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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.
119. The predominant approach to employee compensation is:
a.
pay-for-performance.
b.
competence-based pay.
c.
job-based pay.
d.
individual contract.
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.
121. _____ is a pay system in which employees are paid according to the number of units they produce.
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.
Equal Pay Act
b.
Fair Labor Standards Act
c.
Taft-Hartley Act
d.
Employment Classification Act
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
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.
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.
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
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
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.
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
131. Which of the following is NOT a component of the Consumer Price Index?
a.
Clothing
b.
Automobiles
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
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
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
135. The Equal Pay Act prohibits wage discrimination based on:
a.
seniority.
b.
gender.
c.
merit.
d.
individual incentive.
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.
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
138. According the compensation scorecard, functions with a compa ratio below ______ are considered to be paying their
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
140. Employers may _____ their workforce to help them identify the most valuable contributors.
a.
segment
b.
reorganize
c.
educate
d.
overhaul
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
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
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
144. Briefly discuss the motivating value of pay equity for employees.
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.
