Compensation Final
The Web page for the compensation society is
WorldatWork
The average company match for 401(k) retirement plan is BLANK cents on the dollar up to a 6 percent of pay?
50
Total compensation in many organizations makes up at least BLANK percent of operating expenses?
50
The percentage increase in average pay that is expected for an organizational unit or company is called?
A planned pay-level rise
The BLANK often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.
ADEA
Denial of jobs, promotions, o training opportunities to qualified women or minorities are examples of?
Access discrimination
TRUE or FALSE? The gender wage gap is moderate for recent college graduates and decreases as the cohort ages
FALSE
TRUE or FALSE? While government affects the supply of labor through legislation, it has no effect on the demand for labor
FALSE
Which of the following is NOT a provision of the Fair Labor Standards Act of 1938?
It requires that employers provide 15 weeks of medical leave to employees.
Which of the following statements about anchoring/framing is true?
It states that initial data strongly affect decisions/beliefs
A management strategy of giving separate organization units the responsibility to design and administer their own compensation systems is BLANK
Known as a decentralized strategy
Traditionally, Japan's employment relationships were supported by BLANK.
Lifetime security within the company
Under the BLANK, employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier.
Lilly Ledbetter Fair Pay Act
TRUE or FALSE? Unionization rates are higher in Europe than in Asia
TRUE
TRUE or FALSE? Women's median annual earnings compared to men's has changed from about 60% to 78% from 1980 to 2013
TRUE
TRUE or FALSE? Companies in the United States, United Kingdom, and some central European countries are most likely to have decentralized wage bargaining
FALSE
TRUE or FALSE? Disparate treatment occurs when a seemingly neutral employment practice disproportionately excludes a protected group from employment opportunities
FALSE
TRUE or FALSE? In Malaysia and Mexico, egalitarian pay structures fit best with the culture
FALSE
TRUE or FALSE? It is easier and less complex to compare living costs across countries than total compensation
FALSE
TRUE or FALSE? Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment
FALSE
TRUE or FALSE? Over half of the employees in the private sector work in companies with open pay policies
FALSE
TRUE or FALSE? Rather than define employment as hours of work, number of employees is often used
FALSE
TRUE or FALSE? Since the Japanese system is so seniority-based, labor costs decrease as the average of the workforce increases
FALSE
TRUE or FALSE? The CPI accurately reflects an individual employee's cost of living
FALSE
The David-Bacon Act BLANK
Requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area.
Under the BLANK Act, executives cannot retain bonuses or profits from selling company stock if they mislead the public regarding their company's financial condition.
Sarbanes-Oxley
In Japan, internal alignment based on BLANK is far more important than other factors
Seniority
BLANK is defined by the Department of Labor as the experience, training, education, and ability as measured by the performance requirements of a particular job.
Skill
TRUE or FALSE? If red circle rates become common throughout an organization, then the design of the ranges and the evaluation should be reexamined
TRUE
TRUE or FALSE? In China, while state-owned enterprises employ two-thirds of all workers, wholly privately owned enterprises, joint ventures with foreign companies, and WFOEs account for half of all profits
TRUE
TRUE or FALSE? In Germany, an employee's pay is affected by his or age
TRUE
A Korean citizen working for Toshiba, a Japanese company in Canada is a?
Third-country national
Changes in wages in labor markets are measured BLANK
Through pay surveys
BLANK is the budgetary approach that begins with an estimate from the highest ranking executives of the pay increase budget for an organization
Top-down budgeting
The BLANK recognizes the fact that when people leave an organization, they typically are replaced by employees who earn a lower wage.
Turnover effect
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?
The Portal-to-Portal Act
BLANK is an example of a country with a highly decentralized approach to pay setting with higher wage flexibility?
The United States of America
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?
The balance sheet approach
Individualism is?
The degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family.
Which of the following is a test that must be met to qualify for the administrative employee exemption?
The employee must be compensated on a salary or fee basis at a rate not less than $455 per week
Uncertainty avoidance is?
The extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations.
