Question 1

An employee who is being paid below the minimum,

Accepted Answer

A)   is usually green-circled
B)   is usually red-circled
C)   is blue-circled
D)   is black-circled
E)   none of the aboveF) C) and E)
G) A) and B)

Question 2

Employers can maximize satisfaction with pay by involving employees in pay system design.

Accepted Answer

A) True 
 B)False

Question 3

Employees who focus only on the base salary will perceive the pay to be unfairly low.

Accepted Answer

A) True 
 B)False

Question 4

The Dukes v. Wal-Mart Stores lawsuit:

Accepted Answer

A)   contends that Wal-Mart paid male managers less than female managers
B)   contends that Wal-Mart paid younger female managers less than older female managers
C)   demands that Wal-Mart's centralized pay policies be discontinued
D)   was filed as a class action suit
E)   was filed on behalf of all women who have worked at Wal-Mart to stop widespread pay-related sexual harassment (quid pro quo)  within its storesF) A) and D)
G) A) and E)

Question 5

Although it is illegal for employers to forbid employee discussions of pay, keeping pay secret is the norm in many U.S. organizations.

Accepted Answer

A) True 
 B)False

Question 6

In the feature Managing with Ethics: Fostering Ethics at Payless Shoesource, Payless adopted a code of ethics that addresses:

Accepted Answer

A)   equal opportunity and respect in the workplace
B)   avoiding conflicts of interest
C)   obligations to customers
D)   financial integrity of books and records
E)   all of the aboveF) A) and E)
G) A) and B)

Question 7

Which of the following work-related activities must be counted when determining whether a person has worked for more than 40 hours?

Accepted Answer

A)   Getting ready to work
B)   breaking from work
C)   waiting to work
D)   all of the above
E)   a and b onlyF) A) and E)
G) A) and C)

Question 8

Line managers:

Accepted Answer

A)   tend to be highly informed about the compensation system
B)   usually receive intensive training on base pay rates
C)   have more information about benefits than about other aspects of compensation
D)   often participate in designing total compensation
E)   all of the above are trueF) C) and E)
G) A) and D)

Question 9

The theory of comparable worth states that:

Accepted Answer

A)   men and women are comparably worth a minimum wage
B)   pay for even dissimilar jobs should be equal if the jobs have a similar overall value to the organization.
C)   expatriates should be paid comparably with home country employees
D)   all employees are entitled to comparable, if not equal, benefit packages
E)   pay should be commensurate with responsibilityF) A) and B)
G) A) and C)

Question 10

Maxine's supervisor overheard her discussing her dissatisfaction with her pay with an outside vendor who was stocking the vending machines in the employee break room. The firm has a pay secrecy policy. What action can her supervisor?

Accepted Answer

A)   Discharge her for violating the policy
B)   Reprimand her with a written warning
C)   Forbid her from discussing pay with anyone outside the firm
D)   Have her transferred to a lower-paying job in another department
E)   Take no disciplinary actionF) A) and B)
G) A) and C)

Question 11

An organization's strategic objectives often have important implications for the design and implementation of its compensation system.

Accepted Answer

A) True 
 B)False

Question 12

The design of a total compensation system is shaped by the organizational environment.

Accepted Answer

A) True 
 B)False

Question 13

The presence of unions in an industry results in which of the following effects on compensation practices in that industry EXCEPT:

Accepted Answer

A)   Unionized organizations pay more
B)   Unionized organizations have less-performance-based pay
C)   Unionized organizations tend to offer better benefits
D)   Unionized and nonunionized organizations pay similar wages
E)   All of the above are union effectsF) D) and E)
G) None of the above

Question 14

The most widely used method of job evaluation is:

Accepted Answer

A)   benchmarking
B)   performance appraisals
C)   the point factor rating method
D)   ranking
E)   factor analysisF) D) and E)
G) B) and C)

Question 15

In a skill-based pay system,

Accepted Answer

A)   pay ranges are variable, depending on the type of job and pay grade width
B)   pay administration is contingent upon the complexity of job evaluation and the pay allocation plan
C)   pay is tied to personal competency levels
D)   training is necessitated by need rather than employee desire for training
E)   all of the above are trueF) A) and E)
G) B) and D)

Question 16

What is the most widely used method for job evaluations?

