MNGT360 Chapter 11
As per the Fair Labor Standards Act, the current minimum wage stands at _____.
$7.25 per hour
Which of the following refers to a procedure in which an organization compares its own practices against those of the competition?
Benchmarking
Which of the following is true of broad bands?
Broad bands with greater range spread lead to weaker budgetary control.
_____ is a public policy that focuses primarily on advocating remedies for any undervaluation of women's jobs.
Comparable worth
Which of the following pays is similar to pay structures based on individual characteristics such as skill or knowledge but usually refers to a plan that covers exempt employees?
Competency-based pay
Which of the following hypotheses argues that women were historically restricted to entering a small number of occupations, and as a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations?
Crowding hypothesis
Athen Tech., a software company, changed its pay structure from 3,000 job titles and 12 pay grades to a simpler structure with 1,000 jobs and 5 pay grades. The managers were then asked to choose pay levels that were based on the market. This is an example of _____.
Delayering
_____ refers to the process of reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases.
Delayering
The Executive Order 11246 is enforced by the _____.
Department of Labor
Which of the following theories describes the conditions when the benefits of higher pay outweigh higher costs?
Efficiency wage theory
Which of the following theories states that pay influences worker productivity?
Efficiency wage theory
Which of the following is true about pay?
Employees attach great importance to pay decisions when they evaluate their relationship with the organization.
Which of the following occupations is exempt from the Fair Labor Standards Act (FLSA)?
Executives
_____ allows women and minorities to come within sight of the top echelons of management, but not advance to them.
Glass ceiling
Which of the following statements is true about the Fair Labor Standards Act (FLSA)?
It exempts executive, professional, and administrative occupations from FLSA coverage.
Which of the following is true of skill-based pay?
It helps in making alternative arrangements for employee turnover.
Which of the following is true of external equity pay comparison?
It influences decisions of employees of whether to stay or move to another organization.
Which of the following best describes gross domestic product?
It is the total output of an economy.
Which of the following is a disadvantage of skill-based pay?
It may give rise to large new labor costs but with little payoff.
Which of the following is a disadvantage of the pay grade approach?
It might give rise to some jobs being underpaid and some being overpaid.
Which of the following is true of the pay grade approach to developing a pay structure?
It permits greater flexibility in moving employees from job to job.
Which of the following best describes a broad band in job-based pay structures?
It refers to the wider grouping of jobs accomplished through delayering.
Which of the following is true of a job-based pay structure?
It reinforces a top-down decision making process.
Which of the following observations is true about the equity theory?
It suggests that people evaluate the fairness of their situations by comparing them with those of other people.
Which of the following is the primary focus of the Title VII of the Civil Rights Act?
It supports equal pay for jobs of equal value.
Which of the following administrative tools is used by organizations to design job structures?
Job evaluation
Which of the following is an administrative procedure used to measure internal job worth using measurable factors?
Job evaluation
Which of the following is typically used to measure pay equity?
Job evaluation
Which of the following is a likely consequence of an internal equity perception?
Job rotation
Which of the following is true of labor market competition?
Labor market competition places a lower bound on pay levels.
A firm that has a manufacturing unit in China considers shifting production to Cambodia. Which of the following would be a possible reason for it to not shift the production base?
Lesser skilled labor in Cambodia
Which of the following is the most widely used method in job evaluation that yields scores for each compensable factor?
Point-factor system
Which of the following concepts addresses the fact that different employees in the same job may have different pay rates?
Rate ranges
Which of the following is a likely consequence of external equity perception?
Retention
Which of the following pay structures would a company adopt, if it wants to adopt a pay structure that rewards employees based on their knowledge and competency?
Skill-based pay approach
According to the study by Peter Cappelli and Peter Sherer, which of the following is true of two-tier wage plans?
The lower-tier employees are more satisfied despite being paid less money for the same work.
Which of the following is the definition of compensable factors?
They are the characteristics of jobs that an organization values and chooses to pay for.
Which of the following is true of non key jobs?
They are unique to organizations.
Which of the following is true of key jobs?
They can be used in pay surveys.
Which of the following is an example of an equal employment opportunity regulation that prohibits sex- and race-based differences in employment outcomes such as pay, unless justified by business necessity?
Title VII of the Civil Rights Act
During the recent financial crisis, the U.S. government, as part of the _____, decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.
Troubled Asset Relief Program (TARP)
Which of the following acts requires federal contractors to pay employees no less than the prevailing wages in the area?
Walsh-Healy Public Contracts Act
Which of the following is true of the point-factor system?
When a priori weights method is used, factors are weighted using expert judgments.
The Walsh-Healy Act covers:
all government contractors receiving $10,000 or more in federal funds.
Labor market comparisons are more important than product market comparisons when:
attracting and retaining qualified employees is difficult.
The _____ is an index of the correspondence between actual and intended pay.
compa-ratio
The Davis-Bacon Act covers:
construction contractors receiving federal money of more than $2000.
External equity pay comparisons focus on what:
employees in other organizations are paid for doing the same general job.
According to the Fair Labor Standards Act,
employees should be paid at the rate of one and a half times their hourly rate for overtime worked beyond 40 hours in a week.
Job-based pay structure:
encourages a lack of initiative on the part of employees.
According to the _____, a person compares her own ratio of perceived outcomes to perceived inputs to the ratio of a comparison other.
equity theory
The two-tier wage plan supports the _____ through its focus on the way employees compare their pay with other jobs and the need for managers to take this into consideration.
equity theory
The Fair Labor Standards Act (FLSA):
established a minimum wage for jobs.
Internal equity pay comparison is:
focused on what employees within the same organization but in different jobs are paid.
Organizations use benchmarking primarily to compete:
for talent.
A _____ system is composed of compensable factors and a weighting scheme based on the importance of each compensable factor to the organization.
job evaluation
_____ refers to the relative pay of jobs in an organization.
job structure
Product market comparisons that focus on labor costs are likely to deserve greater weight when:
labor costs represent a large share of total costs.
Under the _____ approach, jobs of similar worth or content are grouped together for pay administration purposes.
pay grade
The average compensation--including wages, salaries and bonuses--- of jobs in an organization is called the ___
pay level
The _____ is a mathematical expression that describes the relationship between a job's pay and its job evaluation points.
pay policy line
______ refers to the relative pay of different jobs and how much they are paid.
pay structure
Which of the following is part of cash compensations offered to employees?
stock options
Compensable factors are employee's job characteristics that:
the company is willing to pay for.
Which of the following is part of benefits offered to employees?
unemployment compensation