Comp Final
true
Unionization rates are higher in Europe than Asia
The United States of America
1. ______ is an example of a country with a highly decentralized approach to pay setting with higher wage flexibility
Use a hierarchical pay structure as there is a high power distance in China
2. KayLeaf Inc. wants to set up a unit in China. To facilitate this, it sends its manager to China to gather information. Which of the following is most likely to be a suggestion from its manager?
the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations
3. Uncertainty avoidance is_____
the degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family
4. Individualism is___________
Sweden
5. Which of the following countries has the highest number of people in the workforce belonging to unions
true
77 percent of expats have less disposable income when they return home from overseas assignments
true
A GAO study found that 9 of 10 cases brought by GAO undercover agents posing as workers were mishandled by the wage and Hour division of the Labor Department.
parent-country national
A Japanese citizen working for total in Georgetown, Kentucky, is a
third-country national
A Korean citizen working for Toshiba, a Japanese company, in Canada is a
true
A compa-ratio greater than 1 means that, on average, the rates exceed the intended policy
false
A compa-ratio is the average actual pay divided by the midpoint of the pay grade
employees in a range are paid below the midpoint
A compa-ratio less than 1 means that, on average,
true
A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may affect perceptions of pay equity
reduction in force
A major advantage of a _______________is that it reduces benefit costs, something that the other cost cutting options ordinarily do not achieve.
true
A major advantage of a reduction in force is that it reduces benefits costs.
true
Japanese pay systems are more person-based than job-based
false
Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment
not necessarily related to performance
Bonuses paid in Japan are
was amended in 1990 to include the Older Workers Benefit Protection Act
The ADEA_____
true
The most important components of a pay communication program are the business-related and work-related rationales on which the pay systems are based
A planned pay-level raise
The percentage increase in average pay that is expected for an organizational unit or company is called______________.
relationship of the average actual salary in each range to the midpoint of the range
The compa-ratio reflects the
false
The country with the highest unionization rate in Europe is France, where 90% of workers are union members
managerial autonomy
The degree of discretion managers have to make a total compensation a strategic tool is referred to as
average pay at the end of the year
The denominator for calculating the current year's pay rise is ______________________________.
Enforces laws through agencies and its other bodies
The executive branch of the federal government
Employee self-service
___________________, a software package allows workers to make health-care choices, allocate savings to 401(K) or other savings vehicles, and success vacation schedules.
false
approximately 20 percent of expats leave their company within a year of their return to the united states
states that income from most stock plans need not be included in calculating overtime pay
The Worker Economic Opportunity Act_____
ADEA
The ________ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.
Walsh-Healey Public Contracts
The _________ Act extends the prevailing wage concept to manufacturers or suppliers of goods for government contracts
turnover effect
The ____________ recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.
OFCCP
The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found is the_____
50
The average company match for 401(k) retirement plan is _____ cents on the dollar up to 6% of pay.
50
Total compensation in many organizations make up least ____ % of operating expenses.
lifetime security within the company
Traditionally, Japan's employment relationships were supported by
Sarbanes-Oxley
Under the ______ Act, executives cannot retain bonuses or profits from selling company stock if they mislead the public regarding their company's financial condition
Lilly Ledbetter Fair Pay Act
Under the _______, employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier
blue circle
When employees are paid more than the maximum of their pay grade, these rates are called
tax equalization
When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country, it is known as
the balance sheet approach
Which of the following approaches seeks to ensure that employees on overseas assignments have the same spending power as they would in their home country
True
understanding international compensation begins with recognizing differences and similarities and figuring out how to best manage them
Computer employee
which of the following groups can qualify for the exemptions under the Fair Labor Standards Act of 1938
WorldatWork
The Web page for the compensation society is
true
A study of both U.S. and Slovenian MBAs found that risk taking was higher among Slovenians
known as a decentralized s....
A management strategy of giving separate organization units the responsibility to design and administer their own compensation system is _____________________________________.
false
All employees are covered by the Fair Labor Standards Act of 1938 and its amendments without exemptions
local country national
An Indian citizen working for a Japanese company in India is a
Exporter
An ________ approach to compensation involves designing a total pay system at headquarters and applying it globally
false
An individual employee cannot earn more pay than the maximum of the pay grade of their current job
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
Base pay for a Japanese employee is usually not based on job evaluation or market pricing
true
Broad bands provide managers greater discretion in pay for their subordinates compared to a grade-range design
true
Changes in the CPI indicate whether prices have increased more or less rapidly in an area since the base period.
through pay surveys
Changes in wages in labor markets are measured
access discrimination
Denial of jobs, promotions, or training opportunities to qualified women or minorities are examples of
Access discrimination
Denial of jobs, promotions, or training, opportunities to qualifies women or minorities are examples of _________
Skill
Department of Labor as the experience, training, education, and ability as measured by the performance requirements of a job.
true
Exit incentives is likely to result in the loss of high-preforming employees.