Accepted Answer

The point ...

Question 17

Public outcries about CEO pay have prompted government actions that are designed to increase the transparency and fairness of such pay. Which of the following required actions was not contained in the Dodd-Frank Act of 2010:

Accepted Answer

A)   Independence for executive compensation committee members and compensationConsultants.
B)   Disclosure of the pay-for-performance components of executive compensation
C)   Reporting of the ratio of CEO total compensation to the median of non-CEOTotal compensation.
D)   Removal of after-the-fact clawback provisions, which require executives to repay any incentive compensation that was properly awarded based on financial restatements
E)   None of these are contained in the Dodd-Frank Act of 2010F) A) and B)
G) C) and D)

Question 18

Total compensation refers to the monetary and nonmonetary rewards offered to employees.

Accepted Answer

A) True 
 B)False

Question 19

Ensuring total compensation is consistent with legal requirements is the responsibility of:

Accepted Answer

A)   Line managers
B)   HR professional
C)   Employees
D)   All of the above
E)   None of the aboveF) A) and B)
G) A) and E)

Question 20

Comment on the following statement: "Job evaluation and job analysis are actually synonyms?"

Accepted Answer

Job evaluation is a procedure for establ...

Exam 10: Developing an Approach to Total Compensation

The presence of unions in an industry results in which of the following effects on compensation practices in that industry EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following work-related activities must be counted when determining whether a person has worked for more than 40 hours?

Correct AnswerverifiedShow Answer

Comment on the following statement: "Job evaluation and job analysis are actually synonyms?"

Correct AnswerverifiedJob evaluation is a procedure for establ...View AnswerShow Answer

An organization's strategic objectives often have important implications for the design and implementation of its compensation system.

Correct AnswerverifiedShow Answer

What is the most widely used method for job evaluations?

Correct AnswerverifiedThe point ...View AnswerShow Answer

Total compensation refers to the monetary and nonmonetary rewards offered to employees.

Correct AnswerverifiedShow Answer

The most widely used method of job evaluation is:

Correct AnswerverifiedShow Answer

The Dukes v. Wal-Mart Stores lawsuit:

Correct AnswerverifiedShow Answer

In a skill-based pay system,

Correct AnswerverifiedShow Answer

Public outcries about CEO pay have prompted government actions that are designed to increase the transparency and fairness of such pay. Which of the following required actions was not contained in the Dodd-Frank Act of 2010:

Correct AnswerverifiedShow Answer

The design of a total compensation system is shaped by the organizational environment.

Correct AnswerverifiedShow Answer

Ensuring total compensation is consistent with legal requirements is the responsibility of:

Correct AnswerverifiedShow Answer

Employers can maximize satisfaction with pay by involving employees in pay system design.

Correct AnswerverifiedShow Answer

Line managers:

Correct AnswerverifiedShow Answer

In the feature Managing with Ethics: Fostering Ethics at Payless Shoesource, Payless adopted a code of ethics that addresses:

Correct AnswerverifiedShow Answer

Maxine's supervisor overheard her discussing her dissatisfaction with her pay with an outside vendor who was stocking the vending machines in the employee break room. The firm has a pay secrecy policy. What action can her supervisor?

Correct AnswerverifiedShow Answer

Although it is illegal for employers to forbid employee discussions of pay, keeping pay secret is the norm in many U.S. organizations.

Correct AnswerverifiedShow Answer

The theory of comparable worth states that:

Correct AnswerverifiedShow Answer

Employees who focus only on the base salary will perceive the pay to be unfairly low.

Correct AnswerverifiedShow Answer

An employee who is being paid below the minimum,

Correct AnswerverifiedShow Answer

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Job evaluation is a procedure for establ...
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The point ...
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