Q&A Hero

Q: All of the following statements about commercial compensation software are true except _____. A.can analyze almost every aspect of compensation information B.can simulate alternate wage proposals and compare their potential effects C.can easily compare past estimates to future estimates D.can help evaluate salary survey data and simulate the cost impact of gain-sharing options

Q: Which of following is a legitimate reason why a compa-ratio may be less than 1? A.A majority of workers with high performance B.The majority of employees may be new or recent hires C.Low promotion rates D.Turnover is low

Q: A compa-ratio less than 1 typically means ________ . A.many employees are poor performers B.turnover is low C.there are relatively few new hires D.the majority of workers are long tenure

Q: A compa-ratio greater than 1 typically means that _____. A.the intended policy line has been violated B.employees are overpaid C.most employees are new entrants D.turnover is high

Q: The compa-ratio reflects the _____. A.rate paid for satisfactory performance B.relationship of actual salaries to the midpoint of the going rates in the market C.relationship of the midpoint of each range to actual salaries D.relationship of actual salaries in each range to the midpoint of the range

Q: _____ are to broad bands as minimums, midpoints, and maximums are to pay ranges. A.Gray fields B.Band-guides C.Reference rates D.Gray ranges

Q: A _____ rate is when an employee is paid more than the maximum of their pay grade. A.red circle B.yellow circle C.blue circle D.green triangle

Q: Range minimums and maximums reflect the _____. A.market value of the output produced B.market value of the employee's skills and abilities C.market fluctuations in wage rates D.value to the organization of the output of a job

Q: All of the following are examples of inherent controls except _____. A.range minimums and maximums B.broad bands C.budgets D.performance evaluation

Q: Which of the following objectives of the pay model is most appropriate for judging ethical behavior of compensation specialists? A.Ensure legal compliance B.Strive to achieve efficiency and fairness C.Seek fairness for all stakeholders D.Strive to achieve efficiency and legal compliance

Q: Which form(s) of compensation is/are most likely to be involved in unethical practices? A.Executive stock options B.Employee medical benefits C.Employee base pay D.Worker pensions and retirement income

Q: The Web page for the compensation society is _____. A.Society for Human Resource Management B.American Compensation Association C.International Compensation and Benefits Society D.WorldatWork

Q: Which of the following approaches to pay budgeting requires the most training of managers? A.Top-down B.Forward cycle budgeting C.Bottom-up approach D.Unit-level budgeting

Q: Which method of budgeting relies heavily on employee pay histories? A.Unit-level budgeting B.Bottom-up C.Control to planned level rise D.Top-down

Q: If Philadelphia has a CPI of 165 and Houston has a CPI of 145, this means _____. A.prices have risen faster in Philadelphia since the base year than in Houston B.it essentially costs more to live in Philadelphia than Houston C.it costs less to live in Houston than Philadelphia D.pay in Philadelphia is, on average, 20 percent higher than in Houston

Q: Which of the following is a measure of prices of goods and services in the product and service markets? A.Producer price surveys B.Product market competitor wage surveys C.Labor market competitor wage surveys D.Consumer price index

Q: Changes in wages in labor markets are measured _____. A.by the producer price index B.by the consumer price index C.through pay surveys D.by examining the personal expenditures of each employee

Q: The denominator for calculating the current year's rise is _____.A.average pay at beginning of yearB.average pay at end of yearC.average number of employees during the yearD.average employment level

Q: If financially troubled employers have not been able to maintain competitive market positions, the conventional response has been to _____. A.increase the rate of reduction in average pay by controlling adjustments in base pay B.decrease employees' copays and deductibles for benefits C.increase base wages but not variable pay D.reduce employment

Q: _____ is the budgetary approach that begins with an estimate from top management of the pay increase budget for the entire organization. A.Bottom-up budgeting B.Top-down budgeting C.Managerial plan D.Executive estimate budgeting

Q: The percentage increase that is planned for an organizational unit or company is called _____. A.a top-down budget B.a bottoms-up budget C.a planned pay-level rise D.the current year's rise

