Chapter 7
A pay policy MOST likely to reduce pay dissatisfaction is
a lead pay policy
All of the following are advantages of a lead pay-level policy EXCEPT
advantages: reduce vacancy rates reduced absenteeism better quality employees (except) higher turnover rates
What is an example of bourse?
bourse=a market that allows haggling over terms and conditions until an agreement is reached total compensation for a top athlete
pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:
labor costs
The pay-level policy that is most likely to reduce pay dissatisfaction is an
lead policy
Among pay-mix alternatives, the percentage of base pay is highest in
security or commitment policy
Output associated with hiring an additional person, holding constant other production factors, in referred to as
the marginal product of labor
The assumption of the upward sloping supply curve that offers of higher pay will increase supply will most likely NOT hold when
unemployment is low. this is because there is a limited number of potential employees available to apply
What theory is the most influential in explaining pay-level differences
human capital theory
Evidence shows that in manufacturing, what is positively correlated with hourly wage level?
productivity
Implication of the _____ theory is that pay level affects in employer's ability to recruit
reservation wage
among pay-mix alternatives, base pay is largest in
security or commitment
What puts a lid on the maximum pay level an employer can set
the product market
In which of the following would data from labor market competitors be given more weight than product market competitors' data
the supply of labor is responsive to changes in pay
What is an example of a bourse
the total compensation for a top athlete
A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT
variable pay
The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as
work/life balance policy
What is the best way to establish an account for competing explanations, either statistically of through control groups?
causation
Which theory supports the idea that coal mining should be paid more than office clerical work?
compensating differentials
all of the following EXCEPT the _____ shape external competitiveness
Things that actually do shape external competitiveness Nature of the Demand Industry Strategy Level of Product Demand (except) skill level of employees
The pay policy that is most closely associated with the decreased ability to attract employees is an what
lag policy
A pay policy MOST likely to reduce pay dissatisfaction is
lead
The most common pay policy is an
match policy
According to the text, the market rate is the:
point at which supply and demand line cross
The market pay rate is the:
point at which supply and demand lines cross
What sets a maximum pay level an employer can pay
the product market
The assumption of the upward sloping supply curve may NOT hold when
unemployment is low
Which of the following statements is true of pay level
(all are true) Pay level is directly proportional to labor cotst; the more you pay the more it costs Pay level is not the same across all organizations for the same job The higher the pay level to what competitors pay, the higher their relative costs to provide relative products or services Pay level is not independent of the number of employees in an organization
Which of the following is NOT true of the relationship between employer size and its ability to pay
(true) Talented individuals have a higher marginal value in a larger organization Talented people can influence more people with decisions Talented people leads to more profits talented individuals have a lower marginal value in a larger organization (opposite is true)
Which of the following is NOT a reason a company might pay base wages above market?
(true) To increase Employee Productivity To increase Wage Satisfaction To attract more Applicants
Wages tend to be the lowest in which of the following industries
Education and Healthcare
What refers to the average of the array of rates inside an organization?
Pay level
Which of the following is an example of the demand side of labor?
Pay level offered by an employer Supply Side: level of pay applicants will accept, qualifications of applicants, locations of potential employees
In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?
Product demand is responsive to product prices changes
What is the additional output associated with the employment of one additional person, with other production factors held constant
The marginal product of labor
In which of the following would data from labor market competitors be given more weight than product market competitors' data?
The supply of labor is responsive to price changes
in a hiring situation, considering that other potential costs will not change in the short run, the level of demand that maximizes profits is that level at which the ______ of the last hire is equal to the ______ for that hire
marginal revenue; wage rate
The most common pay policy is
match
All the following are important factors in defining a market for compensation purposes EXCEPT:
(Real reasons) the skill and knowledge required geography product competitors and/or market competitors
which of the following is NOT a reason a company might pay base wages above market competitors
(actual) Employees are more productive Turnover will be lower To attract more job applicants
segmented labor supply involves all of the following EXCEPT
Does involve: Hiring from different sources Paying workers differently who are performing the same work Employing regulars, part-times, and temps (except) hiring from different sources and differential pay and benefits for the same work
Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:
Labor Costs