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In the context of worker motivation, which of the following is classified as an outcome in equity theory?


A) Loyalty
B) Time
C) Effort
D) Praise

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A collection of data on compensation rates for workers performing similar jobs in other organizations is known as a _____.


A) pay survey
B) pay analysis
C) pay scale
D) pay grade

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Which of the following is the most accurate metric of organizational performance in variable pay plans?


A) Customer satisfaction
B) Accident rates
C) Revenue growth
D) Employee satisfaction

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The act that does not require employers to pay overtime for salaried exempt jobs is the _____.


A) Employment Non-Discrimination Act
B) Equal Pay Act
C) Fair Labor Standards Act
D) Civil Rights Act

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Recognition awards ensure that the award winners are determined objectively.

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Which of the following is typical of the performance philosophy of compensation?


A) Pay and raises based on length of service
B) No raises for poorly performing employees
C) Across-the-board raises
D) Pay scales increased annually

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The entitlement philosophy assumes that compensation decisions reflect performance differences.

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Which of the following is true of pay compression?


A) It is the phenomenon by which all employees' pay decreases significantly in an economic downturn.
B) It occurs when the employer groups employees with different pay grades together.
C) It is frequently a result of labor market pay levels increasing faster than current employees' pay adjustments.
D) It occurs when pay differences among individuals with different levels of experience and performance become large.

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Profit sharing distributes some portion of organizational profits to employees.

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In the context of worker motivation, which of the following is classified as an input in equity theory?


A) Job security
B) Praise
C) Loyalty
D) Vacation

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What is garnishment?

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Garnishment occurs when a cred...

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Describe the different methods of job evaluation.

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Job evaluation is a formal, systematic p...

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Explain the salary-only approach of sales compensation.

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The salary-only approach is a type of sa...

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The most prevalent forms of organization-wide incentives are piece-rate systems, sales commissions, and individual bonuses.

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Groupings of individual jobs that have approximately the same value to the organization, used when establishing a pay structure, are called _____.


A) pay scales
B) pay grades
C) pay compressions
D) pay expansions

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The compa-ratio is calculated by dividing the individual's pay rate by the lowest point in the pay range.

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Describe the Fair Labor Standards Act and the major areas on which it focuses.

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The primary federal law affecting compen...

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Which of the following is true of green-circled employees?


A) They are paid above the range set for a job.
B) They are paid below the range set for a job.
C) They are paid on par with the range set for a job.
D) Their pay is not determined by the ranges set for a job.

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The Equal Pay Act of 1963 prohibits companies from using different wage scales for men and women performing substantially the same jobs.

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Pay compression occurs when the pay differences among individuals with different experience and performance levels become small.

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