Comp. Ch. 2

Which of the following tests of competitive advantage is the easiest test to pass? A. Alignment B. Differentiation C. Integration D. Adding value

Alignment

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.

Compensation objectives shape pay policies.

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

Cost effectiveness

_______ is to increasing variable pay as innovator is to market based pay. A. Cost-cutter B. Customer-focused C. Efficient D. Competitive

Cost-cutter

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

External competitiveness

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

External competitiveness of the pay system

A strategy map contains strategies about all but which of the following? A. External competitiveness B. Management C. HR alignment D. Employee contributions

HR alignment

"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

Implement strategy

"Everyone wears several hats" and "succeed by working together" are examples of which of the following? A. Objectives B. Internal alignment C. Externally competitive D. Employee contributions

Internal alignment

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

Objectives

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

Strategic compensation

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?

What business should we be in?

Union preferences is a major factor in _____ of a total compensation strategy. A. implementing B. reassessing C. assessing implications D. mapping

assessing implications

"Putting some skin in the game" refers to: A. employees paid entirely on commission B. being paid as a contract vs. a regular employee C. below market base pay with stock ownership D. above market base pay with low benefits

below market base pay with stock ownership

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

cost-cutter

Decisions regarding what forms compensation should be are part of _____. A. internal alignment B. external competitiveness C. employee contributions D. management

external competitiveness

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

helps ensure passing the differentiation test.

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

innovator

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

management

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.

map a total compensation strategy.

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

more money

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.

people are "human capital," similar to other factors of production.

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.

performance-based pay plans do not pay off.

"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

values

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

Assess total compensation strategy, map a total compensation strategy, implement strategy, reassess

) _____ 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

Both smaller and larger internal pay differences

What level of strategy is the question "how do we gain competitive advantage"? A. Corporate B. Business unit C. HR D. Departmental

Business unit

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

Focusing on employee contributions vs other objectives is a best practice

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

Internal alignment

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

It provides an employer a clear competitive advantage

In the formula predicting performance, the component most closely related to compensation is ___________ A. A B. M C. O D. C

M

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

Management

______________ changed its compensation strategy as the company grew and matured? A. SAS B. Google C. Microsoft D. CNET

Microsoft

_____________ is the measure of how important compensation is in the overall HR strategy. A. Competitiveness B. Prominence C. Centrality D. Goal-focused

Prominence

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

a more flexible work schedule

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

a portion of employee pay is at risk

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

assess total compensation implications

A focus on competitor's costs is most closely associated with a _____ strategy. A. innovator B. customer-focused C. cost-cutter D. differentiated

cost-cutter

All of the following except __________ are compensation systems associated with an innovator strategy. A. reward innovation in products and processes B. market-based pay C. flexible job descriptions D. customer satisfaction incentives

customer satisfaction incentives

Flexible-generic job descriptions would most likely be used with a _____ strategy. A. innovator B. customer-focused C. differentiated D. cost-cutter

innovator

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

internal alignment

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

objectives

The role non-HR managers play in making pay decisions is called _____. A. ownership B. transparency C. technology D. decentralized decision-making

ownership

Research shows that ____________ can effectively shift an organization in a downward performance spiral to an upward one. A. reinforcing performance-based pay B. implementing team-based pay C. improving work-life balance D. there are no compensation practices that

there are no compensation practices that