Download MIE 330 Final Exam Study Questions: Pay Structure and Incentive Pay and more Exams Business Statistics in PDF only on Docsity!
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MIE 330 Final Exam Study Questions 73
actual answers 100%.
What are the three characteristics of an employer's side on pay? - ANSWER 1. Powerful tool for meeting org goals
- Impacts employees attitudes and behaviors
- Influences the kinds of people attracted to/remain with the org
What are the two characteristics of an employee's side on pay? - ANSWER 1. Care about fairness
- Attach great importance on pay decisions when evaluating relationships with employers
Pay is a large (primarily fixed) _____ to orgs, so it must be what? - ANSWER Cost; managed
What two aspects are important to create a pay structure? - ANSWER 1. Job structure
- Pay level
What are the four types of issues developing in a pay structure? - ANSWER 1. Legal requirements
- Market forces
- Org goals
- Pay level, job structure, and pay structure decisions
What are four legal requirement issues? - ANSWER 1. Equal pay for equal work
- Minimum wage
- Overtime pay
- Restrictions on child labor
What are two market force issues? - ANSWER 1. Product market
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- Labor market
What are four org goal issues? - ANSWER 1. High-quality workforce
- Cost control
- Equity/fairness
- Legal compliance
What are four pay level, job structure, and pay structure decision issues? - ANSWER 1. Pay rates
- Pay grades
- Pay ranges
- Pay differentials
Government _____ affect pay structure! - ANSWER Regulations
What are the five areas of government regulations that affect pay structure? - ANSWER 1. EEO
- Minimum wage
- Overtime pay
- Child labor
- Prevailing wages
What law does the EEO support? - ANSWER Equal Pay Act
What are the six protected statuses of the Equal Pay Act? - ANSWER 1. Race
- Sex
- National Origin
- Ethnicity
- Age
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Children ages 16 and 17 may NOT be employed in _____ as defined by the Department of Labor. (E.g. mining, meat-packing, and any use of heavy equipment) - ANSWER Hazardous occupations or tasks
Children ages 14 and 15 may work ONLY _____ in jobs defined as _____ and for _____. - ANSWER Outside school hours; nonhazardous; limited time periods
There are child labor exemptions for... - ANSWER Farm labor and other jobs such as babysitting, acting, or delivering newspapers
What are the two federal laws that govern pay policies of federal contractors? - ANSWER 1. Davis-Bacon Act (1931) - constructions
- Walsh-Healy Public Contractors Act (1936) - all contractors
Employees must be paid at rates _____ in the area, which are determined by _____ of the local labor force. - ANSWER At least equal to "prevailing wages"; 30%
Both pay acts _____ the lower limit of pay. - ANSWER Raise
Orgs cannot make spending decisions independent of... - ANSWER The economy
Orgs must keep costs low enough that they can _____ and yet, also be able to _____. - ANSWER Sell their products profitably (Product Markets); Attract workers (Labor Markets)
_____ affect pay structure! - ANSWER Economics
What are the four areas of economics that affect pay structure? - ANSWER 1. Product markets
- Labor markets
- Pay level --> deciding what to pay
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- Gathering info about market pay
The org's product market includes... - ANSWER Orgs offering competing goods/services
The cost of _____ is a significant part of the org costs. - ANSWER Labor
Why does the product market put an _____ on pay? - ANSWER Upper limit; To attract top employees, costs must be cut elsewhere or customers must be persuaded that a premium price has value.
The org's labor market includes... - ANSWER Orgs offering similar goods/services OR those in other industries who hire similar employees
Orgs must compete to obtain _____ in labor markets. - ANSWER Human Resources
Why does the labor market put a _____ on pay? - ANSWER Lower limit; Competing for labor establishes the minimum an org must pay to hire an employee for a particular job.
What are three instances when orgs have greater pay flexibility? - ANSWER 1. Unemployment is high
- They have a distinctive competency
- They raise productivity through job design or technology
What are the three decisions on pay? - ANSWER 1. Pay at rate set by market
- Pay at rate above the market
- Pay at rate below the market
Economic theory states that the most profitable pay rate, all things being equal is _____ since the market and labor forces are balanced. - ANSWER At market
Benchmarking involves the use of... - ANSWER Pay surveys
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In pay-by-production, what do over-rewarded and under-rewarded employees produce? - ANSWER Over-rewarded: Fewer but higher quality pieces
Under-rewarded: A large number of low quality pieces
To perform a job evaluation, identifying the _____ is necessary. - ANSWER Compensable factors
What are the five compensable factors the org looks for? - ANSWER 1. Experience
- Education
- Complexity
- Working Conditions
- Responsibility
Orgs can make the process of creating the pay structure more practice by... - ANSWER Defining "key" jobs
Using key jobs creates a type of standardization or benchmarking where the pay for key jobs is based on _____ and other jobs are based on... - ANSWER Survey data; Org's job structure
What are the four pay structure results? - ANSWER 1. Pay rates
- Pay grades
- Pay ranges
- Pay differentials
The expectancy theory drives... - ANSWER Incentive pay
What are the four parts of the expectancy theory? - ANSWER 1. Individual effort
- Individual performance
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- Org rewards
- Personal goals
What are the three links in the expectancy theory? - ANSWER 1. Effort-performance relationships
- Performance-reward relationships
- Reward-personal goals relationships
Incentive pay can be for... - ANSWER 1. Individuals
- Groups
- Entire org
What are the five forms of pay for individual performance? - ANSWER 1. Piecework rates
- Standard hour plans
- Merit pay
- Individual bonuses
- Sales commisions
What are the three forms of pay for group performance? - ANSWER 1. Gainsharing
- Bonuses
- Team Awards
Gainsharing addresses the... - ANSWER Challenge of identifying appropriate performance measures for complex jobs.
Gainsharing allows employees to determine... - ANSWER How to improve by making suggestions.
Bonuses and team awards are typically used for _____ that meet _____. - ANSWER Smaller groups; specific goals
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- Measurement instrument validity
- Ignores evidence of other motivational theories/research
