HRM Exam 3 (2)
Souped Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which payment plan is exemplified in this scenario?
merit pay
Which type of incentive plans are used to reward individual performance?
merit pay
An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as
merit pay.
Julie, the HR manager at Forge Corp., wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set. She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios. In this scenario, Julie would be applying the system of
merit pay.
calibration meeting
minimizes politics, gathers managers and helps them eliminate distorted evaluations they would usually make
Which provision is included in the Fair Labor Standards Act (FLSA)?
minimum wage
The Fair Labor Standards Act (FLSA) includes provisions for:
minimum wage.
promotion
moving an employee into a position with greater challenges, more responsibility, and more authority than in the previous job
job rotation
moving employees through a series of job assignments in one or more functional areas
pay ratio reporting
must report ratio of CEO pay to pay of median employee, Dodd-frank wall street reform and consumer protection act of 2010. intended to increase transparency
What is the simplest, most direct, and least expensive way to settle a dispute?
open-door policy
Which type of alternative dispute resolution functions well only to the extent that employees trust management and managers who hear complaints listen and are able to act?
open-door policy
Pay policy line
A graphed line showing the mathematical relationship between job evaluation points and pay rates
Which of the following is true of key jobs?
A job with a higher evaluation score than a particular key job would receive higher pay than that key job.
Training
A planned effort to enable employees to learn job-related knowledge, skills, and behavior
Benchmarking
A procedure in which an organization compares its own practices against those of successful competitors.
In a city government, positions mostly held by women pay less than positions mostly held by men.
A rising cost of living will lead workers in the labor market to seek higher pay.
Rashana is a human resource specialist at Piper Co., a business consulting company. To support human resource planning, Rashana monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Rashana predict based on this information?
A rising cost of living will lead workers in the labor market to seek higher pay.
Rashana is a human resource specialist at Piper Co., a business consulting company. To support human resource planning, Rashana monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Rashana predict based on this information?
A rising cost of living will lead workers in the labor market to seek higher pay.
Just Right Construction Company has a system of progressive discipline. Even so, in which situation would it be appropriate for the company to follow a stricter policy and dismiss an employee after a first offense?
A welder ignored safety procedures and started a fire that caused serious damage.
Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?
It discourages employees from gaining valuable experience through lateral career moves.
What is an advantage of a two-tier wage system?
It helps reduce labor costs without cutting employees' existing salaries.
What is a characteristic of delayering?
It increases an organization's flexibility.
Which of the following is a characteristic of delayering?
It increases an organizations' flexibility.
Which of the following best defines job withdrawal?
It is a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally.
Identify the correct statement regarding an employee assistance program.
It is a system supervisors can use to refer their employees for professional treatment when necessary.
Identify the correct statement regarding an employee assistance program.
It is a system that supervisors can use to refer their employees for professional treatment when necessary.
What is a disadvantage of skill-based pay systems?
It may result in paying employees for skills they don't use.
From an economic standpoint, identify the drawback of a comparable-worth policy.
Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
What is a drawback of a comparable-worth policy?
Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
Which of the following is a drawback of a comparable-worth policy?
Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
Delayering
Reducing the number of levels in the organization's job structure
delayering
Reducing the number of levels in the organization's job structure
How can an organization protect itself against discrimination and unjust dismissal lawsuits?
Requirements for job success should be clearly communicated to employees
Roger is the head of the insurance claims department. Roger works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which statement justifies the organization's decision not to give Roger's overtime pay?
Roger is considered as an exempt employee.
________ is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it.
Role ambiguity
________ is an employee's recognition that demands of the job are incompatible or contradictory.
Role conflict
James, the production manager of Zenfax Inc., thinks performance appraisal information from peers is a less reliable source than other sources of information. However, Ron, a sales manager in the company, thinks peers give valuable information for appraisal. Whose argument is most likely to be correct and why?
Ron is right because peers have expert knowledge of job requirements
Ron and Yin are welders working for two different divisions of the same company. Both have the same level of experience. However, Ron earns more than Yin. Under the Fair Labor Standards Act (FLSA), which statement justifies the organization's decision to pay Ron more than Yin?
Ron lives in a location where living expenses are higher.
Ryan and Peggy hold the same position at Vineyard Rustica. However, Ryan earns more than Peggy. In the context of pay structure, which statement justifies the organization's decision to pay Ryan more than Peggy?
Ryan works the night shift, and night hours are less desirable for most workers.
Performance Management
The process of ensuring that employees' activities and outputs match the organization's goals.
Job Structure
The relative pay for different jobs within the organization.
A standard hour incentive plan is likely to be successful if
employees want the extra money more than they want to work at a pace that feels comfortable.
Historically, if an organization and employee do not have a specific employment contract, the employer or employee may not require a specific time to end the employment relationship. This is referred to as the ________ doctrine.
employment-at-will
Historically, if an organization and employee do not have a specific employment contract, the employer or employee may not require a specific time to end the employment relationship. This is referred to as the _____ doctrine.
employment-at-will
Pay policies are one of the most important human resource tools for
encouraging desired employee behaviors.
Pay policies are one of the most important human resource tools for:
encouraging desired employee behaviors.
brand alignment
ensuring that HR policies, practices, and programs support or are congruent with brand
According to _____, people measure outcomes such as pay in terms of their inputs.
equity theory
According to ________, people measure outcomes such as pay in terms of their inputs.
equity theory
Low job involvement and low organizational commitment are
examples of psychological withdrawal.
Who is not eligible for overtime pay?
executive, professional, administrative ,and highly compensated white-collar employees
A(n) ________ refers to the meeting of a departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving.
exit interview
Employees with negative affectivity are inclined to
experience feelings of anger, contempt, fear, and guilt.
compensable factors
experience, education, complexity, working conditions, responsibility
Pay strategy
explanation of how pay decisions relate to the organization's objectives.
According to equity theory, employees evaluate job outcomes such as compensation in terms of outputs.
f
Issues affecting an organization's pay structure do not affect its reputation in general.
f
Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees
f
Themost common approach to pay differentials is to move an employee lower in the pay structure to compensate for higher living costs
f
Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, employees of federal contractors must receive rates less than the prevailing wages in the area.
f
When job structure conflicts with market data, organizations should base their pay only on market forces because this approach does not have any practical drawbacks.
f
A merit pay incentive system is used to attract employees who are more team-oriented.
false
According to equity theory, employees evaluate job outcomes such as compensation in terms of outputs.
false
An employee stock ownership plan denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.
false
An organization should keep information, such as changes made to its incentive plan, confidential from its employees.
false
Employees who receive stock options as incentive pay must exercise the stock options even if the stock price decreases.
false
From employers' perspective, an advantage of merit pay is that it is cheap.
false
Group bonuses typically reward the performance of all employees in an organization.
false
Implementing broad bands increases the opportunities for promoting employees.
false
In a product market, different organizations have exclusive customer bases.
false
In a two-tier wage system, employees doing the same job are paid two different rates, depending on their technical background and training.
false
Issues affecting an organization's pay structure do not affect its reputation in general.
false
Key jobs are uncommon and have unstable content, making them very difficult to evaluate using pay surveys.
false
Military pay often exceeds what service members would earn in their civilian jobs.
false
Organizational behavior modification (OBM) is a plan for managing the behavior of employees through an informal system of feedback and reinforcement
false
Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure.
false
Pay level is the total amount an employee pays to the organization.
false
Research suggests that employees in the lower tier of the pay structure in a two-tier wage system are less satisfied than the top-tier employees.
false
Skill-based pay systems do not support empowerment of employees.
false
Standard hour plans are quality-oriented incentives for professional employees.
false
Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers.
false
The equity of executive pay affects a select few of an organization's employees.
false
The laws governing equal employment opportunity guarantee equal pay for all employees of an organization.
false
The most common approach to pay differentials is to move an employee lower in the pay structure to compensate for higher living costs.
false
The pay offered by an organization is not limited by its presence in a product market.
false
Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary.
false
Under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, employees of federal contractors must receive rates less than the prevailing wages in the area.
false
Under the FLSA, children aged 14 and 15 may not be employed outside school hours.
false
Under the team awards type of group incentive, cost savings is excluded as a performance measure.
false
prevailing wages
federal contractors must pay employees at least equal to the prevailinh wages in the area, davis-bacon act of 1931, walsh-healy public contracts act of 1936
fair labor standards act
federal law that establishes minimum wage and requirements for overtime pay and child labor
job evaluation
measures relative internal worth of organizations jobs, committee identifies each job's compensable factors, job related for each factor
HR analytics
measuring a programs success in terms of whether objectives and delivered value in an economic sense
Adam Wallace, a neutral party outside of La Mesa Inc., helped simplify issues between two technical teams of the company. Though Wallace's solution had no binding power, both the teams decided to accept his solution. This is an example of
mediation.
If peer review does not lead to a compromise, a neutral party from outside the organization hears the case and tries to resolve the conflict and attempts to reach a compromise. This process is called
mediation.
Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the
organization's competitive environment.
high performance work system
organization's goals -> organizational structure, task design, information systems, rewards systems, people (selection,training, and development) -> performance
key jobs
organizations define key jobs to help create pay structures, have relatively stable content and are common among many organizations, pay can be based on survey data
labor markets
organizations must compete to obtain human resources, competition establishes minimum pay to hire an employee for a job
Product market
organizations that offer competing goods and services
product markets
organizations that offer similar goods and services, organizations compete on quality, service, and price, cost of labor a significant part of organizations costs
Skill-Based Pay Systems
pay structures that set pay according to the employees' levels of skill or knowledge and what they are capable of doing
Management by Objectives (MBO)
people at each level or organization set goals in process that flows from top to bottom, employees at all levels contribute to organization's overall goals, set goals become standards for evaluating employee performance
Equity Theory
people measure their outcomes based on their inputs -executive pay problems: employees measure the amount that execs contribute to an org. and believe it should be relative to their pay
Christina, an employee at Value Depot, is regularly late for work and takes excessive sick days. In this scenario, which of the following types of job withdrawal is being experienced by Christina?
physical job withdrawal
Eva, an employee at Value Hardware, is regularly late for work and takes excessive sick days. In this scenario, which type of job withdrawal is Eva experiencing?
physical job withdrawal
In terms of job dissatisfaction, an employee who calls in sick or arrives to work late is engaging in
physical job withdrawal.
A rate of pay for each unit produced is known as:
piecework rate
As an incentive to work efficiently, some organizations pay production workers a _____, a wage based on the amount they produce.
piecework rate
Jewels & Co., a watch manufacturing company, provides wages to its employees based on the number of watches the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a
piecework rate plan.
Retaining top performers is not always easy because ________ for high-demand positions, such as software engineers, from other companies has become the norm.
poaching talent
Organizations under pressure to cut labor costs may respond by
postponing hiring decisions.
Which approach to performance feedback is generally most effective?
problem-solving
People's perception of ________ is their judgment that impartial methods were used to determine the consequences an employee obtains.
procedural justice
Job Analysis
process of getting detailed information about jobs.
A piecework rate plan is best suited for
production workers.
Which process seeks to avert misbehavior and to correct, rather than merely punish, misbehavior?
progressive discipline
Which of the following principles suggests that organizations should engage in a formal discipline process when preparing for problems in which the consequences become more severe if the employee repeats the offense?
progressive discipline system
A(n) ________ involves moving an employee into a position with greater challenges, more responsibility, and more authority than in the previous job.
promotion
Which aspect of satisfaction is among those emphasized by the Job Descriptive Index?
promotions
Akira is very dissatisfied with her job situation, but she does not perceive any other employment opportunities, so she stays and spends most of the workday dreaming about non-work matters. Which of the following is being experiencing by Akira?
psychological job withdrawal
A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals.
true
A pay structure helps an organization achieve goals related to cost control.
true
A reliable measurement generates consistent results
true
An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.
true
If an employee believes they are being underpaid, their behavior changes
true
If state laws specify minimum wages, in addition to the federal level, employees are entitled to receive whichever rate is higher.
true
In an organization, a supervisor usually makes the final employee selection decision.
true
In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the company's stock price.
true
Incentive pay for executives lays the groundwork for significant ethical issues.
true
Incentive pay is specifically designed to energize, direct, or control employees' behavior and is influential because the amount paid is linked to certain predefined behaviors or outcomes.
true
Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.
true
Merit pay is a system of linking pay increases to ratings on performance appraisals.
true
Organizations use pay surveys to benchmark compensation.
true
Paying a salary does not necessarily mean that a job is exempt from overtime pay
true
Retention bonuses are one-time incentives paid to top managers, engineers, top-performing salespeople, and information technology specialists in exchange for remaining with the company.
true
The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.
true
The approaches to employee development fall into four broad categories: formal education, assessment, job experiences, and interpersonal relationships.
true
Under incentive pay, piecework rates are most suited for routine, standardized jobs with output that is easy to measure.
true
What is a typical first response in the progressive discipline system?
unofficial spoken warning
The comparable-worth policy
uses job evaluation of an organization's jobs in terms of such criteria as their difficulty
The comparable-worth policy:
uses job evaluation of an organization's jobs in terms of such criteria as their difficulty.
Comparable worth
uses job evaluation to establish worth of an organization's jobs in terms of such criteria as their difficulty and their importance to the organization
Generally, organizations encourage voluntary turnover among top performers because it is inexpensive.
False
expert systems
incorporate decision rules of people deemed to have expertise in a certain area
To make merit increases consistent, administrators of merit pay programs must closely monitor the compa-ratio and the
individual's performance ratings.
voluntary turnover
initiated by employees, often when organizations would prefer to keep them, employee retires or moves on to new opportunity
involuntary turnover
initiated by the employer, often employees would prefer to stay, job termination
A perception of ________ is a judgment that the organization carried out its actions in a manner that took the employee's feelings into account.
interactional justice
Developing a formal discipline process is a prime responsibility of the human resource department.
True
If an employee disputes policies on the grounds that they violate state and federal laws, he or she can go outside the organization for help to file a lawsuit.
True
In procedural justice, the procedures should be consistent from one person to another, and the manager using them should suppress any personal biases.
True
________ refers to incentive pay in which the wage paid is higher when a greater amount is produced.
Differential piece rate
Job withdrawal is a set of behaviors that discontented individuals display to avoid the work situation physically, mentally, or emotionally.
True
In general, employers may conduct random searches of areas like desks, lockers, and toolboxes at any point in time without any justification to the employee.
False
Job satisfaction is always based on an objective and complete measurement of the situation and not on perception.
False
Personal dispositions do not play a role in creating job satisfaction.
False
Role conflict is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it.
False
Under federal law, any U.S. employer that is planning layoffs must give employees 60 days' notice of the layoffs.
False
What is a disadvantage of a pay structure that rewards employees for winning promotions?
It discourages employees from gaining valuable experience through lateral career moves.
Which of the following would act as a market force during the development of a pay structure?
Obtaining human resources in labor markets
Which of the following is true of pay ranges?
The market rate or the pay policy line generally serves as the midpoint of a range for the job.
Which statement is true about pay ranges?
The market rate or the pay policy line generally serves as the midpoint of a range for the job.
Executive pay has drawn public scrutiny in recent years. Which statement best explains the reason?
