Ch 12 HR Management HW
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
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
Under a(n) ______ system, new employees sign on for less pay than existing employees.
two-tier wage
Which of the following 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 calculating overtime pay, employers are required to include time the employee spent doing which of the following? (Select all that apply.)
Traveling between job sites, Attending required classes, Tidying up the job site
True or false: Competition for labor is a key element in determining the appropriate pay level to hire an employee.
True
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 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
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
When would a company want to pay above market average for its employees?
when attracting highly skilled employees would provide a competitive advantage
(Select all that apply) In which two instances might it be beneficial for a company to pay above the going rate?
when the company empowers its employees, when the company cannot closely watch the employee
Under U.S. laws for equal employment opportunity, employers are urged to provide equal pay for equal
work
How does a business calculate the least it must pay an employee for a specific job?
competition for labor
When a business compares its own practices against those of its rivals, it is engaging in
Benchmarking
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
A pay policy line reflects the pay level in the
market
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
The Fair Labor Standards Act restricts the use of child labor for workers younger than ______ years of age.
18
When a non-exempt employee works more than ______ hours per week, the law requires the employer to pay overtime, which is one and a half times a worker's usual hourly rate.
40
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
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
(Select all that apply) Under the provisions of the Fair Labor Standards Act, exempt employees ________
Are considered professionals, are paid a specific salary, not hourly wages
How do employees evaluate their pay?
By comparing it to the pay of other employees
What are benefits of establishing a pay structure that helps the organization achieve its goals? (Select all that apply.)
Cost control, attracting talented employees, employee motivation
The amount of money it takes to run an average household (for example, house payments, food, health care, and utilities) is called the
Cost of living
True or False: In the United States, equal opportunity laws guarantee equal pay for men and women, whites and minorities.
False
True or false: A job evaluation is a procedure in which employees provide feedback on their performance in the past year.
False
True or false: Comparable-worth policies have been readily accepted by all employers in the United States.
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
(Select all that apply) 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? (Select all that apply)
It encourages employees to keep increasing their knowledge and skills, It helps the organization become more flexible and innovative, regardless of their abilities, It encourages employees to understand how the organization operates.
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.
To calculate the worth of jobs within an organization, a committee typically conducts a
Job evaluation
Under equal employment opportunity laws, differences in pay may be tied to
Job responsibilities
(Select all that apply) What are two potential problems with basing employees' pay entirely on market forces?
Managers who rotate through different departments may be reluctant to do so, Employees may feel that the pay rates are unfair.
When designing a pay structure, human resources departments consider which of the following? (Select all that apply.)
Market forces, principles of fairness, legal requirements
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
What is a drawback of using pay grades?
Pay rates for individual work do not match pay levels specified by the market.
A human resource professional would use a compa-ratio to compare actual pay to the
Pay structure
(Select all that apply) Which two comprise most of the compensation for CEOs?
Performance-related pay, bonuses and company stock
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. (Enter one word in the blank.)
Skill
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.
(Select all that apply) Which two characteristics are compensable factors of a job?
They are factors the organization is willing to pay for, they are factors the organization values.
(Select all that apply) Pay ranges are most commonly used for which of the following?
White-collar jobs, jobs not covered by union contracts
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
How can organizations make the process of creating a pay structure more practical?
by defining key jobs
In response to companies that pay less for work traditionally done by women, it has been proposed that businesses could adopt a policy called equal pay for
comparable worth
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
Jose lives in Chicago and pays much more for his mortgage and groceries than his brother, Ricky, who lives in Mississippi. As a result, Jose receives a higher salary for his accountant job than Ricky, who has the same job where he lives. This demonstrates how the _______ affects the labor market.
cost of living
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
_______ equity pay comparisons focus on what employees in other organizations are getting paid for the same job.
external
Organizations establish pay ranges to allow ______ as they decide what to pay for individual jobs.
flexibility
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 pay policy line provides a mathematical relationship between ______ and pay rate.
job evaluation rates
The relative pay for various positions within a company is called
job structure
Certain types of work are common in a variety of organizations. Jobs that have relatively stable content and are common among many organizations are called ______ jobs.
key
The amount a company normally pays for a specific job is referred to as
pay level
What is one of the most important human resource tool for encouraging desired employee behaviors and discouraging undesired behaviors?
pay policies
Benchmarking against product market and labor market competitors is typically accomplished through the use of
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
