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1.
(p. 341)
Pay level is the average amount (including wages, salaries, and bonuses) the organization
pays for a particular job.
2.
(p. 341)
An organization's job structure and pay levels are policies of the organization, rather than
the amount a particular employee earns.
3.
(p. 343)
The laws governing Equal Employment Opportunity guarantee equal pay for men and
women, whites and minorities, and other groups within the United States.
4.
(p. 344)
In states that have laws specifying minimum wages, employers must pay whichever rate is
higher—the federal or state.
5.
(p. 345)
Paying a salary does not necessarily mean a job is exempt.
6.
(p. 345)
Under the FLSA, children aged 14 and 15 may not be employed in any work associated
with interstate commerce.
7.
(p. 346)
The 1938 FLSA requires federal contractors to pay local or area prevailing wage rates.
8.
(p. 346)
Organizations in a product market compete to serve different customers.
9.
(p. 346)
Product markets do not place any limit on the pay an organization will offer.
10.
(p. 346)
When labor costs are a large part of an organization's total costs, the organization
responds by increasing pay levels.
11.
(p. 349)
In terms of compensation, benchmarking involves the use of pay surveys.
12.
(p. 349)
According to equity theory, people measure outcomes such as pay in terms of their
outputs.
13.
(p. 351)
In a two-tier wage system, employees doing the same job are paid two different rates,
depending on their technical background and training.
14.
(p. 351)
Research suggests that employees in the lower tier of the pay structure are less satisfied
than the top-tier employees.
15.
(p. 353)
Compensable factors are job characteristics that an organization values and chooses to
pay for.
16.
(p. 341)
Key jobs have relatively unstable content and are uncommon to many organizations.
17.
(p. 356)
When job structure and market data conflict, organizations should base their pay only on
market forces because this is the only approach that does not have any practical drawbacks.
18.
(p. 356)
Pay grades allow rates of pay for individual jobs to be more precisely matched to market
rates and the organization's job structure.
19.
(p. 356)
The most common approach to pay differentials is to move an employee lower in the pay
structure to compensate for increasing costs.
20.
(p. 356)
Broad bands increase the opportunities for promoting employees.
21.
(p. 356)
Skill-based pay systems support efforts to empower employees and enrich jobs.
22.
(p. 356)
A compa-ratio of 1 suggests that actual pay is not consistent with the pay policy.
23.
(p. 356)
Issues affecting an organization's pay structure do not affect its general reputation.
24.
(p. 356)
Military pay often exceeds what service members would earn in their civilian jobs.
25.
(p. 362)
The equity of executive pay does not affect other employees.
26.
(p. 341)
An organization's job structure consists of:
27.
(p. 341)
An organization's job structure and pay levels:
28.
(p. 342-343)
Which of the following would act as a market force during the development of a
pay structure?
29.
(p. 342-343)
Identify the legal requirement(s) for developing a pay structure.
30.
(p. 342-343)
Which of the following statements is true of Equal Employment Opportunity
laws?
31.
(p. 343)
The comparable-worth policy:
32.
(p. 343)
From an economic standpoint, identify the drawback of a comparable-worth policy.
33.
(p. 344)
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?
