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 |\
The development of a sound wage and salary system requires
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
three basic decisions. (1) The wage-level decision concerns the
|\ |\ |\ |\ |\ |\ |\ |\ |\
overall level of an organization's compensation. (2) The wage-
|\ |\ |\ |\ |\ |\ |\ |\
structure decision concerns the pay awarded to different jobs
|\ |\ |\ |\ |\ |\ |\ |\ |\
within an organization. (3) The individual wage decision concerns
|\ |\ |\ |\ |\ |\ |\ |\
individual incentives and merit pay.
|\ |\ |\ |\ |\
Secret pay systems are better than open pay systems when
|\ |\ |\ |\ |\ |\ |\ |\ |\
|\
,|\ the company is able to pay large incentives for performance.
|\ |\ |\ |\ |\ |\ |\ |\ |\
employees tend to underestimate the pay of upper
|\ |\ |\ |\ |\ |\ |\ |\ |\
management.
|\ there are large, unexplained wage differentials.
|\ |\ |\ |\ |\
the performance of employees can be accurately measured. -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔there are large, unexplained wage
|\ |\ |\ |\ |\ |\ |\
differentials.
If there are large, unexplained wage differentials in a company's
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
pay structure, a secret pay system would be preferable to an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
open system. |\
Which compensation objective is least compatible with the
|\ |\ |\ |\ |\ |\ |\ |\
objective of providing an adequate income?
|\ |\ |\ |\ |\
|\
|\ compensation should be equitable |\ |\ |\
|\ compensation should be cost-benefit effective |\ |\ |\ |\
|\ 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
|\ |\ |\ |\
|\
|\ 1:5
|\ 1:7
|\ 1:3
|\ 1:10 - CORRECT ANSWERS ✔✔1:3
|\ |\ |\ |\
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
|\ |\ |\ |\ |\ |\
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 |\
The development of a sound wage and salary system requires
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
three basic decisions. (1) The wage-level decision concerns the
|\ |\ |\ |\ |\ |\ |\ |\ |\
overall level of an organization's compensation. (2) The wage-
|\ |\ |\ |\ |\ |\ |\ |\
structure decision concerns the pay awarded to different jobs
|\ |\ |\ |\ |\ |\ |\ |\ |\
within an organization. (3) The individual wage decision concerns
|\ |\ |\ |\ |\ |\ |\ |\
individual incentives and merit pay.
|\ |\ |\ |\ |\
Secret pay systems are better than open pay systems when
|\ |\ |\ |\ |\ |\ |\ |\ |\
|\
,|\ the company is able to pay large incentives for performance.
|\ |\ |\ |\ |\ |\ |\ |\ |\
employees tend to underestimate the pay of upper
|\ |\ |\ |\ |\ |\ |\ |\ |\
management.
|\ there are large, unexplained wage differentials.
|\ |\ |\ |\ |\
the performance of employees can be accurately measured. -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔there are large, unexplained wage
|\ |\ |\ |\ |\ |\ |\
differentials.
If there are large, unexplained wage differentials in a company's
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
pay structure, a secret pay system would be preferable to an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
open system. |\
Which compensation objective is least compatible with the
|\ |\ |\ |\ |\ |\ |\ |\
objective of providing an adequate income?
|\ |\ |\ |\ |\
|\
|\ compensation should be equitable |\ |\ |\
|\ compensation should be cost-benefit effective |\ |\ |\ |\
|\ 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
|\ |\ |\ |\
|\
|\ 1:5
|\ 1:7
|\ 1:3
|\ 1:10 - CORRECT ANSWERS ✔✔1:3
|\ |\ |\ |\
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
|\ |\ |\ |\ |\ |\
