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Q:
Organization factors that shape internal pay structures include all but _____.
A.technology
B.cost implications
C.HR policy
D.economic pressures
Q:
Most job structures are best described as
A.job-based.
B.person-based.
C.both person- and job-based.
D.competency based.
Q:
The pay for the job of accountant in London, Los Angeles and Berlin is likely to be different due to
A.use value.
B.currency exchange rates.
C.demand and supply.
D.exchange value.
Q:
A pay structure based upon the relative contribution of skills, tasks and responsibilities to the organization's goals is called the _____ approach.A.contentB.valueC.job analysisD.job evaluation
Q:
Content refers to the
A.worth of the work.
B.work performed in a job and how it gets done.
C.relative contribution to the organization objectives.
D.different pay level policies.
Q:
The most common bases for determining internal structures are:
A.work content and its value
B.seniority and experience
C.use value and exchange value
D.pay surveys and job evaluation
Q:
When employees can see the relationships between their work, the work of others and the organization's objectives, this is called
A.procedural justice.
B.line-of-sight.
C.goal congruence.
D.path-goal-congruence.
Q:
Which of the following is an not intention of differentials?A.Motivating people to strive for promotion to a higher-paying levelB.Motivating workers to seek additional trainingC. Influencing rate of turnoverD.Motivating worker by productivity incentives
Q:
Lockheed's structure of 6 levels of engineers illustrates all of the following except )____________
A. company strategy
B. the work flow
C. line of sight
D. external equity
Q:
Which of the following is not part of the description of a pay structure?
A.Pay differentials
B.Criteria determining pay differences
C.Performance pay
D.Number of levels
Q:
In the strategic approach to pay, internal alignment is the _____ issue to be decided.
A.first
B.second
C.third
D.fourth
Q:
_____ should support the organization strategy, support the work flow and motivate behavior toward organization objectives.
A.The job evaluation process
B.Strategic compensation objectives
C.Employee contributions
D.The pay structure
Q:
Common bases for modern pay structures include all but which of the following?A.Content of the workB.Skills and knowledge required to perform the workC.External competitiveness and equityD.Relative value for achieving organizational objectives
Q:
The parable of the vineyard owner and compensation paid to the laborers illustrated:
A.paying workers according to their productivity.
B.pay based upon the content of the job.
C.pay based upon hours of work.
D.ignorance of the owner towards the content of work.
Q:
Work/life balance issues are part of competitiveness decisions in the pay model.
Q:
In a high-performance system, pay strategy plays a lead, as opposed to support role.
Q:
Pay systems should fit well with other HR systems.
Q:
Since unions represent such a small fraction of the labor force, their influence on pay decisions is relatively minor.
Q:
Offering employees choice in their compensation mix provides firms a distinct competitive advantage.
Q:
Unlimited compensation choices by employees would meet with disapproval from the U.S. Internal Revenue Service.
Q:
The major challenge in the design of future pay systems is reducing the pay gap between top executives and low-level employees.
Q:
A major challenge in the design of future pay systems is how to better satisfy individual needs and preferences.
Q:
Compensation strategy should reflect the organization's values.
Q:
What business should a company be in and how does the company win are questions that are a part of mapping a total compensation strategy.
Q:
All organizations that pay their employees have a compensation strategy even though it may not be stated or written.
Q:
One of Whole Foods' employee contributions strategic compensation choices is to seek and engage employees who are going to help the company make money.
Q:
How an organization positions its total compensation against competitors is part of external competitiveness strategic choices.
Q:
Internal alignment refers to how differently levels of skills and work are paid across different organizations.
Q:
Most firms do not have generic strategies but use a blend of cost and innovation.
Q:
Compensation systems focusing on competitor labor costs typically follow a cost-cutter strategy.
Q:
Customer-focused pay strategies are very likely to use market-based pay.
Q:
In the proper sequence of strategic decisions, HR strategies are made before business unit strategies.
Q:
IBM was discussed as an example of an organization that changed it pay system and strategy to meet a different business strategy.
Q:
An organization's strategy is defined by the tradeoffs in choices of what to do and what not to do.
Q:
Strategy refers to the fundamental direction that an organization chooses.
