OBHR 3330 EXAM #3 QUESTIONS & ANSWERS
Salary level decisions are broken into 2 areas: - Answers -- pay structure (relative pay
of different jobs and how much they are paid)
- individual pay
job structure - Answers -the relative pay of jobs in an organization (info is from the job
evaluation)
pay level - Answers -the average pay including wages, salaries, and bonuses in an
organization (info is from market pay surveys)
Equal pay is evaluated on 3 areas: - Answers -1. effort
2. ability
3. experience
External equity - Answers -pay comparisons focus on what employees in other
organizations are paid for doing the same general job
internal equity - Answers -pay comparisons focus on what employees within the same
organization are paid
Market pressures include two challenges: - Answers --product market competition
-labor market competition
product market competition - Answers -the organization must be able to sell their goods
and services to provide a sufficient return on investment (ROI)
labor market competition - Answers -reflects the workers available relative to the # of
jobs available
efficiency wage theory - Answers -a theory stating that wages influence worker
productivity. The decision that needs to be made is do we pay:
- above market pay (attract/retain top talent)
- at market pay (competitive)
- below market pay (during times of high unemployment, companies may take
advantage of excess labor, reducing wages)
benchmarking surveys - Answers -(most companies look at these) these compare an
organization to other organizations competing in the same space
The use of pay surveys requires answers to several questions: - Answers -1. Which
employees should be included in the survey?
2. Which jobs are included in the survey?
,3. If you use multiple surveys, how do you weigh different results?
rate ranges - Answers -different employees in the same job may have different pay
rates resulting from employee performance, seniority, training, or employees covered by
a collective bargaining agreement are usually paid the same.
key jobs - Answers -benchmark jobs, used in pay surveys, that have relatively stable
content and are common to many organizations
non-key jobs - Answers -jobs that are unique to the organizations and that cannot be
directly valued or compared through the use of market surveys
job evaluation - Answers -administrative procedure used to measure internal job worth
compensable factors - Answers -characteristics of jobs that an organization values and
chooses to pay for
Three factor job evaluation systems: - Answers -1. experience
2. education
3. complexity
the results equals a total point score for the job.
There are 3 common pay-setting approaches: - Answers -1. use market survey data
(benchmarking)
2. use a pay policy line (based on key jobs)
3. use pay grades (jobs that are similar in content or worth are grouped together)
range spread - Answers -the distance between the minimum and maximum amounts in
a pay grade
Pay adjustments are based on: - Answers -geographic location of the job.
participation - Answers -employee participation in the decision making process
communication - Answers -required in both pay increases and pay cuts
challenges - Answers -problems with job-based pay structures and responses
delayering - Answers -reducing the number of job levels to achieve more flexibility in
job assignments and in assigning merit increases
Job pay bands are made up of: - Answers -job grade and job title
skill-based pay - Answers -pay based on the skills employees acquire and are capable
of using.
, Executive pay usually includes the following: - Answers -- salary
- bonus
- stock options/grants
Equal employment opportunity - Answers -- equal pay act
- comparable worth (a public policy that advocates remedies for and underevaluation of
women's jobs
minimum wage - Answers -the lowest amount that employers are legally allowed to
pay. Differences between federal and state pay...the highest wage prevails.
Fair labor standards act (FSLA) includes: - Answers -- minimum wage
- overtime (again between federal and state the most beneficial overtime prevails)
- exempt (exempt from the FSLA) are employees who are not covered by the FSLA do
not earn overtime
- non-exempt (most hourly jobs)
Which of the following is true about pay? - Answers -Employees attach great
importance to pay decisions when they evaluate their relationship with the organization.
Which of the following is part of the benefits offered to employees? - Answers -
Unemployment compensation
The average compensation—including wages, salaries, and bonuses—of jobs in an
organization is called the - Answers -pay level.
Coach and Cab Company used the ________ to justify higher pay to attract highly
skilled employees. - Answers -efficiency wage theory
Why would an organization use benchmarking? - Answers -To compete for talent
Lakeisha is in the final stage of the interview process. She has researched what others
in the industry make for a similar job and presents the information to the hiring manager.
The manager takes this information under consideration when offering the proposed
salary. The manager is using the - Answers -equity theory.
Which of the following is true of a job-based pay structure? - Answers -It reinforces a
top-down decision-making process.