Top executives' pay is much higher than average workers' pay.
David earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week?
$500
Ty earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week?
$500
An employee who earns a base rate of $10 an hour and receives a weekly attendance award of $20 works 50 hours this week (Overtime pay is required, whether or not the employer specifically asked or expected the employee to work more than 40 hours). His/her total compensation for the week will be:
$577.50.
incentive pay
- specifically designed to energize, direct, or control employees behavior
Reducing Training Errors
- train raters to notice their tendencies and be sensitive to the complex nature of employee performance -political errors: establish a fair appraisal system and bring managers together to discuss ratings in calibration meetings
What is used to benchmark a company's pay?
-pay surveys -trade and industry groups -professional groups
Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, the Cliff Stiff is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following would most likely explain the reason for the company being sued? A. The employees of the company are not being paid at rates at least equal to the prevailing wages in the area. B. Cement industry employees are being paid only 15% above the minimum wage. C. The company hired employees belonging to the age group of 25 to 30, and they are being employed in hazardous environments. D. Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate. E. Employees below the age of 25 are not being hired by the company.
. The employees of the company are not being paid at rates at least equal to the prevailing wages in the area.
Assuming that the pay structure is well planned to support the organization's goals, the compa-ratios should be close to:
1.
5 Criteria for Measuring Effectiveness of P.M. Systems
1. Strategic 2. Valid 3.Reliability 4.Acceptable 5. Specific
Three yardsticks that employees compare their pay to are:
1. employees in other orgs. doing the same job's pay 2. employees in the same org, doing different job's pay 3. what they think employees in the same org and same job are paid
Outcomes of a high performance work system
1. growth 2. productivity 3. high profits -intermediate goals: 1. high quality 2. innovation 3. customer satisfaction 4. reduced absenteeism and turnover
Elements of a High-Performance Work System
1. organizational structure 2. task design 3. people 4. reward systems 5. information systems
child labor
14 and 15 may work only outside school hours in non hazardous jobs, 16 and 17 may not be employed in hazardous jobs
Concerted Activity
2 or more workers coming together in hopes of improving wages or working conditions
On average, out of every dollar spent by a company on employee compensation, more than_____ cents goes to employee benefits.
30
What is the national minimum wage?
7.25
James was recently made the manager of his department at Patches Inc., and he has to evaluate his subordinates' behavior in the next two weeks. He is unsure if he should use the behaviorally anchored rating scale (BARS) or the behavioral observation scale (BOS) to assess their behavior. Which of the following characteristics of the two would help James decide the scale that would be most appropriate for him to use?
A BARS uses many instances to specify the behaviors necessary for effective performance.
Saad was an employee at a chemical company called FGR Inc. He noticed that several of the security personnel at FGR allowed tankers to be filled over the legal limit with highly inflammable gases. Saad gathered ample evidence of such instances and presented it to senior management. A few months later, the company had not acted, and Saad contacted the Occupational Safety and Health Administration. Less than a week later, the company fired Saad. Assuming that Saad had not had disciplinary issues and wanted to file a claim alleging he was wrongfully discharged, what would be the strongest basis for his claim?
A) He was disciplined for doing what the law requires.
Caroline, a researcher, believes that an organization needs to plan what they will pay employees in each job. Mark, her colleague, argues that an employee's pay should be independently negotiated. Which of the following statements will weaken Mark's argument? A. An unplanned approach will likely result in unfairness and dissatisfaction among the employees. B. Most of the employees prefer planned pay because negotiation with the management takes time. C. Independently negotiated pay will increase the workload and rivalry among the employees. D. When the pay is planned by the organization, it creates more employment opportunities. E. The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated.
A. An unplanned approach will likely result in unfairness and dissatisfaction among the employees
Which of the following U.S. organizations conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees? A. Bureau of Labor Statistics B. Society for Human Resource Management C. American Management Association D. AFL-CIO E. Bureau of Economic Analysis
A. Bureau of Labor Statistics
Kazuri Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, which of the following is a practical drawback faced by the company? A. Employees might conclude that the pay rates are unfair. B. Supervisors of the company will expect to receive lower pay because of less responsibility. C. The highly paid employees will likely be dissatisfied because of more work. D. The managers will participate in rotation of responsibilities because they receive lower pay. E. All employees will be categorized as exempt employees.
A. Employees might conclude that the pay rates are unfair.
Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor? A. Fair Labor Standards Act B. Americans with Disabilities Act C. Family and Medical Leave Act D. Employee Retirement Income Security Act E. Equal Pay Act
A. Fair Labor Standards Act
Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor? A. Fair Labor Standards Act B. Americans with Disabilities Act C. Family and Medical Leave Act D. Employee Retirement Income Security Act E. Equal Pay Act
A. Fair Labor Standards Act
Inverness Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which of the following statements is true about Inverness? A. It considers its employees as resources. B. It gives the least importance to profits. C. It is a customer-friendly firm. D. It tries to keep its labor costs minimal. E. It helps employees find higher-paying jobs.
A. It considers its employees as resources.
Which of the following best defines an organization's job structure? A. It consists of the relative pay for different jobs within the organization. B. It is the average amount an organization pays for a particular job. C. It comprises the characteristics of jobs that the organization values and chooses to pay. D. It comprises regular pay, overtime pay, and bonuses. E. It refers to the standard amount that employers must pay under federal and state law.
A. It consists of the relative pay for different jobs within the organization
Which of the following best defines an organization's job structure? A. It consists of the relative pay for different jobs within the organization. B. It is the average amount an organization pays for a particular job. C. It comprises the characteristics of jobs that the organization values and chooses to pay. D. It comprises regular pay, overtime pay, and bonuses. E. It refers to the standard amount that employers must pay under federal and state
A. It consists of the relative pay for different jobs within the organization.
Which of the following is a characteristic of delayering? A. It increases an organization's flexibility. B. It increases the opportunities for promoting employees. C. It sets pay according to the employees' level of knowledge. D. It encourages a climate of learning. E. It decreases the flexibility of managers in making assignments.
A. It increases an organization's flexibility.
John and Lisa hold the same position at Flyberry Electronics. However, John earns more than Lisa. In the context of pay structure, which of the following justifies the organization's decision to pay John more than Lisa? A. John works the night shift, and night hours are less desirable for most workers. B. John is a U.S. citizen; therefore his pay should be higher than that of non-Americans. C. Lisa is pregnant; therefore her productivity is assumed to be lower. D. John is physically disabled; therefore he should be paid more than Lisa. E. Lisa lives in a location where living expenses are higher.
A. John works the night shift, and night hours are less desirable for most workers.
Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe? A. Mark meets higher productivity targets than Chloe. B. Mark comes from an economically weaker background. C. Mark is male. D. Chloe is younger than Mark. E. Chloe is not a U.S. citizen.
A. Mark meets higher productivity targets than Chloe.
Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe? A. Mark meets higher productivity targets than Chloe. B. Mark comes from an economically weaker background. C. Mark is male. D. Chloe is younger than Mark. E. Chloe is not a U.S. citizen.
A. Mark meets higher productivity targets than Chloe.
Sapheda Inc., a heavy machinery company, has employees belonging to the age group of 17 to 30. Noah, a 17-year-old, is prohibited from working with heavy machinery tools. Instead, he works in the mail room. Under the laws governing Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to forbid Noah from doing heavy machinery work? A. Noah cannot be employed in hazardous occupations because he is 17 years old. B. Noah is expected to work in a safe environment because he is male. C. Noah is not a U.S. citizen, therefore he is prohibited from working in a hazardous environment. D. Noah has not yet completed college, therefore he should only be given administrative duties. E. Noah comes from an economically weaker background, therefore he is expected to perform clerical duties.
A. Noah cannot be employed in hazardous occupations because he is 17 years old.
Some employees at Los Amigos Inc., a clothing manufacturer, investigate pay rates on Salary.com and learn that Los Amigos has been paying them significantly more than the national average for their jobs. In this case, which of the following is the most likely reaction of the employees at Los Amigo? A. The employees will conclude that there must be regional differences in pay. B. The employees will be motivated to work much harder. C. The employees will find their jobs less challenging. D. The employees will find a way to increase their outcomes by stealing. E. The employees' attitudes and behaviors will continue unchanged.
A. The employees will conclude that there must be regional differences in pay.
Teno Industries Inc. is a manufacturing company based in Texas. In the year after Teno Industries implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate? A. The employer is at an economic disadvantage because of increased pay for some jobs. B. The policy overlooks the undervalued work performed by women. C. The policy uses job enrichment to establish a pay structure based on market rates. D. The employer ignores the evaluation points for each job. E. Employees in lower-paid jobs are encouraged to meet the goal of comparable worth.
A. The employer is at an economic disadvantage because of increased pay for some jobs.
Thomas and Alex are welders working for two different divisions of the same company. Both have the same level of experience. However, Thomas earns more than Alex. Under the Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to pay Thomas more than Alex? A. Thomas lives in a location where living expenses are higher B. Alex is younger than Thomas C. Thomas is a U.S. citizen D. Alex is physically disabled E. Alex works the night shift
A. Thomas lives in a location where living expenses are higher
Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason? A. Top executives' pay is much higher than average workers' pay. B. Most of the top executives' pay is in the form of a salary. C. Top executives come under the category of exempt employees. D. Top executives are paid in the form of commissions. E. Executives are denied short-term or long-term incentives with their pay.
A. Top executives' pay is much higher than average workers' pay
The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years. A. Uniformed Services Employment and Reemployment Rights Act B. Fair Labor Standards Act C. Equal Employment Opportunity Act D. National Labor Relations Board E. Family and Medical Leave Act
A. Uniformed Services Employment and Reemployment Rights Act
Trevor, the human resource manager at XTech, is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Trevor's idea be most valid? A. XTech pays more to attract top talent, applying employees' knowledge to be more innovative than competitors. B. XTech intends to charge more for than competitors for the same kinds of products. C. XTech hopes other companies will eventually match XTech's pay scale. D. Labor costs are a large part of XTech's total costs. E. XTech is developing a low-price strategy that will generate more sales.
A. XTech pays more to attract top talent, applying employees' knowledge to be more innovative than competitors.
Ramon Inc., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company. A. comparable-worth policy B. minimum wage policy C. average pay policy D. merit pay policy E. piecework rate policy
A. comparable-worth policy
Which of the following will most likely be a result of using an unplanned approach, in which each employee's pay is independently negotiated? A. dissatisfied employees B. equal pay distribution C. rates that are stable D. easy employment E. cost control
A. dissatisfied employees
Which of the following will most likely be a result of using an unplanned approach, in which each employee's pay is independently negotiated? A. dissatisfied employees B. equal pay distribution C. rates that are stable D. easy employment E. cost control
A. dissatisfied employees
Compa-ratio A. is defined as the ratio of average pay to the midpoint of the pay range. B. is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade. C. can range from 0 to 100 percent. D. uses data from market-pay surveys. E. measures the degree to which new skills learnt are consistent with the increases in pay.
A. is defined as the ratio of average pay to the midpoint of the pay range.
Under the FLSA, exempt status of employees depends on their A. job responsibilities and salary. B. organizational commitment. C. job title. D. work experience. E. job qualifications.
A. job responsibilities and salary
Under the FLSA, exempt status of employees depends on their A. job responsibilities and salary. B. organizational commitment. C. job title. D. work experience. E. job qualifications.
A. job responsibilities and salary.
Employees' conclusions about equity depend on A. what they choose as a standard of comparison. B. how much money they think the company CEO makes. C. what level of income they believe they should be at by this point in their lives. D. what benefits they receive. E. if they think they can bargain for a higher rate of pay.
A. what they choose as a standard of comparison.
Employees' conclusions about equity depend on A. what they choose as a standard of comparison. B. how much money they think the company CEO makes. C. what level of income they believe they should be at by this point in their lives. D. what benefits they receive. E. if they think they can bargain for a higher rate of pay.
A. what they choose as a standard of comparison.
Pay ranges are most common for _____. A. white-collar jobs B. piece-rate jobs C. jobs that are covered by union contracts D. automotive workers E. construction workers
A. white-collar jobs
Pay ranges are most common for _____. A. white-collar jobs B. piece-rate jobs C. jobs that are covered by union contracts D. automotive workers E. construction workers
A. white-collar jobs
Development
Acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in customer demands
Adam, an employee at Trite Holdings, decides to leave the company. However, during his exit interview, an HR supervisor learns that Adam had no complaints about the work he did or the pay he received. What would be a source of job dissatisfaction for Adam and likely to lead to his departure?
Adam experienced uncivil behavior from his co-workers, and it was not addressed by management.
Cindy and Alex execute the same roles and responsibilities at their organization. However, Alex earns more than Cindy. Under the laws governing equal employment opportunity, which of the following statements will justify the organization's decision to pay Alex more than Cindy?
Alex has more experience than Cindy.
job evaluation
An administrative procedure for measuring the relative internal worth of the organization's jobs.
high performance work system
An organization in which technology, organizational structure, people, and processes all work together to give an organization a competitive advantage.
Karina, a researcher, believes that an organization needs to plan what they will pay employees in each job. Timmy, her colleague, argues that an employee's pay should be independently negotiated. Which statement weakens Timmy's argument?
An unplanned approach will likely result in unfairness and dissatisfaction among the employees.
Caroline, a researcher, believes that an organization needs to plan what they will pay employees in each job. Mark, her colleague, argues that an employee's pay should be independently negotiated. Which of the following statements will weaken Mark's argument?
An unplanned approach will likely result in unfairness and dissatisfaction among the employees.
Karina, a researcher, believes that an organization needs to plan what they will pay employees in each job. Timmy, her colleague, argues that an employee's pay should be independently negotiated. Which statement weakens Timmy's argument?
An unplanned approach will likely result in unfairness and dissatisfaction among the employees.
Benjamin is an employee at Apex Inc. Recently, he was moved to a new work team to help in the development of a new product. Sam, his supervisor on the new team, describes the set of behaviors that other team members will expect of Benjamin. Benjamin, however, feels that these demands contradict the expectations set forth in his primary role at Apex. Which of the following situations is most likely to be the primary source of Benjamin's dissatisfaction about his role?
Apex Inc. has brought together employees from different functions to form a team, leading to conflicting expectations.
Daniel is an employee at Atex Inc. Recently, he was moved to a new work team to help in the development of a new product. Chris, his supervisor on the new team, describes the set of behaviors that the new team members will expect of Daniel. Daniel, however, feels that these demands contradict the expectations set forth in his previous role at Atex Inc. Which situation is most likely to be the primary source of Daniel's dissatisfaction about his role?
Atex Inc. has brought together employees from different functions to form a team, leading to conflicting expectations.
Russell, the new human resource manager at RTL Inc., proposes using automated systems for screening résumés of applicants. Russell claims that automated systems are better than humans at picking the right profiles. Which statement weakens Russell's claim?
Automated systems might reject qualified people who didn't use the same keywords as the job description.
Cindy and Alex execute the same roles and responsibilities at their organization. However, Alex earns more than Cindy. Under the laws governing equal employment opportunity, which of the following statements will justify the organization's decision to pay Alex more than Cindy? A. Alex is white, and Cindy is black. B. Alex has more experience than Cindy. C. Cindy has a hearing impairment. D. Men have more stamina, so they can work longer hours. E. Cindy is an immigrant.
