Identify the legal requirement(s) for developing a pay structure.
A. Product markets
B. High-quality workforce
C. Equity and fairness
D. Overtime pay
E. Pay differentials
39. According to the FLSA, which of the following is most likely a nonexempt employee?
B. Senior administrative employee
C. Hourly-paid employee
D. Executive employee
40. The federal government tracks trends in the nation’s cost of living with a measure known as the:
A. Consumer Price Index.
B. Living-Wage Index.
C. Gross National Product Index.
D. Exchange Rate Index.
E. Employment Cost Index.
41. A rate of pay for each unit produced is known as:
A. yearly pay.
C. hourly wage.
D. piecework rate.
E. monthly pay.
42. A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.
B. pay differential
C. green-circle rate
D. rank-and-file adjustment
E. red-circle rate
43. Pay specifically designed to energize, direct, or control employees’ behavior is known as:
A. monthly salary.
C. incentive pay.
D. annual salary.
E. fixed pay.
44. Which of the following types of incentive pay plans are used to reward individual performance?
B. Merit pay
C. Scanlon plan
D. Profit sharing
E. Stock ownership
45. In merit pay programs, an individual’s compa-ratio represents his/her:
A. pay relative to performance of other workers in the industry.
B. pay relative to average pay.
C. comparable worth versus others.
D. ratio of pay to benefits.
E. the average worth of the skills possessed by the individual.
46. Which of the following is an incentive plan that is intended to improve the overall performance of an organization?
A. Profit sharing
C. Merit pay
D. Group bonus
E. Scanlon plan
47. Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?
A. Stock options
B. Employee stock ownership plan
C. Scanlon plan
D. Collective stock options
E. Profit sharing plan
48. Which of the following is true of benefits?
A. They allow employees to buy their own insurance.
B. They let employees to contribute to their own savings plans.
C. Employees do not pay income taxes on most benefits they receive.
D. They give employees greater control over what their compensation buys.
E. Laws usually do not require employers to provide benefits.
49. Which of the following legally required employer-provided benefits help workers injured on the job?
A. Social Security
B. Unemployment insurance
C. Group insurance
D. Workers’ compensation
E. Family and medical leave
50. The Family and Medical Leave Act of 1993 requires employers to provide:
A. up to 8 weeks of unpaid leave after childbirth or adoption.
B. reinstatement to the same (or a comparable) job upon the employee’s return to work.
C. paid leave to any employee who has one or more years of full-time service.
D. up to 18 weeks of unpaid leave to care of a seriously ill parent, spouse, or child.
E. up to one month of paid leave to take care of a seriously ill spouse, child, or parent.
51. The _____ is a federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff, reduction in hours, or the employee’s death.
A. Family and Medical Leave Act (FMLA)
B. Employee Retirement Income Security Act (ERISA)
C. Social Security Act
D. Consolidated Omnibus Budget Reconciliation Act (COBRA)
E. Sarbanes-Oxley Act
52. Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?
A. The COBRA
B. The ADEA
C. The ADA
D. The FLSA
E. The ERISA
53. Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called:
A. preferred provider plans.
B. cafeteria-style plans.
C. pay-or-play plans.
D. flexible spending accounts.
E. cash balance plans.
Answer the following essay question on a separate sheet (put the essay question number before your answer):
54. What are the different purposes of performance management systems?