Question 1

Which of the following is true of broad bands?

Accepted Answer

A)  More use of broad brands,the less use of delayering in a firm.
B)  More use of broad brands,the less opportunity for promotions.
C)  Broad bands with greater range spread lead to weaker budgetary control.
D)  Broad bands with greater range spread give rise to lower labor costs.
E)  Broad bands with smaller range spread permit managers to recognize high performance with high pay.F) A) and B)
G) None of the above

Question 2

Which of the following is true about pay?

Accepted Answer

A)  Pay is not helpful when it comes to aligning employees' interests with those of the broader organization.
B)  Pay has a small impact on employee attitudes and behavior.
C)  From the employees' view,pay policies do not affect their standard of living.
D)  Companies often look for ways to reduce pay by jeopardizing their relationship with the workforce.
E)  Employees attach great importance to pay decisions when they evaluate their relationship with the organization.F) A) and B)
G) B) and E)

Question 3

Alpha Omega compares its practices set by management with the standard set in each unit as a benchmark.

Accepted Answer

A) True 
 B)False

Question 4

Under the Fair Labor Standards Act,nonexempt employees are eligible for overtime pay.

Accepted Answer

A) True 
 B)False

Question 5

Architects R Us has begun the process of ________ to increase flexibility in job and merit assignment.

Accepted Answer

A)  decentralizing
B)  departmentalizing
C)  forecasting
D)  delayering
E)  benchmarkingF) C) and D)
G) A) and B)

Question 6

Product market comparisons that focus on labor costs are likely to deserve greater weight when

Accepted Answer

A)  product demand is inelastic.
B)  the supply of labor is elastic.
C)  attracting and retaining qualified employees is difficult.
D)  the costs of recruiting replacements are high.
E)  labor costs represent a large share of total costs.F) A) and E)
G) A) and D)

Question 7

Describe the potential limitations of using a job-based pay structure.

Accepted Answer

A job-based pay structure has a number o...

Question 8

The upper bound placed by product market competition is more constrictive when labor costs are a larger share of total costs.

Accepted Answer

A) True 
 B)False

Question 9

When you move an employee higher in the pay structure to compensate for higher living costs,it becomes easier to adjust the salary downward when the employee moves to a low-cost area.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the most widely used method in job evaluation that yields scores for each compensable factor?

Accepted Answer

A)  Range spread approach
B)  Point-factor system
C)  Market survey system
D)  Pay policy line
E)  Pay grade approachF) B) and E)
G) A) and B)

Question 11

John is a CEO of his company.On paper,it looks like his salary is commensurate with other managers,but he also has stock options that may increase or decrease his compensation based on the performance of the stock market.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of skill-based pay?

Accepted Answer

A)  It rarely provides the opportunity for leaner staffing levels.
B)  It helps in making alternative arrangements for employee turnover.
C)  It reduces worker flexibility.
D)  It leads to a shortage of multiskilled employees.
E)  It gives rise to centralization of decision-making.F) C) and D)
G) B) and D)

Question 13

During the recent financial crisis,the U.S.government,as part of the ________,decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.

Accepted Answer

A)  NCUA Corporate Stabilization Program
B)  Troubled Asset Relief Program (TARP) 
C)  Public-Private Investment Program
D)  Lilly Ledbetter Fair Pay Act
E)  Emergency Economic Stabilization ActF) D) and E)
G) C) and D)

Question 14

Labor market comparisons are more important than product market comparisons when

Accepted Answer

A)  product demand is elastic.
B)  the costs of recruiting replacements are low.
C)  attracting and retaining qualified employees is difficult.
D)  the supply of labor is inelastic.
E)  employee skills are specific to the product market.F) C) and D)
G) B) and C)

Question 15

Which of the following best describes gross domestic product?

Accepted Answer

A)  It is a measure of personal income.
B)  It is the cost of producing a certain number of outputs produced in an economy.
C)  It is the output produced by an employee in contrast to the input used by the employee.
D)  It is the total output of an economy.
E)  It is the total input used by an economy to produce a definite output.F) A) and C)
G) B) and D)

Question 16

At Tyrone's interview,he asked about the ________ so that he could make an informed decision regarding the job and the pay offered.