B. Alex has more experience than Cindy.
Which of the following statements is true about labor markets? A. Organizations compete to sell labor in the labor market. B. Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. C. Changes in the CPI do not affect the labor market. D. Cost-of-living considerations have little impact on labor-market rates. E. An organization's competitors in labor markets only include companies with different products.
B. Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job.
Scorla Automobiles is a manufacturing company based in Nevada. The employees of Scorla are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which of the following laws is the organization abiding by in this scenario? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws
B. Fair Labor Standards Act (FLSA) of minimum wage
Pentrall, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which of the following laws will justify the organization's decision to pay the lower pay? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) provisions for minimum wage C. Fair Labor Standards Act (FLSA) provisions for overtime D. laws governing prevailing wages E. Fair Labor Standards Act (FLSA) provisions for child labor
B. Fair Labor Standards Act (FLSA) provisions for minimum wage
Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936? A. Under these laws, individuals aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area. C. The overtime rate applies to the hours worked beyond 45 in one week. D. Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days. E. Organizations can defend themselves against claims of discrimination by showing
B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.
Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936? A. Under these laws, individuals aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area. C. The overtime rate applies to the hours worked beyond 45 in one week. D. Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days. E. Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate.
B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.
Which of the following statements is true about the Consumer Price Index (CPI)? A. The CPI helps organizations in the product markets decide an upper limit on the pay they will offer. B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. C. The CPI helps organizations lure top-quality employees. D. The CPI helps control labor markets' demand for pay increases. E. The CPI helps organizations to compete with companies in other industries that hire similar employees.
B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market.
Which of the following statements is true about the Consumer Price Index (CPI)? A. The CPI helps organizations in the product markets decide an upper limit on the pay they will offer. B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. C. The CPI helps organizations lure top-quality employees. D. The CPI helps control labor markets' demand for pay increases. E. The CPI helps organizations to compete with companies in other industries that hire similar employees.
B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market.
Which of the following statements is true of equal employment opportunity laws? A. These laws guarantee equal pay for whites and minorities. B. The goal of these laws is for employers to provide equal pay for equal work. C. Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. D. These laws guarantee equal pay for men and women. E. Under these laws, employers cannot tie differences in pay to business-related considerations.
B. The goal of these laws is for employers to provide equal pay for equal work.
Which of the following statements is true of equal employment opportunity laws? A. These laws guarantee equal pay for whites and minorities. B. The goal of these laws is for employers to provide equal pay for equal work. C. Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. D. These laws guarantee equal pay for men and women. E. Under these laws, employers cannot tie differences in pay to business-related considerations.
B. The goal of these laws is for employers to provide equal pay for equal work.
Which of the following statements is true of compensable factors? A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for. C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees.
B. They are the characteristics of a job that a firm values and chooses to pay for
Which of the following statements is true of compensable factors? A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for. C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees.
B. They are the characteristics of a job that a firm values and chooses to pay for.
Which of the following statements is true of compensable factors? A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for. C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees.
B. They are the characteristics of a job that a firm values and chooses to pay for.
Which of the following is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases? A. outsourcing B. broad bands C. rightsizing D. benchmarks E. downsizing
B. broad bands
A pay policy line A. shows the mathematical relationship between the minimum pay and the maximum pay in an organization. B. can be generated using a statistical method called regression analysis. C. requires market-pay-rate data on all jobs in the organization. D. can seldom provide information on the market pay level for a given job evaluation. E. reflects the pay structure in the market, which always matches rates in the organization.
B. can be generated using a statistical method called regression analysis.
According to _____, people measure outcomes such as pay in terms of their inputs. A. expectancy theory B. equity theory C. retributive justice theory D. progressive justice theory E. economic theory
B. equity theory
According to _____, people measure outcomes such as pay in terms of their inputs. A. expectancy theory B. equity theory C. retributive justice theory D. progressive justice theory E. economic theory
B. equity theory
Triano Brothers, an insurance firm, follows an administrative procedure for measuring the relative worth of its jobs. The organization does this by assembling and training a committee consisting of people familiar with the jobs. The committee includes a human resource specialist and, if the budget permits, an outside consultant is hired. Which of the following is exemplified in this scenario? A. job rotation B. job evaluation C. merit pay system D. job enrichment E. work structure
B. job evaluation
Hamish Life, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler, as well as the difference between an entry-level recruiter, an HR manager, and the vice president of the human resource department. Which of the following is being exemplified in this scenario? A. straight piecework plan B. job structure C. merit pay system D. pay differential E. balanced scorecard
B. job structure
Research on the effects of two-tier wage plans found that A. lower-paid employees were less satisfied on average than higher-paid employees. B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves. C. lower-paid employees expected to be promoted into the second tier in a short time span. D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other. E. both existing employees and new employees have a similar pay rate.
B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for
Research on the effects of two-tier wage plans found that A. lower-paid employees were less satisfied on average than higher-paid employees. B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves. C. lower-paid employees expected to be promoted into the second tier in a short time span. D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other. E. both existing employees and new employees have a similar pay rate.
B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves.
Which of the following provisions is included in the Fair Labor Standards Act (FLSA)? A. personal finance B. minimum wage C. wage discrimination D. environmental hazards E. retirement plans
B. minimum wage
Which of the following provisions is included in the Fair Labor Standards Act (FLSA)? A. personal finance B. minimum wage C. wage discrimination D. environmental hazards E. retirement plans
B. minimum wage
Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets? A. bonus B. pay differential C. green-circle rate D. rank-and-file adjustment E. red-circle rate
B. pay differential
Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets? A. bonus B. pay differential C. green-circle rate D. rank-and-file adjustment E. red-circle rate
B. pay differential
Which of the following is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job? A. pay grade B. pay range C. pay differential D. compa-ratio E. compensation differential
B. pay range
Which of the following is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job? A. pay grade B. pay range C. pay differential D. compa-ratio E. compensation differential
B. pay range
Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay. A. pay rates B. pay ranges C. pay policies D. pay differentials E. pay ranks
B. pay ranges
Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay. A. pay rates B. pay ranges C. pay policies D. pay differentials E. pay ranks
B. pay ranges
An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets. A. pay rates B. pay structure C. pay differentials D. pay grades E. pay ranges
B. pay structure
An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets. A. pay rates B. pay structure C. pay differentials D. pay grades E. pay ranges
B. pay structure
Which of the following is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases?
Broad bands
Which U.S. organization conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees?
Bureau of Labor Statistics
Which U.S. organization conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees?
Bureau of Labor Statistics
The National Compensation Survey is an ongoing activity of the:
Bureau of Labor Statistics.
David earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week? A. $480 B. $600 C. $500 D. $520 E. $250
C. $500
Blyrie Pharma is a pharmaceutical company based in Alabama. Blyrie Pharma expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which of the following laws is Blyrie Pharma abiding by in this scenario? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws
C. Fair Labor Standards Act (FLSA) of overtime
Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions? A. It does not focus on setting pay for groups of jobs. B. It does not make adjustments to a pay rate to reflect differences in labor markets. C. It discourages employees from gaining valuable experience through lateral career moves. D. It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills. E. It places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs.
C. It discourages employees from gaining valuable experience through lateral career moves.
Which of the following is an advantage of a two-tier wage system? A. It helps move jobs out of the country. B. It helps eliminate jobs without any legal hassles. C. It helps reduce labor costs without cutting employees' existing salaries. D. It helps provide more pay to new employees. E. It provides better standards for benchmarking.
C. It helps reduce labor costs without cutting employees' existing salaries.
Which of the following is an advantage of a two-tier wage system? A. It helps move jobs out of the country. B. It helps eliminate jobs without any legal hassles. C. It helps reduce labor costs without cutting employees' existing salaries. D. It helps provide more pay to new employees. E. It provides better standards for benchmarking.
C. It helps reduce labor costs without cutting employees' existing salaries.
Which of the following is a disadvantage of skill-based pay systems? A. It makes organizations inflexible. B. It reduces employee empowerment. C. It may result in paying employees for skills they don't use. D. It reduces opportunities for promoting employees. E. It limits the number of pay levels by delayering.
C. It may result in paying employees for skills they don't use
Which of the following statements is true about a product market? A. The cost of labor does not affect the product market because it is an insignificant part of an organization's costs. B. Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price. C. Organizations in a product market are competing to serve the same customers. D. Product markets typically place a lower limit on the pay an organization will offer its employees. E. Organizations in a product market must increase the cost of labor every quarter.
C. Organizations in a product market are competing to serve the same customers.
Which of the following statements is true of the FLSA requirements for overtime pay? A. The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments. B. Time worked includes hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, and so on. C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. D. Everyone is eligible for overtime pay. E. Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.
C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours.
Which of the following statements is true of the FLSA requirements for overtime pay? A. The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments. B. Time worked includes hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, and so on. C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. D. Everyone is eligible for overtime pay. E. Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.
C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours.
Under the FLSA, which of the following statements is true of child labor? A. Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Children aged 14 and 15 may not be employed in any work associated with interstate commerce. C. The FLSA's restrictions on the use of child labor apply to children younger than 18. D. Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. E. All the states have laws requiring working papers or work permits for minors.
C. The FLSA's restrictions on the use of child labor apply to children younger than 18.
Under the FLSA, which of the following statements is true of child labor? A. Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Children aged 14 and 15 may not be employed in any work associated with interstate commerce. C. The FLSA's restrictions on the use of child labor apply to children younger than 18. D. Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. E. All the states have laws requiring working papers or work permits for minors.
C. The FLSA's restrictions on the use of child labor apply to children younger than 18.
Which of the following is a drawback of setting pay rates based strictly on a pay policy line? A. It increases the administrative burden of managing the compensation system. B. Employees have difficulty interpreting regression analysis. C. The estimated pay for a job may not reflect conditions in the labor market. D. It increases the costs of surveying the market. E. It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market.
C. The estimated pay for a job may not reflect conditions in the labor market.
According to the FLSA, which of the following individuals is most likely a nonexempt employee? A. the CEO B. a senior administrative employee C. an hourly paid employee D. an HR manager E. the director of marketing
C. an hourly paid employee
According to the FLSA, which of the following individuals is most likely a nonexempt employee? A. the CEO B. a senior administrative employee C. an hourly paid employee D. an HR manager E. the director of marketing
C. an hourly paid employee
Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the A. minimum and maximum wages fixed by the government. B. pay of federal contractors. C. organization's competitive environment. D. quality of employees. E. organization's global reputation.
C. organization's competitive environment.
Organizations under pressure to cut labor costs may respond by A. retaining staff levels. B. providing pay increases to prevent employee turnover. C. postponing hiring decisions. D. requiring employees to bear less of the cost of benefits such as insurance premiums. E. avoiding automation of routine tasks.
C. postponing hiring decisions
Organizations under pressure to cut labor costs may respond by A. retaining staff levels. B. providing pay increases to prevent employee turnover. C. postponing hiring decisions. D. requiring employees to bear less of the cost of benefits such as insurance premiums. E. avoiding automation of routine tasks.
C. postponing hiring decisions.
Trevor, an employee of HigherEd Corp., demonstrates a series of unacceptable behaviors. Carmela, his manager, wants to refer Trevor to the company's employee assistance program. Which situation would call for such a referral?
Carmela has reason to believe Trevor's behavior problems are related to alcohol abuse.
Evidence Based HR
Collecting and using data to show that human resource practices have a positive influence on the company's bottom line or key stakeholders.
Which statement is true about labor markets?
Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job.
Which of the following is true of labor markets?
Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job.
Connor and McKenzie hold the same position at Delta Inc. However, Connor earns more than McKenzie. Which statement justifies the organization's decision to pay Connor more than McKenzie?
Connor meets higher productivity targets than McKenzie.
Following and studying changes in the _____ can help employers prepare for changes in the demands of the labor market.
Consumer Price Index
The federal government tracks trends in the nation's cost of living with a measure known as the:
Consumer Price Index.
Which of the following sentences best describes a situation that comparable-worth policies were designed to address? A. In a manufacturing company, there are no female managers. B. A consumer products company has been sued for racial discrimination. C. An agency works with a supermarket's HR department to design a job that could be held by people with mental disabilities. D. In a city government, positions mostly held by women pay less than positions mostly held by men. E. At a utility company, jobs that involve physical strain and danger pay more than office jobs.
D. In a city government, positions mostly held by women pay less than positions mostly held by men.
Which of the following sentences best describes a situation that comparable-worth policies were designed to address? A. In a manufacturing company, there are no female managers. B. A consumer products company has been sued for racial discrimination. C. An agency works with a supermarket's HR department to design a job that could be held by people with mental disabilities. D. In a city government, positions mostly held by women pay less than positions mostly held by men. E. At a utility company, jobs that involve physical strain and danger pay more than office jobs.
D. In a city government, positions mostly held by women pay less than positions mostly held by men.
John is the head of the insurance claims department. John works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which of the following will justify the organization's decision not to give John overtime pay? A. John is not a U.S. citizen. B. John comes from an economically strong background. C. John is unmarried. D. John is considered as an exempt employee. E. John has lower educational qualifications than his subordinates.
D. John is considered as an exempt employee
Which of the following statements is true about the Fair Labor Standards Act (FLSA)? A. The overtime rate under the FLSA is two and a half times the employee's hourly rate. B. The FLSA permits federal contractors to pay less than the prevailing wage rate. C. The FLSA permits a subminimum training wage equal to 95% of the minimum wage. D. Nonexempt employees are covered by FLSA and include most hourly workers. E. Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees.
D. Nonexempt employees are covered by FLSA and include most hourly workers.
Which of the following statements is true about job-based pay structures? A. A pay structure that rewards employees for winning promotions will encourage them to gain valuable experience through lateral career moves. B. Their focus on higher pay for higher status can work in favor of efforts for empowerment. C. They typically reward desired behaviors, particularly in a rapidly changing environment. D. Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork. E. They always encourage flexibility, innovation, quality, and customer service.
D. Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork.
Which of the following statements is true about skill-based pay? A. Skill-based pay provides a way to ensure that employees can use their new skills. B. Gathering market data about skill-based pay is easy. C. Skill-based pay ensures that the employer pays the employee for learning skills that benefit the employer. D. Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. E. Skill-based pay does not require records related to skills, training, and knowledge acquired.
D. Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures.
Which of the following statements is true about pay ranges? A. Pay ranges are most common for blue-collar jobs and those covered by union contracts. B. Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points. C. Pay ranges generally are designed so that they do not overlap. D. The market rate or the pay policy line generally serves as the midpoint of a range for the job. E. The less overlap, the more flexibility in transferring employees among jobs.
D. The market rate or the pay policy line generally serves as the midpoint of a range for the job.
Which of the following is a disadvantage of broad bands? A. They reduce managers' flexibility in making assignments. B. They always result in pay decreases. C. They increase the number of levels in the organization's job structure. D. They reduce the opportunities for promoting employees. E. They discourage employees from gaining valuable experience through lateral career moves.
D. They reduce the opportunities for promoting employees.
Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to A. increase the overlap from one level to the next. B. reduce its compa-ratio to less than 1. C. implement a broadband pay structure. D. limit the overlap from one pay range to the next. E. use a fixed interval promotion policy.
