Chapter 1-3 Review
Among employers that provide health insurance, the cost to provide family coverage per year per employee is approximately ______.
$16,000
Which of the following is NOT a characteristic of aligned pay structures? (List what IS)
IS a characteristic: support the way work gets done, fit organization's business strategy, fair
______ are related to greater performance when the work flow depends on individual contributors.
More hierarchical
Most unions prefer which of the following?
Small pay differences among jobs and seniority-based promotions
The second step of developing a total compensation strategy is to ______.
Step one: assess total compensation implications *Step two: map a total compensation strategy* Step three: implement Step four: reassess
_____ refers to openness and communication about pay.
Transparency
Based on the opinions of 10,000 U.S. workers, Hudson found that when given their choice of unconventional benefits, most employees would select _____.
a more flexible work schedule
Union preferences are a major factor in ____ a total compensation strategy.
assessing
A compensation system focusing on system control and work specifications is most closely associated with a _____ strategy.
cost cutter
A difference between incentives and merit increases is that incentives ______.
do not increase the base wage, whereas merit does increase the base wage
Which of the following is a fundamental objective and NOT a policy in the pay model?
efficiency, fairness, compliance, ethics
In firefighting and rescue squads and global software design teams, an ______ structure is most closely associated with higher performance.
egalitarian
When a cooperation is important for successful organization performance, which of the following pay structures is most suitable?
egalitarian pay structure
According to the text, which of the following decisions should be made jointly?
external competitiveness and employee contribution decisions
The alignment test _____.
helps ensure passing the differentiation test
Which form of pay does not permanently increase labor costs?
incentive pay
Variable pay may also be called ________.
incentives
A compensation system using market-based pay is most likely to be part of an _____ strategy.
innovator
Managers seek internal alignment within their organization by _______.
paying on the basis of similarity among jobs
Incentives do not permanently increase labor costs because ______.
they are one time payments
Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large?
tournament theory
Which of the following programs introduced by Congress includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks?"
troubled asset relief program
Marginal productivity theory argues that employers pay _____.
use value
Which of the following is NOT a factor in defining equal work according to the Equal Pay Act? (List what ARE factors)
Are factors: equal skill, equal effort, equal responsibility
Which of the following tests of competitive advantage is probably the easiest test to pass?
alignment test
_____ refers to comparisons among jobs or skills inside a single organization.
Internal alignment
Which of the following is given as an increment to the base pay in recognition of past work behavior?
merit pay
Which of the following statements regarding allowing employees a choice in their pay mix is NOT true? (The following ARE true)
(ARE true): allowing employees a choice is difficult to manage, providing unlimited choices is difficult to design, with too many choices it can be confusing
Hourly compensation costs for production workers in manufacturing are higher in _______ than in the United States
Germany
In the formula predicting performance, the component most closely related to compensation is _____.
(M): motivation
Recent surveys show that, on average, an outstanding performer receives a _____ merit increase, an average performer receives a _____ merit increase, and a poor performer a _____ merit increase.
4.4%, 2.8%, 0.4%
Which of the following is NOT true?
A greater pay dispersion is related to higher turnover among executives Egalitarian structures are a better fit for executive groups that need to work closely as a team **Large raises with a promotion decreases effort and increases absenteeism** Employees judge the fairness of their pay structure by making multiple pay comparisons
Which of the following is NOT included in a strategy map? (The following ARE included)
Are included: external competitiveness, management, employee contributions, internal alignment
Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage? (The following ARE tests)
Are tests: alignment test, differentiation test, value added test
Which of the following is NOT a question to ask for determining if research has value? (List CORRECT questions, determine incorrect)
Correct questions: is the research useful? can alternative questions be ruled out? is correlation separated from causation?
