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ORGB |\ 327 |\Final |\Exam |\Questions |\Marking |\
Scheme |\Current |\Update
Compensation |\maxim |- |\CORRECT |\ANSWERS |\✔✔An |\ethical |\principle |
that |\describes |\how |\compensation |\should |\be |\determined. Determinants |\of |\pay |- |\CORRECT |\ANSWERS |\✔✔The |\factors |\that |
influence |\pay, |\including |\external |\factors, |\organizational |\factors, |\job |
factors, |\and |\individual |\factors. Individual |\wage |\decision |- |\CORRECT |\ANSWERS |\✔✔The |\wage |
decision |\that |\considers |\the |\issue |\of |\whether |\individuals |\performing |
the |\same |\job |\should |\all |\receive |\the |\same |\rate |\of |\pay |\or |\different |
rates |\of |\pay. Labor |\markets |- |\CORRECT |\ANSWERS |\✔✔Segments |\of |\the |\overall |\job |\market |\used |\for |\analyzing |\wage |\and |\salary |\levels. Pay |\secrecy |- |\CORRECT |\ANSWERS |\✔✔A |\policy |\that |\restricts |
employees |\from |\discussing |\their |\pay |\and |\limits |\the |\amount |\of |
information |\about |\pay |\that |\can |\be |\made |\public.
Salary |- |\CORRECT |\ANSWERS |\✔✔A |\compensation |\arrangement |\that |
pays |\employees |\on |\a |\period |\basis |\rather |\than |\an |\hourly |\one. Wage-level |\decision |- |\CORRECT |\ANSWERS |\✔✔The |\wage |\decision |\that |\compares |\the |\wages |\paid |\in |\one |\organization |\with |\the |\pay |\in |
other |\organizations |\for |\employees |\performing |\similar |\work. Wage-structure |\decision |- |\CORRECT |\ANSWERS |\✔✔The |\wage |\decision |\that |\examines |\how |\much |\money |\is |\paid |\for |\different |\jobs |\within |
the |\same |\organization. Wage |\survey |- |\CORRECT |\ANSWERS |\✔✔A |\review |\of |\the |\wages, |
salaries, |\and |\benefits |\offered |\by |\different |\organizations. Which |\of |\the |\following |\is |\NOT |\one |\of |\the |\three |\major |\decisions |\that |\must |\be |\decided |\in |\designing |\a |\compensation |\system? |
|\wage |\structure |\decision |\wage |\compression |\decision |\wage |\level |\decision |\individual |\wage |\decision |- |\CORRECT |\ANSWERS |\✔✔wage |
compression |\decision
|\compensation |\should |\be |\motivating |\compensation |\should |\be |\secure |- |\CORRECT |\ANSWERS |
✔✔compensation |\should |\be |\cost-benefit |\effective High |\wages |\that |\are |\adequate |\and |\able |\to |\attract |\qualified |
employees |\are |\inconsistent |\with |\the |\objective |\of |\being |\cost-benefit |
effective. Which |\of |\the |\following |\is |\NOT |\a |\strategic |\objective |\of |
compensation? |
|\It |\should |\be |\consistent |\with |\all |\federal, |\state, |\and |\local |\laws. |\It |\should |\be |\fixed |\to |\guarantee |\the |\employee |\a |\stable |\income. |\It |\should |\be |\motivating |\to |\the |\employee. |\It |\should |\be |\cost-benefit |\effective |\for |\the |\organization. |- |\CORRECT |
ANSWERS |\✔✔It |\should |\be |\fixed |\to |\guarantee |\the |\employee |\a |\stable |\income. The |\strategic |\objectives |\of |\compensation |\are |\that |\it |\be |\legal, |\be |
adequate, |\be |\motivating, |\be |\equitable, |\provide |\security, |\and |\be |
cost-benefit |\effective. The |\pay |\ratio |\for |\lower-paid |\blue-collar |\workers |\versus |\highly-paid |
blue-collar |\workers |\is |\about |\
|\1:
|\1:
|\1:
|\1:10 |- |\CORRECT |\ANSWERS |\✔✔1:
The |\pay |\range |\for |\high- |\and |\low-paying |\jobs |\is |\usually |\a |\ratio |
between |\1:2 |\and |\1:3. Pay |\levels |\for |\professionals |\are |\determined |\mainly |\by |
|\union |\affiliation |\profitability |\of |\the |\business. |\supply |\and |\demand |\in |\that |\labor |\market |\educational |\training |\and |\certifications |- |\CORRECT |\ANSWERS |