D. limit the overlap from one pay range to the next.
Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to A. increase the overlap from one level to the next. B. reduce its compa-ratio to less than 1. C. implement a broadband pay structure. D. limit the overlap from one pay range to the next. E. use a fixed interval promotion policy.
D. limit the overlap from one pay range to the next.
SalientVision Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30% of the local labor force. In this case, which of the following laws does the company comply with? A. the Lloyd-La Follette Act of 1912 B. the Smith-Connally Act of 1943 C. the Julie Jargon Act of 1940 and the Eric Morath Act of 1945 D. the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936 E. the Humphrey-Hawkins Full Employment Act
D. the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
Which of the following statements is true about key jobs? A. Organizations usually have no survey data available for key jobs. B. Key jobs are jobs that have highly unstable content. C. Key jobs are jobs that are unique among organizations and are rare to obtain. D. Organizations make the process of creating a pay structure more impractical by defining key jobs. E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.
E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.
Which of the following statements is true about key jobs? A. Organizations usually have no survey data available for key jobs. B. Key jobs are jobs that have highly unstable content. C. Key jobs are jobs that are unique among organizations and are rare to obtain. D. Organizations make the process of creating a pay structure more impractical by defining key jobs. E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.
E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.
Which of the following is a drawback of a minimum wage in terms of social policy? A. It assumes people will take differences in pay into account when they choose a career. B. It is one and a half times the employee's usual hourly rate. C. It applies only to the hours worked beyond 40 in one week. D. It places the employer at an economic disadvantage relative to employers that pay the living wage. E. It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.
E. It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.
Which of the following is a drawback of a minimum wage in terms of social policy? A. It assumes people will take differences in pay into account when they choose a career. B. It is one and a half times the employee's usual hourly rate. C. It applies only to the hours worked beyond 40 in one week. D. It places the employer at an economic disadvantage relative to employers that pay the living wage. E. It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.
E. It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.
Which of the following is a drawback of a comparable-worth policy? A. A free-market economy assumes people will not take differences in pay into account when they choose a career. B. Employees may conclude that pay rates are unfair. C. The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate. D. Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure. E. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
E. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
Which of the following is a drawback of a comparable-worth policy? A. A free-market economy assumes people will not take differences in pay into account when they choose a career. B. Employees may conclude that pay rates are unfair. C. The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate. D. Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure. E. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
E. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
_____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work. A. Pay level B. Nonexemption C. Pay policy line D. Piecework rate E. Salary basis
E. Salary basis
_____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work. A. Pay level B. Nonexemption C. Pay policy line D. Piecework rate E. Salary basis
E. Salary basis
Spark Inc., a manufacturing company, hires employees ranging in age from 14 to 25. Which of the following practices by Spark would ensure that it complies with child labor laws? A. The employees are all paid the same amount. B. The teenage employees earn a training wage for the first year. C. Only the workers over 20 earn overtime pay. D. All the employees have part-time schedules. E. The employees aged 14 and 15 work only in office jobs and for limited time periods
E. The employees aged 14 and 15 work only in office jobs and for limited time periods
Spark Inc., a manufacturing company, hires employees ranging in age from 14 to 25. Which of the following practices by Spark would ensure that it complies with child labor laws? A. The employees are all paid the same amount. B. The teenage employees earn a training wage for the first year. C. Only the workers over 20 earn overtime pay. D. All the employees have part-time schedules. E. The employees aged 14 and 15 work only in office jobs and for limited time periods.
E. The employees aged 14 and 15 work only in office jobs and for limited time periods
The Walsh-Healy Public Contracts Act of 1936 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. covers construction contractors that receive more than $2,000 in federal money. D. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing local wage rates. E. covers all government contractors receiving $10,000 or more in federal funds.
E. covers all government contractors receiving $10,000 or more in federal funds
The Walsh-Healy Public Contracts Act of 1936 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. covers construction contractors that receive more than $2,000 in federal money. D. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing local wage rates. E. covers all government contractors receiving $10,000 or more in federal funds.
E. covers all government contractors receiving $10,000 or more in federal funds.
The Davis-Bacon Act of 1931 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. D. covers all government contractors receiving $10,000 or more in federal funds. E. covers construction contractors that receive more than $2,000 in federal money.
E. covers construction contractors that receive more than $2,000 in federal money
The Davis-Bacon Act of 1931 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. D. covers all government contractors receiving $10,000 or more in federal funds. E. covers construction contractors that receive more than $2,000 in federal money.
E. covers construction contractors that receive more than $2,000 in federal money.
Pay policies are one of the most important human resource tools for A. reducing competition in the product market. B. automating routine activities. C. persuading customers that high quality is worth a premium price. D. making decisions about product pricing. E. encouraging desired employee behaviors.
E. encouraging desired employee behaviors.
Which of the following elements establish an organization's pay structure? A. pay ranges and pay differentials B. cost control and equity C. legal requirements and job descriptions D. individual salaries of its employees E. job structure and pay level
E. job structure and pay level
Which of the following elements establish an organization's pay structure? A. pay ranges and pay differentials B. cost control and equity C. legal requirements and job descriptions D. individual salaries of its employees E. job structure and pay level
E. job structure and pay level
Employee Empowerment
Employees allowed to make decisions—they share in resulting losses and rewards. •Leads to more innovation and sharing ideas
Employee turnover at Wholesome Publishing is low, but many employees in the Children's Book Division seek transfers to other divisions. Which situation is most likely to explain the employees seeking to leave the Children's Book Division?
Employees consider the manager of the Children's Book Division to be unfair.
Employee turnover at RandomThoughts Corp. is low, but many employees in the Consumer Book Division seek transfers to other divisions. Which of the following situations is most likely to explain the employees seeking to leave the Consumer Book Division?
Employees consider the manager of the Consumer Book Division to be unfair.
Malto Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, what is a practical drawback faced by the company?
Employees might conclude that the pay rates are unfair.
For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which statement describes a characteristic of a well-designed plan?
Employees value the rewards or incentives that are being offered.
Karen and Ethan execute the same roles and responsibilities at their organization. However, Ethan earns more than Karen. Under the laws governing equal employment opportunity, which statement will justify the organization's decision to pay Ethan more than Karen?
Ethan has more experience than Karen.
________ can uncover reasons why employees leave and perhaps set the stage for some of them to return.
Exit interviews
If the average pay is below the midpoint of an organization, the compa-ratio is 1
F
In a two-tier wage system, employees doing the same job are paid two different rates, depending on their technical background and training
F
Key jobs are uncommon and have unstable content, making them very difficult to evaluate using pay surveys.
F
Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure.
F
The laws governing Equal Employment Opportunity guarantee equal pay for all employees of an organization.
F
Under the FLSA, children aged 14 and 15 may not be employed outside school hours.
F
Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor?
FLSA
Which of the following permits a lower training wage, which employers may pay to workers under the age of 20 for a period of up to 90 days?
FLSA
What law establishes minimum wage?
Fair Labor Standards Act
Which federal law establishes a minimum wage and requirements for overtime pay and child labor?
Fair Labor Standards Act
Willow Producers is a manufacturing company based in Iowa. The employees of Willow Products are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which law is the organization abiding by in this scenario?
Fair Labor Standards Act (FLSA) of minimum wage
Showery Drugs is a pharmaceutical company based in Detroit. Showery Drugs expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which law is Showery Drugs abiding by in this scenario?
Fair Labor Standards Act (FLSA) of overtime
Showery Drugs is a pharmaceutical company based in Detroit. Showery Drugs expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which law is Showery Drugs abiding by in this scenario?
Fair Labor Standards Act (FLSA) of overtime
Mercia, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which law justifies the organization's decision to pay the lower pay?
Fair Labor Standards Act (FLSA) provisions for minimum wage
Mercia, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which law justifies the organization's decision to pay the lower pay?
Fair Labor Standards Act (FLSA) provisions for minimum wage
A disciplinary action meets the standards of outcome fairness if the manager explains to the employee how the action is procedurally just, treats the employee with dignity and respect, and empathizes with the employee's feelings.
False
A protean career is one that remains constant despite the changes in a person's interests, abilities, and values and in the work environment.
False
An organization's HR department makes most decisions about organizational structure.
False
Creating a high-performance work system is similar to traditional management practices because both treat decision making about technology, organization structure, and human resources as unrelated.
False
Employees cannot sue employers for wrongful discharge if the employee was contracted under the employment-at-will doctrine.
False
Which of the following situations is an example of a voluntary turnover?
Fatima, an employee at Flora Inc., is about to resign her job to start her own business.
Which statement is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936?
Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.
Which of the following is true according to the Walsh-Healy Public Contracts Act of 1936?
Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area.
Fair Labor Standards Act (FLSA)
Federal law that establishes a minimum wage and requirements for overtime pay and child labor.
Which statement is true about the Consumer Price Index (CPI)?
Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market.
Which of the following is true about the Consumer Price Index (CPI)?
Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market.
Employee Engagement
Full involvement in one's work and commitment to one's job and company. Associated with: §higher productivity §better customer service §lower employee turnover
Deepak, a trainee at NextGen Corp., is known among his colleagues for his arrogance, rude behavior, and short-tempered nature. His supervisor, Garin, does not feel like Deepak is performing well and wants to fire him. However, Marissa, the manager of the HR department, advises Garin to rethink his decision in order to avoid the possibility of Deepak reacting violently or filing a lawsuit when he receives the news. In this scenario, which situation is most likely to result in an amicable discharge of Deepak from NextGen Corp.?
Garin encourages Deepak to think about whether he is a good fit for the job and whether he might want help finding another.
Abbel Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which statement is true about Abbel Inc.?
It considers its employees as resources.
Which description best defines an organization's job structure?
It consists of the relative pay for different jobs within the organization.
Daniel, an accounting manager at Plot Co., agreed to work with a coach. He chose this in order to become more of a team player, which would, in turn, lead him to being considered for a larger role in management. After two months, however, he complained to the human resource manager that the process was time-consuming and he has not seen any positive results. Which response to Daniel's complaint would best reflect how coaching can contribute to employee development?
Getting results can take several months—and the employee has to keep practicing.
Which situation is an example of involuntary turnover?
Gisele, an employee at Innovative Tech, is fired because of theft.
Which of the following situations is an example of involuntary turnover?
Gizela, an employee at Future Tech Inc., is fired because of theft.
To determine the outcomes of the HR functions at Veranda International, several top-level managers suggest conducting a formal review of the HR department to evaluate its functions. The CEO approves the implementation of this suggestion. Which way to measure the effectiveness of human resource management would Veranda use?
HRM audit
According to the FLSA, which of the following is most likely a nonexempt employee?
Hourly-paid employee
Which sentence best describes a situation that comparable-worth policies were designed to address?
In a city government, positions mostly held by women pay less than positions mostly held by men.
Which of the following sentences best describes a situation that comparable-worth policies were designed to address?
In a city government, positions mostly held by women pay less than positions mostly held by men.
Which sentence best describes a situation that comparable-worth policies were designed to address?
In a city government, positions mostly held by women pay less than positions mostly held by men.
External Labor Market
Individuals who are actively seeking employment.
More than 40 percent of the employees at Hile Corp. lost their jobs during a recent recession. The human resource department of Hile Corp. would term this as
Involuntary Turnover
Tracey, an employee at Holander Holdings, was suspended for two weeks for drug use. Six months later, she was fired from the job because her productivity did not show any improvement even after undergoing treatment for drug use. Which form of discharge did Tracey experience?
Involuntary Turnover
What is a disadvantage of a merit pay system?
It can quickly become expensive for the company.
Which of the following statements is true of a progressive discipline system?
It communicates unacceptable behavior and responds to a series of offenses with increasing forcefulness.
Discount Furniture has seen sales decline in a highly competitive environment. To be able to offer a lower-cost product, management decides to close its factory in North Carolina, laying off 85 workers from the company's 465-person workforce. Under the Workers' Adjustment Retraining and Notification Act, what must Discount Furniture do?
It must give the employees 60 days' notice before it can begin the layoffs.
Das Work and Edge Tech are electronics manufacturing companies competing to serve the same customers. The labor-related expense per product for Das Work is $30 higher than that for Edge Tech. However, Das Work makes more profits than Edge Tech. In this case, which of the following actions has contributed to the profits made by Das Work?
It produces high quality goods and charges more for these products than competitors.
Which statement is true of a performance bonus?
It should be re-earned by employees during each performance period.
Which of the following is a drawback of a minimum wage in terms of social policy?
It tends to be lower than the earnings required for a full time worker to rise above the poverty level.
What is a drawback of a minimum wage in terms of social policy?
It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.
_____ is an administrative procedure for measuring the relative worth of an organization's jobs.
Job evaluation
_____ provide the basis for decisions about relative internal worth.
Job evaluations
________ is a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values.
Job satisfaction
Which situation is an example of a voluntary turnover?
Lila, an employee at Architect International, is about to resign her job to start her own business.
Sylas, a manager at LiveWell Corp., believes that he can fire Madison, his subordinate, at any time he wishes to do so. Which of the following, if true, would help strengthen Sylas' belief?
Madison does not have a specific employment contract with the company.
_____ play the most significant role in communication because they interact with their employees each day.
Managers
Lydia, a supervisor at Sansen Inc., needs to appraise the performance of her subordinate, Charlie. In the context of performance information, which of the following is the least biased source of information for appraisal and why?
Managers are the least biased source of information for appraisal because their success depends on the employee's productivity
Exempt employees
Managers, outside salespeople, and any other employees not covered by the FLSA requirement for overtime pay.
exempt employees
Managers, outside salespeople, and any other employees not covered by the FLSA requirement for overtime pay.
Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe?
Mark meets higher productivity targets than Chloe.
Trace, a neutral party outside of Integrated Inc., is helping simplify a conflict between two technical teams of the company. Though Trace's solution has no binding power, both teams decided to accept his solution. This is an example of
Mediation
________ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.
Merit pay
________ means pervasive low levels of satisfaction with all aspects of life, compared with other people's feelings.
Negative affectivity
Nick, a highly skilled technician, has been one of the most productive employees at Swank Inc. But after the company went through a downsizing effort, Nick has taken on many more responsibilities and is struggling to keep up. What is the most likely consequence of this situation?
Nick experiences role overload and becomes dissatisfied with his job.
Which of the following is a disadvantage of skill-based pay systems?
No guarantee that employees can use their new skills
Which of the following is true of the Fair Labor Standards Act (FLSA)?
Nonexempt employees are covered by FLSA and include most hourly workers.
Which of the following statements is true about the Fair Labor Standards Act (FLSA)?
Nonexempt employees are covered by FLSA and include most hourly workers.
Which statement is true about the Fair Labor Standards Act (FLSA)?
Nonexempt employees are covered by FLSA and include most hourly workers.
El Niro Inc. is automating processes so the company can meet its demand with a smaller workforce. The CEO asks Megan, the vice president of human resources, for advice on how to address the resulting labor surplus. Megan studies the workforce and observes that many employees are in their 50s and 60s. Furthermore, these employees are the highest-paid workers in every job category. Based on this information, what should Megan suggest as the most effective way of addressing El Niro's labor surplus?
