Mgmt 382 - Exam 1

correlation coefficient

A measure of how changes in one variable are related to changes in another variable is the:

External Competitiveness

Comparisons based on the forms of compensation used by other companies are part of

Base wage is the overtime pay given to employees who are exempt from regulations of the Fair Labor Standards Act.

False

The degree to which pay influences individual and aggregate motivation among employees is called a sorting effect.

False

incentive effect

The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n):

the number of levels and reporting relationships

The hierarchy of a pay structure refers to _____.

Which of the following are true of aligned pay structures

They are fair to employees. They support the way work gets done.

Pension and health benefits are a very large component of total compensation for many large companies such as American Airlines and GM.

True

incentives

Which form of pay does not permanently increase labor costs?

merit pay

given as an increment to base pay in recognition of past work behavior

Context

refers to a wide range of factors, including legal and regulatory requirements, cultural differences, changing workforce demographics, expectations, and the like.

Transparency

refers to openness and communication about pay.

the alignment test

tests of competitive advantage is probably the easiest test to pass?

prominence

the measure of how important total compensation is in the overall HR strategy.

true of incentives?

they are re-earned each pay period

Embedding compensation strategy within the broader HR strategy affects results.

true

If the objective is to increase customer satisfaction, then incentive programs and merit pay might be used to pay for performance.

true