MGT 3070 Exam 4

An employee who earns $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:

$577.50

Assuming that the pay structure is well planned to support the organization's goals, the compa-ratios should be close to:

1

While the number of mandatory days of paid vacation in Western Europe is about 30 days, the U.S. companies typically offer:

10 paid holidays each year.

The Family and Medical Leave Act of 1993 requires employers to provide:

?

What is profit sharing?

An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary.

The procedure through which an organization compares its own practices to those of successful competitors is known as:

Benchmarking

In which of the following areas are unemployment insurance benefits and workers' compensation benefits similar?

Both these costs depend on the organization's experience ratings.

When an employee's pay is calculated as a percentage of sales, the employee is being paid under a:

Commission plan

"Shrinkage" is also referred to as:

Employee theft

Which one of the following statements is true of employee benefits?

Employees significantly underestimate the cost and value of their benefits.

Why are growing numbers of employers opting for defined-contribution plans?

Employers are free from the risk of poor performance of the plans.

Why do majority of employees opting for Family and Medical leave fail to take benefit of the full 12 weeks leave?

Expenses that come with childbirth, adoption or illness are not afforded by everyone.

According to the text, identify the occupational categories that are the nation's lowest-placed earners, in terms of median annual earnings.

Health care support workers

Which of the following is true about the Fair Labor Standards Act (FLSA)?

Nonexempt employees are covered by FLSA and include most hourly workers.

Which of the following statements is true about the FLSA requirements of employee overtime payment?

Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours.

Identify the disadvantage of using profit sharing plans.

Profit sharing is not directly linked to individual behavior.

Regarding merit cycle chart (see instructions for exam 4), who is starting to top out in their range?

Scott

An employee produces 10 components in an hour and earns $8 per hour, while an employee who produces 12 components earns $9.60 ($.80 x 12). This is an example of:

Straight piecework plan

Which of the following statements is true about Equal Employment Opportunity laws?

The goal of these laws is for employers to provide equal pay for equal work.

Which one of the following employer-provided benefits is required by law in the U.S.?

Unpaid family and medical leave

Which of the following options can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

Use independent contractors rather than hire additional employees.

Differential piece rate system refers to:

an incentive pay in which the piece rate is higher when a greater amount is produced.

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called:

cafeteria-style plans.

The decisions about merit pay are based on two factors: the individual's performance rating and the individual's:

compa-ratio

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

consumer price index

Which type of retirement plan guarantees a specified level of retirement income?

defined benefit plan

Which of the following types of incentive plans are specifically designed to promote group performance?

gainsharing

Top executive pay in the United States:

is among the highest in the world.

Exempt status under the FLSA depends on the employee's:

job responsibilities and salary

The compa-ratio:

measures the degree to which actual pay is consistent with the pay policy

An organization links pay increases to ratings on performance appraisals. This type of incentive system is referred to as:

merit pay

Which of the following types of incentive pay plans are designed to provide pay for individuals' performance?

merit pay

_____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

merit pay

Retention bonuses refer to:

one-time incentives paid in exchange for remaining with the company.

When organizations adjust pay to reflect working conditions or local labor markets, such adjustments are called:

pay differentials

Since organizations want some flexibility in setting the pay for individuals in accordance with the employees' qualifications and performance, they generally add _____ to their pay structures.

pay ranges

A company provides wages to its employees based on the amount workers produce. The more employees produce, the more they earn. This type of plan is called:

piecework rate plan

A popular defined-contribution plan whereby employees contribute pretax dollars which are then matched by the employer is known as:

section 401(k) plans

Regarding merit cycle chart (see instructions for exam 4), what is not a reason Sondra's raise is so high?

she is a grade 14

A balanced scorecard is a method to accurately and fairly incent executives. Which of the following would not be in a balanced scorecard:

stock price

Which of the following federal laws requires employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a qualifying event such as a layoff, reduction in hours, or the employee's death?

the COBRA

Within a 401(k) plan, who has the responsibility for investing wisely?

the employee

Regarding worker's compensation and short and long term disability, which of the following is false?

they both cost more the more you use them

The Pregnancy Discrimination Act of 1978 requires employers:

to offer disability plans to treat pregnancy as they would any other disability.