Chap 12 Smart book Human Resource
Sometimes a pay rate is raised or lowered to compensate for specific working conditions (such as working the night shift) or labor markets (such as living in a high-rent location). These adjustments are called _____.
pay differentials
Jobs that have similar value or content, grouped together to calculate rates of pay, are called _____.
pay grades
Under a(n) _____ system, new employees sign on for less pay than existing employees.
two-tier wage
Competition for labor is a key element in determining the appropriate pay level to hire an employee.
True
Which type of wage system enables the company to pay existing workers a higher rate of pay than newer workers for doing the same type of work?
two-tier wage
Under federal legislation, children aged 14 and 15 may work _____.
only limited hours after school
Thomas works the night shift and earns $4 more per hour than the employees who work the day shift. This extra pay to reflect the difference in working conditions demonstrates a _____.
pay differential
When would a company want to pay above market average for its employees?
when attracting highly skilled employees would provide a competitive advantage
Under U.S. laws for equal employment opportunity, employers are urged to provide equal pay for equal ____.
work
How do labor and product markets affect companies' pay level decisions?
They provide a range in which the company can determine pay.
The Davis-Bacon Act applies to pay policies of _____ that receive more than $2,000 in federal money.
construction contractors
The most crucial role in communicating pay decisions is played by Blank______.
managers
A pay policy line reflects the pay level in the _____.
market
The lowest hourly amount that employers may pay under federal or state law is called the ______.
minimum wage
Under federal law, Katrine knows her employer must pay her at least $7.25 an hour. This regulated hourly pay is known as the _____.
minimum wage
Most workers paid on an hourly basis are covered by requirements set down by the Fair Labor Standards Act and are called ____ employees.
nonexempt
Randall is an electrical assistant and receives an hourly wage. He is eligible for overtime pay which makes him a(n) _____ employee.
nonexempt
Under the Uniformed Services Employment and Reemployment Rights Act, an employer must _____, for up to five years.
offer a job to their former employees who have returned from military duty
What are two potential problems with basing employees' pay entirely on market forces?
-Employees may feel that the pay rates are unfair. -Managers who rotate through different departments may be reluctant to do so.
What are two disadvantages of a job-based pay structure?
-It can foster an attitude that some activities are "not in my job description." -Organizations may avoid change due to the time-consuming process of creating job descriptions and associated paperwork.
What are the advantages of a skill-based pay system?
-It helps the organization become more flexible and innovative. -It encourages employees to keep increasing their knowledge and skills. -It encourages employees to understand how the organization operates.
Which two characteristics are compensable factors of a job?
-They are factors the organization values. -They are factors the organization is willing to pay for.
Which of the following are the aims of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?
-To make social responsibility part of pay policy -To increase transparency
Under the provisions of the Fair Labor Standards Act, exempt employees ______.
-are considered professionals -are paid a specific salary, not hourly wage
What are benefits of establishing a pay structure that helps the organization achieve its goals?
-cost control -attracting talented employees -employee motivation
Which two comprise most of the compensation for CEOs?
-performance-related pay -bonuses and company stock
The Fair Labor Standards Act restricts the use of child labor for workers younger than ____ years of age
18
The ______ is the primary collector of the data contained in pay surveys that companies use for benchmarking.
Bureau of Labor Statistics
How do employees evaluate their pay?
By comparing it to the pay of other employees
Judd works in the warehouse at Home Depot. Which would be an external equity pay comparison?
Dane's warehouse position at Lowe's
____ equity pay comparisons focus on what employees in other organizations are getting paid for the same job.
External
A job evaluation is a procedure in which employees provide feedback on their performance in the past year.
False
In the United States, equal opportunity laws guarantee equal pay for men and women, whites and minorities.
False
What is a disadvantage to using a skill-based pay system?
It may result in the employer paying for skills that the employee does not use.
What is a drawback of using pay grades?
Pay rates for individual work do not match pay levels specified by the market.
What is the best way for an organization to satisfy an employee that is concerned about the fairness of his or her pay?
Share research with the employee showing why the company considers the pay to be fair.
In a ____-based pay system, pay is set according to the employee's levels of skill or knowledge and what they are capable of doing.
Skill
Which law applies to federal contractors receiving $10,000 or more in federal funds and the wages they pay their employees?
The Walsh-Healy Public Contracts Act
When employed citizens are called for military duty, who pays their wages?
The military pays, and some employers voluntarily pay, also.
When studying the worth of work performed by its employees, a company identifies what it values about each of the jobs the employees do. These job characteristics are called _____.
compensable factors
The most common and widely used approach to developing a pay structure is to base pay on ______.
a particular job or groups of jobs
The pay rates in the organization may not match the pay structure in the market when a company sets its pay rates based strictly on _____.
a pay policy line
The amount paid for each unit produced is called _____.
a piecework rate
The rate of pay per month, or year worked is called _____
a salary
The rate of pay per month, or year worked is called _____.
a salary
The amount paid for each hour worked is commonly called _____.
an hourly wage
How does a business calculate the least it must pay an employee for a specific job?
competition for labor
Reducing the number of levels in an organization's job structure is referred to as _____.
delayering
Serena's company decided to reduce the number of levels within the job structure and as a result, she has 20 more people who report to her. Her company implemented _____.
delayering
What business principle explains why employees might resent a CEO who is paid 100 times more than the average worker in that industry?
equity theory
Managers and other employees who are not covered by the Fair Labor Standards Act requirement for overtime pay are known as _____ employees.
exempt
Organizations establish pay ranges to allow _____ as they decide what to pay for individual jobs.
flexibility
To be financially successful, organizations must be able to _____.
generate a profit by selling their goods and services at a sufficient price and volume
A compa-ratio _____ "1" indicates that payroll is probably more expensive than the organization expected, and the cost might be hard to control.
greater than
In what type of organization does a skill-based pay system make sense?
in an organization where changing technology is critical
According to equity theory, people decide whether their pay is fair by comparing it to their _____.
inputs
The perceived equity of a pay system across different jobs within an organizations is called ______.
internal equity
A compa-ratio less than 1 suggests that the company ______.
is underpaying for human resources
To calculate the worth of jobs within an organization, a committee typically conducts a _____.
job evaluation
A pay policy line provides a mathematical relationship between _____ and pay rate.
job evaluation rates
Under equal employment opportunity laws, differences in pay may be tied to _____.
job responsibilities
The relative pay for various positions within a company is called _____.
job structure
Nico was told that the average pay for an entry-level emergency room nurse at the local hospital, including salary and a bonus, would be $55,000 per year. This demonstrates the ______ for a nurse at this hospital.
pay level
The amount a company normally pays for a specific job is referred to as _____.
pay level
Minimum, maximum, and midpoint rates of pay for employees who work within a each pay grade constitute a _____.
pay range
A human resource professional would use a compa-ratio to compare actual pay to the _____.
pay structure
Benchmarking against product market and labor market competitors is typically accomplished through the use of Blank______.
pay surveys
The way employees feel about their level of pay is most often based on which of the following?
perceptions
Organization's compete with one another in the ____ market by offering goods and services to the same customers.
product
Which pay system rewards employees for acquiring skills but does not provide a way to make sure employees are actually using the skills they've learned.
skill-based pay
At a manufacturing facility, entry-level accountants are paid $42,000 and entry-level mechanical engineers are paid $55,000. This shows how the relative pay varies for different jobs at the company and is an example of job _____.
structure
The pay policy resulting from job structure and pay-level decisions is called the pay _____
structure
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires companies to report which aspect of the pay structure?
the ratio of CEO pay to that of the a typical worker