TRUE or FALSE? 77% of expats have less disposable income when they return from overseas assignments
TRUE
TRUE or FALSE? 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
TRUE
TRUE or FALSE? A compa-ratio greater than a 1 means that, on average, the rates exceed the intended policy
TRUE
TRUE or FALSE? A compa-ratio is the average actual pay divided by the midpoint of the pay grade
TRUE
TRUE or FALSE? A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases
TRUE
TRUE or FALSE? A higher proportion of women are employed by small firms compared to large firms
TRUE
TRUE or FALSE? A key reason to communicate pay information is that the goodwill engendered by the act of being open about pay may affect perceptions about pay equality
TRUE
TRUE or FALSE? A major advantage of a reduction in force is that is reduces benefit costs
TRUE
TRUE or FALSE? A study of both U.S. and Slovenian MBAs found that risk taking was higher among Slovenians
TRUE
TRUE or FALSE? As the lowest rates paid in the software, chemical, oil, and pharmaceutical are already well above minimum, any legislation to increase minimum wage would have little direct impact on them
TRUE
TRUE or FALSE? Base pay for a Japanese employee is usually not based on job evaluation or market pricing
TRUE
TRUE or FALSE? Broad Band provide managers greater discretion in pay for their subordinates compared to a grade-range design
TRUE
TRUE or FALSE? Changes in the CPI indicate whether prices have increased more or less rapidly in an area since the base period
TRUE
TRUE or FALSE? Evidence indicates that MNCs are influenced by both the institutional pressures in their home
TRUE
TRUE or FALSE? Exit incentives is likely to result in the loss of high performing employees
TRUE
TRUE or FALSE? Generally, it is difficult to compare total compensation of a U.S. firm with a foreign competitor
TRUE
TRUE or FALSE? Generally, organizations have increased their use of variable pay relative to traditional base pay increases
TRUE
TRUE or FALSE? 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
TRUE or FALSE? If federal and state minimum wage laws cove the same job, workers should be paid at or above the higher rate
TRUE
TRUE or FALSE? In a totally decentralized pay system, employees are likely to be treated unequally and unfairly
TRUE
TRUE or FALSE? In the Shultz v. Wheat Glass case, the Supreme Court ruled that for jobs to receive equal pay, they do not have to be identical but substantially equal
TRUE
TRUE or FALSE? In the past two decades, the average variable pay budget has increased
TRUE
TRUE or FALSE? Japanese pay systems are more person-based than job-based
TRUE
TRUE or FALSE? Legislation does not always achieve what it intends nor intend what it achieves
TRUE
TRUE or FALSE? Less than 10% of compensation professionals strongly agree that employees know their own pay range and the one above them
TRUE
TRUE or FALSE? Many employees achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce
TRUE
TRUE or FALSE? Neither works councils nor co-determination are legally required in the United States and are quite rare
TRUE
TRUE or FALSE? Of the four affirmative defenses for unequal pay for equal work, "a factor other than sex" has prompted the most court cases
TRUE
TRUE or FALSE? 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
TRUE
TRUE or FALSE? Only 5% of U.S. expatriates believe their company value their oversea experience
TRUE
TRUE or FALSE? Pay differences for equal work may be justified for demonstrably business-related reasons
TRUE
TRUE or FALSE? Pay policies are more open in the public sector than in the private sector
TRUE
TRUE or FALSE? Prevailing wages protect foreign workers working as registered nurses
TRUE
TRUE or FALSE? The Mental Health Act of 1997 requires that mental illness be covered to the same extent that other medical conditions are covered
TRUE
TRUE or FALSE? The gender pay gap is common across countries and is smaller in some countries than in the United States
TRUE
TRUE or FALSE? The key to a comparable-worth system is a single job evaluation plan for jobs with dissimilar content
TRUE
TRUE or FALSE? The most important components of a pay communication program are the business-related and work-related rationales on which the pay systems are based
TRUE
TRUE or FALSE? The two types of discrimination recognized by law are valuation discrimination and access discrimination
TRUE
TRUE or FALSE? Understanding international compensation begins with recognizing differences and similarities and figuring out how to best manage them.
TRUE
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?
Tax Equalization
Which of the following is a factor determining base pay in the Japanese traditional national system?
