61. Compensatory time-off can be given to non-exempt employees in the private sector
a. if it is given to employees at the rate of one and one-half times the hours worked over a 40-hour week.
b. if the comp time can be carried over for 60 days.
c. if the employee’s hourly wage is at least one and one-half times the minimum wage.
d. only if the employer is a federal government contractor with contracts over $50,000.
62. Clemmie is a non-exempt employee of a large law firm. During a particular trial 15 percent of her employer’s staff caught a particularly virulent flu, resulting in everyone else having to do their own work as well as the sick employees’ work. One particularly intense week, Clemmie worked 115 hours. Which of the following statements is true?
a. Clemmie will be entitled to time and a half overtime for every hour over 8 that she worked each day.
b. Clemmie will be entitled to 112.5 hours of time off which she can take within the calendar year.
c. Clemmie’s overtime pay will be the same amount of pay as if she had worked 112.5 hours of straight time.
d. Clemmie will have her choice of receiving either 75 hours of overtime pay or 75 hours of compensatory time off.
63. For an employer, the primary advantage of classifying a worker as an independent contractor is that
a. independent contractors are typically more productive than regular employees.
b. independent contractors can be fired at any time, unlike regular employees.
c. the employer does not have to pay Social Security, workers’ compensation, or unemployment costs.
d. employers do not have to verify that contractors have valid work permits.
64. Orville Brothers Construction, Inc., is making a bid for a federal government contract to build a bridge. In that bid, the construction company must allow for ____ wages for the employees.
a. median national industry
65. The Equal Pay Act prohibits wage differentials based on
b. job classification.
66. MetroUrban Bank has 27 branches, each with a branch manager. These branches range in size from mini-branches in grocery stores, to large branches with many business and investment clients. Mini-branches may have only three or four employees. Large branches may have as many as fifty employees. Of MetroUrban’s branch managers, 15 are female and 12 are male. Female branch managers average pay is 75% of the male branch managers pay. As the director of compensation for MetroUrban Bank, what proof should you provide that shows your bank has not broken the Equal Pay Act?
a. Women branch managers are not a protected class in this case because a majority of branch managers are female.
b. The bank only began hiring women to be branch managers about 10 years ago. Consequently, the female branch managers have been with the bank a fewer number of years than the males. Typically, the branch managers of the larger branches are bank officers who have more years of experience with the bank.
c. Business clients prefer to do business with male branch managers. Consequently, the larger branches are assigned male managers. Since these branch manager positions are much more challenging jobs, the bank can legally pay managers at these branches more than they pay managers of other branches.
d. Although female and male branch managers have the same job descriptions, the male managers are assigned to branches in dangerous neighborhoods. Consequently, they are paid approximately 25 percent more in hazardous duty pay.
67. ____ is the concept that the pay for all jobs requiring comparable knowledge, skills, and abilities should be similar even if actual duties and market rates differ significantly.
a. Pay equity
b. The living wage
c. Unbiased compensation
d. Equality in compensation
68. ____ is a court action in which a portion of an employee's wages is set aside to pay a debt the employee owes to someone.
b. Creditor reimbursement
d. Debt deduction
69. Aesthetic Decor, Inc., has made the philosophical decision to have absolute internal equity in its pay structure. To that end, every job in the organization has been rigorously evaluated and assigned points according to the worth of the job to the organization. The result is that many traditionally female-dominated jobs are paid more than what they are typically paid, and some traditionally male-dominated jobs are paid less than what they are typically paid. Which of the statements below is most likely to be TRUE?
a. This system is based on the concept of pay equality.
b. Although this system looks ethical on its face, it actually violates the Equal Pay Act because it will discriminate against male employees.
c. Aesthetic Decor will have a hard time staffing any of the gender-stereotyped jobs in its organization.
d. Aesthetic Decor’s compensation for traditional male jobs will not be externally competitive.
70. In a job evaluation, every job in an organization is examined and wages are set according to
a. the educational qualifications needed for employment.
b. the relative worth of the job to the organization.
c. the value of employees holding the job.
d. the job's level in the organizational hierarchy.
71. When using the point method of job evaluation, a ____ factor is used to identify a job value that is commonly present throughout a group of jobs.
72. Which of the following is a major drawback to the point method of job evaluation? a. It is too simplified to apply to complex jobs.
b. It is too complex to implement in most organizations.
c. It reinforces traditional organizational structures.
d. It is available only through consulting firms, consequently this system is too expensive for many small employers.
73. Of the following methods of job evaluation, the ____ method is the most subjective.
d. Hay system
74. Traditional job evaluation programs have been criticized as being gender-biased against women. Employers argue that
a. female-dominated jobs are concentrated in lower-paying industries and smaller firms which have lower pay levels.
b. job evaluation is based on internal equity, and so the resulting pay levels are by definition non-discriminatory.
c. male-dominated jobs require physical strength and endurance of severe working conditions, which makes these jobs objectively more valuable to the organization.
d. job evaluations reflect the pay rates the “market economy” sets for jobs.
75. George, a compensation specialist for a large frozen foods company, has been asked to identify compensable factors specific to the job of forklift operator in the company’s extensive warehouse. This warehouse is one of the largest refrigerated warehouses in the country. George would probably include all the following in his list EXCEPT
a. working environment.
b. safety hazards.
c. use of specialized equipment.
d. consequences of errors.
