Chapter 12 = HR

The Fair Labor Standards Act restricts the use of child labor for workers younger than ______ years of age.

18

How do employees evaluate their pay?

By comparing it to the pay of other employees

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

What are the aims of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010? (Select all that apply.)

To make social responsibility part of pay policy To increase transparency

When a business compares its own practices against those of its rivals, it is engaging in _____.

benchmarking

Organizations establish pay ranges to allow _____ as they decide what to pay for individual jobs.

flexibility

Under federal law, employers are permitted to pay a training wage to workers under the age of 20 for a period of up to _____ days.

90

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

The relative pay for various positions within a company is called _____.

job structure

At the manufacturing facility where Kendall works, entry-level accountants are paid $42,000 and entry-level mechanical engineers are paid $49,000. This shows how the relative pay varies for different jobs at the company and is an example of job _____.

structure

The amount paid for each hour worked is commonly called _____.

an hourly wage

True or false: A job evaluation is a procedure in which employees provide feedback on their performance in the past year.

false

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

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 responsibility

A pay policy line reflects the pay level in the _____.

market

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

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

A company's product market includes _____.

rival companies that provide similar products and services

True or false: Competition for labor is a key element in determining the appropriate pay level to hire an employee.

true

Under U.S. laws for equal employment opportunity, employers are urged to provide equal pay for equal .

work

Under the provisions of the Fair Labor Standards Act, exempt employees ______.

are paid a specific salary, not hourly wage are considered professionals

Kelly is using a federal government pay survey to gain information about the current rates of pay at the three competitors of her company. She is comparing her findings with the current rates of pay for employees at her company. Kelly is in the process of _____.

benchmarking

Managers and other employees who are not covered by the Fair Labor Standards Act requirement for overtime pay are known as _____ employees.

exempt

According to equity theory, people decide whether their pay is fair by comparing it to their _____.

inputs

To calculate the worth of jobs within an organization, a committee typically conducts a _____.

job evaluation

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

Under federal legislation, children ages 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

Jobs that have similar value or content, grouped together to calculate rates of pay, are called _____.

pay grades

When would a company want to pay above market average for its employees?

When attracting highly skilled employees would provide a competitive advantage

How does a business calculate the least it must pay an employee for a specific job?

Competition for labor

What is a drawback of using pay grades?

Pay rates for individual work do not match pay levels specified by the market.

The way employees feel about their level of pay is most often based on which of the following?

Perceptions

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.

Which federal law establishes a minimum wage and requirements for overtime pay and child labor?

The Fair Labor Standards Act

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.

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

How do labor and product markets affect companies' pay level decisions?

They provide a range in which the company can determine pay.

The amount paid for each unit produced is called _____.

a piecework rate

The amount paid for each week, month, or year worked is called _____.

a salary

Which of the following comprise most of the compensation for CEOs?

company stock bonuses performance-related pay

The Davis-Bacon Act applies to pay policies of _____ that receive more than $2,000 in federal money.

construction contractors