Q: In 2011, the average base salary increase budget was approximately ___ percent and the average variable pay budget was ___ percent.A. 6.6, 2.7B. 2.7, 6.6C. 2.7, 11.7D. 11.7, 6.6

Q: The average company match for 401K plans is ________ on the dollar up to six percent of pay.A.50B.40C.30D.20

Q: Contingent workers include all of the following except _____. A.part-time regular workers B.workers on rotating shifts C.overtime workers D.small independent vendors

Q: _____ is a common effect of layoffs. A.Lower financial gains than expected B.Unfavorable short-term stock prices C.Higher morale among remaining employees D.Productivity gains

Q: All of the following are potential problems with headcount reductions except _____. A.regulatory requirements make it difficult to make targeted cuts B.workforce reductions, especially if not handled well, can harm employee relations C.organizations that make greater involuntary workforce reductions also experience greater voluntary turnover D.RIFs are very costly in tangible terms up front due to increases in workers compensation insurance.

Q: The _____ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees. A.ADA B.FMLA C.FLSA D.ADEA

Q: All of the following are adverse effects of layoffs except _____ A. voluntary turnover rises. B. unrealized productivity. C. lower morale D. lower financial gains than expected.

Q: A major advantage of a _____ is that it reduces benefits costs, something that the other options ordinarily do not achieve. A.reduction in hours B.furlough C.pay cut D.reduction in force

Q: All of the following are major factors used to manage total labor costs except _____. A.average employment level B.average cash compensation C.number of overtime hours D.average benefits costs

Q: Total compensation in many organizations makes up __ percent of operating expenses. A. 20 B. 30 C. 40 D. 50

Q: Which of the following is not a tradeoff that would be considered in setting a compensation budget? A.Seniority versus performance contingent pay B.To pay overtime for exempt versus nonexempt C.Employee contributions versus across the board increases D.Cash compensation versus benefits

Q: Which of the following is not a likely consequence of a highly decentralized pay system? A.Total labor costs would be reduced B.Pay rates would be very unsystematic C.Managers would use pay to motivate their own objectives D.Employees are likely to be treated unfairly

Q: Which of the following is not classified as exempt under FLSA?A.Computer employeeB.Commission salesC.ProfessionalD.Highly compensated employees

Q: To qualify for the administrative employee exemption, which of the following tests must be met?A.The employee must be compensated on a salary or fee basis at a rate not less than $455 per week.B.The employee's primary duty must be managing the enterprise.C.The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent.D.The employee must have the authority to hire or fire other employees.

Q: All of the following are criteria used in determining exempt status for executives regarding overtime pay provisions except _____.A.engage in semi-routine activitiesB.primarily undertake management dutiesC.supervise two or more employeesD.authority to hire or fire other employees

Q: 13.Which of the following occupational groups are not likely to be categorized as exempt?A.AdministrativeB.ProfessionalC.ExecutiveD.Clerical

Q: Which of the following is not true regarding minimum wage?A.Nearly three-fourths of those earning minimum wage or less are in service occupations.B.The percent of women and men earning minimum wage is approximately equal.C.Minimum wages are more common in retailing than other industries.D.The minimum wage directly affects only a small number of people.

Q: _______ require(s) companies set policies to take back executive compensation if it was based on financial information that did not comply with accounting standards.A.The Executive Compensation DisclosureB. TARPC.The financial Accounting Standards Board Statement 123RD.Clawbacks

Q: Under the __________ act, employers are liable for current pay differences the occurred as a result of discrimination years in the past. A.Sarbanes-OxleyB.Lilly Ledbetter Fair PayC.Equal Pay ActD.Fair Labor Standards Act

Q: The Worker Economic Opportunity Act _____.A.exempts stock options from the calculation of overtimeB.stiffens requirements for reporting executive payC.is unpopular with employers since it raises total wage costsD.extends SEC pay disclosure requirements to highly paid executives

Q: All of the following except _____ are provisions of the 1938 Fair Labor Standards Act.A.prohibition of hazardous workB.the minimum wageC.prohibition of child laborD.hours of work