true
Generally, it is difficult to compare total compensation of a U.S. firm with a foreign competitor
true
Generally, organizations have increased their use of variable pay relative to traditional base pay increases
prices have risen faster in Philadelphia since the base year in Houston
If Philadelphia has a CPI of 165 and Houston has a CPI of 145, and if both cities started with bases of 100, it means that
true
If a pay system is not based upon work-related or business-related logic, it is probably best to not conduct a formal compensation communication program
true
If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate.
true
If red circle rates become common throughout an organization, then the design of the ranges and the evaluation of the jobs hsould be reexamined
true
In China, while state-owned enterprises employee two-thirds of all workers, wholly privately owned enterprises, joint ventures with foreign companies, and WFOE's account for half of all profits
Seniority
In Japan, internal alignment based on ______ is far more important than other factors
true
In a total decentralized pay system, employees are likely to be treated unequally and unfairly.
true
In the past two decades, the average variable pay budget has increased.
false
It is easier and less complex to compare living costs across countries than total compensation
The cafeteria approach
KYZ Inc., a US firm, sends its manager, Ryan, to London to manage its operations there. Ryan's salary is still based on the US pay system; however KYZ offers hi a lump-sum payment to offset the additional standards of living expense in London. In this case, which of the following approaches to expatriate compensation in used by KYZ
true
Less than 10 percent of compensation professionals strongly agree that employees know their own pay range and one above them
MNTX is liable for disparate treatment of women
MNTX University requires all female professors score higher than male professors in their appraisal rating to qualify for a pay bonus as there are more female professors than male at the University. Which is true about the case?
true
Many employees achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting that core workforce
Modified balance sheet approach
MayFly Inc., a firm headquartered in Paris, France, sends one of it employees to Frankfurt, Germany and Barcelona, Spain to manage its operations in these cities. The employee would be required to alternate between the two cities every six months. Mayfly offers only a moving expense on top of the base pay as the employee would be moving only within the European Union countries. Which of the following approaches to expat compensation is exemplified in the situation
true
Neither works councils nor co-determination are legally required in the United States and are quite rare.
true
One objective of the overtime provision of FLSA is to share available work by making the hiring of additional workers a less costly option than the scheduling of overtime for current employees.
false
Over half of the employees in the private sector work in companies with open pay policies
true
Pay policies are more open in the public sector than in the private sector
were passed in response to conditions on projects such as the construction of the Hoo?? during the great depression
Prevailing-wage laws
false
Rather than define employment as hours of work, numbers of employees is often used.
courts continue to uphold the use of market data to justify differences
Regarding the difference for different jobs, ____
The Portal-to-Portal Act
Susan works in a sterile laboratory that requires her to scrub and put on protective clothing. Which of the following acts determines whether she should be paid for this time
false
The CPI accurately reflects an individual employee's cost of living.
requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area
The Davis-Bacon Act _______
true
The Mental Health Act of 1997 requires that mental illness be covered to the same extent that other medical conditions are covered
The Dodd-Frank Wall Street Reform and Consumer Protection Act
Which of the following includes a provision that requires public companies to set policies to allow executive compensation to be taken back if it was based on inaccurate financial statements that did not comply with accounting standards
it requires that employers provide 15 weeks of medical leave to employees
Which of the following is NOT a provision of the Fair Labor Standards Act of 1938
Career category
Which of the following is a factor determining base pay in the Japanese traditional national system
consumer price index
Which of the following is a measure of changes in prices of goods and services in the product and service market over time?
The employee must be compensated on a salary or fee basis at a rate not less than $455 per week
Which of the following is a test that must be met to qualify for the administrative employee exemption
Does each specific activity directly contribute to our objectives?
Which of the following is the basic question to ask to improve quality and ensure that value is added by each technique and at each stage in the compensation system
Employment of LCNs satisfies nationalistic demands for hiring locals
Which of the following is true of hiring LCNs
it states that initial data strongly affect decisions/beliefs
Which of the following statements about anchoring/framing is true?
Many of the changes in Germany are the result of global competitive pressures and technological changes
Which of the following statements about evolution and change in the traditional German model is true
Disparate impact
Which type of cases is the focus on the discriminatory consequences rather than the intent to discriminate.
false
While government affects the supply of labor through legislation, it has no effect on the demand for labor
false
since the japanese system is so seniority-based, labor costs decrease as the average age of the workforce increases
Executive Order 11246
______ prohibits discrimination on the basis of race, color, religion, sex, or national origin
Top-down budgeting
______________ is the budgetary approach that begins with an estimate from the highest-ranking executives of the pay increase budget for an entire organization
Communication portals
____________________, is designed for employees or managers, explain compensation policies and practices answer frequently asked questions, and explain how these systems affect
true
according to the japan institute of labour, for most employees, bonuses are variable pay that help control the employer's cash flow and labor costs
false
companies in the united states, united kingdom, and some central european countries are most likely to have centralized wage bargaining
true
evidence indicates that MNC's are influenced by both the institutional pressures in their home country and in the local context
true
in germany, an employee's pay is affected by his or her age
false
in malaysia and mexico, egalitarian pay structures fit best with the culture
true
legislation does not always achieve what it intends nor intend what it achieves
true
only 5 percent of U.S. expatriates believe their company values their overseas experience