Exam (elaborations)
ORGB 327 Final Exam Questions and Answers
- Course
- Institution
ORGB 327 Final Exam Questions and Answers
[Show more]
Content preview
ORGB 327 Final Exam Questions andAnswers
Compensation maxim - Answer -An ethical principle that describes how compensation
should be determined.
Determinants of pay - Answer -The factors that influence pay, including external factors,
organizational factors, job factors, and individual factors.
Individual wage decision - Answer -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 - Answer -Segments of the overall job market used for analyzing wage
and salary levels.
Pay secrecy - Answer -A policy that restricts employees from discussing their pay and
limits the amount of information about pay that can be made public.
Salary - Answer -A compensation arrangement that pays employees on a period basis
rather than an hourly one.
Wage-level decision - Answer -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 - Answer -The wage decision that examines how much money
is paid for different jobs within the same organization.
Wage survey - Answer -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 - Answer -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. - Answer -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 - Answer -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. - Answer -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 - Answer -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
educational training and certifications - Answer -educational training and certifications
Pay levels of professionals are primarily determined by educational training, academic
degrees, and years of service.
Which segment of the labor market has the widest range of pay between the
classifications of an occupation?
blue-collar employees
clerical employees
professional employees
supervisors and executives - Answer -supervisors and executives
The range of pay for supervisors and executives is extremely broad and often exceeds
a ratio of 1:10. Many top level executives receive more than 50 to 100 times as much as
the average supervisor.
A compensation maxim for paying people fairly states that employees should be
compensated for the requirements of the job they perform and
how long they have worked for the company
who evaluates their performance
how well they perform their job
whether it is a union job - Answer -how well they perform their job
Employees should be compensated for the requirements of the job they perform and
how well they perform their job.
Jobs in which labor market typically require the most education after high school?
professional
supervisors and executives
non-supervisory white-collar
blue-collar - Answer -professional
, Jobs in the professional labor market typically require six to ten years of education
beyond high school.
The total labor force can be divided into three major labor markets:
bluecollar/nonsupervisory white-collar, professional, and supervisors/executives
blue-collar, white-collar, and professional
skilled, unskilled, and semiskilled
white-collar, professional, and unskilled - Answer -bluecollar/nonsupervisory white-
collar, professional, and supervisors/executives
Three meaningful labor markets include (1) blue-collar and non-supervisory white-collar
workers, (2) professional employees, and (3) supervisors and executives.
topped out - Answer -When employees receive pay increases to the point that their
salaries are at the top of their pay ranges.
percentage increase - Answer -A procedure used for adjusting the pay levels in which
the pay for every job is increased by a fixed percentage amount.
productivity - Answer -The total goods and services produced by society divided by the
total number of employee hours required to produce them.
step increases - Answer -Pay increases that are based on performance and length of
service.
red-circle jobs - Answer -Jobs that are either overpaid or underpaid relative to the
amount the wage curve indicates ought to be paid for them.
wage compression - Answer -A reduction in the relative wage differentials between high
and low-paying jobs.
wage curve - Answer -The line on a wage structure graph that shows higher levels of
pay associated with higher-level jobs.
point method - Answer -A job-evaluation method where key jobs are used to develop
the wage curve by assigning points to compensable factors and associating total points
with a specific pay level.
job evaluation - Answer -A procedure for developing a wage structure that is based on
an analysis of the job.
fixed-rate increase - Answer -A procedure for adjusting the wage curve in which a fixed
sum of money is added to every job in the hierarchy.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80461 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now