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____ are payments directly calculated on the amount of time worked.

b. Wages

The two basic compensation philosophies, which should be seen as opposite ends of a continuum, are the ____ and the ____ orientations.

c. entitlement; performance

The director of HR at Megatherium Industries knows that there are serious flaws in the company's compensation system. If employees freely discuss their wage or salary levels, raises and bonuses, the director is concerned that there will be widespread dissatisfaction and employee questions that will place the HR department and top management in a bad light. Consequently, Megatherium has a strict pay secrecy policy, and employees who discuss their pay are disciplined. Which of the following statements is TRUE?

d. It is possible that Megatherium's policy violates the National Labor Relations Act.

Amanda is upset because she makes the same salary as Carl does, even though Amanda has 18 clients and Carl has only 11 clients. Amanda is making a judgment about

c. internal equity.

Megatherium Industries organizes its production employees into work teams. Each team member's salary is determined by a combination of his/her seniority in the firm and competencies which he/she has demonstrated. Sissy is angry because she has found out that Max is paid more than she is because he has earned more skill certifications, even though Sissy has consistently worked harder and "gone the extra mile" in completing team projects. Which of the following statements is TRUE?

d. This situation violates Sissy's sense of procedural justice.

You are HR director for a U.S. solar panel company that is outsourcing a fabrication plant to India. As director of HR, you must decide how to pay the hourly workers in the Indian plant. You decide to follow the typical pattern for firms outsourcing to a lower-wage country which is

b. paying the local market rate for the jobs.

A compensation plan for expatriates that equalizes the cost differences between the international assignment and the same assignment in the home country of the individual or the corporation is the ____ approach.

d. balance sheet

Orville Brothers Construction, Inc., is making a bid for a federal government contract to build a bridge. In that bid, the construction company must allow for ____ wages for the employees.

b. minimum

MetroUrban Bank has 27 branches, each with a branch manager. These branches range in size from mini-branches in grocery stores, to large branches with many business and investment clients. Mini-branches may have only three or four employees. Large branches may have as many as fifty employees. Of MetroUrban's branch managers, 15 are female and 12 are male. Female branch managers average pay is 75% of the male branch managers pay. Has the bank violated the Equal Pay Act?

b. No. The bank only began hiring women to be branch managers about 10 years ago. Consequently, the female branch managers have been with the bank a fewer number of years than the males. Typically, the branch managers of the larger branches are bank officers who have more years of experience with the bank.

Which of the following statements about the Lily Ledbetter Fair Pay Act is true?

c. Women who have been paid less than men have for the same job have no time limits on when they can file a complaint with the EEOC.

In a job evaluation, every job in an organization is examined and wages are set according to

b. the relative worth of the job to the organization.

Simon is a compensation specialist for Coreopsis, Inc. He is collecting data on compensation rates for workers performing similar jobs at other organizations,. Simon is conducting a

b. pay survey.

The market line is

a. a regression line derived from job evaluation points and the results of the pay survey.

The goal in giving pay increases to average performers should be

a. to keep their pay competitive with the labor market..

A true cost-of-living raise

c. is the same thing as an automatic increase.

The consensus among compensation and motivation experts is that compensation systems strongly affect the types of behavior that employees demonstrate

True

In the last decade the pressures of the U.S. economy have compelled most private-sector, for-profit organizations to eliminate the entitlement approach to compensation and to change to true pay-for-performance compensation systems

False

Research of compensation databases shows that about one-third of the people who think they are underpaid are actually underpaid.

True

Gillian, a meteorologist at a regional TV station, is angry that she received a large raise from her boss because she is "cute as a button." Although her income has gone up considerably, Gillian is upset because of a failure of procedural justice.

True

Josephine has been a high performing employee for Clockman Publications for many years. She has a compa-ratio over 115. Clockman Publications uses the pay adjustment matrix method for calculating raises. Clockman has had a highly profitable year. Josephine should expect a significant pay increase this year

False

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