Compensation and Benefits
Variable pay is always better than performance-based pay.
FALSE
A company cannot have a hybrid strategy.
FALSE
An organization does not need to investigate if the increases in productivity offset the higher wage rates
FALSE
Benefits utilized by a very small minority of employees should not be scrutinized to ensure that they are in line with the organization's interests.
FALSE
Employees perform better when they do not receive feedback.
FALSE
Gaining buy-in for a job analysis is not necessary to create a value-added analysis.
FALSE
Group-based Variable Pay ties rewards to the collective actions and results achieved by each individual in a group?
FALSE
If skills are scarce and the demand for those skills is high, the compensation levels will be relatively low as firms compete for scarce skills?
FALSE
In the development stage it is not important to also design a training support system that is customized to the skills or competencies in the system.
FALSE
Location is not a part of the Intangible Rewards pie.
FALSE
One disadvantage to a profit sharing plan is that when the organization has a profit loss, employees owe a certain percentage of their income to the organization.
FALSE
Performance-based pay helps ensure that when performance is high, the company's cost structure is also increased.
FALSE
Recognition, Meaning and Culture are all examples of Tangible Rewards?
FALSE
The capability-based approach makes a surprisingly similar assumption to the job-based approach about how rewards should be determined.
FALSE
There is not a degree of correspondence between pay grade size and range size.
FALSE
When calculating a salary, it is generally to the employee's interest to use the mean versus the weighted average?
FALSE
All capability-based pay systems require sources of skill- or competency-related information.
TRUE
As organizations systematically define their activities in light of their values, there will be a gradual shift towards being involved in businesses with a more value-driven purpose.
TRUE
Autonomy gives employees discretion in choosing what to do and how to do it.
TRUE
Benefits can be one mechanism to counteract the forms of pay in order to maintain the employee/organization connection.
TRUE
By using pay form-specific strategies, organizations can create more customized reward systems that are more likely to differentiate them from their competition in the labor market.
TRUE
CSFs take into account both internal strengths of the organization and the external values of customers and markets.
TRUE
Care must be taken to ensure that the distribution of spot awards is based upon legitimate performance behaviors, guarding against a perception that the spot awards are only given to the managers' preferred employees.
TRUE
Competencies should be measured consistently across employees and raters.
TRUE
Culture can be "seen" in the artifacts of the organization such as its stories, rituals, systems, politics, and use of physical space.
TRUE
Each of these approaches needs to be understood to allow an organization to decide upon its Total Rewards Strategy and systems.
TRUE
Employees find psychological rewards in being part of an organization that aligns with their values.
TRUE
Gain Sharing is a system of establishing a baseline of unit-level results and sharing improvements above that baseline with employees in that unit.
TRUE
Geography has a significant impact on how an organization should define its labor markets.
TRUE
In a Spot Award system, managers are given a cash budget from which they can immediately draw to provide employees with instant recognition of a high performance.
TRUE
In a purely job-based system, a highly skilled manager with an MBA who is preparing food in a fast-food restaurant would be paid the same amount as a high school dropout performing the same job.
TRUE
In an Individualistic Environment, where work is done independently by single employees reporting to a single supervisor, the many grades can capture the simplicity of that working arrangement?
TRUE
In the development stage it is important to also design a training support system that is customized to the skills or competencies in the system.
TRUE
In the individual-based pay system, a company would want to hire and retain a better qualified employee.
TRUE
Intangible Rewards Defined as psychological, social, and contextual factors in organizations outside the traditional pay and employee benefits categories that are rewarding to employees.
TRUE
Intrinsic Motivation Theory (Maslow) Stipulates that employees attribute their behavior to internal and external causes; also referred to as Self-determination Theory.
TRUE
It is wise to leave a buffer zone around the current pay rates to ensure that the range is adequate.
TRUE
Job descriptions are simple and cannot contain every detail relating to the job.
TRUE
Job evaluation is a tool to help organizations create internal reward alignment that is both equitable and conducive to effective employee performance.
TRUE
Merit pay budget and cost of living adjustment pay increases for all employees to account for inflation.
TRUE
Organizational Culture The shared beliefs, values, norms, and assumptions of the organization.
TRUE
Organizations can ask employees directly about their benefit preferences.
TRUE
Organizations face certain challenges when making the connection between the Internal Job Value Structure and the monetary value created externally in labor markets.
TRUE
Over the past two decades, organizations have tried to understand how many pay bands they should have.
TRUE
Pay compression is when: New employees and long-tenured employees are paid very similar amounts
TRUE
Pay grades are useful as they allow organizations to simplify reward systems because similar jobs can all be treated in the same way.
TRUE
Pay inversion occurs when: New employees are paid more than those employees with substantial experience in the organization
TRUE
Product and service markets are where organizations compete to create organizational completeness through the production of products or the provision of services for customers in exchange for money or loyalty?
TRUE
Reliable Measurement means that an employee's level of skill, competency, or experience can be assessed consistently across employees and raters.
TRUE
Stock options are often reserved for executive compensation plans.
TRUE
The Intrinsic Motivation Theory stipulates that employees attribute their behavior to internal and external causes.
TRUE
The Pay as Meaning principle states that the rewards employees receive from organizations have informational value in addition to their economic value.
TRUE
The first challenge in creating a capability-based pay plan (or "system") is to define those individual characteristics that create value for the organization.
TRUE
The goal of job analysis is to understand the work involved in creating value for the organization.
TRUE
The goal of job evaluation is to create a way to measure the value (and relative value) of each job in the organization.
TRUE
The idea of Central Tendency is to find a single number that best represents a who group of numbers?
TRUE
The purpose of grades is to allow jobs creating the same amount of value for the organization to be treated in the same way.
TRUE
Total Rewards are one of those decisions that businesses make that influences their cost structure and their ability to provide those low costs to customers.
TRUE
Transparent Measurement means that the criteria and system should be easily understood and the processes for implementing the system should also be sorted out by all employees.
TRUE
Understanding relevant tools for a job, such as Microsoft Excel or Power Point, are valuable in creating a job description.
TRUE
Using pay grades is useful because it allows the organization to establish different pay strategies for different pay grades.
TRUE
When a reward system explicitly attempts to vary rewards based upon the capabilities of the employee, it is referred to as capability-based Pay.
TRUE
When choosing strategies, organizations should use logic and evidence about how job value and pay forms meet business objectives.
TRUE
When employees have quality relationships with their peers, it can create a climate of acceptance and collectiveness that provides intangible rewards to employees.
TRUE
When establishing pay grades, jobs are declared "similar" on the basis of their Job position points, which represent the organization's external measure of the value of jobs.
TRUE
When total rewards is used to change a culture, past norms should still be considered.
TRUE
Within individual-based systems value is assumed to derive from the characteristics of the person within the job, and therefore pay should be driven by the knowledge, skills, experience, or competencies of that individual.
TRUE
Workplace relationships is a form of Intangible reward.
TRUE