Offer early retirement incentives to the employees in their 50s and 60s.
elements of a high performance work system
Organizational structure, task design, people, reward systems, information systems
Which of the following is true of competition in product-markets?
Organizations in a product market are competing to serve the same customers.
Which of the following statements is true about a product market?
Organizations in a product market are competing to serve the same customers.
Which statement is true about a product market?
Organizations in a product market are competing to serve the same customers.
Which statement is true about job-based pay structures?
Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork.
Which statement is true of the FLSA requirements for overtime pay?
Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours.
Which of the following statements is true of the FLSA requirements for overtime pay?
Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours.
Identify the legal requirement(s) for developing a pay structure.
Overtime pay
Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?
Pay differential
_____ are sets of jobs having similar worth or content, grouped together to establish rates of pay.
Pay grades
_____ is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job.
Pay range
________ is a process for resolving disagreements by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute.
Peer review
Choose the correct statement about personal dispositions.
People with a positive core self-evaluation tend to experience job satisfaction.
Selection
Process by which the organization identifies applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals
Job Design
Process of defining the way work will be performed and the tasks that a given job requires.
Keegan, the human resource manager at R&S Inc., is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Keegan's idea be most valid?
R&S pays more to attract top talent, applying employees' knowledge to be more innovative than competitors.
Keegan, the human resource manager at R&S Inc., is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Keegan's idea be most valid?
R&S pays more to attract top talent, applying employees' knowledge to be more innovative than competitors.
What is a drawback of a comparable-worth policy?
Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
Ryan and Peggy hold the same position at Vineyard Rustica. However, Ryan earns more than Peggy. In the context of pay structure, which statement justifies the organization's decision to pay Ryan more than Peggy?
Ryan works the night shift, and night hours are less desirable for most workers.
_____ means that the employee is paid a given amount regardless of the number of hours worked or quality of the work.
Salary basis
________ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work.
Salary basis
Pay grades
Set of jobs having similar worth or content
Which statement is true about skill-based pay?
Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures.
Which of the following is true about skill-based pay?
Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures.
A pay structure helps an organization achieve goals related to cost control.
T
If state laws specify minimum wages, in addition to the federal level, employees are entitled to receive whichever rate is higher.
T
Under the FLSA, which of the following statements is true of child labor?
The FLSA's restrictions on the use of child labor apply to children younger than 18.
Under the FLSA, which statement is true of child labor?
The FLSA's restrictions on the use of child labor apply to children younger than 18.
pay level
The average amount (including wages, salaries, and bonuses) the organization pays for a particular job.
Veronica is the supervisor of the recruiting department at Kintex Inc. She is currently in charge of filling a few high-demand positions at Kintex Inc. and is planning to poach talent from rival companies, luring their employees away with job benefits. Drew, the HR head of Kintex Inc., however, argues that Veronica's plan will not work. Which explanation is most likely to strengthen Drew's argument?
The candidates are looking for higher pay, not better benefits.
Veronica is the supervisor of the recruiting department at Kintex Inc. She is currently in charge of filling a few high-demand positions at Kintex Inc. and is planning to poach talent from rival companies, luring their employees away with job benefits. Drew, the HR head of Kintex Inc., however, argues that Veronica's plan will not work. Which explanation is most likely to strengthen Drew's argument?
The candidates are looking for higher pay, not better benefits.
At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size?
The company may have difficulty keeping costs under control.
Yoza Inc., a manufacturer of electronic goods, is experiencing financial losses. The company is also facing the problem of a labor surplus due to low demand for its products. In this context, what would be the best way for Yoza Inc. to deal with this labor surplus?
The company must consider downsizing because it is the quickest way to deal with a labor surplus that results in financial losses.
According to the hot-stove rule, which of the following qualities makes discipline more effective?
The consequences for breaking a rule are immediate.
According to the hot-stove rule, which quality makes discipline more effective?
The consequences for breaking a rule are immediate.
GR Designs, a manufacturing company, hires employees ranging in age from 14 to 25. Which practice by GR would ensure that it complies with child labor laws?
The employees aged 14 and 15 work only in office jobs and for limited time periods.
GR Designs, a manufacturing company, hires employees ranging in age from 14 to 25. Which practice by GR would ensure that it complies with child labor laws?
The employees aged 14 and 15 work only in office jobs and for limited time periods.
Mighty Mixers, a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, Mighty Mixers is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following would most likely explain the reason for the company being sued?
The employees of the company are not being paid at rates at least equal to the prevailing wages in the area.
Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, the Cliff Stiff is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following would most likely explain the reason for the company being sued?
The employees of the company are not being paid at rates at least equal to the prevailing wages in the area.
Some employees at Opal Coin, a clothing manufacturer, investigate pay rates on Salary.com and learn that Opal Coin has been paying them significantly more than the national average for
The employees will conclude that there must be regional differences in pay.
Ergo Co. is a manufacturing company based in Texas. In the year after Ergo Co. implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate?
The employer is at an economic disadvantage because of increased pay for some jobs.
Teno Industries Inc. is a manufacturing company based in Texas. In the year after Teno Industries implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate?
The employer is at an economic disadvantage because of increased pay for some jobs.
What is a drawback of setting pay rates based strictly on a pay policy line?
The estimated pay for a job may not reflect conditions in the labor market.
Which of the following is a drawback of setting pay rates based strictly on a pay policy line?
The estimated pay for a job may not reflect conditions in the labor market.
Which of the following statements is true of Equal Employment Opportunity laws?
The goal of these laws is for employers to provide equal pay for equal work.
Which statement is true of equal employment opportunity laws?
The goal of these laws is for employers to provide equal pay for equal work.
Which of the following is a disadvantage of using individual incentive plans?
The goals of an incentive plan may interfere with other management or group goals.
minimum wage
The lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour.
Elliot, a human resource manager, tells managers in his organization that following the system of progressive discipline requires written documentation at every step of the process. In which situation could this be optional?
The manager reminds an employee that a minor first-time offense is against policy.
Fernando, a manager at a top engineering company, believes he can hire a few employees by promising them job security and later terminating them if business slows down. On what grounds could such a termination be considered a wrongful discharge?
The terminations deviate from the promise of job security in the work agreement.
Which statement is true of compensable factors?
They are the characteristics of a job that a firm values and chooses to pay for.
Which of the following is true of compensable factors?
They are the characteristics of jobs that a firm values and chooses to pay for.
What is the advantage of two-tier wage systems?
They cut labor costs without cutting employees' existing salaries.
Which statement is true about standard hour plans?
They encourage employees to work as fast as they can.
What is a disadvantage of broad bands?
They reduce the opportunities for promoting employees.
Which of the following is a disadvantage of broad bands?
They reduce the opportunities for promoting employees.
Thomas and Alex are welders working for two different divisions of the same company. Both have the same level of experience. However, Thomas earns more than Alex. Under the Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to pay Thomas more than Alex?
Thomas lives in a location where living expenses are higher
Deed Manufacturers, a heavy machinery company, has employees belonging to the age group of 17 to 30. Todd, a 17-year-old, is prohibited from working with heavy machinery tools. Instead, he works in the mail room. Under the laws governing Fair Labor Standards Act (FLSA), which statement justifies the organization's decision to forbid Todd from doing heavy machinery work?
Todd cannot be employed in hazardous occupations because he is 17 years old.
Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason?
Top executives' pay is much higher than average workers' pay.
Kelly, a human resource specialist, has been asked to investigate complaints that an employee is bullying co-workers. Kelly is obligated to protect this employee's privacy by ensuring that any information gathered is relevant to the complaint.
True
Outcome fairness involves the ends of a discipline process, while procedural and interactional justice focus on the means to those ends.
True
The Job Descriptive Index is an example of a job satisfaction instrument.
True
The open-door policy is an example of alternative dispute resolution.
True
The principles of justice convey that the organization must prepare for problems by establishing a formal discipline process in which the consequences become severe if the employee repeats the offense.
True
The reward systems of an organization include the performance measures by which employees are judged and the methods of measuring performance.
True
The two primary sets of people in an organization who most affect job satisfaction are co- workers and supervisors.
True
To help employees manage role conflict, employers have sought a number of family-friendly policies.
True
When employees are unclear about work methods, scheduling, and performance criteria because others hold different ideas about these, they are likely to suffer from role ambiguity.
True
Who is the primary collector of pay survey data in the U.S.
U..S Bureau of Labor Statistics
The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.
USERRA
The ________ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.
Uniformed Services Employment and Reemployment Rights Act
Workforce Analytics
Use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals
When employees initiate a turnover, when the organization would prefer to keep them, it is called ________ turnover.
Voluntary
Hameta is a top manager at her current company. However, she is leaving the company for a better job at a competing firm. Which form of turnover is illustrated in this scenario?
Voluntary Turnover
If employers covered by the ________ do not notify the employees (and their union, if applicable) of layoffs, they may have to offer back pay and fringe benefits and pay penalties as well.
Workers' Adjustment Retraining and Notification Act
101. Compa-ratio A. is defined as the ratio of average pay to the midpoint of the pay range. B. is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade. C. can range from 0 to 100 percent. D. uses data from market-pay surveys. E. measures the degree to which new skills learnt are consistent with the increases in pay.
a
103. At Carbon Fine Inc., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size? A. The company may have difficulty keeping costs under control. B. The company may have difficulty attracting and keeping qualified employees. C. The company may be in violation of the Fair Labor Standards Act. D. The company may have misclassified these employees as exempt when they are nonexempt. E. The company may not have met minimum-wage requirements.
a
104. The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years. A. Uniformed Services Employment and Reemployment Rights Act B. Fair Labor Standards Act C. Equal Employment Opportunity Act D. National Labor Relations Board E. Family and Medical Leave Act
a
105. Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason? A. Top executives' pay is much higher than average workers' pay. B. Most of the top executives' pay is in the form of a salary. C. Top executives come under the category of exempt employees. D. Top executives are paid in the form of commissions. E. Executives are denied short-term or long-term incentives with their pay.
a
26. Which of the following will most likely be a result of using an unplanned approach, in which each employee's pay is independently negotiated? A. dissatisfied employees B. equal pay distribution C. rates that are stable D. easy employment E. cost control
a
27. Caroline, a researcher, believes that an organization needs to plan what they will pay employees in each job. Mark, her colleague, argues that an employee's pay should be independently negotiated. Which of the following statements will weaken Mark's argument? A. An unplanned approach will likely result in unfairness and dissatisfaction among the employees. B. Most of the employees prefer planned pay because negotiation with the management takes time. C. Independently negotiated pay will increase the workload and rivalry among the employees. D. When the pay is planned by the organization, it creates more employment opportunities. E. The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated.
a
28. Which of the following best defines an organization's job structure? A. It consists of the relative pay for different jobs within the organization. B. It is the average amount an organization pays for a particular job. C. It comprises the characteristics of jobs that the organization values and chooses to pay. D. It comprises regular pay, overtime pay, and bonuses. E. It refers to the standard amount that employers must pay under federal and state law.
a
33. Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe? A. Mark meets higher productivity targets than Chloe. B. Mark comes from an economically weaker background. C. Mark is male. D. Chloe is younger than Mark. E. Chloe is not a U.S. citizen.
a
34. Ramon Inc., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company. A. comparable-worth policy B. minimum wage policy C. average pay policy D. merit pay policy E. piecework rate policy
a
36. Teno Industries Inc. is a manufacturing company based in Texas. In the year after Teno Industries implemented a comparable-worth policy, its expenses increased, and as a result, profits declined. What difficulty of comparable-worth policies does this example illustrate? A. The employer is at an economic disadvantage because of increased pay for some jobs. B. The policy overlooks the undervalued work performed by women. C. The policy uses job enrichment to establish a pay structure based on market rates. D. The employer ignores the evaluation points for each job. E. Employees in lower-paid jobs are encouraged to meet the goal of comparable worth.
a
38. Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor? A. Fair Labor Standards Act B. Americans with Disabilities Act C. Family and Medical Leave Act D. Employee Retirement Income Security Act E. Equal Pay Act
a
47. Under the FLSA, exempt status of employees depends on their A. job responsibilities and salary. B. organizational commitment. C. job title. D. work experience. E. job qualifications.
a
51. Sapheda Inc., a heavy machinery company, has employees belonging to the age group of 17 to 30. Noah, a 17-year-old, is prohibited from working with heavy machinery tools. Instead, he works in the mail room. Under the laws governing Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to forbid Noah from doing heavy machinery work? A. Noah cannot be employed in hazardous occupations because he is 17 years old. B. Noah is expected to work in a safe environment because he is male. C. Noah is not a U.S. citizen, therefore he is prohibited from working in a hazardous environment. D. Noah has not yet completed college, therefore he should only be given administrative duties. E. Noah comes from an economically weaker background, therefore he is expected to perform clerical duties.
a
56. Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. Soon after, the Cliff Stiff is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following would most likely explain the reason for the company being sued? A. The employees of the company are not being paid at rates at least equal to the prevailing wages in the area. B. Cement industry employees are being paid only 15% above the minimum wage. C. The company hired employees belonging to the age group of 25 to 30, and they are being employed in hazardous environments. D. Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate. E. Employees below the age of 25 are not being hired by the company.
a
61. Das Work and Edge Tech are electronics manufacturing companies competing to serve the same customers. The labor-related expense per product for Das Work is $30 higher than that for Edge Tech. However, Das Work makes more profits than Edge Tech. In this case, which of the following actions has contributed to the profits made by Das Work? A. It produces high quality goods and charges more for these products than competitors. B. It does not provide overtime pay to employees who work more than 40 hours in one week. C. It has recently introduced the comparable-worth policy for employees. D. It provides free home delivery of purchased goods. E. It has a company website where customers can purchase goods online.
a
64. Guangli is a human resource specialist at Quasio Inc., a business consulting company. To support human resource planning, Guangli monitors trends in the Consumer Price Index. In recent months, the CPI has been rising at an increasing rate. What can Guangli predict based on this information? A. A rising cost of living will lead workers in the labor market to seek higher pay. B. A falling cost of living will cause workers to leave the labor market. C. A rise in employment costs will lead companies to demand more labor. D. Competitors in Quasio's product markets will hold wages steady. E. Uncertainty about prices will cause workers to accept lower-paying jobs.
a
68. Trevor, the human resource manager at XTech, is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Trevor's idea be most valid? A. XTech pays more to attract top talent, applying employees' knowledge to be more innovative than competitors. B. XTech intends to charge more for than competitors for the same kinds of products. C. XTech hopes other companies will eventually match XTech's pay scale. D. Labor costs are a large part of XTech's total costs. E. XTech is developing a low-price strategy that will generate more sales.
a
69. Inverness Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which of the following statements is true about Inverness? A. It considers its employees as resources. B. It gives the least importance to profits. C. It is a customer-friendly firm. D. It tries to keep its labor costs minimal. E. It helps employees find higher-paying jobs.
