MIE 330 Exam 4 Questions with Correct Answers Latest Update 2025-2026
Decisions about Pay - Answers -Job Structure- relative pay for different jobs within org
-Pay Structure-pay policy resulting from job structure and pay level decision
-Pay Level- avg amount the org pays for a job
Equal Employment Opportunity - Answers Employers myst not base differences in pay on age,
sex, race
-no guarantee of equal pay for men and women, white and minorities
Fair Labor Standards Act (FLSA) - Answers Establishes a minimum wage and requirementes for
overtime pay/ child labor
Overtime pay - Answers Overtime pay is 1 1/2 times an hourly rate
-Exempt employees are managers/outside sales people not covered by FLSA
-Nonexempt employees are covered by FLSA
Child Labor - Answers -Age 16/17 may not be employed in hazardous occupations
-Age 14/15 may work only outside school hours
- 14 and under cannot work
Product Markets - Answers Includes orgs that offer competing goods/services
-Orgs compete on quality, service, price
Labor Markets - Answers Orgs must compete to obtain human resources in labor markets
-competition establishes minimum an org must pay to hire an employee for particular job
Benchmarking - Answers procedure where org compares its own practices against those of
successful competitors
Judging Fairness about pay - Answers 1.External Equity- what they think employees in other
orgs with same job make
2.Internal Equity- what they think other employees in org make for other jobs 3.Individual Equity-
what they think other employees in org make for doing same job
Job Evaluation - Answers Procedure for measuring relative internal worth of job
-Experience
, -Education
-Complexity
-Working Conditions
-Responsibility
Key Jobs - Answers Jobs that have relatively stable content and are common
-Orgs define key jobs to help create pay structures
-Pay can be based on survey data
Pay Rates - Answers Determining salaries for nonkey jobs
-Pay policy line reflects the pay structure in the market
Pay grades - Answers Sets of jobs having similar worth or content, grouped together to
establish rates of pay
-may not match market rate
Pay Differentials - Answers Adjustment to a pay rate to reflect differences in working conditions
-most common approach is to move an employee higher in the pay structure to compensate for
higher living costs
Compa Ratio Equation - Answers Average pay/Midpoint
Compa-Ratio - Answers Ratio of average pay to midpoint of pay range
-if avg = midpoint , CR is 1
-if CR is > 1 avg pay is above midpoint
-if CR is < 1, pay is below midpoint
Incentive Pay - Answers Forms of pay linked to an employees performance as an
individual,group member, org memeber
-pay can be linked to predefined behaviors/outcomes
-could be in form of commission/bonus
Motivating employees w/ incentives - Answers -employees must feel the incentive plan is fair
-give employees a say in allocating incentives
-Employees want interesting work, appreciation for efforts, flexibility, and belonging
Decisions about Pay - Answers -Job Structure- relative pay for different jobs within org
-Pay Structure-pay policy resulting from job structure and pay level decision
-Pay Level- avg amount the org pays for a job
Equal Employment Opportunity - Answers Employers myst not base differences in pay on age,
sex, race
-no guarantee of equal pay for men and women, white and minorities
Fair Labor Standards Act (FLSA) - Answers Establishes a minimum wage and requirementes for
overtime pay/ child labor
Overtime pay - Answers Overtime pay is 1 1/2 times an hourly rate
-Exempt employees are managers/outside sales people not covered by FLSA
-Nonexempt employees are covered by FLSA
Child Labor - Answers -Age 16/17 may not be employed in hazardous occupations
-Age 14/15 may work only outside school hours
- 14 and under cannot work
Product Markets - Answers Includes orgs that offer competing goods/services
-Orgs compete on quality, service, price
Labor Markets - Answers Orgs must compete to obtain human resources in labor markets
-competition establishes minimum an org must pay to hire an employee for particular job
Benchmarking - Answers procedure where org compares its own practices against those of
successful competitors
Judging Fairness about pay - Answers 1.External Equity- what they think employees in other
orgs with same job make
2.Internal Equity- what they think other employees in org make for other jobs 3.Individual Equity-
what they think other employees in org make for doing same job
Job Evaluation - Answers Procedure for measuring relative internal worth of job
-Experience
, -Education
-Complexity
-Working Conditions
-Responsibility
Key Jobs - Answers Jobs that have relatively stable content and are common
-Orgs define key jobs to help create pay structures
-Pay can be based on survey data
Pay Rates - Answers Determining salaries for nonkey jobs
-Pay policy line reflects the pay structure in the market
Pay grades - Answers Sets of jobs having similar worth or content, grouped together to
establish rates of pay
-may not match market rate
Pay Differentials - Answers Adjustment to a pay rate to reflect differences in working conditions
-most common approach is to move an employee higher in the pay structure to compensate for
higher living costs
Compa Ratio Equation - Answers Average pay/Midpoint
Compa-Ratio - Answers Ratio of average pay to midpoint of pay range
-if avg = midpoint , CR is 1
-if CR is > 1 avg pay is above midpoint
-if CR is < 1, pay is below midpoint
Incentive Pay - Answers Forms of pay linked to an employees performance as an
individual,group member, org memeber
-pay can be linked to predefined behaviors/outcomes
-could be in form of commission/bonus
Motivating employees w/ incentives - Answers -employees must feel the incentive plan is fair
-give employees a say in allocating incentives
-Employees want interesting work, appreciation for efforts, flexibility, and belonging
