MGT 461 Chap. 13,14,15,16&17
False
All employees are covered by the Fair Labor Standards Act of 1938 and its amendments without exemptions. T or F
Half the size
An employee who changes jobs four or more times during his or her career will likely receive a pension approximately _____ as that of an employee whose working career is spent with one employer, assuming that both employees have the same starting salary and receive annual increases equal to inflation rate. Twice as large the same size one-fourth the size half the size
True
At least for high-skilled contingent workers, it is increasingly popular to view careers as a series of opportunities to acquire valuable increments in knowledge and skills. T or F
Incentive stock options
At the time it is granted, which of the following has no tax implications for an executive? Phantom stock plans Incentive stock options Stock appreciation rights Performance share/unit plans
True
Contingent workers are usually considered candidates for special compensation. T or F
True
A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases. T or F
Limiting employees to these providers for health services
A health maintenance organization (HMO) pulls together a group of providers willings to provide services at an agreed upon rate in exchange for employers: Limiting employees to these providers for health services Paying 30% of employee salary to the HMO Laying off all contingent workers who are not eligible for insurance Providing free child care assistance to employees
True
A higher proportion of women are employed by small firms compared to large firms T or F
True
A qualified deferred compensation plan offers tax advantages to employers. T or F
True
A study shows that a 10 percent rise in import share has the effect of lowering the union wage differential by approximately 2 percent. T or F
True
A trend in sales force compensation is linking sales force compensation to customer satisfaction measures. T or F
Hierarchical
According to Hofstede's cultural dimensions, in Malaysia and Mexico, where there is high power distance, _____ pay structures are appropriate. equitable hierarchical egalitarian parallel
True
According to the Japan Institute of Labour, for most employees bonuses are variable pay that help control the employer's cash flow and labor costs. T or F
False
A 401(k) is an example of a defined benefit plan. T or F
third-country national
A Korean citizen working for Toshiba, a Japanese company, in Canada is a _____. host-country national third-country national parent-country national local country national
True
Base pay for a Japanese employee is usually not based on job evaluation or market pricing. T or F
Not necessarily related to performance
Bonuses paid in Japan are _____. additional pay equivalent to two weeks of annual salary typically paid once a year not an expectable additional payment not necessarily related to performance
7
Data from WellPoint Inc shows that _____ percent of its 29 million customers account for over 60 percent of its medical costs. 7 17 27 37
Employer safety programs
Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to: Increased variable component of base wage Devaluation of the dollar Employer safety programs Relaxed federal regulations
True
In Germany, an employee's pay is affected by his or her age. T or F
True
In maturing markets, companies focus both on performance-based pay tied to customer satisfaction and on greater. T or F
Disparate impact
In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate? Disparate treatment Access discrimination Disparate impact Valuation discrimination
False
Independent contractors always earn less than their permanently employed counterparts. T or F
the degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family
Individualism is _____. the degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family the distribution of emotional roles between the genders the extent to which a culture programs individuals to accept delayed gratification of their emotional needs the extent to which a culture programs individuals to feel either uncomfortable or comfortable in unstructured situations
True
Introduction of a gain-sharing plan is particularly effective when union members participate in plan development. T or F
False
It is easier and less complex to compare living costs across countries than total compensation. T or F
60
Some level of dental coverage is provided by about ____ percent of all employers with above 500 employees. 30 60 11 85
True
The 1993 Revenue Reconciliation Act limited employer deductions for executive compensation to $1 million and capped the amount of executive compensation used in computing contributions to and benefits from qualified retirement plans. T or F
5 to 30
The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent. 0 to 5 5 to 30 30 to 50 50 to 90
True
There are numerous possible costs and benefits to union members for agreeing to gain-sharing plan. T or F
53
Today, _____ percent of the workers participate in the pension plan coverage provided by their employers. 98 12 28 53
22 percent
Union employees in the public sector earn, on average, about _____ more than their nonunion counterparts. 14 percent 22 percent 40 percent 5 percent
Fasle
Workers' compensation is covered by federal laws. T or F
A maturity
______ curve expresses the relationship between years since last degree, performance, and salary. A marginal productivity A maturity
True
A McKinsey survey of CEOs found nearly 90 percent believe benefits are very important for attracting and retaining employees. T or F
Is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract
