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HumantResourcetManagement,t15et(Dessler)t Chapt
ert11t EstablishingtStrategictPaytPlans
1) Whichtoftthetfollowingttermstrefersttotalltformstoftpaytortrewardstgoingttotemployeestandt ar
isingtfromttheirtemployment?
A) salary
B) employeet benefits
C) wagetreimbursement
D) employeetcompensation
t Answer:t D
Explanation:t D)tEmployeetcompensationtrefersttotalltformstoftpaytgoingttotemployeestandt arisi
ngtfromttheirtemployment.tItthasttwotmaintcomponents,tdirecttfinancialtpaymentst(wages,t salari
es,tincentives,tcommissions,tandtbonuses)tandtindirecttfinancialtpaymentst(financialt benefitstlike
temployer-paidt insurancetandtvacations).
Difficulty:t Easyt Chapte
r:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
2) Whichtoftthet followingt istNOTtattypetoftdirecttfinancialt payment?
A) wages
B) insurance
C) incentives
D) commissions
t Answer:t B
Explanation:t B)tEmployeetcompensationtrefersttotalltformstoftpaytgoingttotemployeestandt arisi
ngtfromttheirtemployment.tItthasttwotmaintcomponents,tdirecttfinancialtpaymentst(wages,t salari
es,tincentives,tcommissions,tandtbonuses)tandtindirecttfinancialtpaymentst(financialt benefitstlike
temployer-paidt insurancetandtvacations).
Difficulty:t Easyt Chapte
r:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
1
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3) Whichtoftthetfollowingttermstrefersttotpaytintthetformtoftfinancialtbenefits,tsuchtast in
surance?
A) directt financialt payments
B) out-of-pockett expenses
C) indirectt financialt payments
D) salestcommissions
t Answer:t C
Explanation:t C)tEmployeetcompensationthasttwotmaintcomponents:tdirecttfinancialtpaymentst (
wages,tsalaries,tincentives,tcommissions,tandtbonuses)tandtindirecttfinancialtpaymentst (financia
ltbenefitstliketemployer-paidtinsurancetandtvacations).
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
4) Johntistatsalestrepresentativetintatjewelrytstore.tHettypicallytworkst40thourstpertweektandthist pa
ytistcompletelytbasedtonthistsales.tHetearnstat5%tcommissiontforteverytsalethetmakes.tWhicht oftth
etfollowingttermstbesttdescribestJohn'stsituation?
A) paytfortperformance
B) indirectt financialt compensation
C) time-basedt compensation
D) pieceworktpay
t Answer:t A
Explanation:t A)tJohntearnstsalestcommissions,twhichtmeansthetreceivestpaytfortperformance.t P
ieceworkttiestcompensationttotthetnumbertoftpiecestatworkertproduces,tandtJohntistsellingt rathert
thantmakingtjewelry.
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Applicationtoft Knowledge
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
2
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5) WhichtoftthetfollowingtfactorsthastthetLEASTteffecttontthetdesigntoftantorganization'stpayt pl
an?
A) legal
B) union
C) companyt vision
D) companytpolicy
t Answer:t C
Explanation:t C)tThetfactorstthattdeterminetthetdesigntoftanytpaytplantincludetlegal,tunion,t comp
anytstrategytandtpolicy,tandtequity.tAtfirm'stvisiontindicatestwhattthetfirmtwantsttot becometintth
etfuture,tandtitthastlesstoftantimpacttontpaytplantdesigntthantthetothertfactors.t Difficulty:t Easy
Chapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
6) Whichtoftthetfollowingtwastenactedtint1931tfortthetpurposetoftsettingtwagetratestfortlaborerst an
dtmechanicstemployedtbytcontractorstworkingtfortthetfederaltgovernment?
A) Walsh-Healeyt Publict Contract
B) Fairt Labort Standardst Act
C) CiviltRightst Act
D) Davis-
BacontActt Answer:
t D
Explanation:t D)t Thet1931tDavis-Bacont Acttallowstthetsecretarytoft labort totsettwagetratestfor
laborerstandtmechanicstemployedtbytcontractorstworkingtfortthetfederaltgovernment.t Amendme
ntstprovidetfortpaidtemployeetbenefits.
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
7) Whichtoftthetfollowingtsetstbasictlabortstandardstfortemployeestworkingtontanytgovernmentt c
ontracttthattamountsttotmoretthant$10,000?