a
71. Capnos Inc., an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which of the following procedures is adopted by Capnos? A. benchmarking B. job evaluation C. regression analysis D. delayering E. pay structuring
a
72. Which of the following U.S. organizations conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees? A. Bureau of Labor Statistics B. Society for Human Resource Management C. American Management Association D. AFL-CIO E. Bureau of Economic Analysis
a
74. Employees' conclusions about equity depend on A. what they choose as a standard of comparison. B. how much money they think the company CEO makes. C. what level of income they believe they should be at by this point in their lives. D. what benefits they receive. E. if they think they can bargain for a higher rate of pay.
a
77. Some employees at Los Amigos Inc., a clothing manufacturer, investigate pay rates on Salary.com and learn that Los Amigos has been paying them significantly more than the national average for their jobs. In this case, which of the following is the most likely reaction of the employees at Los Amigo? A. The employees will conclude that there must be regional differences in pay. B. The employees will be motivated to work much harder. C. The employees will find their jobs less challenging. D. The employees will find a way to increase their outcomes by stealing. E. The employees' attitudes and behaviors will continue unchanged.
a
83. Kazuri Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, which of the following is a practical drawback faced by the company? A. Employees might conclude that the pay rates are unfair. B. Supervisors of the company will expect to receive lower pay because of less responsibility. C. The highly paid employees will likely be dissatisfied because of more work. D. The managers will participate in rotation of responsibilities because they receive lower pay. E. All employees will be categorized as exempt employees.
a
85. Pay ranges are most common for _____. A. white-collar jobs B. piece-rate jobs C. jobs that are covered by union contracts D. automotive workers E. construction workers
a
89. John and Lisa hold the same position at Flyberry Electronics. However, John earns more than Lisa. In the context of pay structure, which of the following justifies the organization's decision to pay John more than Lisa? A. John works the night shift, and night hours are less desirable for most workers. B. John is a U.S. citizen; therefore his pay should be higher than that of non-Americans. C. Lisa is pregnant; therefore her productivity is assumed to be lower. D. John is physically disabled; therefore he should be paid more than Lisa. E. Lisa lives in a location where living expenses are higher.
a
90. Thomas and Alex are welders working for two different divisions of the same company. Both have the same level of experience. However, Thomas earns more than Alex. Under the Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to pay Thomas more than Alex? A. Thomas lives in a location where living expenses are higher B. Alex is younger than Thomas C. Thomas is a U.S. citizen D. Alex is physically disabled E. Alex works the night shift
a
94. Which of the following is a characteristic of delayering? A. It increases an organization's flexibility. B. It increases the opportunities for promoting employees. C. It sets pay according to the employees' level of knowledge. D. It encourages a climate of learning. E. It decreases the flexibility of managers in making assignments.
a
HRM Audit
a formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance - org. documents and customer surveys may be used as measurements
externship
a full-time temporary position at another organization
Pay Policy Line
a graphed line showing the mathematical relationship between job evaluation points and pay rate
Procedural Justice
a judgment that fair methods were used to determine consequences; procedures should be unbiased, based on accurate information and correctable-- also need to take in the viewpoints of everyone involved & be consistent with prevailing ethical standards
Outcome Fairness
a judgment that the consequences given to employees are just; consequences should be consistent, expected & in proportion to the significance of the behavior
sabbatical
a leave of absence from an organization to renew or develop skills
As an incentive to work efficiently, some organizations pay production workers ________, a wage based on the amount they produce.
a piecework rate
Benchmarking
a procedure in which an organization compares its own practices against those of successful competitors
Benchmarking
a process by which a company compares its performance with that of high-performing organizations
Who would be most likely to hear and resolve a case if arbitration is used?
a retired judge
Pay range
a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade
pay range
a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade
Talent Management
a systematic, planned effort to attract, retain, develop, and motivate skilled employees and managers.
Economic theory holds that the most profitable pay level, all things being equal, would be at the
market rate.
What is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases?
broad bands
A company that views employees as resources is most likely to pay the employees _____.
above the market rates
job enlargement
adding challenges or new responsibilities to employees' current jobs
Pay Differential
adjustment to a pay rate to reflect differences in working conditions or labor markets
Pay differentials
adjustment to a pay rate to reflect differences in working conditions or labor markets
pay differentials
adjustment to pay rate to reflect differences in working conditions or labor markets, often offered in the US by geographical location, example is night hours
Open-door policy, peer review, and mediation are methods of
alternative dispute resolution.
Peer review is an example of
alternative dispute resolution.
According to the FLSA, which individual is most likely a nonexempt employee?
an hourly paid production line employee
The differential piece rate system refers to
an incentive pay in which the piece rate is higher when a greater amount is produced.
Gizmo Multimedia Corp. is an organization that follows the process of progressive discipline. The organization communicates with Lyla, an employee, about unacceptable behavior and responds to a series of her offenses. Which step would immediately precede a threat of temporary suspension?
an official written warning
Human Capital
an organization's employees described in terms of their: •training •experience •judgment •intelligence •relationships •insight
What is an example of an alternative dispute resolution method?
arbitration
An organization's job structure and pay levels:
are policies of the organization.
Total quality management
assessment of both individual performance and the system within which the individual works
transfer
assigns an employee to a position in a different area of the company. usually lateral moves
Economic theory holds that the most profitable pay level, all things being equal, would be:
at the market rate.
pay level
average amount the organization pays for a particular job
102. Perlis Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Perlis most likely underpaying for human resources? A. shipping clerks: average salary of $22,000, range midpoint of $24,000 B. inventory clerks: average salary of $20,000, range midpoint of $30,000 C. order packers: average salary of $24,000, range midpoint of $22,000 D. purchasing agents: average salary of $30,000, range midpoint of $20,000 E. warehouse workers: average salary of $20,000, range midpoint of $20,000
b
By combining more assignments into a single layer, organizations give managers more flexibility in making assignments and awarding pay increases which results in:
broad bands.
29. Hamish Life, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler, as well as the difference between an entry-level recruiter, an HR manager, and the vice president of the human resource department. Which of the following is being exemplified in this scenario? A. straight piecework plan B. job structure C. merit pay system D. pay differential E. balanced scorecard
b
31. Which of the following statements is true of equal employment opportunity laws? A. These laws guarantee equal pay for whites and minorities. B. The goal of these laws is for employers to provide equal pay for equal work. C. Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws. D. These laws guarantee equal pay for men and women. E. Under these laws, employers cannot tie differences in pay to business-related considerations.
b
32. Cindy and Alex execute the same roles and responsibilities at their organization. However, Alex earns more than Cindy. Under the laws governing equal employment opportunity, which of the following statements will justify the organization's decision to pay Alex more than Cindy? A. Alex is white, and Cindy is black. B. Alex has more experience than Cindy. C. Cindy has a hearing impairment. D. Men have more stamina, so they can work longer hours. E. Cindy is an immigrant.
b
39. Scorla Automobiles is a manufacturing company based in Nevada. The employees of Scorla are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which of the following laws is the organization abiding by in this scenario? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws
b
40. Pentrall, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 19 years. The rate is applicable for a period of 90 days. In this case, which of the following laws will justify the organization's decision to pay the lower pay? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) provisions for minimum wage C. Fair Labor Standards Act (FLSA) provisions for overtime D. laws governing prevailing wages E. Fair Labor Standards Act (FLSA) provisions for child labor
b
41. Which of the following provisions is included in the Fair Labor Standards Act (FLSA)? A. personal finance B. minimum wage C. wage discrimination D. environmental hazards E. retirement plans
b
54. Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936? A. Under these laws, individuals aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area. C. The overtime rate applies to the hours worked beyond 45 in one week. D. Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days. E. Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate.
b
59. An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets. A. pay rates B. pay structure C. pay differentials D. pay grades E. pay ranges
b
63. Which of the following statements is true about labor markets? A. Organizations compete to sell labor in the labor market. B. Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. C. Changes in the CPI do not affect the labor market. D. Cost-of-living considerations have little impact on labor-market rates. E. An organization's competitors in labor markets only include companies with different products.
b
65. Which of the following statements is true about the Consumer Price Index (CPI)? A. The CPI helps organizations in the product markets decide an upper limit on the pay they will offer. B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. C. The CPI helps organizations lure top-quality employees. D. The CPI helps control labor markets' demand for pay increases. E. The CPI helps organizations to compete with companies in other industries that hire similar employees.
b
67. Economic theory holds that the most profitable pay level, all things being equal, would be at the _____. A. lowest possible level B. market rate C. highest possible level D. mid-range level E. CPI rate
b
73. According to _____, people measure outcomes such as pay in terms of their inputs. A. expectancy theory B. equity theory C. retributive justice theory D. progressive justice theory E. economic theory
b
76. Research on the effects of two-tier wage plans found that A. lower-paid employees were less satisfied on average than higher-paid employees. B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves. C. lower-paid employees expected to be promoted into the second tier in a short time span. D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other. E. both existing employees and new employees have a similar pay rate.
b
78. Triano Brothers, an insurance firm, follows an administrative procedure for measuring the relative worth of its jobs. The organization does this by assembling and training a committee consisting of people familiar with the jobs. The committee includes a human resource specialist and, if the budget permits, an outside consultant is hired. Which of the following is exemplified in this scenario? A. job rotation B. job evaluation C. merit pay system D. job enrichment E. work structure
b
79. Which of the following statements is true of compensable factors? A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for. C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees.
b
81. A pay policy line A. shows the mathematical relationship between the minimum pay and the maximum pay in an organization. B. can be generated using a statistical method called regression analysis. C. requires market-pay-rate data on all jobs in the organization. D. can seldom provide information on the market pay level for a given job evaluation. E. reflects the pay structure in the market, which always matches rates in the organization.
b
84. Which of the following is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job? A. pay grade B. pay range C. pay differential D. compa-ratio E. compensation differential
b
87. Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay. A. pay rates B. pay ranges C. pay policies D. pay differentials E. pay ranks
b
91. Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets? A. bonus B. pay differential C. green-circle rate D. rank-and-file adjustment E. red-circle rate
b
96. Which of the following is the result of combining more assignments into a single layer, thus giving managers more flexibility in making assignments and awarding pay increases? A. outsourcing B. broad bands C. rightsizing D. benchmarks E. downsizing
b
98. Instruck Inc. is a real estate firm based in Colorado. The company ensures that employees' pay is dependent on what they are capable of doing. The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas. This, in turn, ensures job enrichment. Based on this information, identify the pay structure being utilized by Instruck. A. straight piecework plan B. skill-based pay systems C. merit pay system D. differential piece rates E. standard hour plan
b
developmental purpose
basis for developing employees knowledge and skills
Why is incentive pay influential?
because amount paid is linked to certain predefined behaviors or outcomes
The ___ performance management method requires managers to rate the frequency with which an employee has exhibited a behavior during a rating period
behavior observation scale
Ethical Behavior
behavior that is consistent with those principles.
Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?
benchmarking
Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?
benchmarking
The procedure in which an organization compares its own practices against those of successful competitors is known as:
benchmarking.
halo error
bias causes favorable ratings (for individuals only)
horns error
bias causes negative ratings (for individuals only)
Maria and Devin are both data-entry clerks in the same department of a company. On the anniversary of her employment, Maria receives a 2 percent increase in salary. Later that day, while talking to Devin, she learns that on his anniversary, his pay increase was 4 percent. How could the company's supervisor and human resource department best ensure that Maria will perceive outcome fairness in this situation?
by demonstrating that raises of different sizes are associated with differences in performance
43. David earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week? A. $480 B. $600 C. $500 D. $520 E. $250
c
44. Blyrie Pharma is a pharmaceutical company based in Alabama. Blyrie Pharma expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which of the following laws is Blyrie Pharma abiding by in this scenario? A. laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. laws governing prevailing wages E. product market laws
c
45. Which of the following statements is true of the FLSA requirements for overtime pay? A. The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments. B. Time worked includes hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, and so on. C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. D. Everyone is eligible for overtime pay. E. Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.
c
49. According to the FLSA, which of the following individuals is most likely a nonexempt employee? A. the CEO B. a senior administrative employee C. an hourly paid employee D. an HR manager E. the director of marketing
c
53. Under the FLSA, which of the following statements is true of child labor? A. Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Children aged 14 and 15 may not be employed in any work associated with interstate commerce. C. The FLSA's restrictions on the use of child labor apply to children younger than 18. D. Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. E. All the states have laws requiring working papers or work permits for minors.
c
60. Which of the following statements is true about a product market? A. The cost of labor does not affect the product market because it is an insignificant part of an organization's costs. B. Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price. C. Organizations in a product market are competing to serve the same customers. D. Product markets typically place a lower limit on the pay an organization will offer its employees. E. Organizations in a product market must increase the cost of labor every quarter.
c
62. Organizations under pressure to cut labor costs may respond by A. retaining staff levels. B. providing pay increases to prevent employee turnover. C. postponing hiring decisions. D. requiring employees to bear less of the cost of benefits such as insurance premiums. E. avoiding automation of routine tasks.
c
66. Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the A. minimum and maximum wages fixed by the government. B. pay of federal contractors. C. organization's competitive environment. D. quality of employees. E. organization's global reputation.
c
75. Which of the following is an advantage of a two-tier wage system? A. It helps move jobs out of the country. B. It helps eliminate jobs without any legal hassles. C. It helps reduce labor costs without cutting employees' existing salaries. D. It helps provide more pay to new employees. E. It provides better standards for benchmarking.
c
82. Which of the following is a drawback of setting pay rates based strictly on a pay policy line? A. It increases the administrative burden of managing the compensation system. B. Employees have difficulty interpreting regression analysis. C. The estimated pay for a job may not reflect conditions in the labor market. D. It increases the costs of surveying the market. E. It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market.
c
93. Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions? A. It does not focus on setting pay for groups of jobs. B. It does not make adjustments to a pay rate to reflect differences in labor markets. C. It discourages employees from gaining valuable experience through lateral career moves. D. It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills. E. It places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs.
c
95. Joy Limon, a manufacturing company, has a pay structure based on job descriptions. As the company moves toward customizing production to meet customers' specific needs, it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees. In this case, which of the following alternatives to job-based pay structures would best help the organization to respond to this problem? A. straight piecework plan B. skill-based pay system C. delayering D. quality-based pay system E. benchmarking
c
99. Which of the following is a disadvantage of skill-based pay systems? A. It makes organizations inflexible. B. It reduces employee empowerment. C. It may result in paying employees for skills they don't use. D. It reduces opportunities for promoting employees. E. It limits the number of pay levels by delayering.
c
Negative affectivity
means pervasive low levels of satisfaction with all aspects of life, compared with other people's feelings
A pay policy line
can be generated using a statistical method called regression analysis.
A pay policy line:
can be generated using a statistical procedure called regression analysis.
Equal opportunities law say pay:
can't be based on race/religion/gender
protean career
career that frequently changes based in changes in a person's interests, abilities, and values in the work environment
Techniques., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company.
comparable-worth policy
transaction processing
computations and calculations used to review current HRM decisions and practices
Foreign assignments can be highly disruptive to family members, and the resulting role ________ is the top reason that people quit overseas assignments.
conflict
Foreign assignments can be highly disruptive to family members, and the resulting role _____ is the top reason that people quit overseas assignments
conflict
jobstructures
consists of the relative pay for different jobs within the organization
The positive or negative bottom-line views that people have of themselves are known as
core self-evaluations.
