Topic 1

Question 1

Base Pay

Answer 1

Salary or hourly wages

Question 2

Cash Compensation

Answer 2

Monetary pay that employees receive in exchange for their work

Question 3

Exempt Employees

Answer 3

Employees who are exempt from the overtime requirements of the Fair Labor Standards Act, such as outside salespeople and executives who have administrative or managerial responsibilities.

Question 4

Fair Labor Standards Act (FLSA) of 1938

Answer 4

Federal law that requires employers to determine the “employee status” of each job so that certain protections (minimum wage, overtime pay, and child labor) can be provided to non-exempt employees.

Question 5

Hours Worked

Answer 5

All hours that an employee is permitted to work, plus time when the employee is required to be on the employer’s premises, on duty, or at a designated work station.

Question 6

Merit Increase Grids

Answer 6

Guidelines provided by the HR department recommending appropriate pay increases for different performance levels.

Question 7

Non-exempt Employees

Answer 7

Employees who are covered by the minimum wage and overtime pay provisions of the FLSA.

Question 8

Organizational Citizenship Behaviors (OCB)

Answer 8

Represent those value-creating activities in which employees engage but which are not part of their job. Employees who go beyond their defined responsibilities to help a colleague at work contribute significantly to an organization’s success.

Question 9

Organizational Performance

Answer 9

Can include effectiveness at meeting customer needs, new product creation, and gains in market share, profits, and other measures of financial return on the firm’s assets.

Question 10

Outcomes

Answer 10

Goals or the criteria by which a rewards system can be judged

Question 11

Portal-to-Portal Act

Answer 11

Helped to define some of the rules for the FLSA.

Question 12

Regular Rate of Pay

Answer 12

The basic hourly rate of pay plus any non-discretionary bonuses, shift differentials, production bonuses, and commissions earned

Question 13

Regular Workweek

Answer 13

Seven consecutive periods of 24-hour days

Question 14

Strategy

Answer 14

The process by which an organization decides on which products or services to market and sell, which industries to enter, and how the organization is going to reach its desired goals in the marketplace. How an organization is going to compete.

Question 15

Technology

Answer 15

The equipment and knowledge used to produce goods and services. May vary greatly by industry.

Question 16

Total Rewards

Answer 16

All forms of pay and compensation, tangible benefits, and other intangible rewards that an organization provides

Question 17

Variable Pay

Answer 17

Performance-based rewards such as bonuses and commissions, as well as longer-term equity rewards such as stock options