Comp & Benefits Final Exam
29. Which of the following is a test that must be met to qualify for the administrative employee exemption?
$455 per week
53. The compa-ratio reflects the __.
(longest choice)
41. Total compensation in many organizations makes up at least __ percent of operating expenses.
50
94. Pay differences for equal work may be justified for demonstrably business-related reasons.
T
96. The key to comparable-worth system is a single job evaluation plan for jobs with dissimilar content.
T
97. Women's median annual earning compared to men has changed from about 60% to 78% from 1980 to 2013.
T
99. A higher proportion of women are employed by small in some countries than in the US.
T
15. A Korean citizen working for Toshiba, a Japanese company, in Canada is a __.
TCN
18. When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country, it is known as__.
Tax Equalization
4. Individualism is__.
The degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family.
49. Changes in wages in labor markets are measured__.
Through pay services
46. __ is the budgetary approach that begins with an estimate from the highest-ranking executives of the pay increase budget for an entire organization.
Top-down budgeting
48. The __ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.
Turnover effect
1. __ is an example of a country with a highly decentralized approach to pay setting with higher flexible wage.
USA
22. The __ Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts.
Walsh-Haley Public Contracts
3. Uncertainty avoidance is__.
the extent to which a culture programs its members to feel either uncomfortable or comfortable in a unstructured situations.
98. The gender wage gap is moderate for recent college graduates and decreases as the cohort ages.
F
69. In China, while state-owned enterprises employee two-thirds of all workers, wholly privately owned enterprises, joint ventures with foreign companies, and WFOEs account for half of all profits.
T
70. Generally, it is difficult to compare total compensation of a US firm with a foreign competitor.
T
72. Japanese pay systems are more person-based than job-based.
T
74. Base pay for a Japanese employee is usually not based on job evaluation or market pricing
T
75. Since the Japanese system is so seniority-based, labor costs decrease as the average age of the workforce increases.
T
76. 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
77. In Germany, an employee's pay is affected by his or her age.
T
78. Only 5% of US expatriates believe their company values their overseas experience.
T
80. 77% of expats have less disposable income when they return home from overseas assignments.
T
81. Legislation does not always achieve what it intends nor intend what it achieves.
T
83. The mental health act of 1997 requires that mental illness be covered to the same extent that other medical conditions are covered.
T
85. If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate.
T
86. 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
87. 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.
T
88. A GAO study found that 9 out of 10 cases brought by GAO undercover agents posing as works were mishandled by the Wage and Hour division of the Labor Department.
T
89. A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.
T
90. Prevailing wages protect foreign working as registered nurses.
T
91. The two types of discrimination recognize by law are valuation discrimination and access discrimination
T
92. 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
93. Of the four affirmative defenses for unequal pay for pay for equal work, "a factor other than sex" has prompted the most court cases.
T
45. The percentage increase in average pay that is expected for an organizational unit or company is called__.
A planned pay-level rise
44. The __ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.
ADEA
33. Denial of jobs, promotions, or training opportunities to qualified women or minorities are examples of __.
Access discrimination
35. The ADEA __.
Amended in 1990 to include the older workers benefit protection act
47. The denominator for calculating the current year's pay rise is__.
Average pay at the beginning of the year
8. Which of the following is a factor determining base pay in the Japanese traditional system?
Career category
59. A management strategy of giving separate organization units the responsibility to design and administer their own compensation systems is __.
Decentralized strategy
36. In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate?
Disparate impact
28. 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?
Dodd-frank
60. 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 compensation system?
Does each specific activity?
58. __, a software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules.
Employee self-service
107. The CPI accurately reflects an individual employee's cost of living.
F
2. KayLeaf Inc. wants to set up a unit in China. To facilitate this, its sends its manager to China to gather information. Which of the following is most likely to be a suggestion from its manager?
Hierarchical pay structure; high power distance
55. Which of the following statements about anchoring/framing is true?
Initial data strongly affects decisions
14. An Indian citizen working for a Japanese company in India is a __.
LCN
7. Traditionally, Japan's employment relationships were supported by__.
Lifetime security
27. Under the __, employers can be liable for current pay difference that are a result of discrimination that occurred many years later.
Lilly Ledbetter fair pay act
The degree of discretion managers have to make total compensation a strategic tool is referred to as__.
Managerial Autonomy
11. Which of the following statements about evolution and change in the traditional German model is true?
Many changes in germany are the result of global competitve pressures and technological changes.
23. The Davis-bacon Act__.
Mechanics and laborers on public construction projects be paid the prevailing wage in an era.
101. In a totality decentralized pay system, employees are likely to be treated unequally and unfairly.
T
102. A major advantage of a reduction in force is that it reduces benefits costs.
T
20. MayFly Inc., a firm headquartered in Paris, France, sends one of its employees to Frankfurt, Germany and Barcelona, Spain to manage its operations in these cities. The employee would be required to alternate between the two cities every 6 months. Mayfly offers only a moving expense on top of the base pay as the employee would be moving only within the European Union countries. Which of the following approaches to expatriate compensation is exemplified in this situation?
Modified balance sheet approach
9. Bonuses paid in Japan are__.
Not related to job performance
39. The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found the __.
OFCCP
13. A Japanese citizen working for Toyota in Georgetown, Kentucky, is __.
PCN
31. Susan works in a sterile laboratory that requires her to scrub and put on protective clothing. Which of the following acts determines whether she should be paid for this time?
