At Carbon Fine Inc

question 81

Multiple Choice

At Carbon Fine Inc. ,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:

Functional Manager

is a manager who has authority over a specific department or unit within an organization, specializing in a particular function such as marketing or finance.

Product Manager

A role responsible for the strategy, roadmap, and feature definition for a product or product line, often acting as a liaison between various teams.

Coordination

The management of interdependencies between activities, tasks, and functions to achieve a harmonious operation and aligned efforts towards common goals.

Economies of Scale

Financial benefits gained by companies thanks to their large scale of operation, which typically leads to a reduction in the cost per unit of output as the scale increases.