Compensation :: Chapter Three
In the strategic approach to pay, internal alignment is the _____ issue to be decided.
2nd
Which of the following is NOT true? A. Greater pay dispersion is related to higher turnover among executives. B. Egalitarian structures are a better fit for executive groups that need to work closely as a team. C. Large raises with a promotion decreases effort and increases absenteeism. D. Employees judge the fairness of their pay structure by making multiple pay comparisons.
C
Which of the following is NOT a factor in defining equal work according to the Equal Pay Act?
CORRECT: - equal skill - equal effort - equal responsibility
Which of the following pay structure procedures would NOT increase perceptions of pay fairness?
CORRECT: - consistently applying pay procedures for ALL - using accurate date - including appeals procedures
Egalitarian pay structures have all BUT which of the following characteristics?
CORRECT: - fewer levels - small differentiation between levels - equal treatment
Which of the following is NOT one of the factors that define an internal pay structure?
CORRECT: - pay differences between the levels/grades - criteria used to determine the pay differences - # of levels of work
Which of the following is NOT a characteristic of aligned pay structures?
CORRECT: - split the way it works gets done - fits an organizations business strategy - they are fair
Common bases for modern pay structures include all BUT which of the following?
CORRECT: content of work skills and knowledge required to perform the work work's relative value for achieving organizational objectives
Organization factors that shape internal pay structures include all BUT which of the following?
DO INCLUDE: strategy, technology, human capital, HR policy, employee expectancy & cost applications
Most job structures are best described as
both person + job based structures
The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure.
closely tallied
In firefighting and rescue squads and global software design teams, a(n) _____ structure is most closely associated with higher performance.
egalitarian
When cooperation is important for successful organization performance, which of the following pay structures is most suitable?
egalitarian pay structure
_____ are related to greater performance when the work flow depends on individual contributors.
hierarchical
External factors are dominant influences on jobs filled via:
hiring graduates
Pay for temporary workers is based upon
internal structure of their home employer
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.
loosely
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
Most unions prefer which of the following?
small pay differences among jobs + seniority promotion
Hierarchical pay structures have all BUT which of the following characteristics?
support close fit, many levels, based on job or person
The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____.
the difficulty in external recruitment
Content refers to the
the work performed in a job + how it gets done
Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large?
tournament theory
Marginal productivity theory argues that employers pay _____.
use value
The most common bases for determining internal structures are:
work content & its value