MGT386 Exam 1

Work/life balance is most closely associated with the ________ aspect of mapping a total compensation strategy. -external competitiveness -internal alignment -employee contributions -objectives

-external competitiveness

The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) ________ internal pay structure. -loosely coupled -very competitive -closely tailored -egalitarian

-closely tailored

The Fair Labor Standards Act of 1938 (FLSA) sets forth regulations regarding all of the following except _________________. -minimum wage -overtime pay -record-keeping requirements -immigration documentation

-immigration documentation

________________________ is a policy that women performing jobs judged to be equal on some measure of inherent worth should be paid the same as men, excepting allowable differences, such as seniority, merit, production-based pay plans, and other non-sex-related factors. -valuation discrimination -disparate treatment -disparate impact -comparable worth

-comparable worth

The degree to which pay influences individual and aggregate motivation among employees at an point in time is referred to as a(n): -sorting effect -incentive effect -directional effect -turnover effect

-incentive effect

A compensation system focusing on system control and work specifications is most closely associated with a(n) _______________ strategy. -differentiated -innovator -cost-cutter -consumer-focused

-cost-cutter

Discrimination theory that outlaws the application of pay practices that may appear to be neutral but have a negative effect on females or minorities unless those practices can be shown to be business-related. -American with Disabilities Act -disparate impact -disparate treatment -pay equity

-disparate impact

In firefighting and rescue squads and global software design teams, a(n) ________ structure is most closely associated with higher performance. -layered -hierarchical -egalitarian -pyramidal

-egalitarian

The decisions to implement pay for performance, flat rate pay, and profit sharing are examples of ________ policy decisions. -management -internal alignment -efficiency -employee contribution

-employee contribution

Gramhold, Inc., a pharmaceutical company, reduces its ten salary grades to just three broad bands. Which of the following statements is most likely to be true in this case? Gramhold will ________________. -experience more career moves within bands than career moves between bands -offer recognition via titles rather than through cross-functional experience and lateral progression -find that the new structure hinders cross-functional growth -face difficulty in defining job responsibilities broadly with the new structure

-experience more career moves within bands than career moves between bands

A compensation system using market-based pay is most likely to be part of a(n) __________________ strategy. -innovator -cost leadership -customer-focused -cost-cutter

-innovator

________ refers to comparisons among jobs or skill levels inside a single organization. -a merit increase -internal alignment -external competitiveness -compliance

-internal alignment

Which of the following is given as an increment to base pay in recognition of past work behavior? -a long-term incentive -a short-term incentive -base pay -merit pay

-merit pay

Compensation policy choices that affect the pay level relative to other companies are most closely associated with the ________ aspect of the pay model. -training and skill development programs -job responsibilities -monetary incentives -goal setting and job enrichment

-monetary incentives

When employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____________________. -monetary rewards with large incentives -an increase in base pay -a variety of rewards with significant incentive pay -a large base pay and low incentive pay

-monetary rewards with large incentives

_____________ refers to the process used to make pay decisions. -internal alignment -relational return -regression analysis -procedural fairness

-procedural fairness

James says, "I don't trust the way the company determines pay rates in my department." If James feels this way despite being happy with his current salary, he is most likely concerned about ... -procedural justice -internal equity -external equity -distributive justice

-procedural justice

Incentives do not permanently increase labor costs because: -they are given based on the past performances of employees -they increase the base wage -they rely on a subjective rating of performance -they are one-time payments

-they are one-time payments

The Age Discrimination in Employment Act (ADEA) pf 1967 (amended 1978, 1986, and 1990) - Legislation that makes nonfederal employees age _______________ and over a protected class relative to their treatment in pay, benefits, and other personnel actions. The 1990 amendment is called the Older Workers Benefit Protection Act. -65 -99 -72 -40

-40

Which of the following is a policy, and NOT an objective, of the pay model? -fairness -efficiency -competitiveness -ethics

-competitiveness

Flexible-generic job descriptions would most likely be used with a(n) _________________ strategy. -innovator -customer-focused -differentiated -cost-cutter

-innovator

Which of the following is often the largest component in an executive pay package? -merit pay -base pay -perks -stock options

-stock options

When employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer ___________________. -monetary rewards with no benefits -an increase in base pay -a variety of rewards with significant incentive pay -a large base pay and low incentive pay

-a variety of rewards with significant incentive pay

Which of the following is an example of the sorting effect in action? -an employee leaving a high-paying job for one that provides for work/life balance -the provision of cost-of-living increases by a company -the provision of across-the-board pay increases by a company -an employee choosing fewer incentives in his flexible compensation plan

-an employee leaving a high-paying job for one that provides for work/life balance

Which of the following is the correct order of the steps in formulating a total compensation strategy? -map, assess, implement, and reassess -assess, implement, map, and reassess -map, implement, assess, and reassess -assess, map, implement, and reassess

-assess, map, implement, and reassess