✔✔educational |\training |\and |\certifications Pay |\levels |\of |\professionals |\are |\primarily |\determined |\by |\educational |
training, |\academic |\degrees, |\and |\years |\of |\service. Which |\segment |\of |\the |\labor |\market |\has |\the |\widest |\range |\of |\pay |
between |\the |\classifications |\of |\an |\occupation? |
|\blue-collar |\employees |\clerical |\employees
|\supervisors |\and |\executives |\non-supervisory |\white-collar |\blue-collar |- |\CORRECT |\ANSWERS |\✔✔professional Jobs |\in |\the |\professional |\labor |\market |\typically |\require |\six |\to |\ten |
years |\of |\education |\beyond |\high |\school. The |\total |\labor |\force |\can |\be |\divided |\into |\three |\major |\labor |\markets: |
|\bluecollar/nonsupervisory |\white-collar, |\professional, |\and |
supervisors/executives |\blue-collar, |\white-collar, |\and |\professional |\skilled, |\unskilled, |\and |\semiskilled |\white-collar, |\professional, |\and |\unskilled |- |\CORRECT |\ANSWERS |
✔✔bluecollar/nonsupervisory |\white-collar, |\professional, |\and |
supervisors/executives Three |\meaningful |\labor |\markets |\include |(1) |\blue-collar |\and |\non- supervisory |\white-collar |\workers, |(2) |\professional |\employees, |\and |(3) |\supervisors |\and |\executives. topped |\out |- |\CORRECT |\ANSWERS |\✔✔When |\employees |\receive |\pay |
increases |\to |\the |\point |\that |\their |\salaries |\are |\at |\the |\top |\of |\their |\pay |
ranges.
percentage |\increase |- |\CORRECT |\ANSWERS |\✔✔A |\procedure |\used |\for |
adjusting |\the |\pay |\levels |\in |\which |\the |\pay |\for |\every |\job |\is |\increased |
by |\a |\fixed |\percentage |\amount. productivity |- |\CORRECT |\ANSWERS |\✔✔The |\total |\goods |\and |\services |
produced |\by |\society |\divided |\by |\the |\total |\number |\of |\employee |\hours |\required |\to |\produce |\them. step |\increases |- |\CORRECT |\ANSWERS |\✔✔Pay |\increases |\that |\are |
based |\on |\performance |\and |\length |\of |\service. red-circle |\jobs |- |\CORRECT |\ANSWERS |\✔✔Jobs |\that |\are |\either |\overpaid |\or |\underpaid |\relative |\to |\the |\amount |\the |\wage |\curve |\indicates |
ought |\to |\be |\paid |\for |\them. wage |\compression |- |\CORRECT |\ANSWERS |\✔✔A |\reduction |\in |\the |
relative |\wage |\differentials |\between |\high |\and |\low-paying |\jobs. wage |\curve |- |\CORRECT |\ANSWERS |\✔✔The |\line |\on |\a |\wage |\structure |
graph |\that |\shows |\higher |\levels |\of |\pay |\associated |\with |\higher-level |
jobs.
key |\jobs |- |\CORRECT |\ANSWERS |\✔✔Jobs |\that |\are |\considered |\equitably |\paid |\and |\are |\used |\in |\the |\point |\method |\to |\develop |\a |\wage |
structure. |\stable |\and |\well-defined. pay |\range |- |\CORRECT |\ANSWERS |\✔✔The |\range |\of |\pay |\associated |
with |\each |\pay |\grade, |\which |\indicates |\how |\much |\individual |\incentive |\is |\associated |\with |\the |\job. pay |\grade |- |\CORRECT |\ANSWERS |\✔✔A |\cluster |\of |\jobs |\along |\the |
hierarchy |\of |\job |\worth |\that |\are |\all |\paid |\the |\same |\rate |\of |\pay. consumer |\price |\index |- |\CORRECT |\ANSWERS |\✔✔A |\well-accepted |
measure |\of |\the |\rate |\of |\inflation. broad-banding |- |\CORRECT |\ANSWERS |\✔✔Creating |\wide |\labor |\grades |
so |\that |\there |\are |\fewer |\labor |\grades |\with |\more |\jobs |\in |\each |\one. factor |\comparison |- |\CORRECT |\ANSWERS |\✔✔A |\method |\for |
developing |\a |\wage |\structure |\in |\which |\benchmark |\jobs |\are |
compared |\with |\other |\jobs, |\factor |\by |\factor, |\to |\determine |\how |\much |\money |\should |\be |\paid |\for |\each |\factor.