A deferred wage increase _____. specifies that wages will be renegotiated at a specified time specifies that such nonwage items as pension and benefits will be renegotiated under certain conditions is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract involves periodic adjustments based typically on changes in the consumer price index
A tally sheet
A useful tool for determining the true worth of an entire executive compensation package is ______. The program evaluation and review technique (PERT) A tally sheet A Gantt Chart The graphic evaluation and review technique (GERT)
Exporter
A(n) _____ approach to compensation involves designing a total pay system at headquarters and applying it globally. delayered inpatriate localizer exporter
Phantom stock plan
A(n) _____ awards cash or stock that is determined by an increase in stock price at a fixed future date. Phantom stock plan Incentive stock option Restricted stock plan Non-qualified stock option
Chapter 13
Chapter 13
Chapter 14
Chapter 14
Chapter 15
Chapter 15
Chapter 16
Chapter 16
Chapter 17
Chapter 17
False
Companies in the United States, United Kingdom, and some central European countries are most likely to have centralized wage bargaining. T or F
True
ERISA and the tax code specify that the average value of benefits for low-paid employees must be at least 75 percent of those of highly paid employees. T or F
False
Employees are the sole contributors to their cash balance plans. T or F
True
Few contracts specify special rates for part-time and temporary employees. T or F
One-third
For the past 10 years, a stable _____ of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts. three-fourths one-half one-quarter one-third
Increase base pay
Hannah is the CEO of JF corp., a steel manufacturing company. She finds that the market is exhibiting the signs of a maturing market. She wants to revise the compensation package for her sales employee to adapt to the changing market conditions. In this case, Hannah is most likely to: Increase base pay Provide a commission-based incentive plan Provide incentives based on new customer generation Include a significant incentive component
True
If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate. T or F
Seniority
In Japan, internal alignment based on _____ is far more important than other factors. skills jobs accountabilities seniority
False
Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment. T or F
False
Jim was a full-time student for four years, but he could not find a job after graduating. Jim is eligible to collect unemployment insurance. T or F
The cafeteria approach
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? The cafeteria approach The localization approach The local plus approach The balance sheet approach
False
Medicare is not part of Social Security. T or F
True
Only 5 percent of U.S. expatriates believe their company values their overseas experience. T or F
True
Organizations rely very heavily on external market data in pricing scientists' and engineers' base pay. T or F
Courts continue to uphold the use of market data to justify differences
Regarding pay differences for different jobs, _____. Courts continue to rely on the use of employer opinion surveys to justify differences The courts favor reliance on the use of statistical models Court decisions have been inconclusive Courts continue to uphold the use of market data to justify differences
False
Since the Japanese system is so seniority-based, labor costs decrease as the average age of the workforce increases. T or F
OFCCP
The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found is the _____. OSHA EEOC OFCCP FCSS
True
The gender pay gap is common across countries and is smaller in some countries than the U.S. T or F
False
The most recent trend in executive comparison is an increased use of stock options. T or F
True
The two types of discrimination recognized by law are valuation discrimination and access discrimination. T or F
True
The vast majority of contracts specify that a job is to be compensated on an hourly basis. T or F
Sarbanes-Oxley
Under the _____ Act, executives cannot retain bonuses or profits from selling company stock if they mislead the public regarding their company's financial condition. Worker Economic Opportunity Davis-Bacon Walsh-Healey Sarbanes-Oxley
Lilly Ledbetter Fair Pay Act
Under the _____, employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier. Sarbanes-Oxley Act Lilly Ledbetter Fair Pay Act Equal Pay Act Fair Labor Standards Act
True
Voluntary benefits account for nearly 37 percent of the total compensation package for unionized workers. T or F
The Dodd-Frank Wall Street Reform and Consumer Protection Act
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? The American Recovery and Reinvestment Act (ARRA) The Troubled Asset Relief Program (TARP) The Financial Accounting Standards Board Statement 123 R The Dodd-Frank Wall Street Reform and Consumer Protection Act
It cuts down on strife and internal quarrels
Which of the following is the most likely reason for most unions to insist on group-based performance measures with equal payouts to members? It enables employees to learn new skills. It cuts down on strife and internal quarrels. It encourages individual differences. It causes a leniency effect.
Female employment is more heavily concentrated in large firms
Which of the following statements regarding wage differences in industries and firms is NOT true? Wages of men in large firms are 54 percent higher than wages of men in small firms. Hispanic men are concentrated in construction and service firms. Female employment is more heavily concentrated in large firms. The pay premium associated with changing jobs is enjoyed primarily by white males.
