HR2

As per the Fair Labor Standards Act, the current minimum wage stands at:

$7.25 per hour

KCM & Associates, an international management consulting firm, uses a market pay survey to gather information regarding the going rates of pay among competing organizations. To that the company gets the best talent available, the compensation management department uses the information obtained from the market pay survey to compare its compensation policies with those used by the competitors. In this example, KCM & Associates uses which of the following techniques?

Benchmarking

Which of the following refers to a procedure in which an organization compares its own practices against those of the competition?

Benchmarking

_____ is a public policy that advocates remedies for any undervaluation of women's jobs.

Comparable worth

Which of the following pays is similar to pay structures based on individual characteristics such as skill or knowledge but usually refers to a plan that covers exempt employees?

Competency-based pay

The Walsh-Healy Act covers:

Construction contractors receiving federal money of more than $2000.

Which of the following hypotheses argues that women were historically restricted to entering a small number of occupations and as a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations?

Crowding hypothesis

_____ refers to the process of reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases.

Delayering

Which of the following theories describes the conditions under which the benefits of higher pay outweigh higher costs?

Efficiency wage theory

Which of the following theories states that wages influence worker productivity?

Efficiency wage theory

Which of the following observations is true about the equity theory?

Employees' evaluations of their pay relative to that of other employees influence their work attitudes and behaviors.

Which of the following theories of pay suggests that people evaluate the fairness of their situations by comparing them with those of other people?

Equity theory

Which of the following occupations is exempt from the Fair Labor Standards Act (FLSA)?

Executives

Which of the following is true of a job-based pay structure?

It encourages bureaucracy

Which of the following statements is true about the Fair Labor Standards Act (FLSA)?

It exempts executive, professional, administrative, outside sales, and certain "computer employees" occupations from FLSA coverage.

Which of the following is true of skill-based pay?

It helps in making alternative arrangements for employee turnover.

Which of the following is true regarding range spread?

It is larger at higher levels

Typically, which of the following human resource tools is used to measure pay equity?

Job evaluation

The Executive Order 11246 is enforced by the:

Office of Federal Contracts Compliance.

Which of the following is true regarding pay?

Pay is often considered a sign of status and success.

_____ refers to the relative pay of different jobs and how much they are paid.

Pay structure

Which of the following statements about product market competition and labor market competition is true?

Product market competition places an upper bound on labor cost whereas, labor market competition places a lower bound.

Which of the following is true of delayering and banding?

They reduce the opportunity for promotion

Which of the following equal employment opportunity regulation prohibits sex- and race-based differences in employment outcomes such as pay, unless justified by business necessity?

Title VII of the Civil Rights Act

During the recent financial crisis, the U.S. government, as part of the _____, decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.

Troubled Asset Relief Program

Which of the following is a part of the benefit?

Unemployment compensation

Which of the following acts requires federal contractors to pay employees no less than the prevailing wages in the area?

Walsh-Healy Public Contracts Act

When compensable factors are weighed using expert judgments about the importance of each factor, a(n) _____ weight is said to be assigned.

a priori

Labor market comparisons are more important when:

attracting and retaining qualified employees is difficult

A market pay policy line:

can be generated using regression analysis

Which of the following phenomena allows women and minorities to come within sight of the top echelons of management, but not advance to them?

class ceiling

The _____ is an index of the correspondence between actual and intended pay.

compa-ratio

The characteristics of jobs that an organization values and chooses to pay for are known as:

compensable factors.

The Davis-Bacon Act covers:

construction contractors receiving federal money of more than $2000

Atena Technologies, a software company greatly reduced the bureaucratic nature of its pay structure, by going from 3,000 job titles and 12 pay grades to a simpler 1,000 jobs and 5 pay grades. In this example, Atena Technologies used:

delayering.

The compa-ratio:

directly assesses the degree to which actual pay is consistent with the pay policy.

The pay policy line:

does not use actual market rates for key jobs

The Fair Labor Standards Act requires that:

employees be paid for each hour of overtime worked beyond 40 hours in a week.

A study by Peter Cappelli and Peter Sherer on the effects of two-tier wage plans has found that

employees in the lower tier had lower comparison standards than those in the higher tier.

Job-based pay structure:

encourages flexibility in employees

The two-tier wage plan supports the _____ through its focus on the way employees compare their pay with other jobs and the need for managers to take this into consideration.

equity theory

The Fair Labor Standards Act:

established a minimum wage for jobs.

External equity pay comparisons:

focus on what employees in other organizations are paid for doing the same general job.

Internal equity pay comparison:

focuses on what employees within the same organization, but in different jobs, are paid.

Which of the following human resource activities provides basic descriptive information on job attributes?

job analysis

Which of the following administrative tools is used by organizations to design job structures?

job evaluation

Which of the following is an administrative procedure used to measure internal job worth?

job evaluation

_____ refers to the relative pay of jobs in an organization.

job structure

Benchmark jobs, used in pay surveys that have relatively stable content and are common to many organizations are known as:

key jobs.

Product market comparisons that focus on labor costs are likely to deserve greater weight when:

labor costs represent a large share of total costs.

Actual pay is lagging behind the pay policy when the compa-ratio is:

less than 1.00.

Jobs that are unique to organizations and that cannot be directly valued or compared through the use of market surveys are known as:

nonkey jobs.

Under the _____ approach, jobs of similar worth or content are grouped together for pay administration purposes.

pay grade

The major disadvantage of using _____ is that some jobs will be underpaid and other jobs will be overpaid.

pay grades

The average pay including wages, salaries, and bonuses, of jobs in an organization are part of the:

pay level.

The _____ is a mathematical expression that describes the relationship between a job's pay and its job evaluation points.

pay policy line

The _____ yields job evaluation points for each compensable factor

point-factor system

The _____ refers to the distance between the minimum and maximum amounts in a pay grade.

range spread

Which of the following concepts addresses the fact that different employees in the same job may have different pay rates?

rate ranges

A broad band:

reduces the number of job levels within an organization

Title VII of the Civil Rights Act:

supports equal pay for jobs of equal content.

One indicator of productivity is gross domestic product per person. The gross domestic product refers to the:

total output of the economy.

If a person's ratio is smaller than the comparison other's ratio:

underreward inequity results.