Ch.11

Which of the following is true for employers who use independent contractors? A) Fair Labor Standards Act overtime requirements do not apply. B) Social Security taxes are higher than for regular employees. C) Federal income taxes are charged at a reduced rate. D) Payroll taxes are paid by the employer.

A) Fair Labor Standards Act overtime requirements do not apply.

When using the job evaluation method of job classification, raters categorize jobs into groups of similar jobs called ________. A) classes B) sections C) grades D) cohorts

A) classes

Central basic factors that establish how several jobs compare to one another and that determine the pay for each job are called ________. A) compensable factors B) job evaluation factors C) ranking factors D) analysis factors

A) compensable factors

According to many experts, which of the following would most likely reduce the wage gap between men and women? A) education B) union intervention C) federal legislation D) competency-based pay

A) education

Which of the following is NOT one of the forms of equity related to compensation issues? A) group B) external C) individual D) procedural

A) group

External equity refers to ________. A) how a job's pay rate in one company compares to the job's pay rate in other companies B) the fairness of an individual's pay as compared to a co-worker's pay for the same job C) the perceived fairness of the processes and procedures used to make decisions about compensation D) the use of salary surveys and job evaluation comparisons to monitor pay levels within an industry

A) how a job's pay rate in one company compares to the job's pay rate in other companies

Which of the following is used to maintain internal equity? A) job analysis comparisons B) organizational charts C) incentive pay D) salary surveys

A) job analysis comparisons

John is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a 5% commission for every sale he makes. Which of the following terms best describes John's situation? A) pay for performance B) indirect financial compensation C) time-based compensation D) piecework pay

A) pay for performance

What has historically been the key issue in collective bargaining? A) wage rates B) income security C) health care benefits D) cost-of-living adjustments

A) wage rates

What theory of motivation states that people are strongly motivated to maintain a balance between what they perceive as their contributions and their rewards? A) Two-factor theory B) Equity theory C) Learned needs theory D) Expectancy theory

B) Equity theory

Which of the following laws has the LEAST amount of influence on compensation decisions? A) Americans with Disabilities Act B) Labor Management Relations Act C) Family and Medical Leave Act D) Age Discrimination in Employment Act

B) Labor Management Relations Act

Which law makes it illegal to discriminate against any individual with respect to compensation because of race, color, religion, sex, or national origin? A) Fair Labor Standards Act B) Title VII of the Civil Rights Act C) Equal Pay Act D) Taft-Hartley Act

B) Title VII of the Civil Rights Act

Which of the following sets basic labor standards for employees working on any government contract that amounts to more than $10,000? A) Davis-Bacon Act B) Walsh-Healey Public Contract C) Fair Wages Act D) Fair Labor Standards Act

B) Walsh-Healey Public Contract

Which of the following questions is most relevant to developing a market-competitive pay system? A) What is the ranking of each job? B) What is the relevant labor market? C) What percentage of workers are contingent? D) What are the local and federal pay regulations?

B) What is the relevant labor market?

Which of the following is NOT one of the compensable factors emphasized in the Equal Pay Act? A) skills B) accountability C) responsibility D) working conditions

B) accountability

Which of the following terms refers to the requirement to pay men and women equal wages for jobs of roughly equivalent value to the employer? A) strategic compensation B) comparable worth C) broadbanding D) job grading

B) comparable worth

In most cases, the majority of the members on a job evaluation committee are ________. A) managers B) employees C) HR specialists D) union representatives

B) employees

Which of the following best defines internal equity? A) how a job's pay rate in one company compares to the job's pay rate in other companies B) how fair the job's pay rate is, when compared to other jobs within the same company C) the fairness of an individual's pay as compared to a co-worker's pay for the same job D) the perceived fairness of the processes and procedures used to make compensation decisions

B) how fair the job's pay rate is, when compared to other jobs within the same company

Which of the following is NOT a type of direct financial payment? A) wages B) insurance C) incentives D) commissions

B) insurance

Trevor, a sales manager at IBM, recently learned that an IBM human resources manager with comparable responsibilities and spans of control earns a higher salary than Trevor. Which form of equity is of most concern to Trevor? A) external B) internal C) distributive D) individual

B) internal

Which form of equity refers to the fairness of a job's pay rate in comparison to other jobs within the same company? A) external B) internal C) distributive D) individual

B) internal

Which of the following terms refers to a systematic comparison done in order to determine the worth of one job relative to another? A) job analysis B) job evaluation C) job description D) job classification

B) job evaluation

A company using competency-based pay compensates employees for all of the following EXCEPT ________. A) behaviors B) job title C) knowledge D) skills

B) job title

Which of the following terms refers to a series of steps or levels within a pay grade? A) pay metric B) pay range C) wage class D) wage curve

B) pay range

Which job evaluation method is a quantitative technique involving the identification of several compensable factors and the degree to which each of these factors is present in the job? A) ranking method B) point method C) job grading method D) job classification method

B) point method

Bonnie, a data analyst, needs to take time off from work to care for her elderly mother. According to the Family and Medical Leave Act, what is the maximum number of weeks of unpaid, job-protected leave that Bonnie may take? A) 4 B) 6 C) 12 D) 16

C) 12

According to the Fair Labor Standards Act, what rate of normal pay would a covered employee receive for working more than 40 hours in a workweek? A) 50% B) 100% C) 150% D) 200%

C) 150%

________ means collapsing salary grades and ranges into just a few wide levels, each of which contains a relatively wide range of jobs and salary levels. A) Comparable worth B) Job evaluation C) Broadbanding D) Job grading

