21. Any consideration of where to locate production can be based on labor considerations alone.
22. Long-term compensation, typically in the form of stock plans, is the major component of CEO pay.
23. A comparable worth policy has a major impact on the relative earnings of women in the private sector.
24. If an employer knows an employee is working overtime but neither moves to stop it nor pays time and a half, a violation of the FLSA has likely occurred.
25. The Fair Labor Standards Act requires that employees be paid one and a half times their hourly rate after eight hours of work on a daily basis.
Multiple Choice Questions
26. _____ refers to the relative pay of different jobs and how much they are paid.
A. Equity structure
B. Pay structure
C. Task structure
D. Job structure
Pay structure entails a consideration of pay level and job structure.
27. _____ refers to the relative pay of jobs in an organization.
A. Pay structure
B. Equity structure
C. Job structure
D. Task structure
The organization's choice of job structure influences its employees' internal comparisons and their consequences.
28. Consider the same two jobs in two different organizations. In Organization 1, jobs A and B are paid an annual average compensation of $30,000 and $50,000, respectively. In Organization 2, the pay rates are $25,000 and $55,000, respectively. Which of the following is true?
A. Organizations 1 and 2 have the same pay level
B. Organizations 1 and 2 have the same job structures
C. Organizations 1 and 2 have the same individual pay rates
D. Organizations 1 and 2 use incentive pay systems
Job structure refers to the relative pay of jobs in an organization.
29. Both pay level and job structure are characteristics of organizations and reflect decisions about:
A. human resource development.
B. individual employees.
C. organizational goals.
D. jobs.
Pay level is defined here as the average pay of jobs in an organization. Job structure refers to the relative pay of jobs in an organization.
30. Implications of the equity theory for managing employee compensation include all but one of the following. Name the exception.
A. Employees evaluate their pay by comparing it with what others get paid.
B. Employees look at the intrinsic aspect of their work when making pay evaluations.
C. Employees work attitudes and behaviors are influenced by their pay comparisons.
D. Employee perceptions are what determine their pay evaluations.
Equity theory's main implication for managing employee compensation is that to an important extent, employees evaluate their pay by comparing it with what others get paid, and their work attitudes and behaviors are influenced by such comparisons. Also, employee perceptions are what determine their evaluation.