Q:
Labor market-based compensation practices in countries such as China, Germany and France, are likely to be less effective than in countries such as the U.S., Korea or Singapore because there is less movement from company to company
Q:
When Microsoft replaced stock options with stock awards, they were asking employees to put more "skin in the game".
Q:
Most organizations rely upon the market to determine how to pay their employees since compensation strategy is uncertain and complex.
Q:
Research shows that ____________can effectively shift an organization in a downward performance spiral to an upward oneA.reinforcing performance-based payB.implementing team-based payC.improving work-life balanceD. there are no compensation practices that
Q:
When organization performance declines,
A.a virtuous circle may be created.
B.performance-based pay plans do not pay off.
C.managers will change the pay practices.
D.employees will work harder to improve performance.
Q:
Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high performance practices.
A.improves attitudes and behaviors
B.shows large productivity improvements
C.reduces labor costs
D.has little effect on quality
Q:
Which of the following statements is not true?
A. The effect of performance incentives depends on the context
B. Embedding compensation strategy in HR strategy affects results
C. Focusing on employee contributions vs other objectives is a best practice
D. The effect of paying more than competitors depends on the context
Q:
_____ is a "best practice".
A.Smaller internal pay differences
B.Larger internal pay differences
C.Both smaller and larger internal pay differences
D.Neither smaller nor larger internal pay differences
Q:
Trying to measure an ROI for any compensation strategy implies that
A.it is possible to align and differentiate and still fail to add value.
B.people are "human capital," similar to other factors of production.
C.adding value is the most difficulty test.
D.value created as a result of costs is difficult to specify.
Q:
The alignment test
A.is difficult to imitate.
B.is the most difficult test.
C.helps ensure passing the differentiation test.
D.becomes difficult if the differentiation test is not clear.
Q:
Which of the following tests of competitive advantage is the easiest test to pass?
A.Alignment
B.Differentiation
C.Integration
D.Adding value
Q:
Which of the following is not one of the tests to determine if a pay strategy is a source of competitive advantage?
A.Alignment of the pay system with the organization's business strategy
B.Differentiation of an organization's strategy from its competitors
C.Internal alignment of the pay strategy with the organization's strategy
D.External competitiveness of the pay system
Q:
Which of the following is not a test of whether a pay strategy is a source of competitive advantage?
A.Alignment with business strategy
B.Cost effectiveness
C.Differentiation
D.Adding value
Q:
A strategy map contains strategies about all but which of the following?
A.External competitiveness
B.Management
C.HR alignment
D.Employee contributions
Q:
Career growth, hierarchy and flexible design are examples of choices related to the _____ strategy choice of total compensation.
A.objectives
B.internal alignment
C.external competitiveness
D.employee contributions
Q:
Issues of transparency, technology, and choice are examples of choices related to the _____ strategy choice of total compensation.
A.objectives
B.management
C.employee contributions
D.internal alignment
Q:
The role non-HR managers play in making pay decisions is called _____.
A.ownership
B.transparency
C.technology
D.decentralized decision-making
Q:
_____________ is the measure of how important compensation is in the overall HR strategy.A. CompetitivenessB. ProminenceC. CentralityD. Goal-focused
Q:
The issue of how much and what forms of pay are our competitors using is part of which objective of total compensation strategy?
A.Objectives
B.Internal alignment
C.External competitiveness
D.Management
Q:
In mapping a total compensation strategy, the question of how is compensation in the overall HR strategy is part of _____.
A.objectives
B.internal alignment
C.external competitiveness
D.management
Q:
Union preferences is a major factor in _____ of a total compensation strategy.
A.implementing
B.reassessing
C.assessing implications
D.mapping
Q:
Which of the following statements regarding allowing employees choice in their pay mix is not true?
A.A wide-range of choices is difficult to manage
B.It provides an employer a clear competitive advantage
C.Unlimited choice is difficult to design
D.Too many choices can confuse people
Q:
According to the Hudson survey, __________ is the single thing that would make them happier.
A. more personal days and family leave
B. a more flexible work schedule
C. more money
D. better health insurance
Q:
Among unconventional benefits, U. S. workers in the Hudson's survey rated _____ as their most preferred.
