Chapter 9
For real wages to increase, which of the following must be true
An employees wage increase must be greater than the increase in the CPI
Which of the following is not a component of the Consumer Price Index
Automobiles
The federal wage law that is criticized for a rule that allows minimum pay to be based on the prevailing rate, which often included higher, union wages, is:
Davis-Bacon Act
_____ encompasses employee wages and salaries, incentives, bonuses, and commissions.
Direct compensation
____ Includes employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours to accommodate personal needs.
Non-financial compensation
The federal wage law that may require government contractors to pay overtime for work more than eight hours a day is
Walsh-Healy Act
Clauses found in labor agreements that periodically adjust compensation rates upward to help employees maintain their purchasing power are known as:
escalator clauses
Because of its focus, the Hay profile method is most useful for evaluating which type of jobs?
executive and managerial positions
The concept that employees should exert greater work effort if they have reason to expect it will result in a valued reward forms the basis of:
expectancy theory
When the organization pays wages that are reflectively equal to that of other employers for similar work, this is the basis of:
external equity
The Equal Pay Act prohibits wage discrimination based on:
gender
There is a reason to believe that pay secrecy can do all of the following except:
generate feelings of commitment
Employers wishing to encourage employees to accept a promotion to a job in a higher grade would
increase the size of successive rate ranges
___ comprises the many benefits supplied by employers.
indirect compensation
Elements of the compensation package are said to have___ when an employees high performance leads to monetary rewards that are valued.
instrumentality
Job evaluation helps to establish
internal equity
A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.
job classification system
The federal civil service job classification system uses which type of job evaluation system?
job classification system
Which system of job evaluation is being used when jobs are classified according to a series of predetermined wage grades?
job classification system
Which system of job evaluation is being used when cars that list the duties and responsibilities of the job are arranged by raters in order of the importance of the job.
job ranking
The simplest and oldest system of job evaluation is the _____, which arrays jobs on the basis of their relative worth.
job ranking system
Which is the simplest and oldest method of job evaluation?
job ranking system
The predominant approach to employee compensation is
job-based pay
Wage survey data will normally be collected with the use of
key jobs
The Hay profile method uses which three factors for evaluating jobs?
knowledge, accountability, and mental ability
The area from which employers obtain certain types of workers is known as the:
labor market.
In conducting a wage and salary survey for office personnel, the relevant labor market to be surveyed is most likely
local
In conducting a wage and salary survey for the job of engineer, the relevant labor market to be surveyed is most likely:
national.
Employees covered by the overtime provisions of the Fair Labor Standards Act
nonexempt employees
In ___, employees are paid according to the number of units they produce.
piecework
___ is a pay system which employees are paid according to the number of units they produce
piecework
Which of the following is a common major compensable factor?
responsibility
Instrumentality refers to:
rewards that are valued and motivate employees
Employees whose compensation is calculated on the basis of weekly, biweekly, or monthly periods are classified as:
salaried companies
With respect to Pay Equity Theory, which of the following is not considered an input?
salary
Most pay increases may lack motivational value to employees when ________________.
salary budgets are low
Employers may ________ their workforce to help them identify the most valuable contributors.
segment
Which of the following compensation options would not qualify under the term pay-for-performance?
seniority based pay
The exempt or nonexempt status of employees is determined by:
the US Department of Labor
The measure of the average change in prices over time in a fixed "market basket" of goods and services is known as:
the consumer price index
Which of the following is an external factor that can influence the rates at which employees are paid?
the cost of living
Which of the following is NOT a common goal of a strategic compensation policy?
To mesh employees pasts performances with organizational goals
The most common cost-of-living adjustments are ___ cent per hour for each .3 point or .4 point change in the CPI.
1
he job evaluation system that seeks to measure a job's worth through its value to the organization is known as:
work valuation
According the compensation scorecard, functions with a compa ratio below 100 percent are considered to be paying their employees below the company norm.
100 percent
The Fair Labor Standards Act prohibits the employment of those between the ages of ____ in hazardous occupations such as mining, logging, and meatpacking.
16-18
A U.S. survey found that___ of employees say they work in a place where discussions of pay are "formally prohibited and/or employees caught discussing wages could be punished"
19 percent
In a 2010 survey of more than 1,000 entrepreneurs, 35 percent of all small businesses in the United States had to make pay cuts
35 percent
The Fair Labor Standards Act permits employers to pay a "training wage" of _____ per hour for employees younger than the age of twenty during their first ninety days of employment, provided their employment does not displace other workers.
6.16
In certain manufacturing environments, compensation is as high as ____ of total costs and even higher for many service organizations.
60 percent
A Bloomberg National Poll showed that more than ___ of Americans thought big bonus should be banned for wall street companies that took taxpayer bailouts.`
70 percent
A survey by Mercer, found that more than ___ of private-sector companies nationwide were awarding pay increases in 2011.
98 percent
Another basis for compensation centers on whether employees are classified as nonexempt under the
Fair Labor Standards Act
The major provisions of which act are concerned with minimum wages rate sand overtime payments, child labor, and equal rights
Fair Labor Standards Act
____________ may create problems for managers who wish to maintain pay secrecy among employees.
Internet salary survey data
An employees relative worth can be determined by:
an effective performance appraisal system
Under the Fair Labor Standards Act, exempt employees:
are those employees not covered by the overtime provisions of the act.
The term-pay-for-performance can encompass all of the following except:
base salary
Jobs that are grouped into the same pay grade should
be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as more than a newer employee in a higher grade
Wages gained through collective bargaining extend
beyond the segment of the labor force that is unionized
Collapsing many salary grades into a few wide salary bands is known as
broad banding
___ helps eliminate the obsession with grades and, instead, encourages employees to move to jobs they can develop in their careers and add value to the organization
broadbanding
Which of the following is not a form of pay equity?
collective equity
Using the point method of job evaluation requires that managers
compare job requirements against degree descriptions.
Elements of the job such as skills, effort, responsibilities, and working conditions are referred to as:
compensable factors
The ___ collects and displays the results for all the measures that a company uses to monitor and compare compensation among internal departments or units.
compensation scorecard
Compensation programs that compensate employees for the knowledge they possess are known as
competence-based pay plans
Which of the following is NOT an internal factor affecting the pay mix?
cost of living
The biggest challenge with competence-based pay is
developing appropriate measures of skills and competencies
Equity theory is also known as:
distributive justice
Which of the following is an example of a non financial compensation?
employee recognition programs
Red circle rates above the maximum for the range ca result because
employees have high seniority
When cost of living pay increases are given routinely, employees may view them as ___________.
entitlements
The fact that people make comparisons to others is central to
equity theory
Which of the following is an internal factor that can influence the rates at which employees are paid.
the employers ability to pay
Pay levels are limited in part by:
the organizations profits and the productivity of employees
A quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements is known as:
the point system.
The relative worth of a job evaluated using the point manual is determined by:
the total points that have been assigned to that job
Pay-for-performance programs
tie rewards to employee effort
The relationship between the relative worth of jobs and their wage rates can be represented by means of a
wage curve
A job evaluation system that seeks to measure a job's worth through its value to the organization is known as:
work valuation
Which job evaluation system serves to direct compensation dollars to the type of work pivotal to organizational goals?
work valuation