Hierarchical pay structures have all BUT which of the following characteristics? (List what they DO have)
Do have: close fit with organization, many levels, greater differences in pay between levels and top/bottom jobs, and pay based on job or person
Egalitarian pay structures have all BUT which of the following characteristics? (List what they DO have)
Do have: fewer levels, small differentials between levels, and support equal treatment
Organization factors that shape internal pay structures include all BUT which of the following? (List what IS included)
Do include: strategy, technology, human capital, HR policy, employee acceptance, cost implications
Which of the following is NOT one of the factors that define an internal pay structure? (List what does define)
Does define: pay differentials between levels, criteria used to determine pay differentials, number of levels work
Common bases for modern pay structures include all BUT which of the following? (List what it does include)
Does include: the content of work, the skills and knowledge required to perform work, the work's relative value for achieving organizational objectives
____ is the measure of how important total compensation is in the overall HR strategy.
Prominence
Which of the following is the correct order of the steps in formulating a total compensation strategy?
Step one: assess total compensation implications Step two: map a total compensation strategy Step three: implement Step four: reassess
Which of the following statements are NOT true? (The following ARE true)
True: effective performance incentive relies on context, embedding compensation strategy in the HR strategy affects results, the effect of paying different than competitors depends on the context
Which of the following pay structure procedures would NOT increase perceptions of pay fairness? (List what WOULD increase)
Would increase: consistently applying pay procedures to all employees, using accurate data (including appeals procedures)
Most job structures are best described as _____.
both person and job-based structures
The best way to establish ____ is to account for competing explanations either statistically or through control groups.
causation
The well-defined jobs at McDonald's and their small differences in pay are an example of a ______ internal pay structure.
closely tailored
A measure of how changes in one variable are related to changes in another variable is the ____.
correlation coefficient
A compensation system that focuses on competitor's labor costs is most closely associated with a ____ strategy.
cost cutter
All of the following EXCEPT ______ are compensation systems associated with a cost-cutter strategy.
customer satisfaction incentives
Incentives and merit guidelines are techniques of the _____ policy of the pay model.
employee contributions
The decision to implement pay for performance, flat rate pay, and profit sharing are examples of ____ policy decisions.
employee contributions
Which of the following policy decisions directly affects employees' attitudes and work behaviors?
employee contributions
Comparisons on the forms of compensation used by other companies are part of _____.
external competitiveness
Compensation policy choices that affect the pay level relative to other companies are most closely associated with the ____ aspect of the pay model.
external competitiveness
External factors are dominant influences on jobs filled via _______.
hiring graduates
Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high-performance practices.
improves attitudes and behaviors
The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as an _______.
incentive affect
Flexible-generic job descriptions would most likely be used with an ____ strategy.
innovator
Career growth, hierarchy, and flexible design are most closely associated with the ____ aspect of mapping a total compensation strategy.
internal alignment
Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision?
internal alignment
Which of the following is a policy and NOT an objective in the pay model?
internal alignment, competitiveness, contributions, management
Research shows that ______ will effectively shift an organization in a downward performance spiral to an upward one.
it is unclear what compensation practices
In the context of pay relationships, which of the following is illegal in the United States? (List LEGAL, determine illegal)
legal: paying on the basis of the nature of the job, paying on the basis of pay comparison with competitors, paying on the basis of one's skill level
Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a ______ internal pay structure.
loosely coupled
Issues of transparency, technology, and choice are most closely associated with the _____ aspect of mapping a total compensation strategy.
management
One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that ______.
many small employers are much less likely than large employers to offer health insurance to their employees
You are an HR manager, and your boss has told you to find the best way to raise job performance. After some research, you find that _____ have the greatest instrumental value.
monetary incentives
According to the Hudson survey, _______ is the single thing that would make 41% of the U.S. workers happier.
more money
In mapping a total compensation strategy, the question of how important compensation is in the overall HR strategy is part of ______.
objectives
The role non-HR managers play in making pay decisions is called _____.
ownership
Trying to measure an ROI for any compensation strategy implies that ____.
people are human capital similar to other factors of production
When organization performance declines _____.
performance based pay plans do not pay off
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
Which of the following is an example of a relational return? (These are all examples)
recognition and status, employment security, challenging work, and learning opportunities
In the strategic approach to pay, internal alignment is the ______ issue to be decided.
second (setting objectives is the first)
Which of the following is often the largest component in an executive pay package?
stock options
The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____.
the difficulty in external recruitment
Pay for temporary workers is based upon _____.
the internal structure of their home employer
The most common bases for determining internal structures are ______.
work content and its value
Content refers to the _____.
work that is performed in a job and how it gets done