Accepted Answer

A)  pay grade
B)  pay structure
C)  efficiency wage
D)  benchmark
E)  job evaluationF) C) and D)
G) A) and D)

Question 17

Discuss some of the concerns over the Equal Employment Opportunity (EEO)regulation.

Accepted Answer

There are concerns that EEO regulation o...

Question 18

Explain the reasons for the controversy over executive pay.

Accepted Answer

The issue of executive pay has been give...

Question 19

Which of the following is a focus of external equity pay?

Accepted Answer

A)  other employees in the same organization in the same job are paid.
B)  other employees in the same organization but in a different job are paid.
C)  employees in other organizations are paid for doing the same general job.
D)  employees in other organizations are paid for doing other jobs with higher responsibility.
E)  employees in other organizations are paid for doing other jobs with lower responsibility.F) A) and B)
G) B) and C)

Question 20

Compensable factors are employees' job characteristics that

Accepted Answer

A)  are immeasurable.
B)  go unrecognized by the company.
C)  do not motivate employees to work better.
D)  primarily lead to intrinsic motivation.
E)  the company is willing to pay for.F) C) and D)
G) A) and D)

Exam 11: Pay Structure Decisions

During the recent financial crisis,the U.S.government,as part of the ________,decided it was appropriate to further regulate executive pay in firms receiving government "bailout" money.

Correct AnswerverifiedShow Answer

Architects R Us has begun the process of ________ to increase flexibility in job and merit assignment.

Correct AnswerverifiedShow Answer

When you move an employee higher in the pay structure to compensate for higher living costs,it becomes easier to adjust the salary downward when the employee moves to a low-cost area.

Correct AnswerverifiedShow Answer

Describe the potential limitations of using a job-based pay structure.

Correct AnswerverifiedA job-based pay structure has a number o...View AnswerShow Answer

Which of the following is the most widely used method in job evaluation that yields scores for each compensable factor?

Correct AnswerverifiedShow Answer

Product market comparisons that focus on labor costs are likely to deserve greater weight when

Correct AnswerverifiedShow Answer

Which of the following is true of broad bands?

Correct AnswerverifiedShow Answer

Under the Fair Labor Standards Act,nonexempt employees are eligible for overtime pay.

Correct AnswerverifiedShow Answer

Which of the following is true about pay?

Correct AnswerverifiedShow Answer

Alpha Omega compares its practices set by management with the standard set in each unit as a benchmark.

Correct AnswerverifiedShow Answer

Discuss some of the concerns over the Equal Employment Opportunity (EEO)regulation.

Correct AnswerverifiedThere are concerns that EEO regulation o...View AnswerShow Answer

The upper bound placed by product market competition is more constrictive when labor costs are a larger share of total costs.

Correct AnswerverifiedShow Answer

At Tyrone's interview,he asked about the ________ so that he could make an informed decision regarding the job and the pay offered.

Correct AnswerverifiedShow Answer

Which of the following is true of skill-based pay?

Correct AnswerverifiedShow Answer

Labor market comparisons are more important than product market comparisons when

Correct AnswerverifiedShow Answer

Compensable factors are employees' job characteristics that

Correct AnswerverifiedShow Answer

Explain the reasons for the controversy over executive pay.

Correct AnswerverifiedThe issue of executive pay has been give...View AnswerShow Answer

John is a CEO of his company.On paper,it looks like his salary is commensurate with other managers,but he also has stock options that may increase or decrease his compensation based on the performance of the stock market.

Correct AnswerverifiedShow Answer

Which of the following is a focus of external equity pay?

Correct AnswerverifiedShow Answer

Which of the following best describes gross domestic product?

Correct AnswerverifiedShow Answer

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A job-based pay structure has a number o...
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There are concerns that EEO regulation o...
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The issue of executive pay has been give...
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