True
Women's median annual earnings compared to men's has changed from about 60 percent to 78 percent from 1980 to 2013. T or F
Skill
_____ is defined by the Department of Labor as the experience, training, education, and ability as measured by the performance requirements of a particular job. Effort Skill Responsibility Working condition
HIPPA
_____ is designed to lessen an employer's ability to deny coverage to an employee for a little preexisting condition. COBRA OSHA HIPPA FMLA
Automatic progression
_____ is movement through the wage ranges where seniority is specified as the basis of the movement. Length-of-stay progression Automatic progression Merit differential Performance differential
Executive order 11246
_____ prohibits discrimination on the basis of race, color, religion, sex, or national origin. Executive Order 11452 The FMLA Executive Order 11246 The Rehabilitation Act
True
Compensation committees of boards of directors typically set executive salaries. T or F
Percentage account erosion
If improved account retention became a major focus of attention, the performance measure stressed would be _______. Gross margin on sales or price per unit Percentage account erosion A volume measure A customer satisfaction index
False
In Malaysia and Mexico, egalitarian pay structures fit best with the culture. T or F
Be increased in order to retain her
Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if SteadyResults performs poorly, her salary will most likely: Remain the same as CEO salary is based only on performance Be withheld and paid at a later date as the company is doing poorly Be increased in order to retain her Remain the same as the company is doing poorly
The spillover effect
MaxTrain Corp. recognizes that its competitor GlasWell Corp., which is unionized, offers higher wages and benefits. To avoid unionization demands from its workers, MaxTrain decides to offer the same wages and benefits to its employees as GlasWell. Which of the following phenomena is exemplified in this case? The sorting effect The halo effect The leniency effect The spillover effect
False
Members of boards of directors are not categorized as candidates for special compensation. T or F
True
Pay differences for equal work may be justified for demonstrably business-related reasons. T or F
True
The key to a comparable-worth system is a single job evaluation plan for jobs with dissimilar content. T or F
False
While government affects the supply of labor through legislation, it has no effect on the demand for labor. T or F
Sub-Saharan Africa
The highest rates of child labor are in _____. China India Latin America sub-Saharan Africa
Lifetime security within the company
Traditionally, Japan's employment relationships were supported by _____. lifetime security within the company performance-based pay systems alone centralized unions representing workers across several companies within an industry performance-based promotion systems alone
True
In China, while state-owned enterprises employ two-thirds of all workers, wholly privately owned enterprises, joint ventures with foreign companies, and WOFEs account for half of all profits. T or F
Dual-career ladder
In recent years, some firms have tried to deal with the plateau effect and also accommodate the different career motivations of mature scientists and engineers through a(n) ______. Individual-career ladder Alternative career path Military-style career ladder Dual-career ladder
True
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 or F
Places greater emphasis on external market rates
In the comparison of the pay systems of two well-known Japanese companies Toyota and Toshiba, Toyota _____. places greater emphasis on external market rates places lesser emphasis on individual-based merit pay uses far more levels in its structure places lesser emphasis on individual-based performance pay
True
Legislation does not always achieve what it intends nor intend what it achieves. T or F
True
Many contracts specify a premium be paid above the worker's base wage for working nonstandard shifts. T or F
False
Most contracts recognize that jobs in the same occupations should receive different wage rates. T or F
True
Most employers prefer defined contribution pension plans to defined benefit plans. T or F
NaxWell is likely to increase base salaries and decreases incentives.
NexWell Corp. sells a smart wristband that, apart from monitoring heart rate and blood pressure, also reminds users to stand and walk every half hour. As part of its promotional efforts, a celebrity starts wearing the wristband, thereby increasing its popularity and ease of sale. Which of the following is most likely to happen? NaxWell will set lower sales targets for its employees. NaxWell is likely to increase base salaries and decrease incentives. NaxWell is likely to lower its executive compensation in order to increase stock price. NaxWell will hire only contingent workers.
Purchase of stock at a stipulated price, not conforming with the internal revenue code
Non-qualified stock options require _____. Purchase of stock at a stipulated price, not conforming with the Internal Revenue Code Cash or Stock award to be determined by an increase in stock price at a fixed future date Cash or stock awards to be determined by an increase in stock price during any time chosen in the option period Grant of stock at a reduced price with the condition that it may not be sold before a specific date.
