Chapter 7 compensation
a lead pay policy
A pay policy MOST likely to reduce pay dissatisfaction is __________________.
lead
A pay policy MOST likely to reduce pay dissatisfaction is __________________.
variable Pay
A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT _____.
point at which supply and demand line cross
According to the text, the market rate is the:
skill level of employees
All of the following EXCEPT the ______________ shape external competitiveness.
higher turnover rates.
All of the following are advantages of a lead pay-level policy EXCEPT_____.
Security or Commitment
Among pay-mix alternatives, base pay is largest in _______________.
security or commitment policy
Among pay-mix alternatives, the percentage of base pay is highest in _____.
productivity
Evidence shows that in manufacturing, _____ is positively correlated with hourly wage level.
reservation wage
Implication of the _______________ theory is that pay level affects in employer's ability to recruit.
marginal revenue; wage rate
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.
Product demand is responsive to product price changes
In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?
The Supply of Labor is responsive to changes in pay
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 which of the following would data from labor market competitors be given more weight than product market competitors' data?
the marginal product of labor.
Output associated with hiring an additional person, holding constant other production factors, in referred to as:
labor cost
Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:
labor costs.
Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:
is hiring from different sources and differential pay and benefits for the same work.
Segmented labor supply involves all of the following EXCEPT:
Human Capital Theory
The _____ theory is the most influential in explaining pay-level differences.
unemployment is low
The assumption of the upward sloping supply curve may NOT hold when ________________.
unemployment is low. This is because there is a limited number of potential employees available to apply.
The assumption of the upward sloping supply curve that offers of higher pay will increase supply will most likely NOT hold when _____.
causation
The best way to establish _____ is to account for competing explanations, either statistically or through control groups.
Point at which supply and demand lines cross
The market pay rate is the:
match
The most common pay policy is ___________.
match policy
The most common pay policy is a(n) _____.
lag
The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy.
ead policy
The pay-level policy that is most likely to reduce pay dissatisfaction is a(n) _____.
work/life balance policy
The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as _____.
Education and Healthcare
Wages tend to be the lowest in which of the following industries?
Talented Individuals have a lower marginal value in a larger organization
Which of the following is NOT true of the relationship between employer size and its ability to pay?
talented people prefer to work in larger organizations
Which of the following is NOT true of the relationship between employer size and its ability to pay?
Pay Level Offered by an Employer Supply Side: Level of pay applicants will accept, qualifications of applicants, locations of potential employees
Which of the following is an example of the demand side of labor?
Compensating Differentials
Which theory supports the idea that coal mining should be paid more than office clerical work?
a market that allows haggling over terms and conditions until an agreement is reached. Total Compensation for a Top Athlete
_____ is an example of a bourse.
The Marginal Product of Labor
_____ is the additional output associated with the employment of one additional person, with other production factors held constant.
The Product Market
_____ puts a lid on the maximum pay level an employer can set.
The Product Market
________________ sets a maximum pay level an employer can pay.
The total compensation for a top athlete
___________________ is an example of a bourse.
Pay level
____refers to the average of the array of rates inside an organization.