Question 1

Which of the following is a characteristic of delayering?

Accepted Answer

A)   It increases an organizations' flexibility.
B)   It increases the opportunities for promoting employees.
C)   It sets pay according to the employees' level of knowledge.
D)   It encourages a climate of learning.
E)   It decreases the flexibility of managers in making assignments.F) C) and E)
G) A) and E)

Question 2

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

Accepted Answer

A) True 
 B)False

Question 3

Skill-based pay systems do not support empowerment of employees.

Accepted Answer

A) True 
 B)False

Question 4

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 workersF) None of the above
G) B) and E)

Question 5

_____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work.

Accepted Answer

A)   Pay level
B)   Nonexemption
C)   Pay policy line
D)   Piecework rate
E)   Salary basisF) C) and D)
G) A) and B)

Question 6

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

Accepted Answer

A)   John works the night shift, and night hours are less desirable for most workers.
B)   John is a U.S. citizen; therefore his pay should be higher than non-Americans.
C)   Lisa is pregnant; therefore her productivity is assumed to be lower.
D)   John is physically disabled; therefore he should be paid more than Lisa.
E)   Lisa lives in a location where living expenses are higher.F) A) and B)
G) A) and C)

Question 7

Cindy and Alex execute the same roles and responsibilities at their organization.However,Alex earns more than Cindy.Under the laws governing equal employment opportunity,which of the following will justify the organization's decision to pay Alex more than Cindy?

Accepted Answer

A)   Alex belongs to a poor family.
B)   Alex has more experience compared to Cindy.
C)   Alex is younger than Cindy.
D)   Alex can work for longer hours than Cindy because he is a male.
E)   Cindy is an introvert.F) C) and D)
G) A) and E)

Question 8

Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure.

Accepted Answer

A) True 
 B)False

Question 9

Trevor,a researcher,believes that having higher labor costs than competitors is not necessarily bad.His colleague,Nick,supports Trevor's opinion by stating that employees must be paid according to the market rate.Which of the following strengthens their statements?

Accepted Answer

A)   An organization may gain an advantage by paying above the market rate if it uses this method to attract top talent and uses employees' knowledge to be more innovative.
B)   High pay will encourage an employee to work on holidays and produce higher quality goods in order to balance the labor expense with high productivity.
C)   Employees can be forced to work long hours because they are paid higher than the market rate.
D)   The work environment is friendly when employees are paid higher than the market rate.
E)   Organizations can guarantee employee satisfaction if they increase employees' salaries above the market rate.F) A) and B)
G) A) and C)

Question 10

Perlis Inc.is a whole food distributor.The hourly pay of employees working at Perlis is lower than the earnings required to rise above poverty level.In this scenario,which of the following laws is violated by the company?

Accepted Answer

A)   Laws governing equal employment opportunity
B)   Fair Labor Standards Act (FLS
A)   of minimum wage
C)   Fair Labor Standards Act (FLS
A)   of overtime
D)   Laws governing prevailing wages
E)   Product market lawsF) B) and C)
G) D) and E)

Question 11

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Accepted Answer

The FLSA establishes a minimum wage and ...

Question 12

Which of the following statements is true about 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)   The FLSA permits federal contractors to pay less than the prevailing wage rate.
C)   The FLSA 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.F) B) and E)
G) All of the above

Question 13

Inverness Inc.,a manufacturing company,believes that pay is an investment that can generate returns in attracting,retaining,and motivating a high-quality workforce.In this case,which of the following statements is true about Inverness?

Accepted Answer

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.F) B) and C)
G) All of the above

Question 14

Scorla Automobiles is a manufacturing company based in Nevada.The employees of Scorla are paid the lowest amount under federal or state law,which is stated as an amount of pay per hour.Which of the following laws is the organization abiding by in this scenario?

Accepted Answer

A)   Laws governing equal employment opportunity
B)   Fair Labor Standards Act (FLS
A)   of minimum wage
C)   Fair Labor Standards Act (FLS
A)   of overtime
D)   Laws governing prevailing wages
E)   Product market lawsF) A) and B)
G) A) and D)

Question 15

Which of the following statements is true about job-based pay structures?

