46) Which of the following terms refers to a systematic comparison done in order to determine
the worth of one job relative to another?
A) job analysis
B) job evaluation
C) job description
D) job classification
47) Which of the following is NOT one of the compensable factors emphasized in the Equal Pay
Act?
A) skills
B) accountability
C) responsibility
D) working conditions
48) Central basic factors that establish how several jobs compare to one another and that
determine the pay for each job are called ________.
A) compensable factors
B) job evaluation factors
C) ranking factors
D) analysis factors
49) In most cases, the majority of the voting members on a job evaluation committee are
________.
A) managers
B) employees
C) HR specialists
D) union representatives
50) Which of the following is NOT one of the typical methods used by job evaluation
committees to determine the worth of a job?
A) ranking
B) point method
C) job classification
D) paired comparison
51) When using the job evaluation method of job classification, raters categorize jobs into groups
of similar jobs called ________.
A) classes
B) sections
C) grades
D) cohorts
52) Which of the following best describes the point method of job evaluation?
A) ranking each job relative to all other jobs based on pay grade
B) categorizing jobs into grades and classes based on specific rules
C) deciding which jobs have a higher number of compensable factors
D) identifying and quantifying the compensable factors present in a job
53) Which job evaluation method is a quantitative technique involving the identification of
several compensable factors and the degree to which each of these factors is present in the job?
A) ranking method
B) point method
C) job grading method
D) job classification method
54) Which job evaluation method is used by most modern employers?
A) job classification method
B) job grading method
C) ranking method
D) point method
55) What are the two primary components of computer-aided job evaluations?
A) compensable factors and benchmark jobs
B) grade definitions and factor comparisons
C) structured questionnaires and statistical models
D) structured questionnaires and grade definitions
56) A ________ is comprised of jobs of approximately equal difficulty or importance as
established by job evaluation.
A) wage curve
B) benchmark
C) pay grade
D) class
57) Which of the following shows the relationship between the value of the job and the average
pay for this job?
A) benchmark
B) pay grade
C) scatter plot
D) wage curve
58) The purpose of the wage curve is to ________.
A) show the relationship between the value of the job and the current average pay rates
B) equate jobs of similar difficulty or importance as established by job evaluation
C) choose benchmark jobs within each pay grade
D) cluster jobs into logical groupings
59) Phil, the owner of Eastline Electronics, recently learned that the current rate being paid for
the position of engineering assistant at his firm falls significantly below the wage line. Which of
the following steps should Phil most likely take to correct this problem?
A) enact a pay freeze for that job
B) assess a decrease in wages
C) pay a one-time bonus
D) provide a pay raise
60) Which of the following terms refers to a series of steps or levels within a pay grade?
A) pay metric
B) pay range
C) wage class
D) wage curve
61) Richard was recently offered a position as vice president of marketing at a national retail
chain. As a top executive at the firm, Richard will most likely be compensated with all of the
following EXCEPT ________.
A) stock options
B) pension plans
C) sales commissions
D) supplemental life insurance
62) What is the primary purpose of offering an executive stock options in a compensation
package?
A) providing the executive with guaranteed bonuses
B) encouraging the executive to increase the firm’s value
C) enabling the firm to decrease the executive’s base pay
D) offering the executive long-term retirement security
63) A company using competency-based pay compensates employees for all of the following
EXCEPT ________.
A) behaviors
B) job title
C) knowledge
D) skills
64) Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the
past few years, the company’s market share has dropped significantly, and employee turnover has
increased. Upper management is considering the implementation of a new compensation policy
in its efforts to turn the company around. Historically, the company has paid all employees
similarly with some variation for seniority but no distinction between high and low performers.
Which of the following, if true, best supports the decision by Homelife executives to implement
competency-based pay?
A) Homelife will be using the comparable worth method of determining pay to avoid legal
problems.
B) Most Homelife managers are men, but executives hope to increase the number of minority
women working for the company.
C) Homelife plans to organize employees into teams, provide regular training, and frequently
assess workers’ skills and knowledge.
D) In an effort to save money, Homelife will be reducing the employee training budget over the
next three years.
65) ________ means collapsing salary grades and ranges into just a few wide levels, each of
which contains a relatively wide range of jobs and salary levels.
A) Comparable worth
B) Job evaluation
C) Broad banding
D) Job grading
66) Which of the following terms refers to the requirement to pay men and women equal wages
for jobs of roughly equivalent value to the employer?
A) strategic compensation
B) comparable worth
C) broad banding
D) job grading
67) Which of the following job evaluation methods is associated with almost every comparable
worth lawsuit?
A) job classification method
B) job grading method
C) ranking method
D) point method
68) According to many experts, which of the following would most likely reduce the wage gap
between men and women?
A) education
B) union intervention
C) federal legislation
D) competency-based pay
69) Which of the following questions is most relevant to developing a market competitive pay
system?
A) What is the ranking of each job?
B) What is the relevant labor market?
C) What percentage of workers are contingent?
D) What are the local and federal pay regulations?
70) Which of the following is LEAST likely a benefit of using competency based pay?
A) supporting a firm’s talent management process
B) developing an efficient and legally defensible wage curve
C) aiding in the implementation of a high-performance work system
D) encouraging the development of skills needed for a firm’s strategic goals
71) Financial benefits like employer-paid insurance and vacations are not a part of employee
compensation.
72) Indirect payments that contribute to an employee’s compensation include variable pay like
commissions and bonuses.
73) Direct financial payments may be based on increments of time and on performance.
74) Performance-based pay is more popular than time-based pay among most employers in the
U.S.
75) According to the Davis-Bacon Act, when employees work more than 40 hours per week,
employers must pay overtime at a rate of at least one-and-a-half times the normal pay for any
hours worked over 40 in a workweek.
76) Employers prefer to give time off in lieu of overtime pay because they only have to grant the
same number of hours off as the employee worked overtime, while overtime pay is calculated at
150% of normal pay.
77) Because the minimum wage is set by the Fair Labor Standards Act, there is no variation from
state to state in the minimum wage paid to hourly workers.