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Paying a salary does not necessarily mean that a job is exempt from overtime pay.

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Which of the following statements is true about pay ranges?


A) Pay ranges are most common for blue-collar jobs and those covered by union contracts.
B) Pay ranges are widest for employees who are at lower levels in terms of their job evaluation points.
C) Pay ranges generally are designed so that they do not overlap.
D) The market rate or the pay policy line generally serves as the midpoint of a range for the job.
E) The less overlap,the more flexibility in transferring employees among jobs.

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A pay structure helps an organization achieve goals related to cost control.

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A pay policy line


A) shows the mathematical relationship between the minimum pay and the maximum pay in an organization.
B) can be generated using a statistical method called regression analysis.
C) requires market-pay-rate data on all jobs in the organization.
D) can seldom provide information on the market pay level for a given job evaluation.
E) reflects the pay structure in the market,which always matches rates in the organization.

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David earns a base rate of $12 an hour and receives a weekly attendance award of $20.He works 40 hours this week.What would be his total compensation for the week?


A) $480
B) $600
C) $500
D) $520
E) $250

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Triano Brothers,an insurance firm,follows an administrative procedure for measuring the relative worth of its jobs.The organization does this by assembling and training a committee consisting of people familiar with the jobs.The committee includes a human resource specialist and,if the budget permits,an outside consultant is hired.Which of the following is exemplified in this scenario?


A) job rotation
B) job evaluation
C) merit pay system
D) job enrichment
E) work structure

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Which of the following is a federal law that establishes a minimum wage and requirements for overtime pay and child labor?


A) Fair Labor Standards Act
B) Americans with Disabilities Act
C) Family and Medical Leave Act
D) Employee Retirement Income Security Act
E) Equal Pay Act

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Spark Inc. ,a manufacturing company,hires employees ranging in age from 14 to 25.Which of the following practices by Spark would ensure that it complies with child labor laws?


A) The employees are all paid the same amount.
B) The teenage employees earn a training wage for the first year.
C) Only the workers over 20 earn overtime pay.
D) All the employees have part-time schedules.
E) The employees aged 14 and 15 work only in office jobs and for limited time periods.

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


A) Uniformed Services Employment and Reemployment Rights Act
B) Fair Labor Standards Act
C) Equal Employment Opportunity Act
D) National Labor Relations Board
E) Family and Medical Leave Act

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Economic theory holds that the most profitable pay level,all things being equal,would be at the _____.


A) lowest possible level
B) market rate
C) highest possible level
D) mid-range level
E) CPI rate

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Which of the following is a drawback of a comparable-worth policy?


A) A free-market economy assumes people will not take differences in pay into account when they choose a career.
B) Employees may conclude that pay rates are unfair.
C) The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate.
D) Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure.
E) Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate.

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Define hourly wage,piecework rate,and salary.

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An organization's pay structure should r...

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

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Which of the following is the result of combining more assignments into a single layer,thus giving managers more flexibility in making assignments and awarding pay increases?


A) outsourcing
B) broad bands
C) rightsizing
D) benchmarks
E) downsizing

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What is benchmarking?

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To compete for talent,organizations use ...

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Some employees at Los Amigos Inc. ,a clothing manufacturer,investigate pay rates on Salary.com and learn that Los Amigos has been paying them significantly more than the national average for their jobs.In this case,which of the following is the most likely reaction of the employees at Los Amigo?


A) The employees will conclude that there must be regional differences in pay.
B) The employees will be motivated to work much harder.
C) The employees will find their jobs less challenging.
D) The employees will find a way to increase their outcomes by stealing.
E) The employees' attitudes and behaviors will continue unchanged.

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

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Which of the following statements is true of equal employment opportunity laws?


A) These laws guarantee equal pay for whites and minorities.
B) The goal of these laws is for employers to provide equal pay for equal work.
C) Job descriptions and job structures cannot help organizations demonstrate that they are upholding these laws.
D) These laws guarantee equal pay for men and women.
E) Under these laws,employers cannot tie differences in pay to business-related considerations.

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Implementing broad bands increases the opportunities for promoting employees.

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What are the limitations of using a job-based pay structure?

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Some of the limitations of job-based pay...

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