Exam 12: Establishing a Pay Structure

A) Employees might conclude that the pay rates are unfair.
B) Supervisors of the company will expect to receive lower pay because of less responsibility.
C) The highly paid employees will likely be dissatisfied because of more work.
D) The managers will participate in rotation of responsibilities because they receive lower pay.
E) All employees will be categorized as exempt employees.

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A) Top executives' pay is much higher than average workers' pay.
B) Most of the top executives' pay is in the form of a salary.
C) Top executives come under the category of exempt employees.
D) Top executives are paid in the form of commissions.
E) Executives are denied short-term or long-term incentives with their pay.

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A) In a manufacturing company,there are no female managers.
B) A consumer products company has been sued for racial discrimination.
C) An agency works with a supermarket's HR department to design a job that could be held by people with mental disabilities.
D) In a city government,positions mostly held by women pay less than positions mostly held by men.
E) At a utility company,jobs that involve physical strain and danger pay more than office jobs.

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A) laws governing equal employment opportunity
B) Fair Labor Standards Act (FLSA) of minimum wage
C) Fair Labor Standards Act (FLSA) of overtime
D) laws governing prevailing wages
E) product market laws

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A) XTech pays more to attract top talent,applying employees' knowledge to be more innovative than competitors.
B) XTech intends to charge more for than competitors for the same kinds of products.
C) XTech hopes other companies will eventually match XTech's pay scale.
D) Labor costs are a large part of XTech's total costs.
E) XTech is developing a low-price strategy that will generate more sales.

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A) Pay level
B) Nonexemption
C) Pay policy line
D) Piecework rate
E) Salary basis

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A) lower-paid employees were less satisfied on average than higher-paid employees.
B) lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves.
C) lower-paid employees expected to be promoted into the second tier in a short time span.
D) equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other.
E) both existing employees and new employees have a similar pay rate.

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A) the Lloyd-La Follette Act of 1912
B) the Smith-Connally Act of 1943
C) the Julie Jargon Act of 1940 and the Eric Morath Act of 1945
D) the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
E) the Humphrey-Hawkins Full Employment Act

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A) minimum and maximum wages fixed by the government.
B) pay of federal contractors.
C) organization's competitive environment.
D) quality of employees.
E) organization's global reputation.

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A) is defined as the ratio of average pay to the midpoint of the pay range.
B) is defined as the ratio of the 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.

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The FLSA establishes a minimum wage and ...

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A) The company may have difficulty keeping costs under control.
B) The company may have difficulty attracting and keeping qualified employees.
C) The company may be in violation of the Fair Labor Standards Act.
D) The company may have misclassified these employees as exempt when they are nonexempt.
E) The company may not have met minimum-wage requirements.

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A) pay ranges and pay differentials
B) cost control and equity
C) legal requirements and job descriptions
D) individual salaries of its employees
E) job structure and pay level

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A) An unplanned approach will likely result in unfairness and dissatisfaction among the employees.
B) Most of the employees prefer planned pay because negotiation with the management takes time.
C) Independently negotiated pay will increase the workload and rivalry among the employees.
D) When the pay is planned by the organization,it creates more employment opportunities.
E) The pay structure is the same for both an entry-level and a manager-level employee if it has been independently negotiated.

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A) job responsibilities and salary.
B) organizational commitment.
C) job title.
D) work experience.
E) job qualifications.

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A) It considers its employees as resources.
B) It gives the least importance to profits.
C) It is a customer-friendly firm.
D) It tries to keep its labor costs minimal.
E) It helps employees find higher-paying jobs.

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