118. Red circle rates above the maximum for the range can result because:
a.
promotional opportunities are plentiful.
b.
employees have high seniority.
c.
employees are demoted.
d.
grades are added to the range.
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
119. The predominant approach to employee compensation is:
a.
pay-for-performance.
b.
competence-based pay.
c.
job-based pay.
d.
individual contract.
c
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
120. Compensation programs that compensate employees for the knowledge they possess are known as:
a.
competence-based pay plans.
b.
performance-based pay plans.
c.
merit-based pay plans.
d.
seniority-based pay plans.
a
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
121. _____ is a pay system in which employees are paid according to the number of units they produce.
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
a.
Piecework
b.
Hourly work
c.
Non-exempt work
d.
Exempt work
122. One of the basis for compensation centers on whether employees are classified as nonexempt or exempt under the
_____.
a.
b.
c.
d.
Easy
MGHR.SNEL.17.9-1 – MGHR.SNEL.17.9-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
123. Which of the following is NOT an internal factor affecting the pay mix?
a.
Worth of job
b.
Cost of living
c.
Employer’s ability to pay
d.
Employee’s relative worth
Easy
MGHR.SNEL.17.9-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
124. The biggest challenge with competence-based pay is:
a.
encouraging employees to take advantage of it.
b.
reduction in organizational flexibility.
c.
loss of productivity.
d.
developing appropriate measures of skills and competencies.
a
Easy
MGHR.SNEL.17.9-1 – MGHR.SNEL.17.9-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
125. Collapsing many salary grades into a few wide salary bands is known as:
a.
red circling.
b.
broadbanding.
c.
pay ranging.
d.
factor comparison.
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
126. ____ helps eliminate the obsession with grades and, instead, encourages employees to move to jobs they can develop
in their careers and add value to the organization.
a.
Red circling
b.
Broadbanding
c.
Pay ranging
d.
Factor comparison
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
127. In a 2010 survey of more than 1,000 entrepreneurs, _____ of all small businesses in the United States had to make
pay cuts.
a.
10 percent
b.
35 percent
c.
50 percent
d.
65 percent
Moderate
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Comprehension
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
128. The federal wage law that is criticized for a rule that allows minimum pay to be based on the prevailing rate, which
often includes higher union wages is:
a.
Equal Pay Act.
b.
Davis-Bacon Act.
c.
Fair Labor Standards Act.
d.
Walsh-Healy Act.
129. The federal wage law that may require government contractors to pay overtime for work more than eight hours a day
is:
a.
Equal Pay Act.
b.
Davis-Bacon Act.
c.
Fair Labor Standards Act.
d.
Walsh-Healy Act.
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
130. The major provisions of which act are concerned with minimum wage rates and overtime payments, child labor, and
equal rights?
a.
Equal Pay Act
b.
Davis-Bacon Act
c.
Fair Labor Standards Act
d.
Walsh-Healy Act
c
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
131. Which of the following is NOT a component of the Consumer Price Index?
a.
Clothing
b.
Automobiles
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
c.
Charges for medical services
d.
Transportation fares
132. The Fair Labor Standards Act prohibits the employment of those between the ages of _____ in hazardous
occupations such as mining, logging, and meatpacking.
a.
14 and 21
b.
16 and 18
c.
16 and 21
d.
18 and 21
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
133. The simplest and oldest system of job evaluation is the _____, which arrays jobs on the basis of their relative worth.
a.
job valuation system
b.
point system
c.
job classification system
d.
job ranking system
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
134. A _____ is a system of job evaluation in which jobs are classified and grouped according to a series of predetermined
wage grades.
a.
point system
b.
job valuation system
c.
job classification system
d.
job ranking system
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
135. The Equal Pay Act prohibits wage discrimination based on:
a.
seniority.
b.
gender.
c.
merit.
d.
individual incentive.
Easy
MGHR.SNEL.17.9-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
136. A job evaluation system that seeks to measure a job’s worth through its value to the organization is known as:
a.
job ranking.
b.
job classification.
c.
work valuation.
d.
the point system.
c
Easy
MGHR.SNEL.17.9-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
137. The _____ collects and displays the results for all the measures that a company uses to monitor and compare
compensation among internal departments or units.
a.
red circle rate
b.
competence-based pay system
c.
compensation scorecard
d.
point system
c
Easy
MGHR.SNEL.17.9-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
138. According the compensation scorecard, functions with a compa ratio below ______ are considered to be paying their
MGHR.SNEL.17.9-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
employees below the company norm.
a.
25 percent
b.
50 percent
c.
75 percent
d.
100 percent
139. The Fair Labor Standards Act permits employers to pay a “training wage” of _____ per hour for employees younger
than the age of twenty during their first ninety days of employment, provided their employment does not displace other
workers.
a.
$5.26
b.
$5.76
c.
$6.16
d.
$6.56
c
Moderate
MGHR.SNEL.17.9-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Comprehension
140. Employers may _____ their workforce to help them identify the most valuable contributors.
a.
segment
b.
reorganize
c.
educate
d.
overhaul
a
Easy
MGHR.SNEL.17.9-1 – MGHR.SNEL.17.9-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
141. _____ may create problems for managers who wish to maintain pay secrecy among employees.
a.
NASDAQ information
b.
Internet salary survey data
c.
FLSA requirements
d.
Davis-Bacon standards
Easy
MGHR.SNEL.17.9-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
142. Most pay increases may lack motivational value to employees when _____.
a.
legality is questionable
b.
they are too large
c.
salary budgets are low
d.
benefits are insignificant
c
Easy
MGHR.SNEL.17.9-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
143. When cost-of-living pay increases are given routinely, employees may view them as _____.
a.
insults
b.
entitlements
c.
highly motivating
d.
long overdue
Easy
MGHR.SNEL.17.9-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
144. Briefly discuss the motivating value of pay equity for employees.
Easy
MGHR.SNEL.17.9-1 – MGHR.SNEL.17.9-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – OH – DISC: HRM
Bloom’s: Knowledge
145. What are some of the factors that can influence wage rates in a firm?
146. Discuss some of the common goals of a strategic compensation policy.
147. Briefly discuss the three main laws that protect against employment discrimination.
148. Explain competence-based pay including its advantages and disadvantages. Include in your discussion the practice of
broadbanding.
149. Briefly discuss the legal requirements of the Fair Labor Standards Act used to regulate employee compensation.