Chapter 3

Egalitarian pay structures have all BUT which of the following characteristics?

Have a few levels, small differentials, support equal treatment Not: Prefer individual performance over team performance

Hierarchical pay structures have all BUT which of the following characteristics?

Have: Support a close fit with the organization; many levels; based upon the job or person; greater differences in pay between levels and top and bottom jobs Not: Prefer team performance over individual performance

Organization factors that shape internal pay structures include all BUT which of the following?

Include: strategy, technology, human capital, HR policy, employee acceptance and cost implications Not: will pick something form external factors or internal structure

Common bases for modern pay structures include all BUT which of the following?

Include: the content of the work; the skills and knowledge required to perform the work; the work's relative value for achieving organizational objectives Not: the extent of external competitiveness and equity

Procedural justice

James says, "I dont 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 ____

Which of the following is NOT true?

True: 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; employees judge the fairness of their pay structure by making multiple pay comparisons False: large raises with a promotion decreases effort and increases absenteeism

In the strategic approach to pay, internal alignment is the ____ issue to be decided

second (first is issue is setting objectives)

More hierarchical structures

Are related to greater performance when the work-flow depends on individual contributors

Most job structures are best described as:

Both person- and job-based structures

Hiring graduates

External factors dominant influences on jobs filled via:

Which of the following is NOT a factor in defining equal work according to the Equal Pay Act?

Factors: equal skill, equal effort, equal responsibility Not: equal experience

Which of the following is NOT one of the factors that define an internal pay structure?

Factors: the pay differentials between the levels; the criteria used to determine pay differentials; the number of levels of work Not: the number of times the pay structure has been changed

Use value

Marginal productivity theory argues that employers pay ____

Work content and its value

The most common bases for determining internal structure has been changed

Closely tailored

The well-defined jobs at McDonald's and their small differences in pay are an example of a ____ internal pay structure

Which of the following pay structure procedures would NOT increase perceptions of pay fairness?

Would: consistently applying pay procedures to all employees; using accurate data; including appeals procedures Not: hiring consultants to develop the pay structure

When cooperation is important for successful organization performance, which of the following pay structures is most suitable

An egalitarian pay structure

Which of the following is NOT a characteristic of aligned pay structures?

Characteristics: they support the way work gets done; they fit an organization's business strategy; they are fair Not: they are designed to increase the turnover rate

Egalitarian

In firefighting and rescue squads and global software design teams, a ____ structure is most closely associated with higher performance

Loosely coupled

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

Most unions prefer which of the following?

Small pay differences among jobs and seniority-based promotions

The problem that is most likely to be faced by organizations using an egalitarian pay structure is

The difficulty in external recruitment Must not have problems in maintaining cooperation among employees, the perception of excessive CEO pay, the difficulty in performing teamwork.

Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large

Tournament Theory

Content refers to the

Work performed in a job and how it gets done

Pay for temporary workers is based upon:

the internal structures of their home employer