Which form of equity refers to the perceived fairness of the processes used to make decisions regarding the allocation of pay?

Which of the following terms refers to all forms of pay or rewards going to employees and arising from their employment? A) salary B) employee benefits C) wage reimbursement D) employee compensation

Which of the following is NOT a type of direct financial payment? A) wages B) insurance C) incentives D) commissions

Which of the following terms refers to pay in the form of financial benefits, such as insurance? A) direct financial payments B) out-of-pocket expenses C) indirect financial payments D) sales commissions

c) indirect financial payments

John is a sales rep. He works 40 hrs per week & his pay is based on his sales. He earns a 5% commission for every sale he makes. Which term best describes John's situation? A) performance-based compensation B) indirect financial compensation C) piecework pay

a) performance-based compensation

Which of the following factors has the LEAST effect on the design of an organization's pay plan? A) legal B) union C) company vision D) company policy

Which of the following was enacted in 1931 for the purpose of setting wage rates for laborers and mechanics employed by contractors working for the federal government? A) Walsh-Healey Public Contract B) Fair Labor Standards Act C) Civil Rights Act D) Davis-Bacon Act

Which of the following sets basic labor standards for employees working on any government contract that amounts to more than $10,000? A) Davis-Bacon Act B) Walsh-Healey Public Contract C) Fair Wages Act D) Fair Labor Standards Act

b) Walsh-Healey Public Contract

Which compensation-related law contains provisions for min wage, max hours, overtime pay, equal pay, record-keeping, and child labor? A) Davis-Bacon Act B) Fair Wages Act C) Fair Labor Standards Act D) Walsh-Healey Public Contract

c) fair labor standards act

Which of the following issues is NOT addressed by the Fair Labor Standards Act? A) record-keeping B) overtime pay C) child labor D) termination

Which law makes it illegal to discriminate against any individual with respect to compensation because of race, color, religion, sex, or national origin? A) Fair Labor Standards Act B) Title VII of the Civil Rights Act C) Equal Pay Act D) Taft-Hartley Act

b) Title VII of the Civil Rights Act

According to the Fair Labor Standards Act, what rate of normal pay would a covered employee receive for working more than 40 hours in a workweek? A) 50% B) 100% C) 150% D) 200%

Jill works as a cashier at a grocery store. She earns $10 an hour (or $400 for a 40-hour week). Last week, she worked 46 hours. What is the minimum amount that Jill earned last week? A) $460 B) $490 C) $520 D) $550

Joseph worked 6 hours of overtime this week but has decided to take time off instead of overtime pay. How many hours will Joseph receive in time off from work? A) 3 hours B) 6 hours C) 9 hours D) 18 hours

Which is true for employers who use independent contractors? A) Fair Labor Standards Act overtime requirements don't apply B) Federal income taxes are charged at a reduced rate

a) fair labor standards act overtime requirements don't apply

In most cases, which of the following occupations is NOT exempt from the overtime provisions of the Fair Labor Standards Act? A) physicians B) engineers C) paralegals D) teachers

Which of the following jobs is most likely categorized as nonexempt from the overtime pay provisions of the Fair Labor Standards Act? A) taxicab driver B) personnel director C) newspaper writer D) computer systems analyst

Anita, a manager at a department store, needs to determine whether one of her employees is exempt under the Fair Labor Standards Act. Which would be the best resource for Anita? A) organizational chart B) business plan C) job description

Which of the following states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work? A) Americans with Disabilities Act B) Title VII of the Civil Rights Act C) Social Security Act D) Equal Pay Act

Which act regulates vesting rights and portability rights? A) Fair Labor Standards Act B) Title VII of the Civil Rights Act C) Employer Retirement Income Security Act D) Equal Pay Act of 1963

c) Employer Retirement Income Security Act

Which of the following terms refers to the ownership employees build up in their pension plans should their employment with a firm end prior to retirement? A) portability B) equity C) vesting D) shares

Which of the following laws has the LEAST amount of influence on compensation decisions? A) Americans with Disabilities Act B) Labor Management Relations Act C) Family and Medical Leave Act D) Age Discrimination in Employment Act

b) Labor Management Relations Act

Bonnie needs to take time off to care for her mother. According to the Family and Medical Leave Act, what is the max number of weeks of unpaid, job-protected leave that Bonnie may take? A) 6 B) 12 C) 16

Which gives employees the right to organize, bargain collectively, and engage in concerted activities for the purpose of collective bargaining? A) Civil Rights Act B) Fair Labor Standards Act C) National Labor Relations Act

c) National Labor Relations Act

What has historically been the key issue in collective bargaining? A) wage rates B) income security C) health care benefits D) cost-of-living adjustments

