MGMT 3374 Ch. 9 Part 1

______ encompasses employee wages and salaries, incentives, bonuses, and commissions.

Direct compensation

Which of the following is an example of a nonfinancial compensation?

Employee recognition programs

_______ includes employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours to accommodate personal needs.

Non-financial compensation

Clauses found in labor agreements that periodically adjust compensation rates upward to help employees maintain their purchasing power are known as:

escalator clasues

The concept that employees should exert greater work effort if they have reason to expect it will result in a valued reward forms the basis of:

expectancy theory

When the organization pays wages that are relatively equal to that of other employers for similar work, this is the basis of:

external equity

There is reason to believe that pay secrecy can do all of the following except:

generate feelings of commitment

Elements of the compensation package are said to have ____ when an employee's high performance leads to monetary rewards that are valued.

instrumentality

Job evaluation helps to establish:

internal equity

The federal civil service job classification system uses which type of job evaluation system?

job classification system

Which system of job evaluation is being used when jobs are classified according to a series of predetermined wage grades?

job classification system

Which system of job evaluation is being used when cards that list the duties and responsibilities of the job are arranged by raters in order of the importance of the job?

job ranking

Which is the simplest and oldest method of job evaluation?

job ranking system

Employees covered by the overtime provisions of the Fair Labor Standards Act are labeled:

nonexempt employees

In _____, employees are paid according to the number of units they produce.

piecework

Instrumentality refers to:

rewards that are valued and motivate employees

Employees whose compensation is calculated on the basis of weekly, biweekly, or monthly periods are classified as:

salaried employees

With respect to Pay Equity Theory, which of the following is NOT considered an input?

salary

Which of the following compensation options would not qualify under the term pay-for-performance?

seniority based pay

The exempt or nonexempt status of employees is determined by:

the U.S. Department of Labor

The measure of the average change in prices over time in a fixed "market basket" of goods and services is known as:

the consumer price index

Which of the following is an external factor that can influence the rates at which employees are paid?

the cost of living

Which of the following is an internal factor that can influence the rates at which employees are paid?

the employer's ability to pay

Which of the following is NOT a common goal of a strategic compensation policy?

To mesh employees' past performance with organizational goals

The most common cost-of-living adjustments are ______ cent per hour for each .3-point 0r .4-point change in the CPI.

1

In certain manufacturing environments, compensation is as high as ______ of total costs and even higher from many service organizations.

60%

A Bloomberg National Poll showed that more than _____ of Americans thought big bonuses should be banned for Wall Street companies that took taxpayer bailouts.

70%

A survey by Mercer, found that more than ________ of private-sector companies nationwide were awarding pay increases in 2011.

98%

_______ comprises the many benefits supplied by employers.

Indirect compensation

An employee's relative worth can be determined by:

an effective performance appraisal system

For real wages to increase, which of the following must be true?

an employee's wage increase must be greater than the increase in the CPI.

Under the Fair Labor Standards Act, exempt employees:

are those employees not covered by the overtime provisions of the Act

The term pay-for-performance can encompass all of the following except:

base salary

Wages gained through collective bargaining extend:

beyond the segment of the labor force that is unionized.

Which of the following is NOT a form of pay equity?

collective equity

Equity theory is also known as:

distributive justice

The fact that people make comparisons to others is central to:

equity theory

Pay levels are limited in part by:

the organization's profits and the productivity of employees

A quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessment of specific job element is known as:

the point system

Pay-for-performance programs:

tie rewards to employee effort