At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensatic computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ration size? O The company may have difficulty attracting and keeping qualified employees. The company may be in violation of the Fair Labor Standards Act. OThe company may have misclassified these employees as exempt when they are nonexempt. OThe company may not have met minimum-wage requirements. O The company may have difficulty keeping costs under control.
At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensatic computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ration size? O The company may have difficulty attracting and keeping qualified employees. The company may be in violation of the Fair Labor Standards Act. OThe company may have misclassified these employees as exempt when they are nonexempt. OThe company may not have met minimum-wage requirements. O The company may have difficulty keeping costs under control.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
What is pay structure?

Transcribed Image Text:**Transcription for Educational Purpose:**
---
### Pay Structure Evaluation at Methods Corp.
**QUESTION 6**
At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation analyst 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?
- ○ The company may have difficulty attracting and keeping qualified employees.
- ○ The company may be in violation of the Fair Labor Standards Act.
- ○ The company may have misclassified these employees as exempt when they are nonexempt.
- ○ The company may not have met minimum-wage requirements.
- ○ The company may have difficulty keeping costs under control.
*Click Save and Submit to save and submit. Click Save All Answers to save all answers.*
---
In an educational context, this question would likely facilitate understanding of compensation management, focusing on potential challenges in maintaining a fair and legally compliant pay structure. The compa-ratio of 1.9 indicates that the designers at Methods Corp. may be compensated at almost double the market rate, which could lead to various managerial problems.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you

Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,

Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education

Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,

Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education


Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning

Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.