Question 1

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 E)
G) B) and C)

Question 2

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)

Question 3

The Walsh-Healy Public Contracts Act of 1936:

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)   covers construction contractors that receive more than $2,000 in federal money.
D)   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.
E)   covers all government contractors receiving $10,000 or more in federal funds.F) C) and D)
G) A) and E)

Question 4

Pay policies are one of the most important human resource tools for:

Accepted Answer

A)   reducing competition in the product market.
B)   automating routine activities.
C)   persuading customers that high quality is worth a premium price.
D)   making decisions about product pricing.
E)   encouraging desired employee behaviors.F) A) and E)
G) A) and D)

Question 5

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) None of the above
G) A) and B)

Question 6

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 7

Broad bands increase the opportunities for promoting employees.

Accepted Answer

A) True 
 B)False

Question 8

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) All of the above
G) A) and B)

Question 9

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 B)
G) A) and E)

Question 10

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 D)
G) A) and C)

Question 11

What is benchmarking?

Accepted Answer

To compete for talent,organizations use ...

Question 12

According to equity theory,people measure outcomes such as pay in terms of their outputs.

Accepted Answer

A) True 
 B)False

Question 13

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) None of the above
G) D) and E)

Question 14

Define hourly wage,piecework rate,and salary.

Accepted Answer

The organization's pay structure should ...

Question 15

Which of the following is true of compensable factors?

Accepted Answer

A)   They are generally statistically derived.
B)   They are the characteristics of jobs that a firm values and chooses to pay for.
C)   They refer to the factors that are important for setting the two-tier wage system.
D)   They describe all aspects of the jobs being evaluated.
E)   They are used to ensure equity among employees.F) None of the above
G) A) and E)

Question 16

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) D) and E)
G) A) and D)

Question 17

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 18

_____ 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) C) and D)
G) A) and E)

Question 19

An example of a typical compensable factor is:

Accepted Answer

A)   social status.
B)   education.
C)   longevity.
D)   gender.
E)   religion.F) A) and C)
G) A) and E)

Question 20

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 E)
G) A) and B)

Exam 11: Establishing a Pay Structure

Pay policies are one of the most important human resource tools for:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Define hourly wage,piecework rate,and salary.

Correct AnswerverifiedThe organization's pay structure should ...View AnswerShow Answer

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

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 _____ 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 of labor markets?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to equity theory,people measure outcomes such as pay in terms of their outputs.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of delayering?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is benchmarking?

Correct AnswerverifiedTo compete for talent,organizations use ...View AnswerShow Answer

Which of the following is true of compensable factors?

Correct AnswerverifiedShow Answer

The Walsh-Healy Public Contracts Act of 1936:

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

Correct AnswerverifiedShow Answer

An example of a typical compensable factor is:

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

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Broad bands increase the opportunities for promoting employees.

Correct AnswerverifiedShow Answer

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The organization's pay structure should ...
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To compete for talent,organizations use ...
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