Employee Compensation Quiz

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Questions and Answers

What philosophy assumes that employees are entitled to pay increases regardless of performance?

Performance-based compensation

Market-adjusted pay philosophy

Entitlement philosophy (correct)

Variable reward system

What is the main focus of pay raises or incentives in a performance-based compensation system?

Performance differences among employees (correct)

Variability of workload

Market competition

Length of service

Which of the following is true regarding pay grades?

They determine bonuses for all employees equally.

They are based solely on length of employment.

They are individual job evaluations without grouping.

They group jobs of similar value to the organization. (correct)

How are pay ranges determined after establishing pay grades?

Based on job evaluation points or market data. Signup and view all the answers

What happens to employees who perform below standards in a performance pay system?

They are enrolled in performance-improvement plans. Signup and view all the answers

Under a performance-based compensation system, how do outstanding performers typically compare to satisfactory performers?

They are compensated with greater pay increases and higher variable rewards. Signup and view all the answers

Which of the following is NOT a characteristic of an entitlement philosophy?

Performance-based increases. Signup and view all the answers

What is typically true of pay ranges for higher-level job grades?

They are generally wider due to increased discretion. Signup and view all the answers

What is the minimum age for most employment according to child labor provisions?

16 years Signup and view all the answers

At what age can children work unlimited hours in permissible jobs?

16 years Signup and view all the answers

Which of the following jobs can a 14-year-old do?

Deliver newspapers Signup and view all the answers

What is a key restriction for children aged 14-15 during the school session?

Cannot work after 7 pm Signup and view all the answers

What is the minimum age for working in hazardous occupations?

18 years Signup and view all the answers

In the security audit, what initial step is taken?

Conducting a survey of the area around the facility Signup and view all the answers

Which factor is NOT typically evaluated during a security audit?

Employee job satisfaction Signup and view all the answers

Who might be involved in conducting a security audit?

Both internal managers and external experts Signup and view all the answers

Which of the following is NOT directly associated with direct costs from workplace accidents?

Employee salary increases Signup and view all the answers

What is the primary goal of the first level of health promotion in the workplace?

To facilitate and encourage healthy actions Signup and view all the answers

Which group is considered disabled under the ADA?

Recovering substance abusers Signup and view all the answers

Which of the following injuries is classified as recordable by OSHA?

A job-related injury causing days away from work Signup and view all the answers

What do disaster plans primarily address in the workplace?

Emergency response for natural disasters Signup and view all the answers

Which of the following is an example of a second-level health promotion effort?

Offered comprehensive wellness programs Signup and view all the answers

What type of accidents are exempt from OSHA recordability?

Employee injuries sustained off the clock Signup and view all the answers

Which of the following is a factor considered in assessing disaster plans?

Control of physical access to sensitive data Signup and view all the answers

What is a potential issue caused by adverse selection in employee benefits?

Only higher-risk employees select and use certain benefits. Signup and view all the answers

What can be a consequence of offering more benefits choices to employees?

Higher administrative costs for the organization. Signup and view all the answers

Which program is designed to maintain or improve employee health before issues arise?

Wellness program. Signup and view all the answers

What is an example of a cumulative trauma disorder?

Carpal tunnel syndrome from repetitive motions. Signup and view all the answers

What is the main objective of return to work plans involving restricted duty?

Allowing injured employees to return to less physically demanding work. Signup and view all the answers

What is the study and design of the work environment to address physical demands called?

Ergonomics. Signup and view all the answers

Which approach to safety management involves creating an integrated injury prevention strategy?

Combining organizational, engineering, and individual elements. Signup and view all the answers

What can excessive use of restricted duty plans lead to regarding core job duties?

Negative impact on core job duties. Signup and view all the answers

What is a significant benefit of well-established legal systems for global firms?

They offer continuity and consistency despite political changes. Signup and view all the answers

Which non-equity business form is considered a low-cost entry strategy into new global markets?

Exporting Signup and view all the answers

What aspect of intercultural competence training focuses on how individuals perceive other cultures?

Emotional competence Signup and view all the answers

Why might countries with turbulent legal systems be unattractive to global organizations?

Stability is essential for predictable business operations. Signup and view all the answers

Which of the following is NOT an example of a non-equity business approach?

Merger Signup and view all the answers

What common first step might companies take when starting to expand globally?

Engaging in importing and exporting goods. Signup and view all the answers

Which component of intercultural competence training emphasizes understanding cultural laws and practices?

Cognitive training Signup and view all the answers

How can social skills training benefit individuals in intercultural competence?

By improving interactions in new intercultural contexts. Signup and view all the answers

What is a crucial step to take before terminating an employee?

Consulting human resources and ensuring fairness Signup and view all the answers

Which approach should be taken when terminating an employee for serious infractions?

Suspend the employee without pay pending investigation Signup and view all the answers

Why is it important to use specific termination letters?

To create a formal and legal record for the organization Signup and view all the answers

What should employers do to protect against wrongful termination lawsuits?

Document reasons for termination consistently Signup and view all the answers

How should the actual termination of an employee be conducted?

Face-to-face when possible Signup and view all the answers

When are companies most likely to implement a formal employment contract?

When hiring individuals from outside the organization Signup and view all the answers

What defines a polycentric orientation in organizational practices?

Heavy reliance on local cultures and norms Signup and view all the answers

What does piggybacking refer to in business arrangements?

A partnership selling different products Signup and view all the answers

Study Notes

Definitions

Wages: Payments calculated directly based on the time worked by employees.
Commission: A percentage of generated sales revenue, given to an agent or salesperson.
Garnishment: A court order directing an employer to withhold a portion of an employee's wages to repay a debt to a creditor.
Pay Survey: Data collection on compensation rates for workers in similar job roles within other organizations.
Compa-ratio: Employee pay level divided by the midpoint of the pay range.
Claw-back Provision: An organizational right to require employees to return rewards earned through unethical or negligent actions.
Gain Sharing: A system for sharing gains in profits or productivity beyond expected levels with employees.
Consumer Credit Protection Act: Regulations that limit the amount of wages that can be garnished and restrict employers from terminating employees with a garnishment order.
Market Pricing Method: Identifying the relative value of jobs based on market pay data for similar roles.

Concepts

IRS Independent Contractor Status: Criteria established by the Internal Revenue Service (IRS) for determining independent contractor status. The IRS generally considers if a company only controls the result of a contracted worker's work, not the process.

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Description

Test your knowledge on key concepts related to employee compensation including wages, commission, and garnishment. This quiz covers essential terms such as compa-ratio and claw-back provisions, ensuring you understand the intricacies of pay structures and legal regulations.