The Walsh-Healey Act Public Contracts Act of 1936:
covers all government contractors receiving $10,000 or more in federal funds
The Walsh-Healy Public Contracts Act of 1936
covers all government contractors receiving $10,000 or more in federal funds.
The Walsh-Healy Public Contracts Act of 1936:
covers all government contractors receiving $10,000 or more in federal funds.
The Davis-Bacon Act of 1931
covers construction contractors that receive more than $2,000 in federal money
The Davis-Bacon Act of 1931:
covers construction contractors that receive more than $2,000 in federal money.
Characteristics of training
current focus, use of work experience is low, goal is to prepare for current job, participation required
Conducting personal business online during work hours is called
cyberslacking.
100. Which of the following statements is true about skill-based pay? A. Skill-based pay provides a way to ensure that employees can use their new skills. B. Gathering market data about skill-based pay is easy. C. Skill-based pay ensures that the employer pays the employee for learning skills that benefit the employer. D. Skill-based pay does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures. E. Skill-based pay does not require records related to skills, training, and knowledge acquired.
d
35. Which of the following sentences best describes a situation that comparable-worth policies were designed to address? A. In a manufacturing company, there are no female managers. B. A consumer products company has been sued for racial discrimination. C. An agency works with a supermarket's HR department to design a job that could be held by people with mental disabilities. D. In a city government, positions mostly held by women pay less than positions mostly held by men. E. At a utility company, jobs that involve physical strain and danger pay more than office jobs.
d
46. John is the head of the insurance claims department. John works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which of the following will justify the organization's decision not to give John overtime pay? A. John is not a U.S. citizen. B. John comes from an economically strong background. C. John is unmarried. D. John is considered as an exempt employee. E. John has lower educational qualifications than his subordinates.
d
50. Which of the following statements is true about the Fair Labor Standards Act (FLSA)? A. The overtime rate under the FLSA is two and a half times the employee's hourly rate. B. The FLSA permits federal contractors to pay less than the prevailing wage rate. C. The FLSA permits a subminimum training wage equal to 95% of the minimum wage. D. Nonexempt employees are covered by FLSA and include most hourly workers. E. Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees.
d
55. SalientVision Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30% of the local labor force. In this case, which of the following laws does the company comply with? A. the Lloyd-La Follette Act of 1912 B. the Smith-Connally Act of 1943 C. the Julie Jargon Act of 1940 and the Eric Morath Act of 1945 D. the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936 E. the Humphrey-Hawkins Full Employment Act
d
86. Which of the following statements is true about pay ranges? A. Pay ranges are most common for blue-collar jobs and those covered by union contracts. B. Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points. C. Pay ranges generally are designed so that they do not overlap. D. The market rate or the pay policy line generally serves as the midpoint of a range for the job. E. The less overlap, the more flexibility in transferring employees among jobs.
d
88. Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to A. increase the overlap from one level to the next. B. reduce its compa-ratio to less than 1. C. implement a broadband pay structure. D. limit the overlap from one pay range to the next. E. use a fixed interval promotion policy.
d
92. Which of the following statements is true about job-based pay structures? A. A pay structure that rewards employees for winning promotions will encourage them to gain valuable experience through lateral career moves. B. Their focus on higher pay for higher status can work in favor of efforts for empowerment. C. They typically reward desired behaviors, particularly in a rapidly changing environment. D. Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork. E. They always encourage flexibility, innovation, quality, and customer service.
d
97. Which of the following is a disadvantage of broad bands? A. They reduce managers' flexibility in making assignments. B. They always result in pay decreases. C. They increase the number of levels in the organization's job structure. D. They reduce the opportunities for promoting employees. E. They discourage employees from gaining valuable experience through lateral career moves.
d
52. Spark Inc., a manufacturing company, hires employees ranging in age from 14 to 25. Which of the following practices by Spark would ensure that it complies with child labor laws? A. The employees are all paid the same amount. B. The teenage employees earn a training wage for the first year. C. Only the workers over 20 earn overtime pay. D. All the employees have part-time schedules. E. The employees aged 14 and 15 work only in office jobs and for limited time periods.
e
pay planning
data about pay ranges and potential for future earnings
Customer-oriented approach
define internal customers and determine if their needs are being met
employee engagement
degree to which employees are fully involved in work and strength of commitment to a company. how to get employees to work harder
MTX Co., a manufacturing company, has a pay structure based on job descriptions. As the company moves toward customizing production to meet customers' specific needs, it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees. In this case, which alternative to job-based pay structures would best help the organization to respond to this problem?
delayering
MTX Co., a manufacturing company, has a pay structure based on job descriptions. As the company moves toward customizing production to meet customers' specific needs, it finds that managers are lacking flexibility in both job assignments as well as awarding pay increases to their employees. In this case, which alternative to job-based pay structures would best help the organization to respond to this problem?
delayering
Reducing the number of levels in an organization's job structure is known as:
delayering.
Market data
description of the data used for decision making
decision support systems
designed to help managers solve problems "What if?" feature
paycheck
details bout the individual employee's pay
Subordinate evaluations are the most appropriate to use for which purpose?
developmental
Performance management serves as a basis for improving employees' knowledge and skills. This statement corresponds to which of the following purposes of performance management?
developmental purpose
equal employment opportunity
difference in pay must not be based on employees; age, sex, race, or other protected status
Tucked Inc. is an envelope manufacturer based in Fort Worth. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays more for the work performed. In this case, which incentive is offered by Tucked Inc.?
differential piecework rate
HR dashboard
display HR-related indicators showing goals and objectives, show progress toward meeting organizational goals
What will most likely be the result of using an unplanned approach, in which each employee's pay is independently negotiated?
dissatisfied employees
Corey, a supervisor, needs to rate the performance of 20 subordinates. He uses a rating scale to rate them on a scale of 1 to 10. He rates 18 employees at 5, which leads to central tendency. In the context of types of rating errors, Corey commits a ________ error.
distributional
nonexempt
do have to pay overtime, employees covered by FLSA requirements for overtime pay
exempt employee
do not have to pay them overtime. managers, outside salespeople, and other employees not covered by FLSA requirement
30. Which of the following elements establish an organization's pay structure? A. pay ranges and pay differentials B. cost control and equity C. legal requirements and job descriptions D. individual salaries of its employees E. job structure and pay level
e
37. Which of the following is a drawback of a comparable-worth policy? A. A free-market economy assumes people will not take differences in pay into account when they choose a career. B. Employees may conclude that pay rates are unfair. C. The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate. D. Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure. E. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.
e
42. Which of the following is a drawback of a minimum wage in terms of social policy? A. It assumes people will take differences in pay into account when they choose a career. B. It is one and a half times the employee's usual hourly rate. C. It applies only to the hours worked beyond 40 in one week. D. It places the employer at an economic disadvantage relative to employers that pay the living wage. E. It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.
e
48. _____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work. A. Pay level B. Nonexemption C. Pay policy line D. Piecework rate E. Salary basis
e
In the process of designing incentives, managers should make sure that
employees believe that the pay plan is fair.
Nonexempt employees
employees covered by the FLSA requirements for overtime pay
57. The Davis-Bacon Act of 1931 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. D. covers all government contractors receiving $10,000 or more in federal funds. E. covers construction contractors that receive more than $2,000 in federal money.
e
58. The Walsh-Healy Public Contracts Act of 1936 A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. covers construction contractors that receive more than $2,000 in federal money. D. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing local wage rates. E. covers all government contractors receiving $10,000 or more in federal funds.
e
70. Pay policies are one of the most important human resource tools for A. reducing competition in the product market. B. automating routine activities. C. persuading customers that high quality is worth a premium price. D. making decisions about product pricing. E. encouraging desired employee behaviors.
e
80. Which of the following statements is true about key jobs? A. Organizations usually have no survey data available for key jobs. B. Key jobs are jobs that have highly unstable content. C. Key jobs are jobs that are unique among organizations and are rare to obtain. D. Organizations make the process of creating a pay structure more impractical by defining key jobs. E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.
e
An example of a typical compensable factor is:
education.
Labor market is made up of:
employed+unemployed (adults)
Which term refers to a referral service that employees can make use of to pursue professional treatment for emotional problems or substance abuse?
employee assistance program
Which term refers to a referral service that employees can make use of to pursue professional treatment for emotional problems or substance abuse?
employee assistance program
downward move
employee is given less responsibility and authority
effective performance measures
fit with strategy: support company goals, validity: measure what is intended to, reliability: yield consistent results over time, Acceptability: accepted by those who use it, specific feedback: give specific expectations and methods to achieve goals
HRM audit
formal review of outcomes of HRM functions, staffing, compensation, benefits, training and appraisal, compared against a benchmark to determine if its effective or not
open salary
full disclosure of the organization's pay ranges and salaries paid.
Ethics
fundamental principles of right and wrong.
productivity
getting more done with smaller amount of resources increases company's profits
Besides a discussion of the employee's past behavior, what other topic(s) are most important to include in a performance feedback meeting?
goal setting and a decision about when to follow up
David-Bacon Act and Walsh Healy Public Contracts Act
govern pay policies of federal contractors. federal contractors must pay their employees at rates at least equal to the prevailing wages in the area
A feature of an effective incentive pay plan is that it should
have performance measures linked to the organization's goals.
strategic purpose
helps the organization achieve its business objectives
National Labor Relations Act
helps to protect private sector employees freedom of speech -individually bad-mouthing the boss is NOT protected
characteristics of development
high focus, use of work experience is high, goal is preparation for changes, participation is voluntary
outcomes of high performance work systems
high productivity and efficiency, higher profits, higher product quality, greater customer satisfaction, low employee turnover
Fair Labor Standards Act
holds minimum wage provisions and establishes the requirement for overtime, as well as regulating child labor laws
Economic Theory
holds that the most profitable pay level, all things being equal, would be at the market rate
Which principle of discipline holds that an organization's discipline should give a clear-cut warning and follow up with consistent, objective, and immediate consequences?
hot-stove rule
HR planning
identifying the numbers and types of employees the organization will require.
Pay Equity
if employees conclude that they are under-rewarded, they are likely to make up the difference in one of three ways: 1. They might put forth less effort (reducing their inputs). 2. They might find a way to increase their outcomes (e.g., stealing). 3. They might withdraw (by leaving the organization or refusing to cooperate). -Employees' beliefs about fairness also influence their willingness to accept transfers or promotions.
The top management at Lion Manufacturers decides to search its employees on the job. However, Rajat, Lion's HR manager, believes that it could generate privacy issues. Which condition would strengthen Rajat's belief and maximize the likelihood of a lawsuit?
if the search involves communications, such as e-mails, that are searched without probable cause
The top management at Zion Manufacturers decides to search its employees on the job. However, Raul, Zion's HR manager, believes that it could generate privacy issues. Which of the following would strengthen Raul's belief and maximize the likelihood of a lawsuit?
if the search involves communications, such as e-mails, that are searched without probable cause
The board of directors of LiveCrop Industries is worried about company theft and decides to institute an immediate search of the employees on the job. However, the head of the HR department, Heidi, believes that doing so could maximize the likelihood of a lawsuit due to privacy concerns. Which of the following would strengthen Heidi's belief?
if the search is done only on employees and not supervisors
The board of directors of Nature's Crop is worried about company theft and decides to institute an immediate search of the employees on the job. However, the head of the HR department, Lisa, believes that doing so could maximize the likelihood of a lawsuit due to privacy concerns. Which condition would strengthen Lisa's belief?
if the search is done only on employees and not supervisors
Based on the expectation that two people in conflict should first try to arrive at a settlement together, organizations have a policy of making managers available to hear complaints. Typically, the first "open door" is that of the employee's
immediate supervisor.
Vroom Motors, an automobile company, ties individual performance, profits, and other measures of employees' success to a particular form of pay. This form of pay is influential because the amount paid is linked to certain predefined behaviors or outcomes. What pay structure is exemplified in this scenario?
incentive pay
A pay structure specifically designed to energize, direct, or control employees' behavior is known as
incentive pay.
A pay structure specifically designed to energize, direct, or control employees' behavior is known as:
incentive pay.
The many kinds of incentive pay fall into three broad categories: _____
incentives linked to individual, group, or organizational performance.
product market
includes organizations that offer competing goods and services
Henry, an employee at Marine Corp., is known for his short temper. One morning, he gets into a heated argument with one of his supervisors and responds with hostility. Rather than immediately terminating Henry, his manager, Evelyn, calls him in for a discussion. Evelyn treats Henry with dignity and respect, listening to what he has to say about the incident. This scenario can be best categorized as one that uses
interactional justice.
4 approaches to employee development
interpersonal relationships, formal education, job experiences, assessment
Fresher Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Fresher Inc. most likely underpaying for human resources?
inventory clerks: average salary of $20,000, range midpoint of $30,000
Perlis Inc. is a whole-foods distributor. Its human resource department gathers the following data for computing compa-ratios of some positions. Based on the data, for which position is Perlis most likely underpaying for human resources?
inventory clerks: average salary of $20,000, range midpoint of $30,000 Correct
Terminating an employee for the use of illegal drugs is an example of a(n) ________ turnover.
involuntary
Bella, an employee at Lavender Holdings, was suspended for two weeks for drug use. Six months later, she was fired from the job because her productivity did not show any improvement even after undergoing treatment for drug use. Which of the following is the form of discharge experienced by Bella?
involuntary turnover
Ryan, an employee at GoBiz Inc., is known for his short-tempered and argumentative nature. During a heated exchange at work one day, Ryan makes a derogatory gesture toward his manager, which causes Ryan to be fired. This scenario is an example of
involuntary turnover.
Compa-ratio:
is defined as the ratio of average pay to the midpoint of the pay range
Compa-ratio
is defined as the ratio of average pay to the midpoint of the pay range.
Drawbacks of pay rates
it results in some jobs being underpaid and some jobs being overpaid
HRM Practices
job design, recruitment and selection, training, performance management, compensation
The aspects of a task—namely the complexity of the task, the degree of physical strain and exertion required, and the value an employee places on the task—have particular significance when they are viewed as linked to
job dissatisfaction.
Gerome starts out at a new company as a sales person. After a few years, he becomes known as a reliable and hard-working employee. His boss asks Gerome to be a mentor to new sales representatives. What type of employee development is Gerome experiencing?
job enlargement
job assignments
job enlargement, job rotation, transfer, promotion, downward move, externship, sabbatical
Under the FLSA, exempt status of an employee depends on his/her:
job responsibilities and salary.
Under the FLSA, exempt status of employees depends on their
job responsibilities and salary.
Ring Associates, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler, as well as the difference between an entry-level recruiter, an HR manager, and the vice president of the human resource department. What is being exemplified in this scenario?
job structure
Which element establishes an organization's pay structure?
job structure and pay level
When conducting a workplace search, employers can act fairly and minimize the likelihood of a lawsuit by
justifying that the organization has work rules that provide for searches.
Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to
limit the overlap from one pay range to the next.
Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want to:
limit the overlap from one pay range to the next.
Research on the effects of two-tier wage plans found that
lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves.
Research on the effects of two-tier wage plans found that
lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves.
Research on the effects of two-tier wage plans found that:
lower-paid employees were more satisfied on average than higher-paid employees since they made comparisons with lower-paying alternatives for themselves.
