Question 1

Which statement is true about pay ranges?

Accepted Answer

A)   Pay ranges are most common for blue-collar jobs and those covered by union contracts.
B)   Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points.
C)   Pay ranges generally are designed so 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.

Question 2

What 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 rate

Question 3

Deed Manufacturers, a heavy machinery company, has employees belonging to the age group of 17 to 30. Todd, a 17-year-old, is prohibited from working with heavy machinery tools. Instead, he works in the mail room. Under the laws governing Fair Labor Standards Act (FLSA) , which statement justifies the organization's decision to forbid Todd from doing heavy machinery work?

Accepted Answer

A)   Todd cannot be employed in hazardous occupations because he is 17 years old.
B)   Todd is expected to work in a safe environment because he is male.
C)   Todd is not a U.S. citizen, therefore he is prohibited from working in a hazardous environment.
D)   Todd has not yet completed college, therefore he should only be given administrative duties.
E)   Todd comes from an economically weaker background, therefore he is expected to perform clerical duties.

Question 4

Organizations under pressure to cut labor costs may respond by

Accepted Answer

A)   retaining staff levels.
B)   providing pay increases to prevent employee turnover.
C)   postponing hiring decisions.
D)   requiring employees to bear less of the cost of benefits such as insurance premiums.
E)   avoiding automation of routine tasks.

Question 5

Karen and Ethan execute the same roles and responsibilities at their organization. However, Ethan earns more than Karen. Under the laws governing equal employment opportunity, which statement will justify the organization's decision to pay Ethan more than Karen?

Accepted Answer

A)   Ethan is white, and Karen is black.
B)   Ethan has more experience than Karen.
C)   Karen has a hearing impairment.
D)   Men have more stamina, so they can work longer hours.
E)   Karen is an immigrant.

Question 6

How do employees judge the fairness of a pay structure?

Accepted Answer

Employees evaluate their pay relative to...

Question 7

Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?

Accepted Answer

A)   benchmarking
B)   job evaluation
C)   regression analysis
D)   delayering
E)   pay structuring

Question 8

What 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 places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs.

Question 9

Executive pay has drawn public scrutiny in recent years. Which statement best explains the reason?

Accepted Answer

A)   Top executives' pay is much higher than average workers' pay.
B)   Most of the top executives' pay is in the form of a salary.
C)   Top executives come under the category of exempt employees.
D)   Top executives are paid in the form of commissions.
E)   Executives are denied short-term or long-term incentives with their pay.

Question 10

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

Accepted Answer

A)   the CEO
B)   a senior administrative employee
C)   an hourly paid production line employee
D)   an HR manager
E)   the director of marketing

Question 11

Showery Drugs is a pharmaceutical company based in Detroit. Showery Drugs expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which law is Showery Drugs abiding by in this scenario?

Accepted Answer

A)   laws governing equal employment opportunity
B)   Fair Labor Standards Act (FLS
A)   of minimum wage
C)   Fair Labor Standards Act (FLS
A)   of overtime
D)   laws governing prevailing wages
E)   product market laws

Question 12

Karina, a researcher, believes that an organization needs to plan what they will pay employees in each job. Timmy, her colleague, argues that an employee's pay should be independently negotiated. Which statement weakens Timmy's argument?

Accepted Answer

A)   An unplanned approach will likely result in unfairness and dissatisfaction among the employees.
B)   Most of the employees prefer planned pay because negotiation with the management takes time.
C)   Independently negotiated pay will increase the workload and rivalry among the employees.
D)   When the pay is planned by the organization, it creates more employment opportunities.
E)   The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated.

Question 13

Define hourly wage, piecework rate, and salary.

Accepted Answer

An organization's pay structure should reflect what the organization knows about market forces, as well as its own unique goals and the relative contribution of each job to achieving the goals. Within this structure, it may state the pay in terms of a rate per hour, commonly called an hourly wage; a rate of pay for each unit produced, known as a piecework rate; or a rate of pay per month or year, called a salary.

Question 14

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, employees of federal contractors must receive rates less than the prevailing wages in the area.

Accepted Answer

A) True 
 B)False

Question 15

Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure.

Accepted Answer

A) True 
 B)False  False

Question 16

Which description best defines an organization's job structure?

Accepted Answer

A)   It consists of the relative pay for different jobs within the organization.
B)   It is the average amount an organization pays for a particular job.
C)   It comprises the characteristics of jobs that the organization values and chooses to pay.
D)   It comprises regular pay, overtime pay, and bonuses.
E)   It refers to the standard amount that employers must pay under federal and state law.