Which of the following best describes a broad band in job-based pay structures? -
Answers -The wider grouping of jobs accomplished through delayering
Which of the following is an example of an equal employment opportunity regulation that
prohibits sex- and race-based differences in employment outcomes such as pay, unless
justified by business necessity? - Answers -Title VII of the Civil Rights Act
Salary level decisions are broken into 2 areas: - Answers -- pay structure (relative pay
of different jobs and how much they are paid)
- individual pay
job structure - Answers -the relative pay of jobs in an organization (info is from the job
evaluation)
pay level - Answers -the average pay including wages, salaries, and bonuses in an
organization (info is from market pay surveys)
Equal pay is evaluated on 3 areas: - Answers -1. effort
2. ability
3. experience
External equity - Answers -pay comparisons focus on what employees in other
organizations are paid for doing the same general job
internal equity - Answers -pay comparisons focus on what employees within the same
organization are paid
Market pressures include two challenges: - Answers --product market competition
-labor market competition
product market competition - Answers -the organization must be able to sell their goods
and services to provide a sufficient return on investment (ROI)
labor market competition - Answers -reflects the workers available relative to the # of
jobs available
efficiency wage theory - Answers -a theory stating that wages influence worker
productivity. The decision that needs to be made is do we pay:
- above market pay (attract/retain top talent)
- at market pay (competitive)
- below market pay (during times of high unemployment, companies may take
advantage of excess labor, reducing wages)
benchmarking surveys - Answers -(most companies look at these) these compare an
organization to other organizations competing in the same space
The use of pay surveys requires answers to several questions: - Answers -1. Which
employees should be included in the survey?
2. Which jobs are included in the survey?
,3. If you use multiple surveys, how do you weigh different results?
rate ranges - Answers -different employees in the same job may have different pay
rates resulting from employee performance, seniority, training, or employees covered by
a collective bargaining agreement are usually paid the same.
key jobs - Answers -benchmark jobs, used in pay surveys, that have relatively stable
content and are common to many organizations
non-key jobs - Answers -jobs that are unique to the organizations and that cannot be
directly valued or compared through the use of market surveys
job evaluation - Answers -administrative procedure used to measure internal job worth
compensable factors - Answers -characteristics of jobs that an organization values and
chooses to pay for
Three factor job evaluation systems: - Answers -1. experience
2. education
3. complexity
the results equals a total point score for the job.
There are 3 common pay-setting approaches: - Answers -1. use market survey data
(benchmarking)
2. use a pay policy line (based on key jobs)
3. use pay grades (jobs that are similar in content or worth are grouped together)
range spread - Answers -the distance between the minimum and maximum amounts in
a pay grade
Pay adjustments are based on: - Answers -geographic location of the job.
participation - Answers -employee participation in the decision making process
communication - Answers -required in both pay increases and pay cuts
challenges - Answers -problems with job-based pay structures and responses
delayering - Answers -reducing the number of job levels to achieve more flexibility in
job assignments and in assigning merit increases
Job pay bands are made up of: - Answers -job grade and job title
skill-based pay - Answers -pay based on the skills employees acquire and are capable
of using.
, Executive pay usually includes the following: - Answers -- salary
- bonus
- stock options/grants
Equal employment opportunity - Answers -- equal pay act
- comparable worth (a public policy that advocates remedies for and underevaluation of
women's jobs
minimum wage - Answers -the lowest amount that employers are legally allowed to
pay. Differences between federal and state pay...the highest wage prevails.
Fair labor standards act (FSLA) includes: - Answers -- minimum wage
- overtime (again between federal and state the most beneficial overtime prevails)
- exempt (exempt from the FSLA) are employees who are not covered by the FSLA do
not earn overtime
- non-exempt (most hourly jobs)
Which of the following is true about pay? - Answers -Employees attach great
importance to pay decisions when they evaluate their relationship with the organization.
Which of the following is part of the benefits offered to employees? - Answers -
Unemployment compensation
The average compensation—including wages, salaries, and bonuses—of jobs in an
organization is called the - Answers -pay level.
Coach and Cab Company used the ________ to justify higher pay to attract highly
skilled employees. - Answers -efficiency wage theory
Why would an organization use benchmarking? - Answers -To compete for talent
Lakeisha is in the final stage of the interview process. She has researched what others
in the industry make for a similar job and presents the information to the hiring manager.
The manager takes this information under consideration when offering the proposed
salary. The manager is using the - Answers -equity theory.
Which of the following is true of a job-based pay structure? - Answers -It reinforces a
top-down decision-making process.
Which of the following best describes a broad band in job-based pay structures? -
Answers -The wider grouping of jobs accomplished through delayering
Which of the following is an example of an equal employment opportunity regulation that
prohibits sex- and race-based differences in employment outcomes such as pay, unless
justified by business necessity? - Answers -Title VII of the Civil Rights Act