classification |\method |- |\CORRECT |\ANSWERS |\✔✔A |\procedure |\used |\to |
develop |\a |\wage |\structure |\in |\which |\the |\job |\descriptions |\for |\each |\job |\are |\compared |\with |\a |\description |\that |\ranks |\the |\jobs |\in |\a |\hierarchy |
of |\job |\worth. compa-ratio |- |\CORRECT |\ANSWERS |\✔✔A |\number |\that |\compares |\a |
person's |\pay |\rate |\with |\the |\midpoint |\of |\the |\pay |\range. compensable |\factors |- |\CORRECT |\ANSWERS |\✔✔The |\factors |\associated |\with |\the |\different |\jobs |\that |\justify |\paying |\one |\job |\more |\than |
another. cost-of-living |\adjustment |- |\CORRECT |\ANSWERS |\✔✔A |\procedure |\that |
provides |\for |\automatic |\increases |\in |\the |\level |\of |\pay |\based |\on |\the |
rate |\of |\inflation. decreasing-rate |\increase |- |\CORRECT |\ANSWERS |\✔✔A |\procedure |\for |
adjusting |\the |\wage |\curve |\in |\which |\higher-level |\jobs |\are |\increased |
by |\successively |\smaller |\amounts. The |\most |\important |\tool |\to |\help |\a |\job |\evaluation |\committee |\reach |
a |\consensus |\decision |\when |\assigning |\points |\or |\comparing |\factors |\is |
|\performance |\evaluations. |\seniority |\lists.
High |\levels |\of |\inflation |\require |\frequent |\adjustments |\to |\a |\company's |\pay |\structure. The |\Hay |\Guide |\Chart-Profile |\method |\uses |\which |\three |\compensable |\factors? |
|\job |\requirements, |\performance, |\market |\conditions |\data |\tasks, |\people |\tasks, |\things |\tasks |\know-how, |\problem |\solving, |\and |\accountability |\education, |\skills, |\and |\responsibility |- |\CORRECT |\ANSWERS |\✔✔know- how, |\problem |\solving, |\and |\accountability The |\Hay |\Guide |\Chart-Profile |\method |\uses |\three |\compensable |
factors: |\know-how, |\problem |\solving, |\and |\accountability. The |\GS |\system |\used |\by |\the |\federal |\government |\is |\an |\example |\of |
|\a |\point |\method |\ranking |\system. |\a |\classification |\system. |\an |\agency |\grading |\method. |\a |\factor |\comparison |\method. |- |\CORRECT |\ANSWERS |\✔✔a |
classification |\system
The |\GS |\system |\used |\by |\the |\federal |\government |\is |\probably |\the |
best |\known |\classification |\system. The |\relationship |\between |\productivity |\and |\wages |\indicates |\that |
|\the |\consumer |\price |\index |\is |\closely |\correlated |\with |\the |\productivity |\index. |\actual |\compensation |\is |\directly |\related |\to |\productivity. |\real |\compensation |\is |\closely |\related |\to |\productivity. |\total |\compensation |\is |\a |\function |\of |\output |\per |\hour |- |\CORRECT |
ANSWERS |\✔✔real |\compensation |\is |\closely |\related |\to |\productivity. Real |\compensation |\has |\been |\show |\historically |\to |\be |\closely |\tied |\to |
productivity. A |"red-circle" |\rate |\is |\a |\wage |\rate |\that |\is |
|\established |\for |\a |\job |\by |\using |\a |\job |\evaluation. |\dependent |\on |\changes |\in |\the |\rate |\of |\inflation. |\paid |\to |\a |\specific |\employee |\at |\a |\rate |\higher |\than |\that |\established |
for |\the |\job. |\lower |\than |\current |\laws |\require. |- |\CORRECT |\ANSWERS |\✔✔paid |\to |\a |\specific |\employee |\at |\a |\rate |\higher |\than |\that |\established |\for |\the |
job.
|\a |\description |\of |\the |\tasks |\and |\skills |\needed |\to |\adequately |\perform |\the |\job. |\a |\form |\of |\performance |\appraisal |\that |\assesses |\potential. |\a |\systematic |\approach |\to |\determine |\the |\value |\of |\each |\job. |- |
CORRECT |\ANSWERS |\✔✔a |\systematic |\approach |\to |\determine |\the |
value |\of |\each |\job. The |\systematic |\approach |\of |\determining |\the |\relative |\worth |\or |\value |\of |\each |\job |\in |\an |\organization |\is |\referred |\to |\as |\job |\evaluation. In |\the |\point |\method, |\the |\weighting |\of |\factors |\should |\be |\based |
upon |
|\the |\number |\of |\compensable |\factors |\included |\in |\the |\system. |\the |\ability |\to |\objectively |\evaluate |\each |\factor |\relative |\to |\other |
compensable-factors. |\their |\contribution |\to |\the |\overall |\worth |\of |\the |\job. |\the |\number |\of |\degrees |\defined |\within |\each |\factor. |- |\CORRECT |
ANSWERS |\✔✔their |\contribution |\to |\the |\overall |\worth |\of |\the |\job. Job |\factors |\are |\weighted |\according |\to |\their |\contribution |\to |\the |
overall |\worth |\of |\the |\job.
