Employee Compensation and Mangement Final Exam

The percentage increase in average pay that is expected for an organizational unit or company is called

a planned pay-level rise

The CEO of BoardCom, Inc., James, negotiates a new union contract with the union leader. If James wants to reduce expenses and keep the union happy, which of the following suggestions is most likely to be helpful? a) provide a 20 percent increase to base wages b) provide lump-sum awards in exchange for merit pay increases c) introduce a gain-sharing plan that substitutes wages d) introduce merit increases bases on individual-based performance

b) provide lump-sum awards in exchange for merit pay increases

An Indian citizen working for a Japanese company in India is a

local country national

When employees are paid more than the maximum of their pay grade, these rates are called

red circle rates

Moving employees through pay ranges using merit increases is more popular than automatic progression. True or false

False

True or false: an alternative to the balance sheet approach to expatriate pay is the localization, or local plus pay system which ties salary to a region

False

True or false: companies in the United States, United Kingdom, and some central European countries are most likely to have centralized wage bargaining

False

True or false: A compa-ratio is the average actual pay divided by the midpoint of the pay grade

True

True or false: The 2 standards of discrimination - disparate treatment vs disparate impact -remain difficult to apply to pay issues, since pay differences are legal for dissimilar work

True

True or false: the Department of Labor defines "effort" as either mental or physical; the degree of effort (not type of effort) actually expended in the performance of a job

True

Pay-for-knowledge plans do all of the following EXCEPT a) increase the probability of work being subcontracted out to nonunion organizations. b) make each individual employee more valuable c) make employees less expendable to their firms d) pay employees more for learning a variety of different jobs or skills

a) increase the probability of work being subcontracted out to nonunion organizations

Traditionally, Japan's employment relationships were supported by a) lifetime security within the company b) centralized unions representing workers across several companies within an industry c) performance-based promotion systems alone d) performance-based pay systems alone

a) lifetime security within the company

In the negotiation stage of a multiyear wage contract, Mark, the manager of SifCo Corp., specifies that changes will be made to the wage based on the changes in the consumer price index and mentions the effective dates of adjustment. Which of the following types of clauses has Mark introduced in the contract? a) a reopener clause b) a spillover clause c) an escalator clause d) a halo clause

c) an escalator clause

Which of the following actions is most likely to be favored by unions? a) increasing the pricing of products to cover for increases in wages b) making each individual worker more expendable to the firm c) introducing lump-sum awards d) substituting wages with gain-sharing plans

c) introducing lump-sum awards

Which of the following groups can qualify for the exemption under the Fair Labor Standards Act of 1938? a) paramedics b) police and other first responders c) fire fighters d) computer employees

d) computer employees

Which of the following statements about anchoring/framing is true? a) it states that people discover patterns in random events b) it is the reluctance to accept evidence that contradicts existing beliefs c) it refers to the tendency to follow fashions in programs/techniques d) it states that initial data strongly affect decisions/beliefs

d) it states that initial data strongly affect decisions/beliefs

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 a) the Financial Accounting Standards Board Statement 123 R b) The American Recovery and Reinvestment Act c) the Troubled Asset Relief Program d) the Dodd-Frank Wall Street Reform and Consumer Protection Act

d) the Dodd-Frank Wall Street Reform and Consumer Protection Act

When contemplating compensation communications, remember that ____ occurs when a company follows trends in programs and techniques, and the company needs to benchmark selectively

herding

The Equal Pay Act is a part of the

the Fair Labor Standards Act

A Korean citizen working for Toshiba, a Japanese company, in Canada is a

third-country national