Compensation Exam
a major advantage of a reduction in force is that it reduces benefits costs
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in the Schultz v. Wheaton Glass case, the Supreme Court ruled that for jobs to receive equal pay, they do not have to be identical but substantially equal
t
Exit incentives is likely to result in force the loss of high-performing employees.
t
Which of the following is a factor determining base pay in the Japanese traditional national system?
: D- Career Category
. If red circle rates become common throughout an organization, then the design of the ranges and the evaluation of the jobs should be reexamined.
t
77 percent of expats have less disposable income when they return home from overseas assignments
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A GAO study found 9 of 10 cases brought by GAO undercover agents posing as workers were mishandled by the Wage and Hour division of the Labor Department
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A compa-ratio greater that 1 means that, on average, the rates exceed the intended policy.
t
A compa-ratio is the average actual pay divided by the midpoint of the pay grade.
t
A higher proportion of women are employed by small firms compared to large firms
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Generally, organizations have increased their use of variable pay relative to traditional base pay increases.
t
IN China, white state-owned enterprises employ two-thirds of all workers, wholly privately owned enterprises...
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If a pay system is not based upon work-related or business-related logic, it is probably best to not conduct a formal compensation communication program.
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One objective of the overtime provision of FLSA is to share available work by making the hiring of additional workers a less costly option than the scheduling of overtime for current employees
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Only 5 percent of U.S. expatriates believe their company values their overseas experience
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Pay difference for equal work may be justified for demonstrably business related reasons
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Pay policies are more open in the public sector than in the private sector
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Prevailing wages protect foreign workers working as registered nurses
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The Mental Health Act of 1997 requires that mental illness be covered to the same extent that other medical conditions are covered
t
The country with the highest unionization rate in Europe is France, where 90% of workers are union members.
f
While government affects the supply of labor through legislation, it has no effect on the demand for labor
f
Which of the following is a measure of changes in prices of goods and services in the product and service market over time?
A- Consumer Price Index
Under the_____ Employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier
A- Lilly Ledbetter Fair Pay Act
MNTX University requires that all its female professors score higher than the male professors in their appraisal rating to qualify for pay hours...
A- MNTX is liable for disparate treatment of women
Which of the following countries has the highest number of people in the workforce belonging to unions?
A- Sweden
KayLeaf INC. wants to set up a unit in China. To Facilitate this, it sends its manager to China to gather information. Which of the following is most likely to be a suggestion from its manager?
A- Use a hierarchical pay structure as their high-power distance in China
The Web page for the compensation society is?
A- WorldWork
The denominator for calculating the current year's pay rise is....
A- average pay at the beginning of the year
An ____ approach to compensation involves designing a total pay system at headquarters and applying it globally.
A- exporter
Traditionally, Japan's employment relationships were supported by____
A- lifetime security within the company
The degree of discretion managers have to make total compensation a strategic tool is referred to as___
A- managerial autonomy
In Japan, internal alignment based on _____ is far more important than other factors.
A- seniority
The ADEA....
A- was amended in 1990 to include the Older Workers Benefit Protection Act
The agency that conducts reviews and seeks remedies where insufficient compliance to Executive order 11246 is found in the ______
B - OFCCP
Bonuses paid in Japan are____
B not necessarily related to performance
Total compensation in many organizations make up at least _____percent of operating expenses
B- 50
Denial of jobs, promotions, or training opportunities to qualified women or minorities are examples of what?
B- Access discrimination
Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system.
B- Does each specific activity directly contribute to our objectives?
Which of the following is true of hiring LCN's
B- Employment of LCN's satisfies nationalistic demands for hiring locals.
Under the ____act, executives cannot retain bonuses or profits from selling company stock is they mislead the public regarding their company's financial condition.
B- Sarbanes-Oxley
_____is defined by the Department of Labor as the experience, training education, and ability measured by the performance requirements of a particular job.
B- Skill
The worker economic opportunity act____
B- States that the income from most stock plans need not be included in calculating overtime pay.
Which of the following is a test that must be met to qualify for administrative employee exemption?
B- The employee must be compensated on a salary or fee basis ar a rate not less than $455 per week.
An Indian citizen working for a Japanese company in India is a ______
B- local country national
A Japanese citizen working for Toyota in Georgetown, Kentucky is a ____
B- parent-country national
A major advantage of a _____ is that it reduces benefits costs, something that the other cost cutting operations do not achieve.
B- reduction in force
The compa-ratio reflects the____
B- relationship of the average actual salary in each range to the midpoint of the range.
A Korean citizen working for Toshiba, a Japanese company in Canada is a____
B- third-country national
Prevailing-wage laws...
B- were passed in response to conditions on projects such as the construction of the hoover dam during the depression
If Philidelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100 it means that....
B-- prices have risen in Philadelphia since the year than in Houston
Susan works in a sterile laboratory that requires her to scrub and put on protective clothing...
C - The Portal-to-Portal Act
_______ is an example of a country with a highly Decentralized approach to pay setting with higher wage flexibility.
C - The United States of America
_____is the budgetary approach that begins with an estimate from the highest-ranking executives of the pay increase budget for an entire organization.
C - Top-Down budgeting
____prohibits discrimination on the basis of race, color, religion, sex, or national origin?
C- Executive order 11246
Which of the following is NOT a provision for the Fair Labor Standards Act of 1938
C- It requires that employers provide 15 weeks of medical leave to employees
Which of the following Statements about anchoring/framing is true?
C- It states that initial data strongly effects decisions/benefits.
KYZ Inc. A U.S. Firm, sends its manager, Ryan, to London to manage its operations there. Ryans salary.......
