HR Exam 3 Review 2024
What is pay structure **** Reflects decisions about the relative value of each job
(structure) and how much to pay (level); reflect what organization knows about market
focus, unique goals, relative contribution of each job towards goals
• Why do organizations establish a pay structure? **** Simplify, standardize decisions
about pay
Applies to all jobs in organization
effects employee attitudes so you want it to be fair
comparable worth **** people are doing the same jobs and providing same level of
value to job, should be compensated similarly , equal pay for equal work
Cannot base pay differences on **** age (40+), sex, race, or other protected status
EEO Does not guarantee equal pay for.... **** men/women, whites/minorities etc.
because many legit factors can affect one's earnings
minimum wage **** . $7.25/hr, $5.15 in GA if not covered by FSLA, Permits lower
training wage (under 20 years old for up to 90 days receive 85% of minimum wage)
legislative action established minimum wage **** Fair Labor Standards Act; federal law
that establishes a minimum wage and requirements for overtime pay and child labor
negative effects of minimum wage **** • Could reduce employment rates; (Keynes
predicted negative employment effects would be offset by increased spending)
overtime **** Required whether employee asked/expected to work more than 40
hours; rate 1.5x usual hourly rate; includes bonus/piece-rate payments
time included in overtime count **** travel/training/maintenance time counts towards
40 hours
exempt employees (overtime) **** (managers, outside salespeople, etc. not covered
by FLSA overtime pay), based on job responsibility: i.e. executives, administrators, and
professional occupations
non exempt employees (overtime) **** covered by FSLA for overtime pay
child labor and its limitations --> 16-17 **** no hazardous occupations
, child labor and its limitations --> 14-15 **** outside school hours, nonhazardous,
limited time periods
child labor and its limitations -->under 14 **** only babysitting, acting, delivering
newspapers. Nothing with interstate commerce
prevailing wage **** Do business/take money from government; government puts
regulations on itself; must pay 30% of median wage in geographical area or higher,
often use rates of local union contracts
• People will refuse to do business with government because don't want to be regulated
by that
David Bacon Act of 1931 **** (prevailing wage legis.)covers construction contractors
that receive more that $2000 in fed. Money
Walsh Healy Public Contracts of 1936 **** (prevailing wage legis.)covers government
contractors receiving $10k + from fed.
Understand why the labor market is influential in pay decisions. **** Compete to obtain
HR in labor markets; competing for labor establishes minimum pay to hire an employee,
frequently fight competitors for same job candidates, must know what competitors are
offering in order to stay competitive
Benchmarking **** organization compares own practices against those of successful
competitors
tools for benchmarking **** pay surveys, trade and industry groups, professional
groups, Bureau of Labor Statistics, Society for HRM, American Management
Association
equity theory **** Employees care about how they are payed in relation to others
Equity theory: Adequately compensated **** attitudes/behavior unchanged
Equity theory: Under-compensated **** make up difference by stealing, reduce effort,
withdrawal
Equity theory: Over-compensated **** rethink situation to see it as new equitable
Pay structure reflects.... **** - decisions about value of a job (job structure) and how
much to pay (pay level)
- market forces, unique goals, and contribution of job towards goals
job evaluation **** Administrative procedure for measuring relative internal worth of
organization's jobs, job analysis: assesses job difficulty, demands and required
qualifications; calculate "points" for a job
What is pay structure **** Reflects decisions about the relative value of each job
(structure) and how much to pay (level); reflect what organization knows about market
focus, unique goals, relative contribution of each job towards goals
• Why do organizations establish a pay structure? **** Simplify, standardize decisions
about pay
Applies to all jobs in organization
effects employee attitudes so you want it to be fair
comparable worth **** people are doing the same jobs and providing same level of
value to job, should be compensated similarly , equal pay for equal work
Cannot base pay differences on **** age (40+), sex, race, or other protected status
EEO Does not guarantee equal pay for.... **** men/women, whites/minorities etc.
because many legit factors can affect one's earnings
minimum wage **** . $7.25/hr, $5.15 in GA if not covered by FSLA, Permits lower
training wage (under 20 years old for up to 90 days receive 85% of minimum wage)
legislative action established minimum wage **** Fair Labor Standards Act; federal law
that establishes a minimum wage and requirements for overtime pay and child labor
negative effects of minimum wage **** • Could reduce employment rates; (Keynes
predicted negative employment effects would be offset by increased spending)
overtime **** Required whether employee asked/expected to work more than 40
hours; rate 1.5x usual hourly rate; includes bonus/piece-rate payments
time included in overtime count **** travel/training/maintenance time counts towards
40 hours
exempt employees (overtime) **** (managers, outside salespeople, etc. not covered
by FLSA overtime pay), based on job responsibility: i.e. executives, administrators, and
professional occupations
non exempt employees (overtime) **** covered by FSLA for overtime pay
child labor and its limitations --> 16-17 **** no hazardous occupations
, child labor and its limitations --> 14-15 **** outside school hours, nonhazardous,
limited time periods
child labor and its limitations -->under 14 **** only babysitting, acting, delivering
newspapers. Nothing with interstate commerce
prevailing wage **** Do business/take money from government; government puts
regulations on itself; must pay 30% of median wage in geographical area or higher,
often use rates of local union contracts
• People will refuse to do business with government because don't want to be regulated
by that
David Bacon Act of 1931 **** (prevailing wage legis.)covers construction contractors
that receive more that $2000 in fed. Money
Walsh Healy Public Contracts of 1936 **** (prevailing wage legis.)covers government
contractors receiving $10k + from fed.
Understand why the labor market is influential in pay decisions. **** Compete to obtain
HR in labor markets; competing for labor establishes minimum pay to hire an employee,
frequently fight competitors for same job candidates, must know what competitors are
offering in order to stay competitive
Benchmarking **** organization compares own practices against those of successful
competitors
tools for benchmarking **** pay surveys, trade and industry groups, professional
groups, Bureau of Labor Statistics, Society for HRM, American Management
Association
equity theory **** Employees care about how they are payed in relation to others
Equity theory: Adequately compensated **** attitudes/behavior unchanged
Equity theory: Under-compensated **** make up difference by stealing, reduce effort,
withdrawal
Equity theory: Over-compensated **** rethink situation to see it as new equitable
Pay structure reflects.... **** - decisions about value of a job (job structure) and how
much to pay (pay level)
- market forces, unique goals, and contribution of job towards goals
job evaluation **** Administrative procedure for measuring relative internal worth of
organization's jobs, job analysis: assesses job difficulty, demands and required
qualifications; calculate "points" for a job
