Chapter 11 Q&A

A company is able to pay an employee under the age of 20 for how many days?

90 days

Which of the following problems can result from a a job-based pay structure?

a growing bureaucracy extensive administrative time is consumed top-down decision making is reinforced decreased lateral job movement

Which factors can influence a company's ability to adhere to EEO pay regulations?

a shifting labor market inequity in compensation based on gender and race changing demographics of the workforce

Employee compensation require scrutiny because it is typically

a significant organizational cost

In addition to salary, what is a major component of a typical CEO compensation package?

a stock option plan

Most nonexempt employees are

an hourly rate

Employees typically view their compensation is terms of which of the following?

as a sign of status as it related to the pay of their colleagues as a way of evaluating their relationship with the organization

Unlike key jobs, nonkey jobs

cannot be valued or compared through market surveys

In a skill-based pay structure, _______ tests must be developed to determine whether employees acquired certain skills

certification

A single rate of pay for all employees within a certain job is common when a _________ bargaining contract is in place.

collective

an index that measures the correspondence between actual pay and a company's intended pay policy is called the__________.

compa-ratio

What factor influences country differences in labor costs?

currency exchange rates

EEO compensation issues will likely remain in the spotlight because of the

decrease of white males in the workforce

The concept of reducing the number of job level within an organization in order to gain flexibility in job assignments is called _______.

delayering

Which of the following do employees often feel when a trust gab exists?

doubt about the intentions of senior management uncertainty about management's competence resentment of management's pay

The concept that states wages affect worker productivity is called the ________ theory.

efficiency wage

Skill-based pay structures encourage leaner staff levels because

employee turnover or absenteeism can be covered by current multi-skills workers.

Which of the following are advantages of paying employees wages above the market average?

encourages increase productivity generated increased job satisfaction helps retain top talent attracts skilled workers

Which of the following kinds of occupation are typically exempt form FLSA coverage?

executive positions "computer employees" those earning more than $455 a week

True or False: A country that has low labor costs and high productivity has higher unit labor costs, on average.

false

The type of pay comparison that focuses on what employees within the organization are paid for similar jobs is called ______ equity.

internal

Each employee must be assigned a rate of pay acceptable in terms of which of the following?

internal equity external equity employer's cost

The most widely used metric for defining pay structures is by

jobs and associated responsibilities

Which of the following issues with pay structure must managers be prepared to handle?

knowing when a job need to be reclassified because of substantial changes to its structure explaining the pay structure design to employees judging when changes to the pay structure are warranted

Labor market competition's effect on pay levels is that it places a _______ bound on them.

lower

According to some critics, when it comes to pay, EEO regulation obstruct

market forces

When any change in existing pay practices is set to take place, the intimate involvement of the managers is _____.

necessary

To reduce labor costs, some companies are sending jobs overseas, a concept called _____.

offshoring

Which of the following are considered part o an employee's total compensation?

paid vacation salary stock options

Another term for comparable worth is

pay equity

Salary level decisions can be broken into two areas: individual pay and _______.

pay structure

Benchmarking against product market and labor market competitors is typically accomplished through the use of

pay surveys

Which of the following aspects of an organization do executives typically influence substantially?

performance culture tone

One of the most important factors that influences price is cost of __________, which includes labor costs.

production

In communicating pay cuts to employees, which of the following strategies are effective?

providing detailed reason why the pay cuts are necessary demonstrating significant remorse for implementing the pay cuts

The distance between the maximum and minimum pay with a pay grade is known as the __________ spread

range

The use of pay rate ranges permits companies to

recognize differences in employee performance

One advantage of using pay grades in planning employee compensation is that

reduces the administrative burden of setting separate pay rates for hundreds of jobs

Placing jobs in broader bands of classification gives managers the opportunity to

reward high performers with merit increases

Which of the following are provision of the Fair Labor Standards Act as they relate to employee pay?

sets a minimum wage for jobs provides for a training wage calls for time-and-a-half pay for house exceeding 40 hours a week

When employees mistrusts senior management's intentions when it comes to executive pay and compensation, there exists a _________.

trust gap.