HRM 154 Test 1

Prevailing Wage Laws

- Davis-Bacon Act of 1931 - Walsh-Healey Public Contracts Act of 1936

Stakeholders of the Compensation System (5)

- Employees - Line Managers - Executives - Unions - U.S. Government

Pay Discrimination Laws

- Equal Pay Act of 1963 - Lilly Ledbetter Fair Pay Act 2009 - Civil Rights Act of 1964, Title VII - Bennett Amendment 1964 - Age Discrimination in Employment Act of 1967 - Civil Rights Act of 1991

Federal laws that apply to compensation practices (4 groups)

- Income continuity, safety, and work hours - Pay discrimination - Accommodating disabilities and family needs - Prevailing wage laws

Alternative Pay Structure Configurations (8 total)

- Merit Pay Plans - Sales Compensation Plans - Broadband Structures - Two-tier wage Structures - Executive Compensation - Contingent Worker compensation - Expatriate Compensation - Compensation structures in countries other than the US

Income Continuity, Safety, and Work Hours Laws

-Fair Labor Standards Act of 1938 -Portal-to-Portal Act of 1947 -Equal Pay Act of 1963 -McNamara-O'Hara Service Contrat Act of 1965

Civil Rights Act of 1964

-Major piece of Federal Legislation designed to protect the rights of underrepresented minorities - Applies to employment-related decisions - recruitment, selection, performance appraisal, compensation, and termination

Accommodating Disabilties and Family needs Laws

-Pregnancy Discrimination Act of 1978 - Americans with Disabilities Act of 1990 - Family and Medical Leave Act of 1993

What three issues did the Fair Labor Standard Act of 1938 address?

1. Minimum Wage 2. Overtime Pay 3. Child Labor Provisions

What three factors led to the passage of income continuity safety, and work hours legislation?

1. The Great Depression 2. The main U.S economic activities being Ag and Small Businesses 3. Divisions of labor in the Factory systems

Overtime kicks in when?

1.5x Pay. More than 40 hours within 7 consecutive days

Which type of performance appraisal method relies on many sources for information (employees, supervisors, coworkers, etc.)

360-Degree

Which of the following is NOT one of the nine most common problems associated with merit pay programs?

A supervisor's w=unwillingness to participate in a merit pay program

The chief reason that human resource and compensation professionals in today's work environment need to think like CEOs is to _______.

Accomplish strategic organizational goals

Which statement is correct?

Accurate and effective performance appraisals are key for effective merit pay programs

When companies strive to achieve the lowest cost of production or product differentiation, they are main trying to __________.

Achieve Competitive Advantage

Fair Labor Standards Act of 1938

Addresses major abuses that intensified during the Great Depression and the transition from Ag to Industrial enterprises. These include substandard pay. excessive work hours, and the employment of children in oppressive working conditions

The motivational benefit of merit pay can be perceived differently by employees and employers. Of the following factors of merit pay, which one is perceived differently by employers and employees?

Amount of merit pay increase

Monetary compensation is best described as _______.

An employee's core compensation

In a pay-effort bargain, the basis for employee compensation is __________.

An employee's job performance level

A manager uses the following form in evaluating her employees: 1 to 5 scale What type of performance appraisal method is the manager using?

BARS

Which terms refers to money received by employees on a recurring basis for performing their jobs?

Base Pay

The guiding principles that influence the way organizations behave within society are referred to as _______.

Business ethics

How do you compensation professionals serve executives in a company?

By designing sound compensation systems

Income, higher company stock prices, economic value, strong positive brand identity, and reputation can all be generated by acquiring _________.

Capital

The process of individuals actively working together to construct meaning and knowledge is ________.

Collaboration

According to the Civil Rights Act of 1991, who is responsible for proving that alleged discriminatory pay practices are not discriminatory?

Compensation Professionals

Which of the following statements are TRUE about compensation?

Compensation offers both intrinsic and extrinsic rewards

In order to establish an internally consistent compensation system, which of the following is absolutely necessary?