True
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 or F
Increase the probability of work being subcontracted out to nonunion organizations.
Pay-for-knowledge plans do all of the following EXCEPT _____. make employees less expendable to their firms increase the probability of work being subcontracted out to nonunion organizations make each individual employee more valuable pay employees more for learning a variety of different jobs or skills
the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
Uncertainty avoidance is _____. the distribution of emotional roles between the genders the extent to which a culture programs its members to accept delayed gratification of their material needs the extent to which the less powerful members of organizations accept and expect that power is distributed unequally the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
False
Under the Economic Growth and Tax Reconciliation Act of 2001, employers have three hundred vesting schedule options. T or F
True
Unionization rates are higher in Europe than in Asia. T or F
False
Unions respond relatively rapidly to wage increases during inflationary periods. T or F
Salespeople under an incentive system will view customers service as an imposition
When designing a sales compensation plan, it should be kept in mind that: Salespeople rank recognition as their number-one motivator Salespeople under an incentive system will view customer service as an imposition Compensation systems are independent of the nature of a product or service Commissions for sales volume reduces the incentive to sell
Sweden
Which of the following countries has the highest number of people in the workforce belonging to unions? Japan Sweden Italy South Korea
Recent tax law changes in many countries have made stock options more attractive, but limited ownership of many companies remains the rule.
Which of the following statements about ownership and financial markets is true? In the United States, corporate ownership and access to capital is far more concentrated than in most other countries. Ninety percent of American households own stock in companies either directly or indirectly through mutual funds and pension funds. Recent tax law changes in many countries have made stock options more attractive, but limited ownership of many companies remains the rule. Large conglomerates in Germany link performance bonuses to increased shareholder value as it is the most effective pay system.
Single rates are usually specified for workers within a particular job classification
Which of the following statements about single rates is true? Single rates are usually specified for workers within a particular job classification. Single-rate agreements differentiate wages on the basis of seniority. Single rates are only specified for workers employed by a firm in different geographic areas. Single-rate agreements differentiate wages on the basis of merit.
The Modified balance sheet approach
Which of the following ties salary to a region? The cafeteria approach The localization approach The modified balance sheet approach The lump-sum approach
The United States of America
_____ is an example of a country with a highly decentralized approach to pay setting with higher wage flexibility. Sweden Germany Belgium The United States of America
The cafeteria approach
_____ sets salaries according to the home-country system and simply offers employees lump sums of money to offset differences in standards of living. The modified balance sheet approach The localization approach The cafeteria approach The balance sheet approach
Second-injury funds
______ relieve an employer's liability when a pre-employment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone. Collateral funds Second-injury funds Insolvency funds Pre-employment funds
True
Employers who have frequent layoffs pay higher tax rates than those with few layoffs. T or F
False
Engineers in almost all companies are treated as special compensation cases due to their education and training. T or F
True
Evidence indicates that MNCs are influenced by both the institutional pressures in their home country and in the local context. T or F
two-tier
In a(n) _____ pay plan, a contract is negotiated which specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs. skill-based efficiency-based one-tier two-tier
True
In automatic progression, seniority is used as the basis for movement through the job classifications. T or F
Employers that pay federal and state unemployment insurance.
In the majority of the states, unemployment insurance is financed exclusively by: Joint contributions by employee unions The philanthropy of co-workers Federal, state, and employee contributions Employers that pay federal and state unemployment insurance
Escalator clause
In the negotiation stage of a multiyear wage contract, Mark, the manager of SifCo Corp., specifies that changes will be made to the wage based on the changes in the consumer price index and mentions the effective dates of adjustment. Which of the following types of clauses has Mark introduced in the contract? Halo clause Spillover clause Escalator clause Reopener clause
True
Lower-tier employees in a two-tier pay plan, those hired after the contract is ratified, receive wages 50 to 80 percent lower than employees in the higher tier. T or F
False
Lump-sum awards are added to base wages. T or F
True
Lump-sum awards are typically given because they are less costly to the employer than merit increases. T or F
MNTX is liable for disparate treatment of women
MNTX University requires that all its female professors score higher than the male 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? MNTX is liable for access discrimination against women. MNTX is liable for disparate treatment of women. MNTX's pay policy is legal as educational institutions are exempt under the Equal Pay Act. MNTX's pay policy is legal as its intention is to reduce the overall costs of the company and not to discriminate.
