chapter 2 extra practice
TRUE
(p. 42) An organization's strategy is defined by the tradeoffs in choices of what to do and what not to do.
b
(p. 54) 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
B
(p. 58-59) 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.
c
. (p. 55) 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.
TRUE
. 42) Strategy refers to the fundamental direction that an organization chooses.
b
. 48) 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
c
. 51) 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
b
. 51-52) 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
b
. 54) 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
A
. 58) Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high performance practices. A. improves attitudes and behaviors B. shows large productivity improvements C. reduces labor costs D. has little effect on quality
FALSE (ASSESS TOTAL COMPENSATION IMPLICATION )
49) What business should a company be in and how does the company win are questions that are a part of mapping a total compensation strategy.
FALSE
p. 38) Most organizations rely upon the market to determine how to pay their employees since compensation strategy is uncertain and complex.
TRUE
p. 41) Labor market-based compensation practices in countries such as China, Germany and France, are likely to be less effective than in countries such as the U.S., Korea or Singapore because there is less movement from company to company
FALSE (THEY RECEIVED LESS PAY FOR HIGHER STOCK)
p. 41) When Microsoft replaced stock options with stock awards, they were asking employees to put more "skin in the game".
FALSE (INNOVATOR)
p. 43) Customer-focused pay strategies are very likely to use market-based pay.
TRUE
p. 44) Although three separate compensation strategies may be identified, many companies use a combination of all three.
FALSE (WITHIN ORGANIZATION)
p. 47) Internal alignment refers to how differently levels of skills and work are paid across different organizations.
b
p. 48) "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
a
p. 48) 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
a
p. 50) "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
c
p. 51) 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
c
p. 52) Union preferences is a major factor in _____ of a total compensation strategy. A. implementing B. reassessing C. assessing implications D. mapping
c
p. 53) A strategy map contains strategies about all but which of the following? A. External competitiveness B. Management C. HR alignment D. Employee contributions
a
p. 54) 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
c
p. 54) 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
a
p. 54) The role non-HR managers play in making pay decisions is called _____. A. ownership B. transparency C. technology D. decentralized decision-making
b
p. 55) 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
d
p. 55) 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
a
p. 55) Which of the following tests of competitive advantage is the easiest test to pass? A. Alignment B. Differentiation C. Integration D. Adding value
b
p. 56) 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.
c
p. 57) _____ 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
C
p. 57-58) 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
D
p. 59) 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
b
p.54) _____________ is the measure of how important compensation is in the overall HR strategy. A. Competitiveness B. Prominence C. Centrality D. Goal-focused