Conducting job analyses

Portal-to-Portal Act of 1947

Defines the term hours worked that appears in the FLSA

What is a bargaining agreement?

Describe the terms of employment reached between management and the union.

Which of the following is important for successful pay-for-knowledge programs?

Developing and implementing systemic training programs

Maria and Sonya have been employed for 3 years at an accounting firm. In the last quarter, both received the same merit raise, although Maria has been a star performer and has not missed any deadlines, while Sonya has missed deadlines on multiple occasions. On which aspect of the pay-of-performance link should the supervisor focus in this scenario so that this situation does not occur in the future?

Differentiate among performers

How are Pay Rate Differentials Expressed?

Dollars either hourly or annually

Which of the following is NOT a reason why seniority pay is expected to disappear in the future?

Employee belief that workers become more valuable over time

When there is a collective bargaining agreement, compensation professionals ensure that __________.

Employees receive cost-of-living adjustments and seniority pay increases as negotiated.

The Equal Employment Opportunity Commission

Enforces the Equal Pay Act of 1963 and possess the authority into investigate and reconcile charges of illegal discrimination

Corporate strategy formulatio is typically based on ____, which help determine threats and opportunities.

Environmental Scanning Activities

National Labor Relations Act of 1935 (NLRA)

Establishes Employees' rights to bargain collectively with employers on such issues as wages, work hours, and working conditions. - Federal government requires private-sector employers to enter good-faith negotiations with workers over the terms of employment

Within the HR profession, a(n) _________ is a tap-level manager who reports directly to the corporation's CEO or to the head of a major division.

Executive

Which statement about extrinsic compensation is TRUE?

Extrinsic compensation includes both monetary and non-monetary rewards

Which law established criteria for determining whether employees should be paid hourly or by salary?

Fair Labor Standards Act

Which minimum wage law is to supersede the other?

Federal minimum wage laws supersedes State minimum wage laws where the federal minimum wage is greater than the state minimum wage. (Whichever is greater*)

Differentiation Strategies

Focus on product or service development that is unique from those of its competitors. Differentiation can take many forms, including design or brand image, technology, features, customer service, and price

The error that occurs when a rater generalizes an employee's good or bad behavior on one aspect of the job to all aspects of the job is known as _______.

Halo Effect

Renata works for a private employer that does not follow the seniority pay system, but Koren, her friend, works for the federal government, which awards seniority pay. Koren has an advantage over Renata because ________.

He knows that he will be treated fairly because seniority pay is an objective standard

Economists call the sets of collective skills, knowledge, and abilities of employees ________.

Human Capital

Civil Rights Act of 1964 Title VII

Indicates that it shall be unlawful employment practice for an employer to discriminate against any individual with respect to compensation, terms, conditions, or privileges of employment because of such individual's race, color, religion, sex, or national origin.

Which of the following refers to knowing that one's work matters in the lives of others?

Intrinsic Compensation

What is critical thinking?

Involves purposeful and goal-directed thinking used to define and solve problems and to make decisions or form judgements related to a situation or set of circumstances

Job Analysis

Is a systematic process for gathering, documenting, and analyzing information in order to describe jobs

Empowering employees to conduct self-appraisals is a strategy to strengthen the pay-of-performance link. What is the key advantage of this strategy?

It leads to self-corrective responses to supervisory feedback

Compensable Factors

Job attributes that compensation professionals use to determine the value of jobs

When an employee receives a minimum pay increase that is perceived as a significant change, it is known as __________.

Just-meanful

Seniority pay is based on _________.

Length of Service

Marco is employed as a production worker at TVX Industries. Marco is best described as a _______.

Line Employee

A software company is launching its new product line. The performance standards of the salesperson responsible for promoting the software should be judged based on ______.

Linking their performance to the company's business strategy or goals

Zac was disappointed when he saw a negligible increase in his paycheck after he was awarded merit pay. Zac's disappointment can be attributed to ______.

Little motivational value of merit pay

Mary's employer rewards employees with periodic additions to base pay according to employees' length of service in performing their jobs. What type of pay system is the organization utilizing?