True
Of the four affirmative defenses for unequal pay for equal work, "a factor other than sex" has prompted the most court cases. T or F
Financial Compensation
Popular stereotypes of salespeople characterize them as being heavily motivated by ______. Recognition and appreciation Financial Compensation Personal growth and job security Promotional opportunities
True
Prevailing wages protect foreign workers working as registered nurses. T or F
were passed in response to conditions on projects such as the construction of the Hoover Dam during the Depression
Prevailing-wage laws _____. set pay for work done to produce goods and services contracted by the state government specify that a government-defined prevailing wage is the maximum wage that must be paid for work done on covered government projects give contractors the right to drive down wages using their size were passed in response to conditions on projects such as the construction of the Hoover Dam during the Depression
30 to 40 percent
Research indicates that the presence of a union adds about _____ to employee benefits. 5 to 15 percent 20 to 25 percent 30 to 40 percent 50 percent
False
Single rates are not usually specified for workers within a particular job classification. T or F
0 months
Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and wants to continue that coverage. According to COBRA, how long can Larry continue his coverage through Steve's company after being laid off? 36 months 24 months 18 months 0 months
The portal-to-portal act
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? The Fair Labor Standards Act The Occupational Safety and Health Administration legislation The Portal-to-Portal Act The Health Care Workers Protection Act
Firefighters
The largest gains in wages for public sector employees are reported for _____. teachers' unions firefighters telecommunication unions postal services
3 to 5
The majority of defined benefit plans calculate average earnings over the last _____ years of service for a prospective retiree. 2 to 4 3 to 5 6 to 8 7 to 9
A long-term incentive plan using stock options
The most common approach to motivating executives to make decisions that are int he best interests of stockholders is _____. High base salaries with few bonuses Average base salaries with significant firm performance bonuses A long-term incentive plan using stock options Average base salary with performance-based perks
Increased in the maximum earnings base and the rate at which that base is taxed
The rising costs of Social Security have been covered by: Increased in the maximum earnings base and the rate at which that base is taxed Reduction in Social Security benefits by providing market-driven options Progressive reduction in the coverage Welfare grants and annual supplements from Congress
False
Unlike executives, scientists and engineers are less likely to receive lavish athletic facilities and large offices. T or F
turnover clauses
Wage adjustments in multiyear contracts may be specified through all of the following ways EXCEPT _____. cost-of-living adjustments deferred wage increases reopener clauses turnover clauses
These jobs face conflicting demands
Executive, supervisors, and sales staff often receive special compensation treatment because ______. These jobs are exempt under FLSA These jobs face conflicting demands Recruitment and retention are always difficult for these jobs These jobs are covered under the Sarbanes-Oxley Act
Point-of-service; preferred provider organization
A _____ plan is a hybrid health plan combining the benefits of HMO and ______. Point-of-service; preferred provider organization POS; Blue cross Managed care; POS Consolidated health; PPO
True
A major problem with Social Security is a rising number of retirees without a corresponding increase in the number of contributors. T or F
Firm Size
A recent article analyzing the results from over 100 executive pay studies shows that the best predictor of executive pay, by far, is _______. Firm size The number of insiders on the board of directors The industry in which the firm operates Firm Performance
True
A reopener clause specifies that wages will be renegotiated at a specified time or under certain conditions. T or F
True
A study of both U.S. and Slovenian MBAs found that risk taking was higher among Slovenians. T or F
Unions make a difference in wages across all studies and time periods
A study of unions in 114 companies concluded that _____. the impact of unions on wages is lesser during recession the union-nonunion gap is the greatest during strong economies unions make a difference in wages across all studies and time periods unions are not responsible for any differences in wages
Performance share plan
A(n) ______ awards cash or stock if specific goals are achieved. Non-qualified stock option Incentive stock option restricted stock plan performance share plan
False
About 60 percent of all U.S. collective bargaining agreements permit some alternative reward system that links pay to performance. T or F
False
All employers with less than 20 employees must comply with the Consolidated Omnibus Budget Reconciliation Act. T or F
Unpaid interns
All of the following EXCEPT ______ would be considered a special compensation group. Sales group unpaid interns contingent workers professional workers
50
Almost ____ percent of the companies offering child care assistance to employees also offer elder care assistance. 10 30 50 90
Local Country national