76. Much of the accuracy of the market pricing method of job evaluation depends on
a. the industry in which the organization operates.
b. whether gender bias can be eliminated from the system.
c. the quality of the job matches between the survey and the employer’s jobs.
d. the depth and appropriateness of the compensable factors used.
77. The CEO of your company wants to move to a pure market pricing approach to compensating all the employees. She argues that it is foolish to pay more for any resource (including human resources) than they are worth on the open market. She argues that a pure market pricing approach would be the most efficient use of organizational funds. It is her idea to review the market price for each job in the company annually, and revise the employees’ pay up or down as indicated. She knows this is an unconventional idea, but she is convinced it would work. You make all the following arguments EXCEPT
a. a pay structure based entirely on market pricing would be hard to defend in court against charges of discrimination.
b. employees’ pay may fluctuate wildly from year to year.
c. it will not be possible to find pay survey data for jobs that are unique to your company.
d. for many jobs there is little pay survey data that is gathered in a methodologically-sound manner.
78. Simon is a compensation specialist for Coreopsis, Inc. He is collecting data on compensation rates for workers performing similar jobs at other organizations,. Simon is conducting a
a. external equity study.
b. pay survey.
c. market review.
d. competitive evaluation.
79. A ____ job is one that is found in many organizations and performed by several individuals who have similar duties and require similar KSAs.
80. Celeste, the vice president of compensation, is preparing a report for the executive committee recommending that the company move from using a traditional job evaluation system to a system using market pricing. Celeste will probably include all of the following arguments in her presentation EXCEPT market pricing
a. keeps the company’s pay levels in line with competitors’ pay levels.
b. is less likely to be distorted by internal job evaluation.
c. can reduce wide fluctuations in data on which pay rates are based.
d. is viewed by employees as having high face validity.
81. Bruce, the director of compensation for a regional medical center, wishes to examine pay survey data for the various classifications of nurses in the organization. Bruce is aware of some concerns over “price fixing” of wages. He decides that he will use all of the following sources of information on nursing pay EXCEPT
a. a pay survey of regional healthcare institutions that he will conduct himself during an upcoming conference of healthcare executives.
b. nurses’ pay data from the National Bureau of Labor Statistics.
c. a management consulting firm that specializes in pay surveys of healthcare workers.
d. a pay survey conducted by the local HR association.
82. As director of compensation and benefits, you are deciding whether you should purchase a new pay survey. You consider all the of following characteristics of pay surveys in your decision EXCEPT
a. On what dates were the survey data gathered?
b. Is the survey focused exclusively on companies of your size, the city in which you operate, and your industry?
c. Are you familiar with the reputation of the company or organization that produced the survey?
d. Does the survey include data from companies with which you compete for employees?
83. In the next five years pay surveys will be
a. undergoing a major legal challenge due to widespread accusations of “price-fixing on wages.”
b. conducted largely electronically, using Web-based technology.
c. conducted by linking company payroll databases to the surveying company.
d. less popular because of the way market pricing distorts the internal equity of the compensation system.
84. Angela, one of the company’s best administrative employees, has made an appointment with you, the vice president of HR. Angela is extremely upset because she has done an Internet search on compensation levels for her particular job. She has found that her salary falls below both the industry median and industry average, even though she has been with the company for four years and has had outstanding performance reviews. Angela is a valuable employee and she would be difficult to replace. In addition, if Angela’s morale declines, her attitude will strongly affect her co-workers. The compensation system at your company has a strong emphasis on internal equity, and it is a solid and legal system. Which of the following arguments would be LEAST effective for retaining Angela and maintaining her morale?
a. Tell Angela that the company has done extensive job evaluation studies, and although she is a highly-valued employee, you can’t justify paying her any more.
b. Demonstrate that your company offers higher benefits than does the average company listed in the surveys she has found.
c. Point out to Angela that your company is located in a small, rural town and that the data she has gathered from the Internet is based on companies that operate in all geographic locations.
d. Explain that Angela’s job does not include responsibility for budgeting that the benchmark job in the Internet survey includes.
85. A____ is a group of jobs having common organizational characteristics.
a. market band
b. occupational category
d. job family
86. Organizations use pay grades to
a. group individual jobs having approximately the same job worth.
b. guard against pay differentials based on sex or race.
c. compare similar jobs across a variety of organizations.
d. cluster jobs having common organizational characteristics.
87. The last step in establishing a pay structure is to
a. compute pay ranges.
b. review individual pay.
c. compare current pay to pay ranges.
d. establish pay grades.
88. The ____ shows the relationship between job value, as determined by job evaluation points, and pay survey rates.
d. market line
89. The ____ derived from the pay survey is/are used to develop pay range minimums and maximums.
a. midpoint of the survey average
b. minimum and maximum of the pay ranges in the survey.
c. minimum and the maximum of the pay ranges in the survey with outliers eliminated.
d. the lesser of the statistical average or the median pay level of the market bands.
90. ____ is the practice of using fewer pay grades with much wider ranges than in traditional compensation systems.
a. Pay scaling
b. Flexible grades
d. Grade reduction