Longevity Pay

Before merit pay can be awarded, it is important that companies first _______.

Make permanent adjustments to base pay for inflation

Equal Pay Act of 1963

Men and Women should receive equal pay for performing equal work

What is the primary method used by companies to purchase the use of human capital?

Paying wages and benefits

How are Relative Pay Differentials expressed?

Percentages

In a merit pay program, there must be explicit ____ that specify the procedures or outcome against which employees' job performance can be clearly evaluated.

Performance standards

Cost-of-Living adjustment represent ________.

Periodic base pay increases

All of the following are examples of differentiation strategies EXCEPT _________.

Producing low-cost, standardized goods

What are the 3 R's in Human Resources that pertain to incentive compensation?

Recruitment, Relocation, and Retention

Performance targets establish effective appraisals, which strengthen the pay-for-performance link. What is the best way to establish performance targets?

Refer to the performance standards listed within job descriptions

Capital Intensity

Refers to the extent to which companies' operations are based on the use of large-scale equipment

Offshoring

Refers to the migration of all or a significant part of the development, maintenance, and delivery of services to a company located in another country

Interindustry wage differencials

Represent the pattern of pay and benefits associated with characteristics of industries. Interindustry wage differentials can be attributed to a number of factors, including the industry's product market, the degree of capital intensity, the profitability of the industry, and unionization of the workforce.

Pay Range

Represents the span of possible pay rates for each pay grade. Pay ranges include midpoint, minimum, and maximum pay rates.

Pay-for-Knowledge

Rewarding managerial, service, or professional workers for successfully learning specific curricula

Dee Ann and her supervisor Andy both attend the same church and share similar points of view on many issues. It is possible for Andy to commit which type of error when judging Dee Ann's performance?

Similar-to-me bias error

Fairpay Rules

Specify the criteria for distinguishing between work that is not exempt from the overtime pay provision of the Fair Labor Standards Act

What is Human Capital Theory?

States that employees' knowledge and skills generate productive capital known as human capital. Employees can develop knowledge and skill from formal education or on-the-job experiences.

Generally, supervisors give merit raises based on a subjective assessment of the employee's performance. It is therefore essential that ________.

Supervisors conduct accurate performance appraisals for merit pay to be effective

job evalutation

Systematically recognizing differences in the relative worth among a set of jobs and establishes pay differentials accordingly

Which two forces have contributed to a strategic approach towards HR ?

Technological advances and global competition

Which would be an example of an employee receiving merit pay in an appropriate and typical manner?

The employer adjusts the worker's base pay to account for inflation and then awards the worker an additional 2.5% increase based on a positive subjective evaluation.

Why has HR traditionally been viewed as an administrative or support function?

The financial or marketing value of HR was not as apparent

Person-focused pay plans

a system of rewards for employees for specifically learning new curricula

Cesar has worked as a junior clerk for XYZ company for 3 months, starting at $10 per hour. In the next five to seven years, if Cesar continues to perform well and acquires new skills, he can more than likely expect _______.

an increase in seniority pay and a promotion

Pay Grade

group jobs for pay policy application. Human resource professionals typically group jobs into pay grades based on similar compensable factors and value

Knowledge application and analysis can be described as:

learning a new concept and applying it in another setting to achieve a higher level of understanding

Social Security Act of 1935 Title XI

provided temporary income to workers who become unemployed through no fault of their own

Pay Structure

represent pay rate differences for jobs of unequal worth and the framework for recognizing differences in employee contributions

Disparate Treatment

represents intentional employment discrimination, occurring whenever employers intentionally treat some workers less favorably than others because of their race, color, sex, national origin, or religion.

Disparate Impact

represents unintentional employment discrimination. It occurs whenever an employer applies an employment practice to all employees, but the practice leads to unequal treatment of protected employee groups

There are 15 classifications in the General Schedule for government employees. These classifications are based on _______.

skill, education, and experience levels

Marco likes to note several positive and negative behaviors and their outcomes when it comes to documenting performance appraisals of his employees. Marco is more than likely using _________.

the critical incident technique