C) Broadbanding

Which act regulates vesting rights and portability rights? A) Fair Labor Standards Act B) Title VII of the Civil Rights Act C) Employer Retirement Income Security Act D) Equal Pay Act of 1963

C) Employer Retirement Income Security Act

Which compensation-related law contains provisions for minimum wage, maximum hours, overtime pay, equal pay, record-keeping, and child labor? A) Davis-Bacon Act B) Fair Wages Act C) Fair Labor Standards Act D) Walsh-Healey Public Contract

C) Fair Labor Standards Act

Which of the following terms refers to a compensation plan that advances a firm's strategic goals? A) strategic management B) performance pay plan C) aligned reward strategy D) workers' compensation package

C) aligned reward strategy

Which of the following is used to anchor the employer's pay scale? A) grades B) job metric C) benchmark job D) human resource metric

C) benchmark job

Which of the following factors has the LEAST effect on the design of an organization's pay plan? A) legal B) union C) company vision D) company policy

C) company vision

Which form of equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies? A) distributive B) internal C) external D) procedural

C) external

Which of the following terms refers to pay in the form of financial benefits, such as insurance? A) direct financial payments B) out-of-pocket expenses C) indirect financial payments D) sales commissions

C) indirect financial payments

Audrey is a lawyer in a mid-size firm in Chicago. She recently learned that another lawyer who joined the firm at the same time earns a lower salary than she does. Which form of equity is most relevant to Audrey's situation? A) internal B) distributive C) individual D) procedural

C) individual

What type of equity is a manager most likely trying to maintain through the use of performance appraisals and incentive pay? A) internal B) external C) individual D) procedural

C) individual

Which form of equity refers to the fairness of an individual's pay as compared with what his or her co-workers are earning for the same or very similar jobs within the company, based on each individual's performance? A) internal B) distributive C) individual D) procedural

C) individual

Which of the following jobs is most likely categorized as nonexempt from the overtime pay provisions of the Fair Labor Standards Act? A) taxicab driver B) personnel director C) newspaper writer D) computer systems analyst

C) newspaper writer

In most cases, which of the following occupations is NOT exempt from the overtime provisions of the Fair Labor Standards Act? A) physicians B) engineers C) paralegals D) teachers

C) paralegals

A ________ is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. A) wage curve B) benchmark C) pay grade D) class

C) pay grade

Richard was recently offered a position as vice president of marketing at a national retail chain. As a top executive at the firm, Richard will most likely be compensated with all of the following EXCEPT ________. A) stock options B) pension plans C) sales commissions D) supplemental life insurance

C) sales commissions

What are the two primary components of computerized job evaluations? A) compensable factors and benchmark jobs B) grade definitions and factor comparisons C) structured questionnaires and statistical models D) structured questionnaires and grade definitions

C) structured questionnaires and statistical models

Which of the following terms refers to the ownership employees build up in their pension plans should their employment with a firm end prior to retirement? A) portability B) equity C) vesting D) shares

C) vesting

Which of the following was enacted in 1931 for the purpose of setting wage rates for laborers and mechanics employed by contractors working for the federal government? A) Walsh-Healey Public Contract B) Fair Labor Standards Act C) Civil Rights Act D) Davis-Bacon Act

D) Davis-Bacon Act

Which of the following states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work? A) Americans with Disabilities Act B) Title VII of the Civil Rights Act C) Social Security Act D) Equal Pay Act

D) Equal Pay Act

Which of the following gives employees the right to organize, bargain collectively, and engage in concerted activities for the purpose of collective bargaining? A) Equal Pay Act B) Civil Rights Act C) Fair Labor Standards Act D) National Labor Relations Act

D) National Labor Relations Act

Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment? A) salary B) employee benefits C) wage reimbursement D) employee compensation

D) employee compensation

Jason is an information systems technician in a town in North Carolina with a population of 100,000. He receives an annual salary of $35,000. He recently found out that a nearby town with a similar population pays people in the same position $40,000 annually. With which form of equity is Jason most concerned? A) distributive B) procedural C) internal D) external

D) external

Which of the following best describes the point method of job evaluation? A) ranking each job relative to all other jobs based on pay grade B) categorizing jobs into grades and classes based on specific rules C) deciding which jobs have a higher number of compensable factors D) identifying and quantifying the compensable factors present in a job

D) identifying and quantifying the compensable factors present in a job

Anita, a manager at a department store, needs to determine whether one of her employees is exempt or nonexempt under the Fair Labor Standards Act. Which of the following would be the best resource for Anita? A) organizational chart B) performance appraisal C) business plan D) job description

D) job description

Which of the following is NOT one of the typical methods used by job evaluation committees to determine the worth of a job? A) ranking B) point method C) job classification D) paired comparison

D) paired comparison

Which job evaluation method is used by most modern employers? A) job classification method B) job grading method C) ranking method D) point method

D) point method

Which of the following job evaluation methods is associated with almost every comparable worth lawsuit? A) job classification method B) job grading method C) ranking method D) point method

D) point method

Which form of equity refers to the perceived fairness of the processes used to make decisions regarding the allocation of pay? A) internal B) distributive C) individual D) procedural

D) procedural

Which of the following issues is NOT addressed by the Fair Labor Standards Act? A) record-keeping B) overtime pay C) child labor D) termination

D) termination

Which of the following issues would LEAST likely be negotiated by unions? A) income security B) time off with pay C) health care benefits D) unpaid medical leave

D) unpaid medical leave

Which of the following shows the relationship between the value of the job and the average pay for this job? A) benchmark B) pay grade C) scatter plot D) wage curve

D) wage curve