At Methods Corp

question 90

Multiple Choice

At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size?

• A) The company may have difficulty keeping costs under control.
• B) The company may have difficulty attracting and keeping qualified employees.
• C) The company may be in violation of the Fair Labor Standards Act.
• D) The company may have misclassified these employees as exempt when they are nonexempt.
• E) The company may not have met minimum-wage requirements.

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Definitions:

Drug Legalization

The process of removing legal prohibitions against drugs, allowing them to be legally produced, sold, and used under regulated conditions.

Material Success

The accumulation of wealth and physical possessions that are often used as a measure of a person's or organization's achievement.

Strain Theory

Holds that people may turn to deviance when they experience strain. Strain results when a culture teaches people the value of material success and society fails to provide enough legitimate opportunities for everyone to succeed.

American Culture

The set of customs, traditions, and values of the United States, influenced by its history of immigration and diversity.