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Intro to Human Resources > Chapter 7 > Flashcards

Flashcards in Chapter 7 Deck (26)
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1
Q

If a state’s minimum wage is higher than the federal minimum wage,

A

employers must pay this higher wage.

2
Q

The FLSA established overtime pay requirements at ______ times the regular pay rate for all hours worked over 40 in a week.

A

one and one-half

3
Q

The ____________ essentially treats each paycheck as a new act of discrimination.

A

Lily Ledbetter Fair Pay Act

4
Q

What is true of the expectancy theory?

A

This theory emphasizes the importance of finding valued rewards for the employee.

5
Q

What is classified as an input in the equity theory?

A

Loyalty.

6
Q

What is classified as an outcome in the equity theory?

A

Job security.

7
Q

What is an indicator of external inequity?

A

Difficulty hiring new employees.

8
Q

What is true of an employer who uses the first-quartile strategy of compensation?

A

The employer pays the employees below market levels.

9
Q

What is true of an employer who uses the third-quartile strategy of compensation?

A

The employer pays the employees above market levels.

10
Q

What is true of an employer who uses the second-quartile strategy of compensation?

A

The employer pays the employees on par with the market levels.

11
Q

What is true of the ranking method of job evaluation?

A

It is a simple system that places jobs in order to , from highest to lowest, by their value to the organization.

12
Q

What is true of the classification method of job evaluation?

A

In this method, descriptions of each group of jobs are written and then each job is put into a grade according to the group it best matches.

13
Q

What is true of the point factor method of job evaluation?

A

It looks at compensable factors in a group of similar jobs and assigns weights to them?

14
Q

The __________ uses external pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

A

market pricing method

15
Q

What is true of red-circled employees?

A

They are paid above the range set for a job.

16
Q

What is true of green-circled employees?

A

they paid below the range set for a job.

17
Q

What is true of pay compression?

A

It is frequently a result of labor market pay levels increasing faster than current employees’ pay adjustments.

18
Q

The two factors that pay adjustment matrix considers are:

A

the employee’s performance as rated in an appraisal and the employee’s position in the pay range.

19
Q

True/False: Across-the-board raises are most organizations that follow the pay-for-performance philosophy.

A

False

20
Q

True/False: The equity theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.

A

True

21
Q

True/False: Distributive justice is the perceived fairness of the process and procedures used to make decisions about employees, including their pay.

A

False

22
Q

True/False: The practice of using fewer pay grades with much broader ranges than in traditional compensation systems is called broadbanding.

A

True

23
Q

Define base pay.

A

Base pay is the basic compensation that an employee receives, usually provided as an hourly wage or a salary. (p. 142)

24
Q

Differentiate between exempt employees and nonexempt employees.

A

Exempt employees hold positions for which employers are not required to pay overtime. Nonexempt employees must be paid overtime.(p.143)

25
Q

Describe the entitlement philosophy of employee compensation.

A

The entitlement philosophy of employee compensation holds that individual who have worked another year are entitled to pay increases with little regard for performance differences.(p.146)

26
Q

Describe the pay-for-performance philosophy of employee compensation.

A

The pay-for-performance philosophy assumes that compensation decisions reflect performance differences. Pay and incentives are structured to reward performance differences among employees.(p.146)