Which of the following issues would LEAST likely be negotiated by unions? A) income security B) time off with pay C) health care benefits D) unpaid medical leave

Which of the following terms refers to a compensation plan that advances a firm's strategic goals? A) strategic management B) performance pay plan C) aligned reward strategy D) workers' compensation package

c) aligned reward strategy

Which is the LEAST likely way that an employer would address a cost-of-living differential? A) paying a nonrecurring amount spread over 1-3 years B) paying a nonrecurring, lump sum amount C) raising an employee's base salary D) raising commission percentages

d) raising commission percentages 

What theory of motivation states that people are strongly motivated to maintain a balance between what they perceive as their contributions and their rewards? A) Two-factor theory B) Equity theory C) Learned needs theory D) Expectancy theory

Which of the following is NOT one of the forms of equity related to compensation issues? A) group B) external C) individual D) procedural

Which form of equity refers to how a job's pay rate in one company compares to the job's pay rate in other companies? A) distributive B) internal C) external D) procedural

Which form of equity refers to the fairness of a job's pay rate in comparison to other jobs within the same company? A) external B) internal C) distributive D) individual

Trevor learned that another IBM employee with comparable responsibilities earns a higher salary. Which form of equity is of most concern to Trevor? A) external B) internal C) distributive

Which form of equity refers to the fairness of an individual's pay compared with what his/her co-workers are earning for a similar job, based on each individual's performance? A) internal B) distributive C) individual D) procedural

Audrey is a lawyer and learned that another lawyer who joined the firm at the same time earns a lower salary. Which form of equity is most relevant to Audrey's situation? A) internal B) individual C) procedural

Which form of equity refers to the perceived fairness of the processes used to make decisions regarding the allocation of pay? A) internal B) distributive C) individual D) procedural

Which of the following is used to maintain internal equity? A) job analysis comparisons B) organizational charts C) incentive pay D) salary surveys

a) job analysis comparisons 

What type of equity is a manager most likely trying to maintain through the use of performance appraisals and incentive pay? A) internal B) external C) individual D) procedural

Beth, a small business owner, wants to ensure external equity when establishing pay rates. Beth should most likely ________. A) use wage curves to price each pay grade B) compare performance appraisals C) conduct a salary survey D) check online pay sites

c) conduct a salary survey 

Which of the following is used to anchor the employer's pay scale? A) grades B) job metric C) benchmark job D) human resource metric

Which of the following terms refers to a systematic comparison done in order to determine the worth of one job relative to another? A) job analysis B) job evaluation C) job description D) job classification

Which of the following is NOT one of the compensable factors emphasized in the Equal Pay Act? A) skills B) accountability C) responsibility D) working conditions

Central basic factors that establish how several jobs compare to one another and that determine the pay for each job are called ________. A) compensable factors B) job evaluation factors C) ranking factors D) analysis factors

In most cases, the majority of the voting members on a job evaluation committee are ________. A) managers B) employees C) HR specialists D) union representatives

Which of the following is NOT one of the typical methods used by job evaluation committees to determine the worth of a job? A) ranking B) point method C) job classification D) paired comparison

When using the job evaluation method of job classification, raters categorize jobs into groups of similar jobs called ________. A) classes B) sections C) grades D) cohorts

Which job evaluation method is a quantitative technique involving the identification of several compensable factors and the degree to which each of these factors is present in the job? A) ranking method B) point method C) job grading method D) job classification method

Which job evaluation method is used by most modern employers? A) job classification method B) job grading method C) ranking method D) point method

What are the two primary components of computer-aided job evaluations? A) compensable factors and benchmark jobs B) grade definitions and factor comparisons C) structured questionnaires and statistical models D) structured questionnaires and grade definitions

c) structured questionnaires and statistical models 

A ________ is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. A) wage curve B) benchmark C) pay grade D) class

Which of the following shows the relationship between the value of the job and the average pay for this job? A) benchmark B) pay grade C) scatter plot D) wage curve

The purpose of the wage curve is to ________. A) show the relationship between the value of the job and the current average pay rates B) equate jobs of similar difficulty or importance as established by job evaluation C) choose benchmark jobs within each pay grade D) cluster jobs into logical groupings

a) show the relationship between the value of the job and the current average pay rates

Which of the following terms refers to a series of steps or levels within a pay grade? A) pay metric B) pay range C) wage class D) wage curve

Richard was offered to be vice president of marketing. As a top executive, Richard will be compensated with EXCEPT ______. A) stock options B) pension plans C) sales commissions D) supplemental life insurance

What is the purpose of offering an executive stock options in a compensation package? A) encouraging the exec to increase the firm's value B) enabling the firm to decrease the exec's base pay C) offering the exec long-term retirement security

a) encouraging the exec to increase the firm's value

A company using competency-based pay compensates employees for all of the following EXCEPT ________. A) behaviors B) job title C) knowledge D) skills

