Question 1

The Fair Labor Standards Act (FLSA) includes provisions for:

Accepted Answer

A)   personal finance.
B)   minimum wage.
C)   wage discrimination.
D)   environmental hazards.
E)   retirement plans.F) A) and B)
G) A) and E)

Question 2

Which of the following is true of pay ranges?

Accepted Answer

A)   Pay ranges are most common for blue-collar jobs and those covered by union contracts.
B)   Pay ranges are often widest for employees who are at lower levels in terms of their job evaluation points.
C)   Pay ranges generally are designed so that they do not overlap.
D)   The market rate or the pay policy line generally serves as the midpoint of a range for the job.
E)   The less overlap, the more flexibility in transferring employees among jobs.F) A) and B)
G) A) and C)

Question 3

_____ is an administrative procedure for measuring the relative worth of an organization's jobs.

Accepted Answer

A)   Job analysis
B)   Job determination
C)   Job evaluation
D)   Job identification
E)   Job descriptionF) A) and E)
G) B) and D)

Question 4

The most common approach to pay differentials is to move an employee lower in the pay structure to compensate for increasing costs.

Accepted Answer

A) True 
 B)False

Question 5

_____ are sets of jobs having similar worth or content,grouped together to establish rates of pay.

Accepted Answer

A)   Pay scales
B)   Pay ranges
C)   Pay differentials
D)   Pay levels
E)   Pay gradesF) A) and E)
G) A) and B)

Question 6

The National Compensation Survey is an ongoing activity of the:

Accepted Answer

A)   Bureau of Labor Statistics.
B)   Society for Human Resource Management.
C)   American Management Association.
D)   AFL-CIO.
E)   Bureau of Economic Analysis.F) None of the above
G) B) and E)

Question 7

A compa-ratio of 1 suggests that actual pay is not consistent with the pay policy.

Accepted Answer

A) True 
 B)False

Question 8

What is the advantage of two-tier wage systems?

Accepted Answer

A)   They help in moving jobs out of the country.
B)   They help in closing down jobs without any legal hassles.
C)   They cut labor costs without cutting employees' existing salaries.
D)   They provide more pay to new employees.
E)   They provide better standards of benchmarking.F) A) and E)
G) B) and D)

Question 9

An employee who earns a base rate of $10 an hour and receives a weekly attendance award of $20 works 50 hours this week (Overtime pay is required,whether or not the employer specifically asked or expected the employee to work more than 40 hours) .His/her total compensation for the week will be:

Accepted Answer

A)   $550.00.
B)   $557.50.
C)   $570.00.
D)   $577.50.
E)   $505.00.F) A) and C)
G) All of the above

Question 10

A graphed line showing the mathematical relationship between job evaluation points and pay rate is termed as a(n) :

Accepted Answer

A)   job evaluation line.
B)   pay policy line.
C)   equity line.
D)   aggregate income line.
E)   comprehensive appraisal line.F) B) and C)
G) None of the above

Question 11

Broad bands increase the opportunities for promoting employees.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true about skill-based pay?

Accepted Answer

A)   It provides a way to ensure that employees can use their new skills.
B)   Gathering market data about skill-based pay is easy.
C)   It ensures that the employer pays the employee for learning skills that benefit the employer.
D)   Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures.
E)   Skill-based pay does not require records related to skills, training, and knowledge acquired.F) B) and C)
G) C) and D)

Question 13

Reducing the number of levels in an organization's job structure is known as:

Accepted Answer

A)   outsourcing.
B)   delayering.
C)   rightsizing.
D)   benchmarking.
E)   whistle-blowing.F) A) and E)
G) B) and C)

Question 14

Research suggests that employees in the lower tier of the pay structure are less satisfied than the top-tier employees.

Accepted Answer

A) True 
 B)False

Question 15

Pay grades allow rates of pay for individual jobs to be more precisely matched to market rates and the organization's job structure.

Accepted Answer

A) True 
 B)False

Question 16

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a disadvantage of broad bands?

Accepted Answer

A)   They reduce managers' flexibility in making assignments.
B)   They always result in pay decreases.
C)   They reduce the number of levels in the organization's job structure.
D)   They reduce the opportunities for promoting employees.
E)   They discourage employees from gaining valuable experience through lateral career moves.F) A) and C)
G) A) and B)

Question 18

Define job structure,pay level,and pay structure.

Accepted Answer

Job structure consists of the relative p...

Question 19

Military pay often exceeds what service members would earn in their civilian jobs.

Accepted Answer

A) True 
 B)False

Question 20

An organization's job structure and pay levels:

Accepted Answer

A)   reflect the organization's knowledge about inflationary pressures.
B)   reflect the decisions about how much to pay each employee.
C)   provide the total amount an organization pays for a particular job.
D)   are annual earnings of key employees in the organization.
E)   are policies of the organization.F) D) and E)
G) B) and D)

Exam 11: Establishing a Pay Structure

Pay grades allow rates of pay for individual jobs to be more precisely matched to market rates and the organization's job structure.

Correct AnswerverifiedShow Answer

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Correct AnswerverifiedShow Answer

A graphed line showing the mathematical relationship between job evaluation points and pay rate is termed as a(n) :

Correct AnswerverifiedShow Answer

A compa-ratio of 1 suggests that actual pay is not consistent with the pay policy.

Correct AnswerverifiedShow Answer

An employee who earns a base rate of $10 an hour and receives a weekly attendance award of $20 works 50 hours this week (Overtime pay is required,whether or not the employer specifically asked or expected the employee to work more than 40 hours) .His/her total compensation for the week will be:

Correct AnswerverifiedShow Answer

The most common approach to pay differentials is to move an employee lower in the pay structure to compensate for increasing costs.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of broad bands?

Correct AnswerverifiedShow Answer

Military pay often exceeds what service members would earn in their civilian jobs.

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The Fair Labor Standards Act (FLSA) includes provisions for:

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What is the advantage of two-tier wage systems?

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Define job structure,pay level,and pay structure.

Correct AnswerverifiedJob structure consists of the relative p...View AnswerShow Answer

_____ are sets of jobs having similar worth or content,grouped together to establish rates of pay.

Correct AnswerverifiedShow Answer

An organization's job structure and pay levels:

Correct AnswerverifiedShow Answer

Reducing the number of levels in an organization's job structure is known as:

Correct AnswerverifiedShow Answer

Research suggests that employees in the lower tier of the pay structure are less satisfied than the top-tier employees.

Correct AnswerverifiedShow Answer

_____ is an administrative procedure for measuring the relative worth of an organization's jobs.

Correct AnswerverifiedShow Answer

Which of the following is true about skill-based pay?

Correct AnswerverifiedShow Answer

Broad bands increase the opportunities for promoting employees.

Correct AnswerverifiedShow Answer

Which of the following is true of pay ranges?

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The National Compensation Survey is an ongoing activity of the:

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Job structure consists of the relative p...
View Answer

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