Q: Under the _____ Act, executives cannot retain bonuses or profits from selling company stock if they mislead the public regarding their company's financial condition.A.Worker Economic OpportunityB.Davis-BaconC.Walsh-HealeyD.Sarbanes-Oxley

Q: The Davis-Bacon Act _____.A.states that income from most stock plans need not be included in calculating overtime payB.increases border of proof on employers to rebut some discrimination claimsC.requires that mechanics and laborers on public construction projects be paid the "prevailing wage" in an areaD.extends prevailing-wage concept to manufacturers or suppliers of goods for government contracts

Q: The _____ Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts.A.Sarbanes-OxleyB.Walsh-HealeyC.Fair Labor StandardsD.Davis-Bacon

Q: Which of the following is not true of the government's effect on the economy? Government _____.A.indirectly affects labor demand via government purchasesB.affects labor supply via legislationC.affects demand for labor via interest ratesD.immigration policy affects labor demand

Q: The government has interests in compensation decisions related to all but _____.A.the fairness of pay proceduresB.safety nets for the unemployed and disadvantagedC.earnings compared to foreign workersD.overtime and child labor

Q: Which of the following is the least likely response companies would make to legislation?A.LobbyingB.Token complianceC.Auditing their practicesD.Defending company practices in court

Q: The executive branch of the federal government _____.A.enforces laws through agencies and its other bodiesB.passes lawsC.interprets laws and considers their constitutionalityD.changes existing laws or passes new ones

Q: How can a proactive compensation manager influence the nature of regulations?

Q: What are the four basic steps in establishing a comparable-worth plan?

Q: What are the sources of earnings gaps?

Q: Compare and contrast disparate treatment and disparate impact.

Q: What are the definitions of skill, effort, responsibility, working conditions according to the Department of Labor? What are the conditions that must be met for an employer to support a claim of unequal work?

Q: Distinguish between access discrimination and valuation discrimination.

Q: What are the tests that must be met to qualify for the executive employee exemption?

Q: What is the Fair Labor Standards Act of 1938? What are its major provisions?

Q: What does the Securities Exchange Act of 1934 do?

Q: What are the three branches of the federal government In the United States? What are their functions?

Q: Most large, private companies have adopted a single job evaluation plan for jobs with dissimilar content.

Q: The key to a comparable worth system is a single job evaluation plan for jobs with dissimilar content.

Q: The gender pay gap is common across other countries and is smaller in some countries than the US.

Q: The best evidence of true pay discrimination are statistical studies that account for gender differences in pay using legitimate factors.

Q: A higher proportion of women are employed by small versus large firms.

Q: The gender wage gap is moderate for recent college graduates and decreases as the cohort ages.

Q: Women of all ethnic groups are less likely than men to seek part-time and flexible work arrangements.

Q: Women's median annual earnings compared to men's has changed from about 60 percent to 78 percent from 1980 to 2010.

Q: In Gunther v.County ofWashington, the Supreme Court ruled that a wage discrimination suit could be brought under Title VII where the jobs were dissimilar.

Q: Disparate treatment occurs when a seemingly neutral employment practice disproportionately excludes a protected group from employment opportunities.

Q: Fewer than 30 percent of working women are not covered by the Equal Pay Act.

Q: Pay differences for equal work may be justified for demonstrably business-related reasons.

Q: Of the four affirmative defenses for unequal pay for equal work, "a factor other than sex" has prompted the most court cases.

Q: In cases of equal pay, the formal job description is more important than the actual work performed.

Q: The Schultz v. Wheaton Glasscase ruled that for jobs to receive equal pay, they do not have to be identical but substantially equal.

Q: The two types of discrimination recognized in law are valuation discrimination and disparate treatment.

Q: Prevailing wages protect foreign workers working as registered nurses.

Q: In practice, the "going rate" for construction labor is the union rate.

Q: The purpose of prevailing wage laws is to assure that government projects do not waste tax dollars.

Q: A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.

Q: The most frequently jobs misclassified as independent contractors rather than employees are truck drivers, home health aids and construction workers.