A.more supplemental insurance
B.more job training
C.a more flexible work schedule
D.more personal days and family leave
Q:
"To maintain good citizenship as a company" and "To make a fair profit on current operations" are examples of _____.
A.values
B.mission
C.goals
D.operating principles
Q:
Which of the following is the correct order of the steps in formulating a total compensation strategy?
A.Assess total compensation strategy, implement strategy, map a total compensation strategy, reassess
B.Assess total compensation strategy, map a total compensation strategy, implement strategy, reassess
C.Map a total compensation strategy, implement strategy, assess total compensation strategy, reassess
D.Map a total compensation strategy, assess total compensation strategy, implement strategy, reassess
Q:
"Choosing techniques to fit strategy" is a part of which step in developing a total compensation system?
A.Reassess
B.Implement strategy
C.Map a total compensation strategy
D.Assess total compensation implications
Q:
Examination of employee and union needs and the social and political context is a part of _____ step in formulating a total compensation strategy.
A.assess total compensation implications
B.implement strategy
C.mapping strategy
D.assessing business needs
Q:
The second step of developing a total compensation strategy is to:
A.implement strategy.
B.assess total compensation implications.
C.estimate the cost of the strategy.
D.map a total compensation strategy.
Q:
Whole Foods' decision to seek and engage employees who are going to help the company make money is an example of which strategic pay decisions?
A.Objectives
B.Employee contributions
C.Internal alignment
D.Management
Q:
18. A book listing the previous year's pay of all employees is part of Whole Foods "No-secrets" philosophy. This is an example of which strategic compensation choice?
A.Internal alignment
B.External competitiveness
C.Employee contributions
D.Management
Q:
Decisions regarding what forms compensation should be are part of _____.
A.internal alignment
B.external competitiveness
C.employee contributions
D.management
Q:
Whole Foods' policy of holding executive salaries to no more than 14 times average pay of full-time employees is an example of which strategic pay decision?
A.External competitiveness
B.Employee contributions
C.Management
D.Internal alignment
Q:
All of the following except __________ are compensation systems associated with an innovator strategy.A. reward innovation in products and processesB. market-based payC. flexible job descriptionsD. customer satisfaction incentives
Q:
A compensation system focusing on system control and work specifications is most closely associated with _____ strategy.
A.global
B.customer-focused
C.cost-cutter
D.differentiated
Q:
_______ is to increasing variable pay as innovator is to market based pay.
A. Cost-cutter
B. Customer-focused
C. Efficient
D. Competitive
Q:
Flexible-generic job descriptions would most likely be used with a _____ strategy.
A.innovator
B.customer-focused
C.differentiated
D.cost-cutter
Q:
A compensation system using market-based pay is most likely to be part of a _____ strategy.
A.innovator
B.cost-cutter
C.global
D.customer-focused
Q:
A focus on competitor's costs is most closely associated with a _____ strategy.
A.innovator
B.customer-focused
C.cost-cutter
D.differentiated
Q:
Which of the following relationships within a pay system is accurate?
A.Compensation objectives shape pay policies.
B.Pay policies determine the objectives of the pay system.
C.Organization strategies determine employee pay needs.
D.Pay policies form the compensation strategy of the organization.
Q:
The social, competitive and regulatory environment factors are most important for which type of strategy?
A.Corporate
B.Business unit
C.HR
D.Strategic compensation
Q:
What level of strategy is the question "how do we gain competitive advantage"?
A.Corporate
B.Business unit
C.HR
D.Departmental
Q:
At the corporate level, a strategic compensation perspective addresses the question:
A.What business should we be in?
B.What is our desired return on assets?
C.How can our total compensation help gain competitive advantage to achieve organization success?
D.How can job analysis help us select the most appropriate certain compensation technique(s) for our organization?
Q:
______________ changed its compensation strategy as the company grew and matured?
A. SAS
B. Google
C. Microsoft
D. CNET
Q:
A compensation system that pays employees such that "some skin is in the game" means that
A.a portion of employee pay is at risk
B.employers risk high labor costs
C.level of base pay is below competitors
D.base pay is low while benefits are generous