soldiering |- |\CORRECT |\ANSWERS |\✔✔Producing |\less |\than |\is |\possible |
when |\peer-groups |\establish |\an |\arbitrarily |\low |\standard |\of |
performance. Scanlon |\Plan |- |\CORRECT |\ANSWERS |\✔✔A |\company-wide |\incentive |
plan |\that |\combines |\profit |\sharing |\with |\a |\suggestion |\system. stock |\option |- |\CORRECT |\ANSWERS |\✔✔A |\part |\of |\the |\executive |
compensation |\program |\that |\allows |\employees |\to |\buy |\shares |\of |\the |
company's |\stock, |\usually |\at |\a |\reduced |\price. Rucker |\Share-of-Production |\Plan |- |\CORRECT |\ANSWERS |\✔✔A |
company-wide |\incentive |\plan |\in |\which |\compensation |\is |\based |\on |\a |
ratio |\of |\income |\to |\value |\added |\by |\the |\employees |\in |\the |\production |
process. Piece |\rates |- |\CORRECT |\ANSWERS |\✔✔The |\amount |\of |\money |\that |\an |
employee |\receives |\for |\performing |\a |\particular |\unit |\of |\work. standard |\hour |\plan |- |\CORRECT |\ANSWERS |\✔✔An |\individual |\or |\group |
incentive |\plan |\that |\pays |\a |\fixed |\rate |\per |\hour |\where |\the |\hour |\is |
measured |\by |\an |\hour's |\worth |\of |\work |\rather |\than |\by |\a |\standard |\ 60 |\minutes.
commission |\sales |- |\CORRECT |\ANSWERS |\✔✔A |\form |\of |\incentive |\pay |
offered |\to |\sales |\representatives |\whereby |\they |\receive |\a |\fixed |
percentage |\of |\the |\sales |\proceeds |\from |\merchandise |\they |\sell. allocation |\formula |- |\CORRECT |\ANSWERS |\✔✔The |\formula |\used |\in |
profit-sharing |\plans |\that |\determines |\how |\the |\profit |\is |\allocated |\to |
individuals; |\it |\is |\normally |\based |\on |\seniority |\and |\performance. merit |\pay |- |\CORRECT |\ANSWERS |\✔✔Increases |\in |\an |\employee's |\basic |\wage |\level |\based |\upon |\performance |\levels. gain-sharing |- |\CORRECT |\ANSWERS |\✔✔A |\pay-for-performance |\plan |
that |\generally |\involves |\employee |\participation |\in |\its |\design. just |\noticeable |\difference |- |\CORRECT |\ANSWERS |\✔✔The |\amount |\of |
money |\required |\to |\make |\a |\significant |\difference |\in |\the |\perception |
of |\an |\incentive. Halsey |\Premium |\Plan |- |\CORRECT |\ANSWERS |\✔✔An |\incentive |\plan |
where |\the |\workers |\receive |\a |\guaranteed |\hourly |\wage |\plus |\a |
percentage |\of |\the |\wage |\for |\any |\time |\saved. Expatriate |\allowances |- |\CORRECT |\ANSWERS |\✔✔The |\additional |
income |\and |\benefits |\provided |\for |\employees |\who |\are |\transferred |\to |\a |\foreign |\country.
expectancy |\theory |- |\CORRECT |\ANSWERS |\✔✔A |\process |\theory |\of |
motivation |\in |\which |\people |\decide |\what |\to |\do |\by |\subjectively |
estimating |\the |\probability |\of |\being |\able |\to |\perform |\an |\activity |\and |
whether |\that |\activity |\will |\be |\rewarding. impro-share |- |\CORRECT |\ANSWERS |\✔✔A |\pay-for-performance |\plan |
whose |\name |\comes |\from |\improved |\productivity |\through |\sharing. Frederick |\W. |\Taylor, |\and |\others |\in |\Scientific |\Management, |\advocated |\what |\type |\of |\pay |\incentive? |
|\differential |\piece |\rates |\commission |\sales |\standard |\hour |\plans |\decreasing |\incentive |\rates |- |\CORRECT |\ANSWERS |\✔✔differential |
piece |\rates Frederick |\W. |\Taylor |\advocated |\a |\differential |\piece-rate |\plan |\that |
pays |\a |\lower |\rate |\to |\workers |\who |\produce |\less |\than |\the |\standard |
amount |\and |\a |\higher |\rate |\to |\workers |\who |\exceed |\the |\standard. What |\conditions |\are |\particularly |\well |\suited |\for |\an |\individual |\merit |
pay |\plan |\to |\operate |\effectively |\and |\would |\call |\for |\it |\over |\other |
incentive |\plans?
