Accepted Answer

A) True 
 B)False

Question 20

What is a pay policy line? What is its relevance?

Accepted Answer

Mathematically,a pay policy line shows t...

Exam 11: Establishing a Pay Structure

The comparable-worth policy:

Correct AnswerverifiedShow Answer

The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

Correct AnswerverifiedShow Answer

Which of the following is true according to the Walsh-Healy Public Contracts Act of 1936?

Correct AnswerverifiedShow Answer

An organization's job structure and pay levels are policies of the organization,rather than the amount a particular employee earns.

Correct AnswerverifiedShow Answer

An organization's job structure consists of:

Correct AnswerverifiedShow Answer

According to _____,people measure outcomes such as pay in terms of their inputs.

Correct AnswerverifiedShow Answer

Assuming an organization wants to motivate employees through promotions,and assuming enough opportunities for promotions are available,the organization would want to:

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A company that views employees as resources is most likely to pay the employees _____.

Correct AnswerverifiedShow Answer

What is a pay policy line? What is its relevance?

Correct AnswerverifiedMathematically,a pay policy line shows t...View AnswerShow Answer

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936,federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.The calculation of prevailing rates must be based on _____ percent of the local labor force.

Correct AnswerverifiedShow Answer

Research on the effects of two-tier wage plans found that:

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of skill-based pay systems?

Correct AnswerverifiedShow Answer

The size of the range of pay levels based on labor and product markets depends on:

Correct AnswerverifiedShow Answer

Under the FLSA,exempt status of an employee depends on his/her:

Correct AnswerverifiedShow Answer

Which of the following permits a lower training wage,which employers may pay to workers under the age of 20 for a period of up to 90 days?

Correct AnswerverifiedShow Answer

Skill-based pay systems support efforts to empower employees and enrich jobs.

Correct AnswerverifiedShow Answer

A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.

Correct AnswerverifiedShow Answer

Under the FLSA,which of the following statements is true of child labor?

Correct AnswerverifiedShow Answer

_____ provide the basis for decisions about relative internal worth.

Correct AnswerverifiedShow Answer

When job structure and market data conflict,organizations should base their pay only on market forces because this is the only approach that does not have any practical drawbacks.

Correct AnswerverifiedShow Answer

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Mathematically,a pay policy line shows t...
View Answer

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