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__________is the total of an employee's pay and benefits.
Colton's salary is $40,000 per year. This part of his compensation is considered ________.
Andrew earns $12 per hour during regular shifts. However, when he has to work the night shift, his pay goes up to $14 per hour. This part of his compensation is considered ________.
If Brittany reaches her sales goals for this quarter, she will receive a $2,000 bonus. This part of her compensation is considered ________.
Casey's compensation includes health and dental insurance. This part of her compensation is considered ________.
Halle plans to pay her workers the lowest hourly rate of pay generally allowed under the Fair Labor Standards Act. In other words, Halle will pay her workers _________.
What is the law that governs federal minimum wage and overtime rules?
The FLSA includes information on each of the following EXCEPT:
The first major provision of the FLSA concerns ____________________.
_____ is a concept that when jobs are distinctly different but entail similar levels of ability, responsibility, skills, and working conditions, they are of equal value and should have the same pay scale.
When Stephanie compares the work required in her job to the work required in Heather's job, she finds that the two jobs are similar. While the work in the jobs is different, the jobs involve similar responsibility, skills, and working conditions. However, Heather is paid $2 an hour more than Stephanie is paid. Stephanie's findings appear to reveal a violation of ________.
__________is the process of determining the worth of each position relative to the other positions within the organization.
The job ranking method of job evaluation simply ranks jobs ___________________.
____________________ of job evaluation break a job down into components and then apply points to each of the factors based on that factor's difficulty.
Which job evaluation method begins by comparing benchmark jobs and then uses both point factors and ranking?
_________is a hierarchy of jobs and their rates of pay within the organization.
__________is the maximum, minimum, and midpoint of pay for a certain group of jobs.
When there are more workers available than jobs, the market can get some of them to work for ________.
_______ is a function of the value of the product or service that the organization sells to the customer.
__________is the process of changing the company structure to get rid of some of the vertical hierarchy (reporting levels) in an organization.
__________involves combining multiple pay levels into one pay level.
Overlapping _____ allows flexibility in assigning each person's pay rate within a particular pay level.
If you find a red-circle rate in a particular pay level, you should probably:
Hayley is plotting a graphic of where the employees in her organization fall in the pay structure. She discovers that Vladimir's pay is much higher than his assigned pay level. What Hayley has discovered is a _______.
_________-circle rates are those that are lower than the bottom of the pay range.
_________-circle rates are those that are higher than the top of the pay range.
Compensation components include all rewards that can be classified as monetary payments and in-kind payments.
Compensation components only include monetary payments to an employee.
When we design compensation programs, we are trying to motivate the employee to do the things that we need them to do, consistently, over a period of time.
Ability to pay is determined by assessing estimated revenues from business operations, then deciding what percentage of revenues go toward compensation costs.
Wage compression widens the pay gap between new and experienced employees.
Wage compression weakens the desired link between pay and performance.
Organizations can have a performance or a longevity philosophy to compensation.
The longevity philosophy of compensation monetarily rewards employees for their loyalty to the firm.
Performance philosophies of compensation don't tend to work well in competitive industries.
Competency-based or skill-based pay will hinge partly on what skills employees bring to work and whether or not those skills are needed.
Competencies and skills are the same thing.
Efficiency wage theory says that if a company pays higher wages, it can generally hire better people who will in turn be more productive.
Pay secrecy clauses are becoming more dangerous to companies who choose to enforce them.
Virtually every EEO law identifies compensation as one of the employment actions where discrimination is prohibited if it is based on a protected characteristic.
Comparable worth means "equal pay for equal work."
Comparable worth legislation has been proposed as a solution to the problem of persistent gender inequity in pay.
Comparable worth means "similar pay for similar work."
Delayering is the process of determining the worth of each position relative to the other positions within the organization
The factor comparison method of job evaluation combines the job ranking and point-factor methods.
A pay structure is a hierarchy of jobs and their rates of pay within the organization.
In compensation, a pay structure is the maximum, minimum, and midpoint of pay for a certain group of jobs.
Broadbanding is the process of changing the company structure to get rid of some of the vertical hierarchy (reporting levels) in an organization.
Delayering is the process of combining multiple pay levels into one.
When setting up a compensation system, what issues does an organization need to address to determine its compensation philosophy?
What is wage compression and how does it occur?
If minimum wage is $7.25, why can servers be paid $2.13?
What does "comparable worth" mean in a compensation context?
What are the three methods of job evaluation discussed in the book?
What are green-circle rates and red-circle rates in a pay structure?