________ means collapsing salary grades and ranges into just a few wide levels, each of which contains a relatively wide range of jobs and salary levels. A) Comparable worth B) Job evaluation C) Broad banding D) Job grading

Which of the following terms refers to the requirement to pay men and women equal wages for jobs of roughly equivalent value to the employer? A) strategic compensation B) comparable worth C) broad banding D) job grading

Which of the following job evaluation methods is associated with almost every comparable worth lawsuit? A) job classification method B) job grading method C) ranking method D) point method

According to many experts, which of the following would most likely reduce the wage gap between men and women? A) education B) union intervention C) federal legislation D) competency-based pay

Which question is most relevant to developing a market competitive pay system? A) What is the ranking of each job? B) What is the relevant labor market? C) What percentage of workers are contingent? D) What are the local and federal pay regulations?

b) What is the relevant labor market?

Which is LEAST likely a benefit of using competency based pay? A) developing an efficient and legally defensible wage curve B) aiding in the implementation of a high-performance work system C) supporting a firm's talent management process

a) developing an efficient and legally defensible wage curve

True/False. Financial benefits like employer-paid insurance and vacations are not a part of employee compensation.

True/False. Indirect payments that contribute to an employee's compensation include variable pay like commissions and bonuses.

True/False. Direct financial payments may be based on increments of time and on performance.

True/False. Performance-based pay is more popular than time-based pay among most employers in the U.S.

True/False. According to the Davis-Bacon Act, when employees work more than 40 hours per week, employers must pay overtime at a rate of at least one-and-a-half times the normal pay for any hours worked over 40 in a workweek.

True/False. Employers prefer to give time off in lieu of overtime pay because they only have to grant the same number of hours off as the employee worked overtime, while overtime pay is calculated at 150% of normal pay.

True/False. Because the minimum wage is set by the Fair Labor Standards Act, there is no variation from state to state in the minimum wage paid to hourly workers.

True/False. According to the FLSA, agricultural employees, live-in maids, and taxi drivers are always eligible for overtime pay.

True/False. The Equal Pay Act states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

True/False. Portability rights refer to an employee's ability to transfer his or her vested rights from one organization to another.

True/False. While laws exist to protect against discrimination in compensation based on gender and age, no law protects against such discrimination against persons with disabilities.

True/False. The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid, job-protected leave for the birth of a child only applies to women.

True/False. According to the court system, the test that distinguishes an independent contractor from an employee is whether or not the firm provides the worker with health insurance benefits.

True/False. Wage rate has been the main issue negotiated by unions in collective bargaining.

True/False. A union is entitled to know the salary of each employee it is representing.

True/False. External equity refers to how fair the job's pay rate is, when compared to other jobs within the same company.

True/False. Studies indicate that paying employees too little reduces morale, while overpaying people improves morale.

True/False. Salary surveys are used by firms to collect data on employee benefits as well as wage rates for the purpose of pricing jobs.

True/False. The Equal Pay Act focuses on three compensable factors—know-how, problem solving, and accountability.

True/False. An advantage of the job classification method is that the objective nature of the system makes it easy to write the class and grade descriptions.

True/False. If a job evaluation committee uses the ranking method, then the pay grade consists of all jobs that fall within two or three ranks.

True/False. Job evaluations are used to determine the pay scale of all employees in an organization from hourly workers to the CEO.

True/False. Most organizations use a market-pricing approach when determining compensation for professional employees such as engineers and scientists.

True/False. Advocates of competency-based pay assert that the system encourages employees to develop the knowledge, skills, and behaviors a firm needs to achieve its strategic goals.

True/False. The primary advantage of broad banding is that it provides greater flexibility into employee assignments.

True/False. In the broadest sense, comparable worth may mean comparing jobs that are very dissimilar such as nursing to fire fighting.

True/False. A key issue in comparable worth is whether women should be paid equal wages for jobs that are truly equal to men's or just comparable to men's jobs.

True/False. Large corporations are more likely than small businesses to use a market-based approach to setting pay rates because it is easier for a large firm to conduct formal job evaluations.

True/False. Due to federal legislation, greater opportunities for higher learning, and more women in the workforce, women in the U.S. earn approximately 90% as much as men.

True/False. Competency-based pay systems offer employers more flexibility but are less efficient than traditional job evaluation methods.

Which of the following refers to the perceived fairness of pay relative to what other employers are paying for the same type of labor?

Which one of the following terms refers to a systematic comparison done in order to determine the worth of one job relative to another?

What are 4 forms of equity?

Which one of the following terms refers to all forms of pay or rewards going to employees and?