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?

<p>Based on job evaluation points or market data. (B)</p> Signup and view all the answers

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

<p>They are enrolled in performance-improvement plans. (C)</p> Signup and view all the answers

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

<p>They are compensated with greater pay increases and higher variable rewards. (C)</p> Signup and view all the answers

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

<p>Performance-based increases. (C)</p> Signup and view all the answers

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

<p>They are generally wider due to increased discretion. (C)</p> Signup and view all the answers

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

<p>16 years (C)</p> Signup and view all the answers

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

<p>16 years (C)</p> Signup and view all the answers

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

<p>Deliver newspapers (D)</p> Signup and view all the answers

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

<p>Cannot work after 7 pm (D)</p> Signup and view all the answers

What is the minimum age for working in hazardous occupations?

<p>18 years (B)</p> Signup and view all the answers

In the security audit, what initial step is taken?

<p>Conducting a survey of the area around the facility (D)</p> Signup and view all the answers

Which factor is NOT typically evaluated during a security audit?

<p>Employee job satisfaction (A)</p> Signup and view all the answers

Who might be involved in conducting a security audit?

<p>Both internal managers and external experts (C)</p> Signup and view all the answers

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

<p>Employee salary increases (C)</p> Signup and view all the answers

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

<p>To facilitate and encourage healthy actions (B)</p> Signup and view all the answers

Which group is considered disabled under the ADA?

<p>Recovering substance abusers (C)</p> Signup and view all the answers

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

<p>A job-related injury causing days away from work (B)</p> Signup and view all the answers

What do disaster plans primarily address in the workplace?

<p>Emergency response for natural disasters (D)</p> Signup and view all the answers

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

<p>Offered comprehensive wellness programs (B)</p> Signup and view all the answers

What type of accidents are exempt from OSHA recordability?

<p>Employee injuries sustained off the clock (D)</p> Signup and view all the answers

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

<p>Control of physical access to sensitive data (C)</p> Signup and view all the answers

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

<p>Only higher-risk employees select and use certain benefits. (A)</p> Signup and view all the answers

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

<p>Higher administrative costs for the organization. (A)</p> Signup and view all the answers

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

<p>Wellness program. (A)</p> Signup and view all the answers

What is an example of a cumulative trauma disorder?

<p>Carpal tunnel syndrome from repetitive motions. (B)</p> Signup and view all the answers

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

<p>Allowing injured employees to return to less physically demanding work. (C)</p> Signup and view all the answers

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

<p>Ergonomics. (A)</p> Signup and view all the answers

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

<p>Combining organizational, engineering, and individual elements. (A)</p> Signup and view all the answers

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

<p>Negative impact on core job duties. (A)</p> Signup and view all the answers

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

<p>They offer continuity and consistency despite political changes. (B)</p> Signup and view all the answers

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

<p>Exporting (B)</p> Signup and view all the answers

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

<p>Emotional competence (C)</p> Signup and view all the answers

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

<p>Stability is essential for predictable business operations. (A)</p> Signup and view all the answers

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

<p>Merger (A)</p> Signup and view all the answers

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

<p>Engaging in importing and exporting goods. (B)</p> Signup and view all the answers

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

<p>Cognitive training (B)</p> Signup and view all the answers

How can social skills training benefit individuals in intercultural competence?

<p>By improving interactions in new intercultural contexts. (C)</p> Signup and view all the answers

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

<p>Consulting human resources and ensuring fairness (A)</p> Signup and view all the answers

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

<p>Suspend the employee without pay pending investigation (B)</p> Signup and view all the answers

Why is it important to use specific termination letters?

<p>To create a formal and legal record for the organization (C)</p> Signup and view all the answers

What should employers do to protect against wrongful termination lawsuits?

<p>Document reasons for termination consistently (C)</p> Signup and view all the answers

How should the actual termination of an employee be conducted?

<p>Face-to-face when possible (D)</p> Signup and view all the answers

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

<p>When hiring individuals from outside the organization (B)</p> Signup and view all the answers

What defines a polycentric orientation in organizational practices?

<p>Heavy reliance on local cultures and norms (B)</p> Signup and view all the answers

What does piggybacking refer to in business arrangements?

<p>A partnership selling different products (C)</p> Signup and view all the answers

Flashcards

Cumulative Trauma Disorders

Injuries to muscles and bones caused by repetitive motions, often involving the same muscles.

Carpal Tunnel Syndrome

A common cumulative trauma disorder affecting the wrist and hand, often caused by repetitive motions like typing or playing certain instruments.

Wellness Program

Programs aimed at maintaining or improving employee health before problems arise, promoting preventive health practices.

Ergonomics

The study and design of work environments to reduce physical strain and promote safety for employees.

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Restricted Duty

A plan for injured or ill employees to gradually return to work with less demanding tasks, with the goal of eventually returning to full duties.

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Safety Management Approaches

Different strategies for managing safety in the workplace, including engineering controls, systems analysis, organizational policies, and individual employee behavior.

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Integrated Approach to Safety

Combining multiple safety management approaches (engineering, systems, organizational, individual) to create a comprehensive and effective safety program.

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Consistent Safety Program

A safety program that aligns with the company's values and practices, creating a culture of safety and preventing accidents.

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Pay for Performance Philosophy

A compensation system that rewards employees based on their individual performance and contributions to the organization. Outstanding performers receive higher pay increases and bonuses compared to those with average or below-average performance.

