MGT 352 FINAL EXAM SDSU QUESTIONS AND
VERIFIED ANSWERS
Internal Equity - answer pay comparison within the company=retention
External Equity - answer pay comparisons with outside the company=attraction
Individual Equity - answer pay comparison to someone outside of the company with the
same job(co-worker)=motivation
What are the three goals of compensation? - answer Attraction, Retention, and
Motivation
Wage inversion - answer wages flipped, VP getting paid more than CEO
Internal factors in determining wage ceiling and wage floor - answer Compensations of
overall organization, worth of the job, worth of the employee
job evaluation systems - answer a process of determining the worth of the jobs to decide
which jobs should be paid more than others
Pay ranges - answer allow for variation in pay within grades, within the max and min-
differences such as tenure, education, and performance
Fair labor standards act provisions - answer Enforced by the department labor-
Minimum wage, overtime, child labor, equal pay
Equal pay and its relationship to compensable factors - answer gender must not be
taking into account when determining compensation of factor
Wages compression - answer wages to close to each other
External factors in determining wage ceiling or wage floor - answer labor market
conditions(more people = lower wages), competitor wages, wages in the area of
employment, inflation, consumer price index, collective bargaining
Job Ranking - answer rank the value of jobs from highest to lowest based on worth.
DOES NOT SHOW LEVEL OF DIFFERENCE BETWEEN JOBS
Job Classifying - answer classify jobs so they can be bench marked internally and
externally
Job Point method - answer awarding points to each job based on how much they are
linked to organizational objectives, this allows jobs to be ranked based on different,
important objectives
Pay grades - answer groups of jobs within a particular class that are paid the same
, Job evaluation methods - answer job ranking, job classifying, job point system method
Compensable factors - answer pay grades, pay ranges, range overlap
Minimum wage provision - answer current min wage in US is 7.25 last updated in 2009,
put in place in order to increase the demand for labor and boost the economy
Overtime provision - answer you must pay employees time and a half for working over
40 hours a week. Employees on salary are exempt
Child labor provision - answer prevents children under 16 to work, excludes family
businesses. Congress did not want children to take jobs away from adults( they should
be in school)
Equal rights provision - answer equal pay act, it is illegal to discriminate in terms of
compensation in terms of gender. equal pay for equal work
Compa-ratio - answer reflects how managers pay employees in relation to range mid
points-if it is less than 1 managers are paying less than the intended pay - if greater than
1 managers are paying more than intended
Benefit strategies in terms of the benefits mix and benefits cost - answer benefits cost
on average about 40% of total labor costs - strategies include know your audience, cost
of them, and know what the competition is offering
Required benefits - answer Social Security, unemployment insurance,workers
compensation, family and medical leave
Social security - answer payroll tax on both employees and employers, provides long
term benefits(funded by employees and employers, no cap on medicare, increasing age
requirement)
Unemployment insurance - answer employers are required to have insurance for those
who are involuntarily unemployed. This tax is paid by only the employer.(temporary up
to 26 based on recent earnings, people who quit discharged for misconduct, self
employed, you refused suitable work are not eligible
VERIFIED ANSWERS
Internal Equity - answer pay comparison within the company=retention
External Equity - answer pay comparisons with outside the company=attraction
Individual Equity - answer pay comparison to someone outside of the company with the
same job(co-worker)=motivation
What are the three goals of compensation? - answer Attraction, Retention, and
Motivation
Wage inversion - answer wages flipped, VP getting paid more than CEO
Internal factors in determining wage ceiling and wage floor - answer Compensations of
overall organization, worth of the job, worth of the employee
job evaluation systems - answer a process of determining the worth of the jobs to decide
which jobs should be paid more than others
Pay ranges - answer allow for variation in pay within grades, within the max and min-
differences such as tenure, education, and performance
Fair labor standards act provisions - answer Enforced by the department labor-
Minimum wage, overtime, child labor, equal pay
Equal pay and its relationship to compensable factors - answer gender must not be
taking into account when determining compensation of factor
Wages compression - answer wages to close to each other
External factors in determining wage ceiling or wage floor - answer labor market
conditions(more people = lower wages), competitor wages, wages in the area of
employment, inflation, consumer price index, collective bargaining
Job Ranking - answer rank the value of jobs from highest to lowest based on worth.
DOES NOT SHOW LEVEL OF DIFFERENCE BETWEEN JOBS
Job Classifying - answer classify jobs so they can be bench marked internally and
externally
Job Point method - answer awarding points to each job based on how much they are
linked to organizational objectives, this allows jobs to be ranked based on different,
important objectives
Pay grades - answer groups of jobs within a particular class that are paid the same
, Job evaluation methods - answer job ranking, job classifying, job point system method
Compensable factors - answer pay grades, pay ranges, range overlap
Minimum wage provision - answer current min wage in US is 7.25 last updated in 2009,
put in place in order to increase the demand for labor and boost the economy
Overtime provision - answer you must pay employees time and a half for working over
40 hours a week. Employees on salary are exempt
Child labor provision - answer prevents children under 16 to work, excludes family
businesses. Congress did not want children to take jobs away from adults( they should
be in school)
Equal rights provision - answer equal pay act, it is illegal to discriminate in terms of
compensation in terms of gender. equal pay for equal work
Compa-ratio - answer reflects how managers pay employees in relation to range mid
points-if it is less than 1 managers are paying less than the intended pay - if greater than
1 managers are paying more than intended
Benefit strategies in terms of the benefits mix and benefits cost - answer benefits cost
on average about 40% of total labor costs - strategies include know your audience, cost
of them, and know what the competition is offering
Required benefits - answer Social Security, unemployment insurance,workers
compensation, family and medical leave
Social security - answer payroll tax on both employees and employers, provides long
term benefits(funded by employees and employers, no cap on medicare, increasing age
requirement)
Unemployment insurance - answer employers are required to have insurance for those
who are involuntarily unemployed. This tax is paid by only the employer.(temporary up
to 26 based on recent earnings, people who quit discharged for misconduct, self
employed, you refused suitable work are not eligible
