Question : 81) According to surveys, which of the following most likely : 1346307

81) According to surveys, which of the following is most likely true about family businesses?

A) Family employees earn twice as much in base salary at family-owned businesses than they would at businesses not owned by family members.

B) Family employees would earn more compensation at similar positions in businesses not owned by family members.

C) Owners of family businesses have total compensation packages less than those paid to nonowner presidents.

D) Contributions of family member employees outweigh personal needs when determining compensation.

82) Which of the following affects most pay structures in the United States?

A) Executive Order 11246

B) Fair Labor Standards Act

C) Civil Rights Act of 1991

D) Equal Pay Act

83) Which of the following is an example of a non-exempt employee?

A) A manager

B) A salesperson

C) An HRM professional

D) An hourly employee on the production line

84) An exempt employee:

A) works as a temporary employee.

B) is more costly to a firm than a nonexempt employee.

C) is not covered by the Fair Labor Standards Act.

D) works part time rather than full time.

85) The Equal Pay Act prohibits compensation discrimination between men and women doing substantially the same job, except when:

A) the pay differential is due to gender.

B) the titles of the jobs in question are different.

C) there is no apparent disparate impact from the practice.

D) the base pay for the job is minimum wage.

E) seniority or productivity are the basis for the differential.

Case 10.1

Brighton Manufacturing is reviewing its compensation system. The CEO wants employees to be paid wages and benefits comparable to Brighton’s competitors. He wants a system that allows for maximum flexibility in re-assigning workers to different jobs without requiring compensation adjustments each time. The Finance VP suggests that the company link compensation costs more closely to productivity and profit. When profits are down, compensation costs should be reduced as well. The Finance VP also believes that employees should be paid for what they produce, not for their time, and the compensation program should apply to all employees equally. The VP of HR suggests that the key to the company’s success is their employees and advocates an individual-based compensation plan. People should be paid for their skills or knowledge, not just because they are fulfilling certain jobs. The VP of HR also feels that it would be simpler to implement a compensation system by level rather than by job.

86) Refer to Case 10.1. The CEO is primarily concerned about:

A) external equity.

B) skill-based pay.

C) distributive justice.

D) internal equity.

87) Refer to Case 10.1. The Finance VP would most likely favor a(n):

A) variable pay system.

B) membership-based system.

C) individual-centered system.

D) egalitarian compensation system.

88) Refer to Case 10.1. Which of the following, if true, best supports the compensation plan advocated by the VP of HR?

A) Turnover at Brighton is relatively low.

B) Most jobs at Brighton require significant employee training.

C) The technology used at Brighton changes frequently.

D) Employees at Brighton rarely need to cover for each other.

89) Refer to Case 10.1. The CEO, VP of HRM, and VP of Finance would most likely agree on a(n):

A) elitist pay system.

B) egalitarian pay system.

C) below-market pay system.

D) individual-centered pay system.

90) Refer to Case 10.1. Brighton executives have decided to implement a decentralized pay system. Which of the following, if true, best supports this decision?

A) Brighton is a large, diverse firm that has never faced legal challenges regarding compensation.

B) The Brighton CEO wants pay decisions to be made at the firm’s headquarters.

C) Brighton’s unit managers have never received compensation training.

D) A large percentage of Brighton’s staff is non-exempt.