To improve job satisfaction, organizations can
make jobs more complex.
Ray, the CEO of Textiles Inc., believes the goals of the company must be divided into smaller departmental and individual goals, and the accomplishment of these smaller goals will result in accomplishment of the bigger goals of the company. In the context of measuring performance results, Ray's belief can be best justified using _____
management by objectives (MBO)
Andrew, an employee at Fulton Corp., arrives late at the office on a Monday morning due to a personal emergency. His manager fires him, although this was the first instance of Andrew arriving late at work. Andrew is upset because some of his other co-workers are chronically late to work, but they have not been fired. In this scenario, Andrew would conclude a lack of ________ in dealing with employees who arrive late at work.
outcome fairness
Destiny is an employee at ColorBlock Inc. She loves gossiping about her colleagues during office hours, which causes her to receive a reprimand by her supervisor, Alfonso. A few days later, Alfonso fires Colt, another subordinate, from work for a similar reason. The employees reporting to Alfonso are most likely to conclude he demonstrates a lack of ________ in dealing with employees who gossip at work.
outcome fairness
Franco, an employee at Fundz Corp., arrives late at the office on a Monday morning due to a personal emergency. His manager fires him, although this was the first instance of Franco arriving late at work. Franco is upset because some of his other coworkers are chronically late to work, but they have not been fired. In this scenario, Franco would conclude a lack of _____ in dealing with employees who arrive late at work.
outcome fairness
People's perception of ________ depends on their judgment that the consequences of a decision to employees are just.
outcome fairness
Ricky reprimanded five of his employees for coming to work drunk after a lunch outing. The next week, Ricky fired another employee for being drunk at work. The employees under Ricky can conclude a lack of ________ in dealing with employees being drunk at work.
outcome fairness
Zahra is an employee at Colorz Inc. She loves gossiping about her colleagues during office hours, which causes her to receive a reprimand by her supervisor. A few days later, the same supervisor fires Gunther, another subordinate, from work for a similar reason. The employees reporting to this supervisor are most likely to conclude the supervisor demonstrates a lack of _____ in dealing with employees who gossip at work
outcome fairness
OutCode Inc. is an organization that tries to avoid the potential for violence or a lawsuit each time an employee is asked to leave the company. It does this by having the former employees meet with a specialized member of the HR staff to discuss their feelings while also getting help to find a new job. Which strategy does OutCode Inc. use in this scenario?
outplacement counseling
Sean has just been discharged from his job after the company he was working for started downsizing. Confused about his state of joblessness, Sean threatens to sue the company for reparations. Which program can help the company avoid such situations from exiting employees?
outplacement counseling
Vincent has just been discharged from his job after the company he was working for started downsizing. Confused about his state of joblessness, Vincent threatens to sue the company for reparations. Which of the following programs can help the company avoid such situations from exiting employees
outplacement counseling
Vincent has just been discharged from his job after the company he was working for started downsizing. Confused about his state of joblessness, Vincent threatens to sue the company for reparations. Which of the following programs can help the company avoid such situations from exiting employees?
outplacement counseling
Michelle, a professional counselor, is asked to talk to an ex-employee of GearTech Corp. about his performance issues. Michelle talks to this ex-employee about his grief and fear, as well as some strategies for finding a new job. Which role is Michelle performing?
outplacement counselor
After an organization downsizes, it may expect much of its remaining employees. This high expectation and demand occur in a state of role ________ for the employees.
overload
A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.
pay differential
What is an adjustment to a pay rate to reflect differences in working conditions or labor markets?
pay differential
The amount of income linked to each job is called the
pay level.
pay structure
pay policy from job structure and pay level decisions
A graphed line showing the mathematical relationship between job evaluation points and pay rate is termed as a(n):
pay policy line.
What is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job?
pay range
What is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job?
pay range
Overlapping _____ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.
pay ranges
Overlapping ________ give the organization more flexibility in transferring employees among jobs, because transfers need not always involve a change in pay.
pay ranges
skill-based pay systems
pay set according to employee's level of skill or knowledge, appropriate where changing technology requires employees to continually widen and deepen their knowledge
An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets.
pay structure
An organization's choices about ________ are limited by its response to the economic forces of product markets and labor markets.
pay structure
Decisions about how to respond to the economic forces of product markets and labor markets limit an organization's choices about:
pay structure.
Anita is very dissatisfied with her job situation, but she does not perceive any other employment opportunities, so she stays and spends most of the workday dreaming about non- work matters. What is Anita experiencing?
psychological job withdrawal
methods of assessment
psychological profiles, assessment centers, performance appraisals
Holly refuses her employer's request to falsify the contents of a report to the Equal Employment Opportunity Commission (EEOC). The employer subsequently discharges Holly for "not following orders." Identify the exception to the employment-at-will doctrine that Holly is likely to choose when she files a wrongful discharge suit.
public policy
Liz refuses her employer's request to falsify the contents of a report to the Equal Employment Opportunity Commission (EEOC). The employer subsequently discharges Liz for "not following orders." Identify the exception to the employment-at-will doctrine that Liz is likely to choose when she files a wrongful discharge suit.
public policy
Matt is employed as a supervisor at Total Charge Industries. However, he gets fired from his job when he refuses to break local laws and discharge harmful chemicals from the company's production facility into a nearby river. Matt files a wrongful discharge suit Total Charge Industries. Which exception to the employment-at-will doctrine is Matt likely to choose when filing his suit?
public policy
What does an employer violate when it terminates an employee for refusing to do something unethical, unsafe, and illegal?
public policy
Which of the following does an employer violate when it terminates an employee for refusing to do something unethical, unsafe and illegal?
public policy
Drawback of comparable-worth policy
raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate
hourly wage
rate of pay for each hour worked
salary
rate of pay for each week, month, or year worked
piecework job
rate of pay per each unit produced
Piecework Rate
rate of pay per unit produced
piecework rate
rate of pay per unit produced
contrast error
rater comparers individual not against objective standard but against other employees
distributional error
rater uses only part of the rating scale. leniency, strictness, and central tendency
compa-ratio
ratio of average pay to the midpoint of pay range, if average equals midpoint, CR is 1, if CR is greater than 1 the average pay is above midpoint, if CR is below the midpoint
Compa-ratio
ratio of average pay to the midpoint of the pay range
costs of voluntary turnover
recruiting, selecting, and training employees, loss of productivity, loss of talented employees
costs of involuntary turnover
recruiting, selecting, training replacements, loss of productivity, lawsuits, workplace violence
delayering
reducing number of levels in organizations job structure, more assignments combined in to single layer called a broad band, more emphasis on acquiring experience not promotions
Delayering
reducing the number of levels in the organization's job structure, creating broad bands of jobs with a pay range for each
job structure
relative pay for different jobs within organization
Lily, a manager at Pyramid Inc., uses a rating tool to evaluate the performance of her subordinates. However, she finds that the scale she used did not yield consistent results and could not determine if a change had taken place in the performance of the employees. Which of the following was lacking in the rating scale
reliability
After Fran, a human resource manager, hears reports that some employees are drinking liquor on the job, she arranges to conduct a random search for evidence. Which action would be the most appropriate way for Fran's company to act fairly regarding employees' privacy in this scenario?
requesting consent before gathering information
A drawback of pay rates is that they:
result in some jobs being underpaid and others being overpaid.
Talent poaching makes it difficult for companies to
retain their top performers.
Skill-based pay
rewarding employees according to their knowledge and capabilities- encourages employees to be more flexible and adapt to changes in tech.
Whats included in a high performance system
right combo of people, technology & org. structure that makes full use of resources and opportunities in achieving its goals
The ________ is a process of formally identifying expectations associated with a role.
role analysis technique
Venus is concerned about an unacceptable level of job dissatisfaction among a number of work teams in her organization. She has determined that the primary cause of the dissatisfaction is the uncertainty that exists among employees regarding what is expected of them. Based on this limited information, the most appropriate intervention would be
role analysis technique.
The job characteristics that an organization deems valuable and decides to pay for are called compensable factors.
t
Braden was recently told by senior management that they expected him to exercise more authority and leadership with his work group. Just two days prior to that, his team told him that while they appreciated the initiative he demonstrated, they expected him to be less authoritative and more democratic in the future. The term that best describes what Braden is experiencing is
role conflict
Heidi is a single mother who works full-time and attends to the needs of her two young children. She often feels a lot of pressure in balancing her work and looking after her children. What is Heidi experiencing?
role conflict
Braden was recently told by senior management that they expected him to exercise more authority and leadership with his work group. Just two days prior to that, his team told him that while they appreciated the initiative he demonstrated, they expected him to be less authoritative and more democratic in the future. The term that best describes what Braden is experiencing
role conflict.
Carol is a single mother who works full-time and attends to the needs of her two young children. Carol has opted to work from home for a short period after one of her children suffered a fractured arm while playing soccer. Even though she works from home she often feels a lot of pressure in balancing her work and looking after her children. Which of the following is being experienced by Carol?
role overload
Piecework rate plans are most suited for
routine jobs.
When in situations they dislike, employees with positive core self-evaluation tend to
seek change in socially acceptable ways.
Promoting employee engagement is a way to improve all of the following EXCEPT
self-evaluations.
Outplacement counseling programs are
services in which professionals try to help dismissed employees manage the transition from one job to another.
Outplacement counseling programs are:
services in which professionals try to help dismissed employees manage the transition from one job to another
Outplacement counseling programs are
services in which professionals try to help dismissed employees manage the transition from one job to another.
pay ranges
set of possible pay rates defined by a minimum, maximum and midpoint of pay for employees holding a particular job or a job within a particular pay grade, usually pay ranges overlap somewhat
pay grades
sets of jobs having similar worth or content grouped together to establish rates of pay, may not match market rate. example the dwayne johnson being payed way more than other actors because of his success and skill
pay grades
sets of jobs having similar worth or content, grouped together to establish rates of pay
making comparisons
simple ranking, forced-distribution method, paired-comparison method
Heightened Homes is a real estate firm based in Texas. The company ensures that employees' pay is dependent on what they are capable of doing. The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas. This, in turn, ensures job enrichment. Based on this information, identify the pay structure being utilized by Heightened Homes.
skill-based pay systems
Instruck Inc. is a real estate firm based in Colorado. The company ensures that employees' pay is dependent on what they are capable of doing. The company also supports efforts to empower its employees by encouraging them to be independent and to make decisions in various areas. This, in turn, ensures job enrichment. Based on this information, identify the pay structure being utilized by Instruck.
skill-based pay systems
Saturn Systems, an information technology company, determines that most problems handled by employees at its help desk can be resolved within 20 minutes. The company sets 20 minutes as the standard time for resolving a customer problem. If an employee solves a customer's problem in less than 20 minutes, the employee still earns 20 minutes' worth of wages. Which payment method does this scenario illustrate?
standard hour plan
Trent owns and manages a small electronics repair store. He determines the time required by his employees to complete each task assigned by him. When employees complete the repairs in less time, they receive an amount of pay equal to that time determined by him. In this scenario, Trent is using a
standard hour plan.
relational database
store data in separate files; linked by common elements, can track employee benefit costs, training courses, compensation
Wayne Inc., a health insurance company, pays clerks an incentive based on the average amount of work completed per hour. Wayne pays $10 for processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Wayne pays the same rate per invoice no matter how many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate?
straight piecework plan
An employee at CellWorld who produces 10 phone components in an hour earns $9 ($0.90 ×10) per hour, while another employee who produces 15 components earns $13.50 ($0.90 ×15). This is an example of a
straight piecework plan.
3 purposes of performance management
strategic, administrative, developmental
Bill rates all of his employees very low except for Jan. Bill gives Jan above average ratings because she consistently comes to work on time. Bill makes the rating errors of _____ for his team and of _____ for Jan.
strictness; halo
The two types of people in the organization who most affect an individual's job satisfaction are
supervisors and co-workers.
learning organization
supports lifelong learning by enabling employees to acquire and share knowledge
Paying a salary does not necessarily mean that a job is exempt from overtime pay
t
characteristics of high performance
teams perform work, employees participate in selection, employees receive formal performance feedback, ongoing training is emphasized and rewarded, employees' rewards and compensation relate to financial performance, equipment and work processes and flexibility, employees participate in planning changes, work designs allow employees to use variety of skills, employee understands job and their contribution, ethical behavior is encouraged
The ___ approach to performance feedback is used most by managers
tell-and-sell
With which step does the progressive discipline process end?
termination
The pay ration reporting policy, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, requires that companies report the ratio of their average worker's pay to that of
the CEO.
Quey Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30 percent of the local labor force. In this case, which law does the company comply with?
the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
Quey Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30 percent of the local labor force. In this case, which law does the company comply with?
the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
Mariah found out that a friend of hers, Joanne, who has a similar job in the same town makes significantly more money than she does. Which of the following is probably a cause of this difference in pay?
the companies are in different product markets with different pay strategies, mariah's job is nonexempt, Joanne's job involves extensive use of computers
In the role analysis technique, role occupant refers to
the employee who fills a role in the organization.
Which is true about equal employment opportunity laws
the goal of these laws is for employers to provide equal pay for equal work
Who has the main responsibility of developing a formal discipline process for the workplace?
the human resource department
In a company's merit pay program, an individual's compa-ratio represents
the individual's pay relative to company's average pay for that position.
Paying at ___ will keep employees for the longest
the market rate
As a predictor of job dissatisfaction, nothing exceeds
the nature of the task itself.
Pay Structure
the pay policy resulting from job structure and pay-level decisions
pay structure
the pay policy resulting from job structure and pay-level decisions
Interactional Justice
the perceived degree to which an individual is treated with dignity, concern, and respect- taking employees feelings into account
Recruitment
the process through which the organization seeks applicants for potential employment
Compa-ratio
the ratio of average pay to the midpoint of the pay range good ratio: close to 1
An organization's job structure consists of:
the relative pay for different jobs within the organization.
Employees are satisfied with their jobs as long as they perceive that
their jobs meet their important values.
ways to reduce errors
training such as, rate fictional employees, study actual examples of various performances, focus on complex nature of employee performance
Zohrina is a top manager at her current company. However, she is leaving the company for a better job at a competing firm. Which of the following forms of turnover is illustrated in this scenario?
voluntary turnover
administrative purpose
ways in which organizations use the system to provide information for day-to-day decisions
Employees' conclusions about equity depend on
what they choose as a standard of comparison.
When employees cannot work with management to make changes, they may engage in ________, taking their charges to the media in the hope that if the public learns about the situation, the organization will be forced to change.
whistle-blowing
Pay ranges are most common for _____.
white-collar jobs
Pay ranges are most common for
white-collar jobs.
If employers covered by the ___ do not notify the employees (and their union, if applicable) of layoffs, they may have to offer back pay and fringe benefits and pay penalties as well
worker's adjustment retraining and notification act
labor market
workers prefer higher-paying jobs and avoid employers that offer less money for the same type of job
ethical system include
written code of ethics, reinforcement of ethical behavior, performance measures including ethical standards, channels for employees to seek help, training in ethical decision making
Internal Labor Force
•An organization's workers includes its employees and people who have contracts to work at the organization