MGMT 3860: EXAM 2 QUESTIONS WITH DETAILED CORRECT
ANSWERS LATEST UPDATE
Compa-ratio
A compa-ratio greater than 1 suggests that the organization is paying more than
planned for human resources and may have difficulty keeping costs under control. A
compa-ratio less than 1 suggests that the organization is underpaying for human
resources relative to its target and may have difficulty attracting and keeping qualified
employees.
Pay Level
The average amount (including wages, salaries, and bonuses) the organization pays for
a particular job.
Job Structure
The relative pay for different jobs within the organization.
Pay Structure
The pay policy resulting from job structure and pay level decisions.
Issues in Developing a Pay Structure
Legal Requirements, Market Forces & Organization's goals
Fair Labor Standards Act (FLSA)
Federal law that establishes a minimum wage and requirements for overtime pay and
child labor.
Overtime Pay
, The overtime rate under the FLSA is one and a half times the employee's usual hourly
rate, including any bonuses and piece-rate payments (amounts paid per item
produced). The overtime rate applies to the hours worked beyond 40 in one week.
Exepmt Employees
Managers, outside salespeople, and any other employees not covered by the FLSA
requirement for overtime pay.
Nonexempt Employees
Employees covered by the FLSA requirements for overtime pay.
Child Labor
Under the FLSA, children aged 16 and 17 may not be employed in hazardous
occupations defined by the Department of Labor, such as mining, meatpacking, and
certain kinds of manufacturing using heavy machinery. Children aged 14 and 15 may
work only outside school hours in jobs defined as nonhazardous and for limited time
periods. A child under age 14 may not be employed in any work associated with
interstate commerce, except work performed in a nonhazardous job for a business
entirely owned by the child's parent or guardian.
Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
Under these laws, federal contractors must pay their employees at rates at least equal
to the prevailing wages in the area. The calculation of prevailing rates must be based on
30% of the local labor force.
Pay Ratio Reporting
communicating one outcome of pay structure: the ratio of CEO pay to the pay of a
typical worker
ANSWERS LATEST UPDATE
Compa-ratio
A compa-ratio greater than 1 suggests that the organization is paying more than
planned for human resources and may have difficulty keeping costs under control. A
compa-ratio less than 1 suggests that the organization is underpaying for human
resources relative to its target and may have difficulty attracting and keeping qualified
employees.
Pay Level
The average amount (including wages, salaries, and bonuses) the organization pays for
a particular job.
Job Structure
The relative pay for different jobs within the organization.
Pay Structure
The pay policy resulting from job structure and pay level decisions.
Issues in Developing a Pay Structure
Legal Requirements, Market Forces & Organization's goals
Fair Labor Standards Act (FLSA)
Federal law that establishes a minimum wage and requirements for overtime pay and
child labor.
Overtime Pay
, The overtime rate under the FLSA is one and a half times the employee's usual hourly
rate, including any bonuses and piece-rate payments (amounts paid per item
produced). The overtime rate applies to the hours worked beyond 40 in one week.
Exepmt Employees
Managers, outside salespeople, and any other employees not covered by the FLSA
requirement for overtime pay.
Nonexempt Employees
Employees covered by the FLSA requirements for overtime pay.
Child Labor
Under the FLSA, children aged 16 and 17 may not be employed in hazardous
occupations defined by the Department of Labor, such as mining, meatpacking, and
certain kinds of manufacturing using heavy machinery. Children aged 14 and 15 may
work only outside school hours in jobs defined as nonhazardous and for limited time
periods. A child under age 14 may not be employed in any work associated with
interstate commerce, except work performed in a nonhazardous job for a business
entirely owned by the child's parent or guardian.
Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936
Under these laws, federal contractors must pay their employees at rates at least equal
to the prevailing wages in the area. The calculation of prevailing rates must be based on
30% of the local labor force.
Pay Ratio Reporting
communicating one outcome of pay structure: the ratio of CEO pay to the pay of a
typical worker
