CORRECT ANSWERS
Job Evaluation - correct answer✔✔ An administrative procedure for measuring the relative internal
worth of the organization's jobs.
Pay Ranges - correct answer✔✔ A set of possible pay rates defined by a minimum, maximum, and
midpoint of pay for employees holding a particular job or a job within a particular pay grade.
Compa-Ratio - correct answer✔✔ The ratio of average pay to the midpoint of the pay range.
-If the average equals the midpoint, CR is 1.
-If CR is greater than 1, the average pay is above the midpoint.
- IF CR is less than 1, the average pay is below the midpoint.
Pay Policy Line - correct answer✔✔ A graphed line showing the mathematical relationship between job
evaluation points and pay rate.
Pay Grades - correct answer✔✔ Sets of jobs having similar worth or content, grouped together to
establish rates of pay.
Delayering - correct answer✔✔ Reducing the number of levels in the organization's job structure.
-More assignments are combined into a single layer.
-These broader groupings are called broad bands.
-More emphasis on acquiring experience, rather than promotions.
Skill-based Pay systems - correct answer✔✔ Pay structures that are set pay according to the employees'
level of skill or knowledge and what they are capable of doing.
, Pay during Military duty - correct answer✔✔ Some companies pay the difference between what the
military pays soldiers and what they would make in their civilian jobs.
Pay for Executives - correct answer✔✔ Paid in forms of salary, bonus, stock options, stock, etc.
Fair Labor Standards Act (FLSA) - correct answer✔✔ Federal law that establishes a minimum wage and
requirements for overtime pay and child labor.
Family and Medical Leave Act (FMLA) - correct answer✔✔ Requires organizations with 50 or more
employees to provide up to 12 weeks of unpaid leave:
-After childbirth or adoption
-To care for a seriously ill family member
-For an employee's own serious illness
Employers must also guarantee these employees the same or comparable job when they return to work.
Job Evaluation Methods - correct answer✔✔ -Experience
-Education
-Complexity
-Working conditions
-Responsibility
Incentive Pay - correct answer✔✔ Forms of pay linked to an employee's performance as an individual,
group member, or organization member.
Principles of Effective Incentive Pay Plans - correct answer✔✔ -Performance measures are linked to the
organization's goals.
-Employees believe they can meet performance standards
-Organization gives employees the resources they need to meet their goals
-Employees value the rewards given
-Employees believe the reward system is fair