Chapter 9

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

An employees wage increase must be greater than the increase in the CPI

Which of the following is not a component of the Consumer Price Index

Automobiles

The federal wage law that is criticized for a rule that allows minimum pay to be based on the prevailing rate, which often included higher, union wages, is:

Davis-Bacon Act

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

Direct compensation

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

Non-financial compensation

The federal wage law that may require government contractors to pay overtime for work more than eight hours a day is

Walsh-Healy Act

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

escalator clauses

Because of its focus, the Hay profile method is most useful for evaluating which type of jobs?

executive and managerial positions

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 reflectively equal to that of other employers for similar work, this is the basis of:

external equity

The Equal Pay Act prohibits wage discrimination based on:

gender

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

generate feelings of commitment

Employers wishing to encourage employees to accept a promotion to a job in a higher grade would

increase the size of successive rate ranges

___ comprises the many benefits supplied by employers.

indirect compensation

Elements of the compensation package are said to have___ when an employees high performance leads to monetary rewards that are valued.

instrumentality

Job evaluation helps to establish

internal equity

A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.

job classification system

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 cars that list the duties and responsibilities of the job are arranged by raters in order of the importance of the job.

job ranking

The simplest and oldest system of job evaluation is the _____, which arrays jobs on the basis of their relative worth.

job ranking system

Which is the simplest and oldest method of job evaluation?

job ranking system

The predominant approach to employee compensation is

job-based pay

Wage survey data will normally be collected with the use of

key jobs

The Hay profile method uses which three factors for evaluating jobs?

knowledge, accountability, and mental ability

The area from which employers obtain certain types of workers is known as the:

labor market.

In conducting a wage and salary survey for office personnel, the relevant labor market to be surveyed is most likely

local

In conducting a wage and salary survey for the job of engineer, the relevant labor market to be surveyed is most likely:

national.

Employees covered by the overtime provisions of the Fair Labor Standards Act

nonexempt employees

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

piecework

___ is a pay system which employees are paid according to the number of units they produce

piecework

Which of the following is a common major compensable factor?

responsibility

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 companies

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

salary

Most pay increases may lack motivational value to employees when ________________.

salary budgets are low

Employers may ________ their workforce to help them identify the most valuable contributors.

segment

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 US 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 NOT a common goal of a strategic compensation policy?

To mesh employees pasts performances with organizational goals

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

1

he job evaluation system that seeks to measure a job's worth through its value to the organization is known as:

work valuation

According the compensation scorecard, functions with a compa ratio below 100 percent are considered to be paying their employees below the company norm.

100 percent

The Fair Labor Standards Act prohibits the employment of those between the ages of ____ in hazardous occupations such as mining, logging, and meatpacking.

16-18

A U.S. survey found that___ of employees say they work in a place where discussions of pay are "formally prohibited and/or employees caught discussing wages could be punished"

19 percent

In a 2010 survey of more than 1,000 entrepreneurs, 35 percent of all small businesses in the United States had to make pay cuts

35 percent

The Fair Labor Standards Act permits employers to pay a "training wage" of _____ per hour for employees younger than the age of twenty during their first ninety days of employment, provided their employment does not displace other workers.

6.16

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

60 percent

A Bloomberg National Poll showed that more than ___ of Americans thought big bonus should be banned for wall street companies that took taxpayer bailouts.`

70 percent

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

98 percent

Another basis for compensation centers on whether employees are classified as nonexempt under the

Fair Labor Standards Act

The major provisions of which act are concerned with minimum wages rate sand overtime payments, child labor, and equal rights

Fair Labor Standards Act

____________ may create problems for managers who wish to maintain pay secrecy among employees.

Internet salary survey data

An employees relative worth can be determined by:

an effective performance appraisal system

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

Jobs that are grouped into the same pay grade should

be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as more than a newer employee in a higher grade

Wages gained through collective bargaining extend

beyond the segment of the labor force that is unionized

Collapsing many salary grades into a few wide salary bands is known as

broad banding

___ helps eliminate the obsession with grades and, instead, encourages employees to move to jobs they can develop in their careers and add value to the organization

broadbanding

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

collective equity

Using the point method of job evaluation requires that managers

compare job requirements against degree descriptions.

Elements of the job such as skills, effort, responsibilities, and working conditions are referred to as:

compensable factors

The ___ collects and displays the results for all the measures that a company uses to monitor and compare compensation among internal departments or units.

compensation scorecard

Compensation programs that compensate employees for the knowledge they possess are known as

competence-based pay plans

Which of the following is NOT an internal factor affecting the pay mix?

cost of living

The biggest challenge with competence-based pay is

developing appropriate measures of skills and competencies

Equity theory is also known as:

distributive justice

Which of the following is an example of a non financial compensation?

employee recognition programs

Red circle rates above the maximum for the range ca result because

employees have high seniority

When cost of living pay increases are given routinely, employees may view them as ___________.

entitlements

The fact that people make comparisons to others is central to

equity theory

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

the employers ability to pay

Pay levels are limited in part by:

the organizations profits and the productivity of employees

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

the point system.

The relative worth of a job evaluated using the point manual is determined by:

the total points that have been assigned to that job

Pay-for-performance programs

tie rewards to employee effort

The relationship between the relative worth of jobs and their wage rates can be represented by means of a

wage curve

A job evaluation system that seeks to measure a job's worth through its value to the organization is known as:

work valuation

Which job evaluation system serves to direct compensation dollars to the type of work pivotal to organizational goals?

work valuation