An Indian citizen working for a Japanese company in India is a _____. foreign country national third-country national parent-country national local country national
A higher proportion of new hires were female
An early study of the effects of the living wage law in Los Angeles found all of the following EXCEPT that _____. 7,735 of the employees covered by the law received an average wage increase of 20 percent 1 percent of covered jobs were lost a higher proportion of new hires were female turnover and absenteeism declined
Full vesting after three years
An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer: Full vesting after three years Full vesting after six years Full vesting after seven years Full vesting after two years
True
An individual retirement account is a tax-favored retirement savings plan that individuals can establish themselves. T or F
False
Approximately 20 percent of expats leave their company within a year of their return to the U.S. T or F
True
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 or F
Hiring Date
Basically a phenomenon of the union sector, two-tier wage structures differentiate pay based upon the _____. type of work hiring date place of work length of contract, if applicable
It is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of the union, although the possibility exists
Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore, _____. it can be argued with assurance that any wage differences between the two firms are due to the presence of the union in Company A and the absence of the union in Company B it is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of the union, although the possibility exists Company B has to form a union to compete with Company A any wage differences between the two firms can never be attributed to the presence of the union in Company A
True
Compensation packages for salespeople must be competitive because salespeople tend to compare their pay with competitors. T or F
Computer engineers employed at a software firm
In which of the following situations would the engineering jobs be most likely treated as a special compensation group? Mechanical engineers employed by a large city corporation Computer engineers employed at a software firm Biomolecular engineers employed at a farm equipment manufacturer Acoustical engineers at a waste disposal company
Become more receptive to alternate reward systems that link pay to performance.
Increased global competition has caused unions to: Accept less variable pay in exchange for higher base pay Become more receptive to alternate reward systems that link pay to performance.
True
Independent contractors generally are less expensive for employers as they receive no benefits. T or F
Modified balance sheet approach
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 six 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 Localization approach Local plus approach Lump-sum/cafeteria approach
Meltrop will lose the litigation as it has committed valuation discrimination.
Meltrop Corp. employs two store clerks, Sam and Stella. Stella sues Meltrop claiming unequal pay as she earns $500 a week less than Sam does despite doing the same work as Sam. Which of the following is most likely to be the result of the litigation? Meltrop will win the litigation as blue-collar workers are exempt from the Equal Pay Act. Meltrop will win the litigation if it can prove that Stella is Sam's senior. Meltrop will lose the litigation as it has committed access discrimination. Meltrop will lose the litigation as it has committed valuation discrimination.
Michael is no longer eligible for unemployment benefits
Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1,00 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario? Michael can continue to avail unemployment benefits for another 26 weeks. Michael is eligible for $1,00 per week if he can show that he has been earnestly searching for jobs. Michael is no longer eligible for unemployment benefits. Michael will now only be eligible for 20 percent of his previous income as unemployment benefits.
False
Moving employees through pay ranges using merit increases is more popular than automatic progression. T or F
True
Neither works councils nor co-determination are legally required in the United States and are quite rare. T or F
Was amended in 1990 to include the Older Workers Benefit Protection Act
The ADEA _____. prohibits discrimination on the basis of sex, race, or color was amended in 1990 to include the Older Workers Benefit Protection Act was amended in 2011 to ensure that workers get two months' notice before termination prohibits discrimination on the basis of national origin in any employment condition
Requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area
The Davis-Bacon Act _____. states that income from most stock plans need not be included in calculating overtime pay increases the burden of proof on employers to rebut some discrimination claims requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts
False
The Employee Retirement Income Security Act states that employers must offer a retirement plan to their employees if they work for at least 1,250 hours per year. T or F
True
The Mental Health Act of 1997 requires that mental illness be covered to the same extent that other medical conditions are covered. T or F
True
The Pension Benefit Guarantee Corporation guarantees payment of vested benefits to employees formerly covered by terminated pension plans. T or F
Walsh-Healey Public Contracts
The _____ Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts.
