Chapter 7 compensation

a lead pay policy

A pay policy MOST likely to reduce pay dissatisfaction is __________________.

lead

A pay policy MOST likely to reduce pay dissatisfaction is __________________.

variable Pay

A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT _____.

point at which supply and demand line cross

According to the text, the market rate is the:

skill level of employees

All of the following EXCEPT the ______________ shape external competitiveness.

higher turnover rates.

All of the following are advantages of a lead pay-level policy EXCEPT_____.

Security or Commitment

Among pay-mix alternatives, base pay is largest in _______________.

security or commitment policy

Among pay-mix alternatives, the percentage of base pay is highest in _____.

productivity

Evidence shows that in manufacturing, _____ is positively correlated with hourly wage level.

reservation wage

Implication of the _______________ theory is that pay level affects in employer's ability to recruit.

marginal revenue; wage rate

In a hiring situation, considering that other potential costs will not change in the short run, the level of demand that maximizes profits is that level at which the ______________ of the last hire is equal to the _______________ for that hire.

Product demand is responsive to product price changes

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?

The Supply of Labor is responsive to changes in pay

In which of the following would data from labor market competitors be given more weight than product market competitors' data?

The Supply of Labor is responsive to price changes

In which of the following would data from labor market competitors be given more weight than product market competitors' data?

the marginal product of labor.

Output associated with hiring an additional person, holding constant other production factors, in referred to as:

labor cost

Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:

labor costs.

Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:

is hiring from different sources and differential pay and benefits for the same work.

Segmented labor supply involves all of the following EXCEPT:

Human Capital Theory

The _____ theory is the most influential in explaining pay-level differences.

unemployment is low

The assumption of the upward sloping supply curve may NOT hold when ________________.

unemployment is low. This is because there is a limited number of potential employees available to apply.

The assumption of the upward sloping supply curve that offers of higher pay will increase supply will most likely NOT hold when _____.

causation

The best way to establish _____ is to account for competing explanations, either statistically or through control groups.

Point at which supply and demand lines cross

The market pay rate is the:

match

The most common pay policy is ___________.

match policy

The most common pay policy is a(n) _____.

lag

The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy.

ead policy

The pay-level policy that is most likely to reduce pay dissatisfaction is a(n) _____.

work/life balance policy

The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as _____.

Education and Healthcare

Wages tend to be the lowest in which of the following industries?

Talented Individuals have a lower marginal value in a larger organization

Which of the following is NOT true of the relationship between employer size and its ability to pay?

talented people prefer to work in larger organizations

Which of the following is NOT true of the relationship between employer size and its ability to pay?

Pay Level Offered by an Employer Supply Side: Level of pay applicants will accept, qualifications of applicants, locations of potential employees

Which of the following is an example of the demand side of labor?

Compensating Differentials

Which theory supports the idea that coal mining should be paid more than office clerical work?

a market that allows haggling over terms and conditions until an agreement is reached. Total Compensation for a Top Athlete

_____ is an example of a bourse.

The Marginal Product of Labor

_____ is the additional output associated with the employment of one additional person, with other production factors held constant.

The Product Market

_____ puts a lid on the maximum pay level an employer can set.

The Product Market

________________ sets a maximum pay level an employer can pay.

The total compensation for a top athlete

___________________ is an example of a bourse.

Pay level

____refers to the average of the array of rates inside an organization.