Prevailing-wage laws__.
51. If Philadelphia has a CPI of 165 and Houston has on of 145, and if both cities started with bases of 100, it means that __.
Prices have risen faster...
54. A compa-ratio less than 1 means that, on average, __.
Range are paid below the midpoint
52. When employees are paid more than the maximum of their pay grade, these rates are called __ rates.
Red circle
43. A major disadvantage of a __ is that it reduces benefits costs, something that other cost-cutting options ordinarily do not achieve.
Reduction in force
25. Which of the following is NOT a provision of the Fair Labor Standards Act of 1938?
Requires employees provide 15 weeks of medical leave
24. Under the __ Act, executives cannot retain bonuses or profits from selling company stock if they mislead the public regarding their company's financial condition.
Sarbanes-Oxley Act
56. The Web page for the compensation society is __.
WorldatWork
a. Executive order 11246
__ prohibits discrimination on the basis of race, color, religion, sex or national origin
26. The Worker Economic Opportunity Act__.
a.
12. A(n)__ approach to compensation involves designing a total pay system at headquarters and applying it globally.
exporter
10. In Japan, internal alignment based on __ is far more important than other factors.
seniority
34. __ is defined by the Department of Labor as the experience, training, education, and ability as measured by the performance requirements of a particular job.
skill
5. Which of the following countries has the highest number of people in the workforce belonging to unions?
sweden
37. MNTX University requires that all its female professors score higher than the mal professors in their appraisal rating to qualify for a pay bonus as there are more female professors than male professors in the university. Which of the following statements is true in this case?
.
42. The average company match for 401(k) retirement plans is __ cents on the dollar up to 6 percent of pay.
50
19. Which of the following approaches seeks to ensure that employees on overseas assignments have the same spending power as they would in their home country?
Balance sheet approach
17. KYZ Inc., a U.S. firm, sends its manager, Ryan, to London to manage its operations there. Ryan's salary is still based on the U.S. pay system; however, KYZ offers him a lump-sum payment to offset the additional standards-of-living expense in London. In this case, which of the following approaches to expatriate compensation is used by KYZ?
Cafeteria approach
57. __, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.
Communication portals
30. Which of the following groups can qualify for the exemptions under the Fair Labor Standards Act of 1938?
Computer employees
50. Which of the following is a measure of changes in prices of goods and services in the product and service markets over time?
Consumer price index
40. Regarding pay differences for different jobs,
Courts uphold market data to justify differences
21. The executive branch of the federal government __.
Enforces the laws through agencies and its other bodies
105. Rather than define employment as hours of work, number of employees is often used.
F
109. An individual employee cannot earn more pay than the maximum of the pay grade of the ranges and the evaluation of the jobs should be reexamined.
F
117. Over half of the employees in the private sector work in companies with open pay policies.
F
63. Companies in the US, UK, and some central European countries are most likely to have centralized wage bargaining.
F
65. In Malaysia and Mexico, egalitarian pay structures fit best with the culture.
F
67. The country with the highest unionization rate in Europe is France, where 90& of workers are union members.
F
71. It is easier and less complex to compare living costs across countries than total compensation.
F
73. Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment.
F
79. Approximately 20% of expats leave their company within a year of their return to the US.
F
82. While government affects the supply of labor through legislation, it has no effect on the demand for labor.
F
84. All employees are covered by the Fair Labor Standards Act of 1938 and its amendments without exemptions.
F
95. Disparate treatment occurs when a seemingly neutral employment practice disproportionately excludes a protected group from employment opportunities.
F
16. Which of the following is true of hiring LCN's.
Satisfies nationalistic demands for hiring locals
100. The gender pay gap is common across countries and is smaller in some countries than in the US .
T
104. Many employers achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce.
T
106. In the past 2 decades, the average variable pay budget has increased.
T
108. Changes in the CPI indicate whether prices have increased more or less rapidly in an area since the base period.
T
110. 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
111. Broad bands provide managers greater discretion in pay for their subordinates compares to a grade-range design.
T
112. A compa-ratio is the average actual pay divided by the midpoint of the pay grade.
T
113. A Compa-ratio greater than 1 means that on average, the rates exceed the intended policy.
T
114. Generally, organizations have increased their use of variable pay relative to traditional base pay increases.
T
115. Pay policies are more open in the public sector than in the private sector.
T
116. Less than 10% of compensation professional strongly agree that employees know their own pay range and the one above them.
T
118. A key reason to communicate pau information is that the goodwill engendered by the act of being open about pay may affect perceptions of pay equity.
T
119. If a pay system is not based upon work-related or business related logic, it is probably best not to conduct a formal compensation communication program.
T
120. The most important components of a pay communication program are the business0related and work related rationales on which the pay systems are based.
T
61. Understanding international compensation begins with recognizing differences and similarities and figuring out how to best manage them.
T
62. Evidence indicates that MNCs are influenced by both the institutional pressures in their home country and in the local context.
T
64. Neither works councils nor co-determination are legally required in the US and are quite rare.
T
66. A study of both US and Slovenians MBAs found that risk taking was higher among Slovenians.
T
68. Unionization rates are higher in Europe than in Asia.
T