C- The cafeteria approach
The ____ Act extends the prevailing-wage concept to manufacture or suppliers of goods for government contracts.
C- Walsh-Healey Public Contracts
Regarding pay differences for different jobs...
C- courts continue to uphold the use of market data to justify differences.
A compa-ration less than 1 means that, on average,___
C- employees in a range are paid below the midpoint
The Davis-Bacon Act
C- requires that mechanics on public construction projects be paid the prevailing wage in an area.
When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country its known as____
C- tax equalization
Individualism is_____
C- the degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family.
Uncertainty avoidance is ____
C- the extent to which culture programs it members to feel either uncomfortable or comfortable in unstructured situations.
Changes in wages in labor markets are measured____
C- through pay surveys
The____Recognizes the fact that when people leave and organization, they typically are replaced by employees who earn a lower wage.
C- turnover effect
The average company match for 401(k) retirement plan is _____cents on the dollar up to 6 percent of pay.
D- 50
The _____ often comes into play if organization target reductions among higher paid employees because higher paid employees also tend to be older employees.
D- ADEA
_____ desgined for employees or managers, explains compensation policies and practices, answers frequently asked questions and explains how these systems effect their pay
D- Communication portals
Which of the following groups can qualify for the exemptions under FLSA of 1938?
D- Computer Employees
In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate.
D- Disparate impact
_______ a software package, allows workers to make health-care choices , allocate savings to 401(k) or other savings vehicles and access vacation schedules.
D- Employee Self-Service
Which of the following statements about evolution add change in the traditional German model is true?
D- Many of the changes in Germany are the result of global competitive pressures and technological changes.
MayFLy INc. A firm headquarters in Paris France....Frankfurt....Which of the following approaches to expatriate compensation is exemplified in this situation?
D- Modified balance sheet approach
Since the Japanese system is so seniority-based, labor markets decrease as the average age of the work force increases.
f
The CPI accurately reflects an individual employee's cost of living.
f
. The gender wage gap is moderate for recent college graduates and drecreases as the cohort ages.
f
A study of both U.S. and Slovenian MBA's found that risk taking was higher among Slovenians.
f
All employees are covered by the Fair Labor Standards Act of 1938 and its amendments without exemptions.
f
An individual employee cannot earn more pay than the maximum of the pay grade of their current job.
f
Approximately 20 percent of expats leave their company within a year of their return to the U.S.
f
A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases
t
A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may affect perceptions of pay equity.
t
According to the japan institute of labor, for most employees, bonuses are variable pay that help control the employer's cash flow and labor costs.
t
As the lowest rates paid in the software, chemical, oil, and pharmaceutical industries are already well above minimum, any legislation to increase minimum wage would have little direct impact on them
t
Base pay for a Japanese employee is usually based on job evaluation or market pricing.
t
Broad bands provide managers greater discretion in pay for their subordinates compared to a grade-range design.
t
Changes in the CPI indicate whether prices have increased more or less rapidly in an area since the base period.
t
In Germany, an employee's pay is affected by his or her age
t
In Malaysia and Mexico, egalitarian pay structures fit best with the culture.
f
Companies in the United States, United Kingdom, and some central European countries are most likely to have centralized wage bargaining.
f
When employees are paid more than the maximum of their pay grade, these rates are called _ ___ rates?
D- Red Circle
Which of the following approaches seeks to ensure that employers on overseas assignments have the same spending power as they would in their home country?
D- The balance sheet approach
The percentage increase in average pay that is expected for an organizational unit or company is called....
D- a planned pay-level rise
. Which of the following includes a provision that requires public companies to set policies to allow executive compensation to be taken back if it was based on inaccurate financial statements that did not comply with accounting standards.
D- the Dodd-Frank Walstreet Reform and Consumer Protection Act
Disparate treatment occurs when a seemingly neutral employment practice disproportionately excludes a protected group from employment opportunities
f
In the past two decades, the average variable pay budget has increased
f
It is easier and less complex to compare living costs across countries than total compensations
f
Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment .
f
Over half of the employees in the private sector work in companies with open pay policies.
f
Rather than define employment as hours of work, number of employees is often used.
f
The executive branch of the federal government____
D- enforces laws through agencies and its other bodies
Management strategy of giving separate organization units responsibility to design and administer their own compensation system is____
D- know as decentralized strategy
Evidence indicates MNC's are influences by both the institutional pressures in their home country and in the local context
t
Generally, it is difficult to compare total compensation of a U.S. firm with foreign competitors.
t
If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate
t
In totality decentralized pay system, employees are likely to be treated unequally and unfairly
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Japanese pay systems are more person-based than job based.
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Legislation does not always achieve what it intends nor intend what it achieves
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Less than 10 percent of compensation professionals strongly agree that employees know their own pay range and the one above them.
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Many employees achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce.
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Neither works councils nor co-determination are legally required in the United States and are quite rare.
t
Of the four affirmative defenses for unequal pay for equal work, "a factor other than sex" has prompted the most court cases
t
The gender pay gap is common across countries and is smaller in some countries than in the United States.
t
The key to a comparable-worth system is a single job evaluation plan for jobs with dissimilar content
t
The most important components of a pay communication program are the business-related and work-related rationales on which the pay systems are based.
t
The two types of discrimination recognized by law are valuation discrimination and access discrimination
t
Understanding international compensation begins with recognizing differences and similarities and figuring out how to best manage them.
t
Unionization rates are higher in Europe than in Asia
t
Women's median annual earnings compared to men's has changed from about 60 percent to 78 percent from 1980 to 2013
t