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Entitlement Philosophy of Compensation

A compensation system where employees receive automatic pay increases based on their length of service with the company, regardless of their performance level.

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Pay Grades

Groupings of jobs with similar value to the organization. These groups are usually ranked from lowest to highest based on factors like skills, responsibilities, and education requirements.

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Pay Ranges (Scales)

The minimum and maximum pay rates for a specific job grade. This range allows for flexibility in compensating employees within the same grade based on individual performance and experience.

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Market-Adjusted Pay Scales

Pay scales that are adjusted to reflect the current market value of a job. This ensures that employees are paid competitively compared to other companies in the same industry.

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Performance-Improvement Plans

Plans designed to help employees who are underperforming improve their skills, knowledge, and performance. These plans often provide coaching, training, and feedback to guide employees towards better performance.

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Across-the-Board Raises

Pay increases that are applied equally to all employees, regardless of their individual performance. These raises are often given to keep up with inflation or cost-of-living increases.

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Industry Comparisons of Total Rewards

Comparing a company's compensation and benefits package to other companies in the same industry to ensure competitiveness in attracting and retaining talent.

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Minimum Age for Most Employment

The Fair Labor Standards Act (FLSA) sets the minimum age for most employment at 16 years old.

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Exceptions to Minimum Age

Individuals aged 14 or 15 can work in certain limited situations, like family-owned businesses, delivery, or entertainment.

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Age 14-15 Work Restrictions

Teenagers aged 14-15 have specific work hour limitations, including a maximum of 3 hours per day and 18 hours per week during school sessions.

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Age 16-18 Work Restrictions

While 16-18 year olds can work unlimited hours in permissible jobs, they are barred from hazardous occupations and driving on public roads.

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Minimum Age for Hazardous Occupations

Workers must be at least 18 years old to perform hazardous tasks, ensuring their safety.

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Security Audit - Purpose

A security audit comprehensively reviews an organization's security, including physical and digital aspects.

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Security Audit - Participants

Security audits involve both internal personnel (e.g., HR, facilities) and external experts (e.g., consultants, police).

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Security Audit - Scope

Security audits encompass various factors, like physical surroundings, data systems, and personnel capabilities.

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Workplace Accident Direct Costs

Expenses directly resulting from an accident at work, encompassing medical treatments, lost wages, equipment damage, and regulatory fines.

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First Level Health Promotion

Involves providing basic health information and awareness to employees, encouraging them to adopt healthier habits. It primarily relies on individual action.

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Substance Abuse & ADA

The ADA defines substance abusers as disabled, specifically those struggling with legal substances like alcohol and prescription drugs. Illegal drug users are excluded.

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OSHA Recordable Injuries

Work-related injuries or illnesses that require reporting to OSHA, including fatalities, lost workdays, job transfers, or restricted duty.

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Death (OSHA Recordable)

A workplace fatality or death directly related to work activities.

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Injuries Causing Days Away From Work (OSHA Recordable)

Work-related injuries that prevent an employee from working their regular schedule the day after the accident.

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Injuries Causing Job Transfer or Restricted Duty (OSHA Recordable)

Work-related injuries leading to an employee working in a different job or with limited responsibilities.

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Second Level Health Promotion

Goes beyond basic information and involves comprehensive programs and actions that support employee well-being and healthy lifestyle choices.

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Termination

Removal of an employee from a job at an organization. It should be a serious decision, not impulsive, and documented with specific reasons.

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Formal Employment Contract

A written agreement that outlines the details of employment, often used when hiring from outside the organization or when dealing with high-risk situations or generous compensation packages.

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Piggybacking

An agreement where a company collaborates with another company that sells complementary products or services, often for mutual benefit.

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Merger

The combination of two companies into a single new business entity, creating a larger, combined organization.

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Polycentric Orientation

A business approach where each country is treated uniquely. Practices, culture, and policies are tailored to each country's norms.

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Wrongful Termination Lawsuits

Legal cases filed by employees who believe they were terminated unfairly or without proper justification. Companies need strong documentation and fair processes to avoid such lawsuits.

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Termination Letter

A formal written document outlining the reasons for an employee's termination. It's crucial for legal protection and provides a clear record of the reasons.

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Face-to-Face Termination

The preferred method of informing an employee of their termination in person, showing respect and providing a chance for discussion.

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Stable Legal Systems & Globalization

Well-established legal systems provide continuity and consistency for global firms, making countries more attractive for businesses. However, unstable political and legal environments in some nations can hinder economic and social development, making them less appealing to global organizations.

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Non-Equity Global Expansion

This approach to global expansion involves strategies like importing/exporting, licensing, and franchising. These methods offer a low-cost and low-risk way to enter new markets, allowing businesses to test the waters before making significant investments.

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Intercultural Competence Training

This type of training equips employees with the skills and knowledge necessary to work effectively in diverse cultural settings. It focuses on emotional, behavioral, and cognitive aspects of cross-cultural communication and understanding.

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Emotional Intercultural Competence

Refers to an individual's sensitivity and awareness towards different cultures. It includes factors like cultural empathy, openness to new experiences, and managing discomfort in unfamiliar situations.

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Behavioral Intercultural Competence

Involves adapting behavior and communication style to different cultural norms. This includes understanding appropriate social cues, adapting language use, and exhibiting culturally appropriate actions.

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Cognitive Intercultural Competence

Refers to an individual's understanding and knowledge of different cultural perspectives, values, and beliefs. This includes being able to analyze cultural differences and predict potential cultural misunderstandings.

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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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Related Documents

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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.

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