Long-term incentives
The _____ component of executive compensation has grown the most since 2012. Long-term incentives Bonus Short-term incentives Base salary
Occupational Safety and Health Administration legislation
The _____ specifies the number of breaks that must be provided in an eight-hour workday. Portal-to-Portal Act Occupational Safety and Health Administration legislation Walsh-Healey Public Contracts legislation Equal Pay Act
Social Comparison
The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees. Agency Social Comparison Team Production Economic Approach
Increased use of variable pay
The biggest trend in supervisory pay centers on _____. Increased use of variable pay Payment of wages that equal subordinate pay Paying a wage that is above the highest paid superior Payment of higher wages without benefits
False
The country with the highest unionization rate in Europe is France, where 90 percent of workers are union members. T or F
Managerial Autonomy
The degree of discretion managers have to make total compensation a strategic tool is referred to as _____. managerial accountability democratic accountability managerial autonomy managerial liability
Job Evaluation
The determination of pay discrimination on jobs of dissimilar content requires a standard that allows jobs of dissimilar content to be declared comparable and that allows pay differences for jobs that are not comparable. This standard is _____. job evaluation comparable worth analysis disparate impact analysis point factor market comparison
Enforces laws through agencies and its other bodies
The executive branch of the federal government _____. enforces laws through agencies and its other bodies passes new laws interprets laws and considers their constitutionality changes existing laws
What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings?
What is the first question that should be asked when determining the amount of retirement income an employer should provide? Should Social Security payments be factored in when considering the level of income an employee should have during retirement? How should seniority be factored into the payout formula? What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings? Should other post retirement income sources be integrated with the pension payment?
Larger
When compared to the impact of unions during periods of strong economies, the impact of unions during periods of higher unemployment is _____. unknown the same smaller larger
Social Security
Which of the following benefits is a federally administered program? Workers' compensation Social Security Job Security Occupational Safety and Health Act
A COLA clause
Which of the following involves periodic adjustments based typically on changes in the consumer price index? A COLA clause A deferred wage increase A reopener clause An annual improvement adjustment
It requires that employers provide 15 weeks of medical leave to employees.
Which of the following is NOT a provision of the Fair Labor Standards Act of 1938? It requires that employers provide 15 weeks of medical leave to employees. It sets minimum wage standards. It prohibits child labor. It requires payment at one-and-a-half times the standard for working more than 40 hours per week.
Financial Accounting Standard Number 313 raises the cost of using stock options
Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay? Financial Accountant standard number 33 raises the cost of using stock options In a falling market, stock options are underwater - the market price is below the exercise price
Average value of benefits for low-paid employees must be at least 90 percent of that for highly paid employees.
Which of the following is NOT one of the clauses relating to the benefits employers can provide executives? Benefit plans must be determinable. Average value of benefits for low-paid employees must be at least 90 percent of that for highly paid employees. Benefit plans must cover 80 percent of employees Benefit plans must meet specific vesting requirements
Growing industries are most heavily unionized, while declining industries are less so.
Which of the following is NOT one of the popular explanations for the decline of union memberships? Workers do not view unions as a solution to their problems. Management resistance to unions has increased. The intensity of union organizing efforts has become less. Growing industries are most heavily unionized, while declining industries are less so.
Base the wage-to-job evaluation point ratio on the wages paid for female-dominated jobs.
Which of the following is NOT one of the steps in establishing a comparable-worth pay plan? Adopt a single gender neutral point job evaluation plan for all jobs within a unit. All jobs with equal job evaluation points should be paid the same. Identify the percentages of male and female employees in each job group. Base the wage-to-job evaluation point ratio on the wages paid for female-dominated jobs.
49 percent of U.S. expatriates are women.
Which of the following is NOT true of expatriates? 68 percent of expatriates do not know what their jobs will be when they return home. Only five percent of expatriates believe their company values their overseas experience. 11 percent are promoted when they return. 49 percent of U.S. expatriates are women.
Managerial jobs are covered by the agreements
Which of the following is NOT true of the tariff agreements in Germany? Small organizations use them as guidelines. Managerial jobs are covered by the agreements. Job evaluation methods are part of the agreements. Tariff agreements are different for each industrial sector.
Lump-sum death payments
Which of the following is a benefit under Social Security? Lump-sum death payments Job Security Work/life balance Overtime Pay
Career Category
Which of the following is a factor determining base pay in the Japanese traditional national system? Job evaluation Career category Market pricing Specific job title
They are faster to vest than defined benefit plans
Which of the following is a feature of defined contribution plans? They are faster to vest than defined benefit plans They are characterized by high contribution rates They are less portable than defined benefit plans They are fully funded by employers
Cash Balance plan
Which of the following is a hybrid of defined benefit and defined contribution plans? 401(k) plan Employee stock ownership plan Cash balance plan Profit-sharing plan
Increased involvement with job activities
Which of the following is a reason for unions favoring gain-sharing plans? Increased peer pressure to perform Increased involvement with job activities Increased flexibility in moving employees quickly into high-demand areas Increased clarity in bonus calculations
Reduce need for jobs due to increased productivity
Which of the following is a reason for unions opposing gain-sharing plans? Reduced job security Decreased peer pressure to perform Decreased feeling of achievement or contributing to the organization Reduced need for jobs due to increased productivity
The employee must be compensated on a salary or fee basis at a rate not less than $455 per week.