Career Category
BLANK, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.
Communication Portals
Which of the following groups can qualify for the exemptions under the Fair Labor Standards Act of 1938?
Computer Employees
Which of the following is a measure of changes in prices of goods and services in the product and service markets over time?
Consumer Price Index
Regarding pay differences for different jobs BLANK
Courts continue to uphold the use of market to justify differences
TRUE or FALSE? The country with the highest unionization rate is France, where 90 percent of workers are union members
FALSE
In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate?
Disparate Impact
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?
Does each specific activity directly contribute to our objectives?
BLANK, a software package, allows workers to make health-care choices, allocate savings to 401(k)s or other savings vehicles, and access vacation schedules
Employee self-service
A compa-ratio less than 1 means that, on average, BLANK
Employees in a range are paid below the midpoint
Which is true of hiring LCNs?
Employment of LCNs satisfies nationalistic demands for hiring locals.
The executive branch of the federal branch BLANK?
Enforces laws through agencies and its other bodies
BLANK prohibits discrimination on the basis of race, color, religion, sex, or national origin?
Executive Order 11246
A(n) BLANK approach to compensation involves designing a total pay system a headquarters and applying it globally.
Exporter
TRUE or FALSE? According to the Japan Institutes of Labour, for most employees, bonuses are variable pay that help control the employees cash flow and labor costs
FALSE
TRUE or FALSE? All employees are covered by the Fair Labor Standards Act of 1938 and it amendments without exemptions
FALSE
TRUE or FALSE? An individual employee cannot earn more pay than the maximum of the pay grade of their current job
FALSE
TRUE or FALSE? Approximately 20% of expats leave their company within a year of their return to the United States
FALSE
MayFly Inc., a firm headquartered in Paris, France sends one of its employees to Frankfurt, Germany and Barcelona, Spain to manage its operations in those cities. The employee would be required to alternate between the two cities every 6 months. MayFly offers only 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 expatriate compensation is exemplified in this situation?
Modified balance sheet approach
Bonuses paid in Japan are BLANK?
Not necessarily related to performance
The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found is the
OFCCP
A Japanese citizen working for Toyota in Georgetown, Kentucky is a?
Parent-country National
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 BLANK
Prices have risen faster in Philadelphia since the base year than in Houston
When employees are paid more than the maximum of their pay grade, these rates are called BLANK
Red Circle
A major advantage of a BLANK is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve?
Reduction in force
The compa-ratio reflects the BLANK
Relationship of the average actual salary in each range to the midpoint of the range
KYZ Inc., a U.S. firm sends its manager, Ryan, to London to manage its operations there. Ryan's salary is still based on the U.S. pay system; however, KYZ offers him 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 is used by KYZ?
The cafeteria approach
An Indian citizen working for a Japanese company in India is a?
Local country national
MNTX University requires that all its female professors score higher ha male professors in their appraisal rating to qualify for a pay bonus as there are more female professors than male professors in the university. Which of the following statements is true in this case?
MNTX is liable for disparate treatment of women
The degree of discretion managers have to make total compensation a strategic tool is referred as BLANK?
Managerial Autonomy
What of the following statements about evaluation and change in the traditional German model is true?
Many of the changes in Germany are the result of global competitive pressures and technological changes
KayLeaf Inc. wants to set up a unit in China. To facilitate this it sends its manager to China to gather information. Which is most likely to be a suggestion from its manager?
Use a hierarchical pay structure as there is high power distance in China.
The BLANK Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts?
Walsh-Healey Public Contracts
The ADEA BLANK
Was amended in 1990 to included the Older Workers Benefit Protection Act
Prevailing-wage laws BLANK
Were passed in response to conditions on projects such as the construction of the Hoover Dam during the Depression
The denominator for calculating the current year's pay rise is BLANK
Average pay at the beginning of the year
The Worker Economic Opportunity Act BLANK
States that income from most stock need not be included in calculating overtime pay
Which of the following countries has the highest number of people in the workforce belonging to unions?
Sweden
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?
The Dodd-Frank Wall Street Reform and Consumer Protection Act