Accepted Answer

A)   A pay structure that rewards employees for winning promotions will encourage them to gain valuable experience through lateral career moves.
B)   Their focus on higher pay for higher status can work in favor of efforts for empowerment.
C)   They typically reward desired behaviors, particularly in a rapidly changing environment.
D)   Organizations may avoid change because it requires repeating the time-consuming process of creating job descriptions and related paperwork.
E)   They always encourage flexibility, innovation, quality, and customer service.F) C) and D)
G) B) and C)

Question 16

Carbon Fine Inc.,a mining industry,hires employees belonging to the age group of 16 to 30.The company provides overtime pay for its employees.The company is charged for violation of law under the FLSA.Which of the following best explains the reason for the company being sued?

Accepted Answer

A)   Individuals aged 16 and 17 are being employed as mine workers.
B)   Executive employees of the company are not being provided overtime pay.
C)   Employees are being paid overtime only if they work beyond 40 hours in one week.
D)   Mine workers are being paid only 25% above the minimum wage.
E)   Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate, including bonuses.F) B) and C)
G) A) and D)

Question 17

What is skill-based pay? What are its advantages and disadvantages?

Accepted Answer

Skill-based pay systems are pay structur...

Question 18

Organizations use pay surveys to benchmark compensation.

Accepted Answer

A) True 
 B)False

Question 19

The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

Accepted Answer

A)   USERRA
B)   FLSA
C)   EEOA
D)   NLRB
E)   FMLAF) C) and D)
G) B) and E)

Question 20

What is benchmarking?

Accepted Answer

To compete for talent,organizations use ...

Exam 12: Establishing a Pay Structure

John and Lisa hold the same position at Flyberry Electronics.However,John earns more than Lisa.In the context of pay structure,which of the following justifies the organization's decision to pay John more than Lisa?

Correct AnswerverifiedShow Answer

Inverness Inc.,a manufacturing company,believes that pay is an investment that can generate returns in attracting,retaining,and motivating a high-quality workforce.In this case,which of the following statements is true about Inverness?

Correct AnswerverifiedShow Answer

Trevor,a researcher,believes that having higher labor costs than competitors is not necessarily bad.His colleague,Nick,supports Trevor's opinion by stating that employees must be paid according to the market rate.Which of the following strengthens their statements?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of delayering?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The _____ requires employers to make jobs available to their workers when they return after fulfilling military duties for up to five years.

Correct AnswerverifiedShow Answer

Pay grades allow precise matching of pay for individual jobs to market rates and an organization's job structure.

Correct AnswerverifiedShow Answer

What is benchmarking?

Correct AnswerverifiedTo compete for talent,organizations use ...View AnswerShow Answer

Scorla Automobiles is a manufacturing company based in Nevada.The employees of Scorla are paid the lowest amount under federal or state law,which is stated as an amount of pay per hour.Which of the following laws is the organization abiding by in this scenario?

Correct AnswerverifiedShow Answer

Cindy and Alex execute the same roles and responsibilities at their organization.However,Alex earns more than Cindy.Under the laws governing equal employment opportunity,which of the following will justify the organization's decision to pay Alex more than Cindy?

Correct AnswerverifiedShow Answer

Organizations use pay surveys to benchmark compensation.

Correct AnswerverifiedShow Answer

What is skill-based pay? What are its advantages and disadvantages?

Correct AnswerverifiedSkill-based pay systems are pay structur...View AnswerShow Answer

Which of the following statements is true about job-based pay structures?

Correct AnswerverifiedShow Answer

If state laws specify minimum wages,in addition to the federal level,employees are entitled to receive whichever rate is higher.

Correct AnswerverifiedShow Answer

Skill-based pay systems do not support empowerment of employees.

Correct AnswerverifiedShow Answer

Perlis Inc.is a whole food distributor.The hourly pay of employees working at Perlis is lower than the earnings required to rise above poverty level.In this scenario,which of the following laws is violated by the company?

Correct AnswerverifiedShow Answer

_____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work.

Correct AnswerverifiedShow Answer

Discuss the three major provisions of the Fair Labor Standards Act (FLSA).

Correct AnswerverifiedThe FLSA establishes a minimum wage and ...View AnswerShow Answer

Carbon Fine Inc.,a mining industry,hires employees belonging to the age group of 16 to 30.The company provides overtime pay for its employees.The company is charged for violation of law under the FLSA.Which of the following best explains the reason for the company being sued?

Correct AnswerverifiedShow Answer

Pay ranges are most common for _____.

Correct AnswerverifiedShow Answer

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To compete for talent,organizations use ...
View Answer

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Correct Answer
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Skill-based pay systems are pay structur...
View Answer

Correct Answer
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The FLSA establishes a minimum wage and ...
View Answer

Correct Answer
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