Chapter 3

Organization factors that shape internal pay structures include all BUT which of the following? Strategy Human capital Cultures and customs Employee acceptance

Cultures and customs

Common bases for modern pay structures include all BUT which of the following? The content of the work The skills and knowledge required to perform the work The extent of external competitiveness and equity The work's relative value for achieving organizational objectives

The extent of external competitiveness and equity

Which of the following is NOT a characteristic of aligned pay structures? They support the way the work gets done. They fit an organization's business strategy. They are fair to employees. They are designed to increase the turnover rate.

They are designed to increase the turnover rate.

Wage legislation affects the wage structure at both the minimum and the maximum pay level.

True

Content refers to the worth of the work. work performed in a job and how it gets done. relative contribution of the work to the organization objectives. different pay level policies.

work performed in a job and how it gets done.

Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her? A company that uses an egalitarian pay structure A company that pays its employees based on their seniority rather than their performance A company that uses a hierarchical pay structure to pay its employees based on performance A company that pays all its employees the same amount of money

A company that uses a hierarchical pay structure to pay its employees based on performance

When cooperation is important for successful organization performance, which of the following pay structures is most suitable? A tournament theory-based pay structure An egalitarian pay structure An hierarchical pay structure A layered pay structure

An egalitarian pay structure

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

Equal experience

_____ are related to greater performance when the work flow depends on individual contributors. More egalitarian structures More hierarchical structures More delayered structures More even-handed structures

More hierarchical structures

Both external and organization factors shape internal pay structures.

True

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

closely tailored

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

egalitarian

The most common bases for determining internal structures are: work content and its value seniority and experience use value and exchange value pay surveys and job evaluation

work content and its value

Organization factors that shape internal pay structures include all BUT which of the following? Technology Cost implications HR policy Economic pressures

Economic pressures

Distributive justice is more important than procedural justice for employee acceptance of their pay.

False

The content of a job refers to the worth of the job and its relative contribution to the organization's objectives.

False

The institutional model states that it is best to wait for other organizations to adopt innovative practices and then copy those practices.

False

Which of the following is NOT 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. Large raises with a promotion decreases effort and increases absenteeism. Employees judge the fairness of their pay structure by making multiple pay comparisons.

Large raises with a promotion decreases effort and increases absenteeism.

Egalitarian pay structures have all BUT which of the following characteristics? Few levels Small differentials Support equal treatment Prefer individual performance over team performance

Prefer individual performance over team performance

Hierarchical pay structures have all BUT which of the following characteristics? Support a close fit with the organization Prefer team performance over individual performance Many levels Based upon the job or person

Prefer team performance over individual performance

Most unions prefer which of the following? Small pay differences among jobs and seniority-based promotions Large pay differences among jobs and seniority-based promotions Large pay differences among jobs and performance-based promotions Equal pay raises for employees

Small pay differences among jobs and seniority-based promotions

Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large? Tournament theory Equity theory Marginal productivity theory Reinforcement theory

Tournament theory

A layered pay structure is more hierarchical than a delayered pay structure and less egalitarian in terms of number of levels.

True

The content and value of work are the most common bases for determining internal structures

True

Most job structures are best described as job-based structures. person-based structures. both person- and job-based structures. competency-based structures.

both person- and job-based structures

Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a(n) _____ internal pay structure. egalitarian bureaucratic loosely coupled closely tailored

loosely coupled

The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____. the difficulty in external recruitment in maintaining cooperation among employees the perception of excessive CEO pay the difficulty in performing teamwork

the difficulty in external recruitment

The parable of the vineyard owner and the compensation paid to the laborers illustrated: the payment to the laborers according to their productivity. the payment to the laborers based upon the content of the job. the payment to the laborers based upon the hours of work. the ignorance of the owner toward the content of work.

the ignorance of the owner toward the content of work.

Marginal productivity theory argues that employers pay _____. use value exchange value surplus value differential value

use value

Exchange value is always higher than use value.

False

Greater pay dispersion is related to lower turnover among executives.

False

Egalitarian pay structures send the message that the organization values differences in work content, individual skills, and contributions to the organization. True False

False

Pay structure refers to the array of pay rates for different work or skills between competing companies.

False

Internal alignment is sometimes called internal equity.

True

Pay structure refers to the array of pay rates for different work or skills within a single organization.

True

Teachers will feel pay structures are fair even when they are relatively low in the internal structure if they work in a high-paying school district.

True

Jacob works at PrimeClean Corp., a carwash company. He is asked to follow a set of instructions in a predetermined order to wash a car. All the details including the amount of washing liquid to use for each type of car are clearly specified. In this case, Jacob's company is most likely to use a: closely tailored pay structure. loosely coupled pay structure. pay structure with large differences in pay among jobs. pay structure that is highly flexible.

closely tailored pay structure

Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance to his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels. In this case, he is most likely to use a(n): highly layered pay structure. hierarchical pay structure. highly inequitable pay structure. egalitarian pay structure.

egalitarian pay structure.

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 distributive justice internal equity external equity

procedural justice