Bus 158 - Compensation - Quiz 1

pay model serves as both a framework for examining current pay systems

(1) the compensation objectives, (2) the policies that form the foundation of the compensation system, and (3) the techniques that make up the compensation system.

******* Distinguish between access discrimination and valuation discrimination.

- Access Discrimination: the denial of particular jobs, promotions, or training opportunities to qualified women or minorities. - Valuation Discrimination: looks at the pay women and minorities receive for the jobs they perform.

Incentives also tie pay increases to performance. However, incentives differ from merit adjustments

- First, incentives are tied to objective performance measures (e.g., sales) usually in a formula-based way, whereas a merit increase program typically relies on a subjective performance rating. There is also some subjectivity in the size of the pay increase awarded for a particular rating. - Second, incentives do not increase the base wage and so must be re-earned each pay period. - Third, the potential size of the incentive payment will generally be known (given the use of a formula) beforehand

******* list the basic elements of the pay model

- objectives of the pay system - the policies that form the foundation - the techniques that link the policies to the objectives.

******** what are the sources of earnings gaps?

- the portion of the gap attributed to gender differences in human-capital resources - labor supply - socio-demographic attributes - occupational segregation - the unexplained portion of the gap.

****** What are the different ways in which pay can influence employee motivation and behavior?

1. pay can affect the motivational intensity, direction, and persistence of current employees. 2. different types of pay strategies may cause different types of people to apply to and stay with an organization.

4 Policy Choices

Every employer must address the policy decisions shown on the left side of the pay model: (1) internal alignment, (2) external competitiveness, (3) employee contributions, and (4) management of the pay system. These policies are the foundation on which pay systems are built. They also serve as guidelines for managing pay in ways that accomplish the system's objectives.

____________________ has produced more comparable-worth pay increases than any other approach

collective bargaining

Pay systems are designed to achieve certain objectives. The basic objectives, shown at the right side of the model, include:

efficiency, fairness, ethics, and compliance with laws and regulations. Efficiency can be stated more specifically: (1) improving performance, increasing quality, delighting customers and stockholders, and (2) controlling labor costs.

"Living wages" are generally four to five times the federal minimum wage

false

All employees are covered by the Fair Labor Standards Act of 1938 and its amendments

false

Because relatively few people are paid minimum wage, raising the minimum wage does not affect pay structures.

false

Sam is computer system troubleshooter. His company requires him to wear a beeper when he is not at the office during weekends, but not evenings. Sam is eligible to receive pay for his "on-call" time.

false

The overall effect of immigration is an increase in wages for low skilled workers

false

The purpose of minimum wage legislation is to maximize the number of employed people

false

The purpose of prevailing wage laws is to assure that government projects do not waste tax dollars.

false

While government affects the supply of labor through legislation, it has little effect on the demand for labor.

false

****** it is illegal to pay men and women who perform substantially equal work differently if the pay systems is designed to recognize differences in performance, seniority, quality, and quantity of results

false???????

procedural fairness

refers to the process used to make pay decisions. It suggests that the way a pay decision is made may be equally as important to employees as the results of the decision (distributive fairness).

***** A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.

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

true

A "living wage" provides for a minimum wage tailored to living costs in a city or geographic area.

true

A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.

true

Government employment is growing faster than the population

true

If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate

true

In practice, the "going rate" for construction labor is the union rate

true

Legislation does not always achieve what it intends nor achieves what it achieves

true

Minimum wage jobs are very rare in the software, chemical, oil, and pharmaceutical industries.

true

Prevailing wages protect foreign workers working as registered nurses

true

The Mental Health Act of 1997 requires coverage of mental illness as any other medical condition.

true

The objective of the overtime provision of FLSA is to share available work by making it more costly for employers to schedule overtime for current employees than to hire additional workers

true

****** whether a worker is classified as an employee or an independent contractor can have substantial cost implications for an employer

true?????????