A) Davis-Bacont Act
B) Walsh-Healeyt Publict Contract
C) FairtWagestAct
D) FairtLabortStandardstAct
t Answer:t B
Explanation:t B)tThet1936tWalsh-
HealeytPublictContracttActtsetstbasictlabortstandardstfort employeestworkingtontanytgovernment
tcontracttthattamountsttot moretthant$10,000t andt addressestwages,tsafety,tandtovertime.
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
3
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8) Whichtcompensation-
relatedtlawtcontainstprovisionstfortminimumtwage,tmaximumthours,t overtimetpay,tequaltpay,tr
ecord-keeping,tandtchildtlabor?
A) Davis-Bacont Act
B) FairtWagestAct
C) Fairt Labort Standardst Act
D) Walsh-
HealeytPublictContractt Answer:t
C
Explanation:t C)t Thet Fairt LabortStandardstAct,toriginallytpassedt int1938tandtsincetamended
manyttimes,tcontainstminimumtwage,tmaximumthours,tovertimetpay,tequaltpay,trecord-
keeping,t andtchildtlabortprovisionstthattaretfamiliarttotmosttworkingtpeople.tIttcoverstthetmajorityt
oftU.S.t workers—
virtuallytalltthosetengagedtintthetproductiontand/ortsaletoftgoodstfortinterstatetandt foreigntcommer
ce.
Difficulty:t Moderate
Chapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
9) Whichtoft thet followingt issuest istNOTtaddressedtbytthet Fairt Labort Standardst Act?
A) record-keeping
B) overtimet pay
C) childtlabor
D) termination
t Answer:t D
Explanation:t D)tThetFairtLabortStandardstAct,toriginallytpassedtint1938tandtsincetamendedt man
yttimes,tcontainstminimumtwage,tmaximumthours,tovertimetpay,tequaltpay,trecord-
keeping,t andtchildtlabortprovisionstthattaretfamiliarttotmosttworkingtpeople.tThetterminationtoftan
t employeet istnottaddressedtbytthet FLSA.
Difficulty:t Easyt Chapte
r:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
4
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HumantResourcetManagement,t15et(Dessler)t Chapt
ert11t EstablishingtStrategictPaytPlans
1) Whichtoftthetfollowingttermstrefersttotalltformstoftpaytortrewardstgoingttotemployeestandt ar
isingtfromttheirtemployment?
A) salary
B) employeet benefits
C) wagetreimbursement
D) employeetcompensation
t Answer:t D
Explanation:t D)tEmployeetcompensationtrefersttotalltformstoftpaytgoingttotemployeestandt arisi
ngtfromttheirtemployment.tItthasttwotmaintcomponents,tdirecttfinancialtpaymentst(wages,t salari
es,tincentives,tcommissions,tandtbonuses)tandtindirecttfinancialtpaymentst(financialt benefitstlike
temployer-paidt insurancetandtvacations).
Difficulty:t Easyt Chapte
r:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
2) Whichtoftthet followingt istNOTtattypetoftdirecttfinancialt payment?
A) wages
B) insurance
C) incentives
D) commissions
t Answer:t B
Explanation:t B)tEmployeetcompensationtrefersttotalltformstoftpaytgoingttotemployeestandt arisi
ngtfromttheirtemployment.tItthasttwotmaintcomponents,tdirecttfinancialtpaymentst(wages,t salari
es,tincentives,tcommissions,tandtbonuses)tandtindirecttfinancialtpaymentst(financialt benefitstlike
temployer-paidt insurancetandtvacations).
Difficulty:t Easyt Chapte
r:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
1
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3) Whichtoftthetfollowingttermstrefersttotpaytintthetformtoftfinancialtbenefits,tsuchtast in
surance?
A) directt financialt payments
B) out-of-pockett expenses
C) indirectt financialt payments
D) salestcommissions
t Answer:t C
Explanation:t C)tEmployeetcompensationthasttwotmaintcomponents:tdirecttfinancialtpaymentst (
wages,tsalaries,tincentives,tcommissions,tandtbonuses)tandtindirecttfinancialtpaymentst (financia
ltbenefitstliketemployer-paidtinsurancetandtvacations).
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
4) Johntistatsalestrepresentativetintatjewelrytstore.tHettypicallytworkst40thourstpertweektandthist pa
ytistcompletelytbasedtonthistsales.tHetearnstat5%tcommissiontforteverytsalethetmakes.tWhicht oftth
etfollowingttermstbesttdescribestJohn'stsituation?