Which of the following is a test that must be met to qualify for the administrative employee exemption? The employee must be compensated on a salary or fee basis at a rate not less than $455 per week. The employee's primary duty must be performance of manual work. The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent. The employee must have the authority to hire or fire other employees.
Executive Physicals
Which of the following is the most popular executive perk offered by most companies? Executive physicals Payment of club dues Family spousal travel Corporate housing
Employment of LCNs satisfies nationalistic demands for hiring locals.
Which of the following is true of hiring LCNs? Companies incur relocation expenses and other substantial expenses associated with the use of LCNs. Companies have to be concerned about LCNs' adapting to the local culture. Only rarely do organizations decide that hiring LCNs is appropriate. Employment of LCNs satisfies nationalistic demands for hiring locals.
Not all unions would be in favor of this type of plan.
Which of the following is true regarding a gain-sharing plan. It prevents union members from sharing the wealth. Not all unions would be in favor of this type of plan. It creates difficulty in maintaining employment levels in marginal organizations. It becomes ineffective when union members participate in plan development
ESOPs
Which of the following plans gives employees part ownership in the company? ESOPs Pay-for-knowledge plans Gain-sharing plans Profit-sharing plans
The ILO finds that child labor is increasing on a global basis.
Which of the following regarding child labor is NOT true? Persons under 18 cannot work in hazardous jobs such as logging and meat packing. Persons under 16 cannot be employed in jobs involving interstate commerce except for nonhazardous work for a parent or guardian. The ILO finds that child labor is increasing on a global basis. The highest rates of child labor are in sub-Saharan Africa.
Many of the changes in Germany are the result of global competitive pressures and technological changes.
Which of the following statements about evolution and change in the traditional German model is true? Nearly one in 10 German adults owns stock. High birth rates are pushing up the costs of the social support system. A relatively flexible labor market means that employers are finding it easier to move to other EU countries. Many of the changes in Germany are the result of global competitive pressures and technological changes.
It ties salary to the host country's salary scales
Which of the following statements is true of the localization approach to expatriate compensation? It is more expensive than the balance sheet approach regardless of the location. It ties salary to the host country's salary scales. It ties salary to the home country's salary scales. It ensures that the expatriate's pay is equalized without the need for relocation bonuses.
Since 1997, there has been a consistent 2 percent annual decrease in certification elections decided in favor of unionization.
Which of the following statements regarding unions is NOT true? Union membership has fallen from approximately 20 percent to 11 percent since 1983. Unions peaked in the 1950s and 1960s. Since 1997, there has been a consistent 2 percent annual decrease in certification elections decided in favor of unionization. Since 1997, the number of union certification elections for firms has declined.
Farm workers
Which of the following types of workers are generally NOT covered by workers' compensation? State government employees Private sector employees Railroad workers Farm workers
Jeremy, who employs his 16-year-old cousin in his meat-packing plant
Who among the following has violated the Fair Labor Standards Act of 1938? Rachel, who pays all her workers a minimum wage of $13 Sally, who does not consider time her employees spend travelling to work as compensable time Jeremy, who employs his 16-year-old cousin in his meat-packing plant Randy, who employs his 17-year-old son in his stationery store as a cashier
The base compensation tends to be more important
With easily sold products: Companies prefer a more aggressive sales force The base compensation tends to be more important The incentives provided in the form of commissions tend to be more important Companies tend to set lower sales targets
Delay taking a stand until real benefits are more apparent.
With gain-sharing plans, the most common union strategy is to _______. Delay taking a stand until real benefits are more apparent Be very enthusiastic Have direct opposition to the plans as soon as they are suggested by management Have no concern for the plans
True
Worker's compensation costs have been declining since 2005 due in part to employer safety programs. T or F
Lump-sum awards
_____ are one-time cash payments to employees that are not added to an employee's base wages. Relational returns Merit increases Lump-sum awards Cost-of-living increases
Collective bargaining
_____ has produced more comparable-worth pay increases than any other approach. Integrative bargaining Win-win bargaining Interest-based bargaining Collective bargaining