Final Exam Flashcards
A compensation maxim for paying people fairly states that employees should be compensated for the requirements of the job they perform and…
How well they perform their job.
Which compensation objective is least compatible with the objective of providing an adequate income?
Compensation should be cost-benefit effective
The total labor force can be divided into three major labor markets:
Blue collar/non-supervisory white collar
Professional
Supervisors/Executives
Which segment of the labor market has the widest range of pay between the classifications of an occupation?
Supervisors/Executives
The pay ratio for lower-paid blu-collar workers versus highly-paid blue-collar workers is about
1:3
What are the three major decisions that must be made in designing a compensation system?
Wage Level, Wage Structure, Individual
Pay levels for professionals are determined mainly by
Educational training and certifications
Secret pay systems are better than open pay systems when
there are large, unexplained wage differentials.
Jobs in which labor market typically require the most education after high school?
Professional.
What are the strategic objectives of compensation?
Legal, adequate, motivating, equitable, secure, and cost-benefit effective
The “Hay” Guide Chart-Profile method uses which three compensable factors?
Know-how, Problem Solving, and Accountability
The GS system used by the Federal Government is an example of
a classification system.
The MOST significant impact of inflation on compensation is that it
requires timely wage adjustments.
In the point method, the weighting of the factors should be based on
their contribution to the overall worth of the job.
In the point method, “key job” refer to
equitably paid jobs that are fairly well-defined.
A “red-circle” rate is a wage that is
paid to a specific employee at a rate higher than that established for the job.
The most important tool to help a job evaluation committee reach a consensus decision when assigning points or comparing factors is
Job descriptions
The relationship between productivity and wages indicates that
Real compensation is closely related to productivity.
In a two-tier wage system…
Newly hired employees are paid on a lower wage scale than current employees.
Job evaluation is
A systematic approach to determine the value of each job.
The Scanlon Plan is a program which combines profit sharing with
a suggestion system.
According to Maslow, the desire to be creative and challenged and to develop one’s full potential is created by
self-actualization needs.
According to Herzberg’s Hygiene/Motivator Theory, what is the relationship between money and motivation?
Money is a factor associate with the context of the job (hygiene factor) and does not motivate.
Under a Halsey Premium Plan, workers would receive a bonus if
they completed a job faster than the standard time.
Person A and Person B both work the same job and receive the same pay, but A realizes that B works twice as fast. According to equity theory, A is most likely to
rationalize that his work is of higher quality than B’s.
Frederick W. Taylor, and others in scientific management, advocated what type of pay incentive?
Differential Piece Rates
What conditions are particularly well-suited for an individual merit pay plan to operate effectively and would call for it over other incentive plans?
There are wide variations in individual performance that supervisors can reliably measure.
The Rucker Share-of-Production Plan is a company-wide incentive plan based on the concept of
rewarding employees for the value they add to the product.
In which of the following situations should the individual incentive portion of total compensation be the highest?
Selling over the phone
According to expectancy theory, which of the following actions by a supervisor would strengthen the expectancy component?
Showing the employee how to complete a task faster: expectancy is the perceived relationship between effort and performance.
A qualified retirement plan funded by after-tax dollars
Roth IRA
A defined-contribution pension plan is defined by
How much money is put into the employee’s retirement fund each year.
Unemployment compensation was created as part of the
Social Security Act
The healthcare option that maximizes the patients’ freedom while minimizing cost control is
Fee for service
The concern for adverse selection in regards to flexible benefits programs is that
Only high-risk employees will participate in expensive benefits, which will drive premiums up
A major factor contributing to the growth of employee benefit programs was
wage control during WWII
The Medicare program was created in 1965 as an amendment to
the Social Security Act of 1935.
To encourage individuals to establish their own retirement accounts, tax laws provide that money put into an IRA is only taxed
upon withdrawal.
The Mental Health Parity Act requires that
mental health benefits be comparable to medical and surgical health benefits.
Worker’s Compensation benefits are determined by
state laws.
According to the equal pay act, employees of the opposite sex doing two different jobs that require comparable skill levels and have comparable worth to the organization…
may be paid different amounts.
The Family and Medical Leave Act requires that companies allow covered employees to take unpaid leave for family and medical reasons except for…
Taking care of an ill parent-in-law
Minimum wage is a part of which law?
Fair Labor Standards Act
When minimum wage laws cause the lower end of the wage curve to rise so that all jobs are paid the minimum
Direct effect of minimum wage increase
Which law is commonly referred to as the “Wage and Hour” law?
Fair Labor Standards Act
The Pregnancy Discrimination in Employment Act requires employers to
treat pregnancy like other medical conditions for benefits purposes.
The privilege of transferring money invested in one company pension plan to another company’s plan when an employee changes company is called
Portability
An event that triggers COBRA coverage
Qualifying event
The hourly rate of those paid on a piece rate basis is calculated by
Hours spent/money earned. Over time is one and half times that rate.
Whether an employee is classified as exempt or nonexempt under the FLSA is determined by
Duties and responsibilities.
What are right-to-work laws?
Laws that prohibit the collective bargaining agreements requiring employees to be union members.
The process of de-certifying a union involves
a majority vote of union members opposing union representation.