A) paytfortperformance
B) indirectt financialt compensation
C) time-basedt compensation
D) pieceworktpay
t Answer:t A
Explanation:t A)tJohntearnstsalestcommissions,twhichtmeansthetreceivestpaytfortperformance.t P
ieceworkttiestcompensationttotthetnumbertoftpiecestatworkertproduces,tandtJohntistsellingt rathert
thantmakingtjewelry.
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Applicationtoft Knowledge
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
2
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5) WhichtoftthetfollowingtfactorsthastthetLEASTteffecttontthetdesigntoftantorganization'stpayt pl
an?
A) legal
B) union
C) companyt vision
D) companytpolicy
t Answer:t C
Explanation:t C)tThetfactorstthattdeterminetthetdesigntoftanytpaytplantincludetlegal,tunion,t comp
anytstrategytandtpolicy,tandtequity.tAtfirm'stvisiontindicatestwhattthetfirmtwantsttot becometintth
etfuture,tandtitthastlesstoftantimpacttontpaytplantdesigntthantthetothertfactors.t Difficulty:t Easy
Chapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
6) Whichtoftthetfollowingtwastenactedtint1931tfortthetpurposetoftsettingtwagetratestfortlaborerst an
dtmechanicstemployedtbytcontractorstworkingtfortthetfederaltgovernment?
A) Walsh-Healeyt Publict Contract
B) Fairt Labort Standardst Act
C) CiviltRightst Act
D) Davis-
BacontActt Answer:
t D
Explanation:t D)t Thet1931tDavis-Bacont Acttallowstthetsecretarytoft labort totsettwagetratestfor
laborerstandtmechanicstemployedtbytcontractorstworkingtfortthetfederaltgovernment.t Amendme
ntstprovidetfortpaidtemployeetbenefits.
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
7) Whichtoftthetfollowingtsetstbasictlabortstandardstfortemployeestworkingtontanytgovernmentt c
ontracttthattamountsttotmoretthant$10,000?
A) Davis-Bacont Act
B) Walsh-Healeyt Publict Contract
C) FairtWagestAct
D) FairtLabortStandardstAct
t Answer:t B
Explanation:t B)tThet1936tWalsh-
HealeytPublictContracttActtsetstbasictlabortstandardstfort employeestworkingtontanytgovernment
tcontracttthattamountsttot moretthant$10,000t andt addressestwages,tsafety,tandtovertime.
Difficulty:t Moderatet C
hapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
3
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8) Whichtcompensation-
relatedtlawtcontainstprovisionstfortminimumtwage,tmaximumthours,t overtimetpay,tequaltpay,tr
ecord-keeping,tandtchildtlabor?
A) Davis-Bacont Act
B) FairtWagestAct
C) Fairt Labort Standardst Act
D) Walsh-
HealeytPublictContractt Answer:t
C
Explanation:t C)t Thet Fairt LabortStandardstAct,toriginallytpassedt int1938tandtsincetamended
manyttimes,tcontainstminimumtwage,tmaximumthours,tovertimetpay,tequaltpay,trecord-
keeping,t andtchildtlabortprovisionstthattaretfamiliarttotmosttworkingtpeople.tIttcoverstthetmajorityt
oftU.S.t workers—
virtuallytalltthosetengagedtintthetproductiontand/ortsaletoftgoodstfortinterstatetandt foreigntcommer
ce.
Difficulty:t Moderate
Chapter:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
9) Whichtoft thet followingt issuest istNOTtaddressedtbytthet Fairt Labort Standardst Act?
A) record-keeping
B) overtimet pay
C) childtlabor
D) termination
t Answer:t D
Explanation:t D)tThetFairtLabortStandardstAct,toriginallytpassedtint1938tandtsincetamendedt man
yttimes,tcontainstminimumtwage,tmaximumthours,tovertimetpay,tequaltpay,trecord-
keeping,t andtchildtlabortprovisionstthattaretfamiliarttotmosttworkingtpeople.tThetterminationtoftan
t employeet istnottaddressedtbytthet FLSA.
Difficulty:t Easyt Chapte
r:t 11
Objective:t 1
AACSB:t Analyticalt Thinking
Learningt Outcome:t 11.1t Listtthetbasict factorstdeterminingtpaytrates.
4
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