__________ includes anything that an employee may value and desire and that the employer is willing and able to offer in exchange.
________ are all rewards that can be classified as monetary payments and in-kind payments.
________ are/is all rewards other than monetary and in-kind payments.
__________is a theory proposing that employees are motivated when they believe they can accomplish a task and that the rewards for doing so are worth the effort.
__________is a theory that employees are motivated when the ratio of their perceived outcomes to inputs is at least roughly equal to that of other referent individuals.
Martha was promised a 10% raise if she wins a contract with the city government. Martha could use the money to pay off some debts. However, she happens to know that another company already has informally won the contract. There is a very slim chance that she could win the contract away from the other organization, but she does not believe she can do it. According to expectancy theory, Martha is unmotivated to try to win the contract because she lacks __________.
Conner has received steady pay increases over the years for his solid sales performance. This year, the organization merged with another organization and money has become tight. Conner doubts there's any money available for raises. Therefore, he has not been motivated to work as hard. According to expectancy theory, Conner is unmotivated because _________ is lacking.
Jacob's manager asks him to organize a blood drive for the organization. The manager tells Jacob that if he accepts the assignment, he will be awarded Employee of the Month. Jacob has organized blood drives in the past and knows how much work is involved. He does not doubt that his manager can deliver on the promise of the award. However, Jacob has always thought that the award was silly. According to expectancy theory, Jacob is unmotivated to accept the assignment because _________ is lacking.
Aryn and Mary started at the organization on the same day. Both are hard workers and perceive that they are equitably rewarded for their efforts. According to equity theory, it is likely that both will ________.
In setting the base pay rate for new jobs at her organization, Alexis is doing an assessment of how much she can afford to pay. She is working on the ________ portion of her organizational philosophy on compensation.
________ is an honest assessment of how much we can afford, or are willing to afford, in order to compensate our employees.
_______refers to the mix of the four basic components of compensation"”base pay, wage add-ons, incentives, and benefits"”that we employ. We must divide available funds among the components.
Which of the following is NOT one of the four basic components of compensation?
Mimi is redesigning the compensation mix at her organization to include more family-friendly benefits such as child and elder care. Mimi is working on the ________ portion of her organizational philosophy on compensation.
Jim just reached his 10-year anniversary with Acme Global. The company gave him a promotion and raise for being a loyal member of the organization. It appears Acme Global's compensation philosophy is _______.
Morgan is working on the compensation package for bank tellers. Bank customers like to see the same faces in the bank when they come in to talk about their money. Therefore, Morgan needs to find a way to reduce turnover among the tellers. Adopting a(n) _________ organizational philosophy on compensation might be a good idea.
Courtney's organization is in a very competitive industry and getting goods to market quickly is vital to the organization's survival. For Courtney, adopting a(n) _________ organizational philosophy on compensation might be a good idea.
_______ refers to an organizational philosophy that bases pay on organizational loyalty/tenure.
_______ refers to an organizational philosophy that bases pay on employees' performance in their jobs.
Which of the following is a type of incentive compensation?
If we pay our employees for knowledge, skills, and abilities they may never use in the workplace, our overall compensation cost ____________.
Krista's organization uses a differentiation strategy. To encourage workers to bring knowledge, skills, and abilities to the job that can allow them to analyze problems and come up with creative solutions, Krista might adopt a(n)________ organizational philosophy on compensation.
_____ theory notes that if a company pays higher wages, it can generally hire better people who will in turn be more productive.
Mad Max retail store hires workers for $8.50 per hour, which is the same hourly rate as other nearby retail stores. Mad Max is paying _________.
Sweet Sal's drive-thru eatery pays just above minimum wage, but other restaurants pay their workers more. Sweet Sal's is paying ___________.
The best reason to pay above market is:
Trendy Tina's tech shop pays higher wages than any other electronics store in town. Trendy Tina's is paying ________
Mallory would like to attract better workers and enhance her organization's employment brand. Adopting a(n) ________ organizational philosophy on compensation could help her achieve her goals.
Katrina's organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers. Adopting a(n) ________ organizational philosophy on compensation could allow her to hire plenty of workers.
To attract better workers and enhance the organization's employment brand, which philosophy of compensation might an organization chose?
If unemployment is high and it is easy to find replacement workers, which philosophy of compensation might an organization chose?
__________occurs when new employees require higher starting pay than the historical norm, causing narrowing of the pay gap between experienced and new employees.
_____ occurs when the gap between pay for newcomers and veteran employees narrows because of changing economic conditions over time.
__________is the lowest hourly rate of pay generally permissible by federal law.