Question 17

Which sentence best describes a situation that comparable-worth policies were designed to address?

Accepted Answer

A)   In a manufacturing company, there are no female managers.
B)   A consumer products company has been sued for racial discrimination.
C)   An agency works with a supermarket's HR department to design a job that could be held by people with mental disabilities.
D)   In a city government, positions mostly held by women pay less than positions mostly held by men.
E)   At a utility company, jobs that involve physical strain and danger pay more than office jobs.

Question 18

The pay ration reporting policy, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, requires that companies report the ratio of their average worker's pay to that of

Accepted Answer

A)   other workers in the same industry.
B)   minimum wage.
C)   their competitor's average pay.
D)   exempt employees.
E)   the CEO. E

Question 19

Under the FLSA, children aged 14 and 15 may not be employed outside school hours.

Accepted Answer

A) True 
 B)False

Question 20

In a product market, different organizations have exclusive customer bases.

Accepted Answer

A) True 
 B)False

Exam 12: Establishing a Pay Structure

Which statement is true about pay ranges?

Correct Answer
verified

What is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

Correct Answer
verified

Correct Answer
verified

Organizations under pressure to cut labor costs may respond by

Correct Answer
verified

Karen and Ethan execute the same roles and responsibilities at their organization. However, Ethan earns more than Karen. Under the laws governing equal employment opportunity, which statement will justify the organization's decision to pay Ethan more than Karen?

Correct Answer
verified

How do employees judge the fairness of a pay structure?

Correct Answer
verified
Employees evaluate their pay relative to...
View Answer

Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?

Correct Answer
verified

What is a disadvantage of a pay structure that rewards employees for winning promotions?

Correct Answer
verified

Executive pay has drawn public scrutiny in recent years. Which statement best explains the reason?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Karina, a researcher, believes that an organization needs to plan what they will pay employees in each job. Timmy, her colleague, argues that an employee's pay should be independently negotiated. Which statement weakens Timmy's argument?

Correct Answer
verified

Define hourly wage, piecework rate, and salary.

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, employees of federal contractors must receive rates less than the prevailing wages in the area.

Correct Answer
verified

Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure.

Correct Answer
verified
False

Which description best defines an organization's job structure?

Correct Answer
verified

Which sentence best describes a situation that comparable-worth policies were designed to address?

Correct Answer
verified

The pay ration reporting policy, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, requires that companies report the ratio of their average worker's pay to that of

Correct Answer
verified
E

Under the FLSA, children aged 14 and 15 may not be employed outside school hours.

Correct Answer
verified

In a product market, different organizations have exclusive customer bases.

Correct Answer
verified

Exam 12: Establishing a Pay Structure

Which statement is true about pay ranges?

Correct AnswerverifiedShow Answer

What is an adjustment to a pay rate to reflect differences in working conditions or labor markets?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Organizations under pressure to cut labor costs may respond by

Correct AnswerverifiedShow Answer

Karen and Ethan execute the same roles and responsibilities at their organization. However, Ethan earns more than Karen. Under the laws governing equal employment opportunity, which statement will justify the organization's decision to pay Ethan more than Karen?

Correct AnswerverifiedShow Answer

How do employees judge the fairness of a pay structure?

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

Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?

Correct AnswerverifiedShow Answer

What is a disadvantage of a pay structure that rewards employees for winning promotions?

Correct AnswerverifiedShow Answer

Executive pay has drawn public scrutiny in recent years. Which statement best explains the reason?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Karina, a researcher, believes that an organization needs to plan what they will pay employees in each job. Timmy, her colleague, argues that an employee's pay should be independently negotiated. Which statement weakens Timmy's argument?

Correct AnswerverifiedShow Answer

Define hourly wage, piecework rate, and salary.

Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, employees of federal contractors must receive rates less than the prevailing wages in the area.

Correct AnswerverifiedShow Answer

Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure.

Correct AnswerverifiedFalse

Which description best defines an organization's job structure?

Correct AnswerverifiedShow Answer

Which sentence best describes a situation that comparable-worth policies were designed to address?

Correct AnswerverifiedShow Answer

The pay ration reporting policy, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, requires that companies report the ratio of their average worker's pay to that of

Correct AnswerverifiedE

Under the FLSA, children aged 14 and 15 may not be employed outside school hours.

Correct AnswerverifiedShow Answer

In a product market, different organizations have exclusive customer bases.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Employees evaluate their pay relative to...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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E

Correct Answer
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Correct Answer
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