Question 1

Which of the following is true of the Fair Labor Standards Act (FLSA) ?

Accepted Answer

A)   The overtime rate under the FLSA is two and a half times the employee's hourly rate.
B)   It requires federal contractors to pay less than the prevailing wage rate.
C)   It permits a subminimum training wage equal to 95% of the minimum wage.
D)   Nonexempt employees are covered by FLSA and include most hourly workers.
E)   Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees.

Question 2

Issues affecting an organization's pay structure do not affect its general reputation.

Accepted Answer

A) True 
 B)False

Question 3

What is a pay policy line? What is its relevance?

Accepted Answer

Mathematically,a pay policy line shows t...

Question 4

The compa-ratio:

Accepted Answer

A)   measures the degree to which actual pay is consistent with the pay policy.
B)   is defined as average pay for the grade divided by the minimum pay for the grade.
C)   can range from 0 to 100 percent.
D)   uses data from market-pay surveys.
E)   measures the degree to which new skills learnt are consistent with the increases in pay.

Question 5

The 1938 FLSA requires federal contractors to pay local or area prevailing wage rates.

Accepted Answer

A) True 
 B)False

Question 6

An organization's job structure and pay levels are policies of the organization,rather than the amount a particular employee earns.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of Equal Employment Opportunity laws?

Accepted Answer

A)   These laws guarantee equal pay for whites and minorities.
B)   The goal of these laws is for employers to provide equal pay for equal work.
C)   Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws.
D)   These laws guarantee equal pay for men and women.
E)   Under these laws, employers cannot tie differences in pay to business-related considerations.

Question 8

Pay level is the average amount (including wages,salaries,and bonuses)the organization pays for a particular job.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?

Accepted Answer

A)   It does not focus on setting pay for groups of jobs.
B)   It does not make adjustments to a pay rate to reflect differences in labor markets.
C)   It discourages employees from gaining valuable experience through lateral career moves.
D)   It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills.
E)   It does not provide a precise definition of a job's responsibilities.

Question 10

In states that have laws specifying minimum wages,employers must pay whichever rate is higher-the federal or state.

Accepted Answer

A) True 
 B)False

Question 11

Under the FLSA,children aged 14 and 15 may not be employed in any work associated with interstate commerce.

Accepted Answer

A) True 
 B)False

Question 12

Key jobs have relatively unstable content and are uncommon to many organizations.

Accepted Answer

A) True 
 B)False

Question 13

An organization's job structure and pay levels:

Accepted Answer

A)   reflect the organization's knowledge about inflationary pressures.
B)   reflect the decisions about how much to pay each employee.
C)   provide the total amount an organization pays for a particular job.
D)   are annual earnings of key employees in the organization.
E)   are policies of the organization.

Question 14

Pay ranges are most common for _____.

Accepted Answer

A)   white-collar jobs
B)   piece-rate jobs
C)   jobs that are covered by union contracts
D)   automotive workers
E)   construction workers

Question 15

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Accepted Answer

A) True 
 B)False

Question 16

Following and studying changes in the _____ can help employers prepare for changes in the demands of the labor market.

Accepted Answer

A)   Living-Wage Index
B)   Consumer Price Index
C)   Gross National Product
D)   Exchange Rate Index
E)   interest rate

Question 17

What are the limitations of using a job-based pay structure?

Accepted Answer

Some of the limitations of job-based pay...

Question 18

Which of the following is true of key jobs?

Accepted Answer

A)   The organization usually has no survey data for key jobs.
B)   These are jobs that have highly unstable content.
C)   These are jobs that are unique among organizations and are rare to obtain.
D)   Organizations make the process of creating a pay structure more impractical by defining key jobs.
E)   A job with a higher evaluation score than a particular key job would receive higher pay than that key job.

Question 19

Decisions about how to respond to the economic forces of product markets and labor markets limit an organization's choices about:

Accepted Answer

A)   pay rates.
B)   pay structure.
C)   pay differentials.
D)   pay grades.
E)   pay ranges.

Question 20

Organizations under pressure to cut labor costs may respond by:

Accepted Answer

A)   retaining staff levels.
B)   hiking pay levels to prevent employee turnover.
C)   postponing hiring decisions.
D)   requiring employees to bear less of the cost of benefits such as insurance premiums.
E)   increasing staff levels.

Exam 11: Establishing a Pay Structure

Which of the following is true of key jobs?

Correct AnswerverifiedShow Answer

An organization's job structure and pay levels are policies of the organization,rather than the amount a particular employee earns.

Correct AnswerverifiedShow Answer

The compa-ratio:

Correct AnswerverifiedShow Answer

Which of the following is true of the Fair Labor Standards Act (FLSA) ?

Correct AnswerverifiedShow Answer

Under the FLSA,children aged 14 and 15 may not be employed in any work associated with interstate commerce.

Correct AnswerverifiedShow Answer

Key jobs have relatively unstable content and are uncommon to many organizations.

Correct AnswerverifiedShow Answer

What are the limitations of using a job-based pay structure?

Correct AnswerverifiedSome of the limitations of job-based pay...View AnswerShow Answer

In a two-tier wage system,employees doing the same job are paid two different rates,depending on their technical background and training.

Correct AnswerverifiedShow Answer

In states that have laws specifying minimum wages,employers must pay whichever rate is higher-the federal or state.

Correct AnswerverifiedShow Answer

An organization's job structure and pay levels:

Correct AnswerverifiedShow Answer

What is a pay policy line? What is its relevance?

Correct AnswerverifiedMathematically,a pay policy line shows t...View AnswerShow Answer

The 1938 FLSA requires federal contractors to pay local or area prevailing wage rates.

Correct AnswerverifiedShow Answer

Following and studying changes in the _____ can help employers prepare for changes in the demands of the labor market.

Correct AnswerverifiedShow Answer

Issues affecting an organization's pay structure do not affect its general reputation.

Correct AnswerverifiedShow Answer

Decisions about how to respond to the economic forces of product markets and labor markets limit an organization's choices about:

Correct AnswerverifiedShow Answer

Organizations under pressure to cut labor costs may respond by:

Correct AnswerverifiedShow Answer

Which of the following statements is true of Equal Employment Opportunity laws?

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?

Correct AnswerverifiedShow Answer

Pay level is the average amount (including wages,salaries,and bonuses)the organization pays for a particular job.

Correct AnswerverifiedShow Answer

Pay ranges are most common for _____.

Correct AnswerverifiedShow Answer

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Some of the limitations of job-based pay...
View Answer

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Mathematically,a pay policy line shows t...
View Answer

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