HURM Chapter 3

False

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

True

Internal alignment is sometimes called internal equity

False

Supply and demand for labor, but not supply and demand for products and services affect internal structures.

Distributive justice

Suzanne says, "I don't like it that those jobs that are a lot like mine pay more than my job." Suzanne is expressing concern about ________________

Modern pay structures

Three common bases for ________________include the content of the work, skills and knowledge required to perform the work, and relative value for achieving organizational objectives

Hierarchical pay structures

_________________ have many levels, supports a close fit with the organization, is based upon the job or person

Intention of differentials

_________________ is to motivate people to strive for promotion to a higher-paying level

Tournament theory

__________________ predicts individual performance will be maximized when the pay differentials between job levels is large

Organization factors

__________________ that shape internal pay structures include strategy, technology, human capital, HR policy, employee acceptance, and cost implications.

The internal labor market concept

___________________ best explains why newly hired workers may be paid more than longer tenure workers performing very similar work

False

A job-based structure focuses on the skills, knowledge and competencies employees possess.

Value approach

A pay structure based upon the relative contribution of skills, tasks, and responsibilities to the organization's goals is called the ______________

True

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

False

An organization's pay structure is affected more by the pay levels and benefits offered by competitors than its human capital.

Procedural justice

Bill says, "I don't trust the way the company determines pay rates in my department." Bill is most concerned about _______________

True

Both external and organizational factors shape internal pay structures

Human capital

Components of ___________: experience, knowledge, and education

False

Equity theory research shows that an egalitarian pay structure will be seen as more fair than a hierarchical structure.

False

Exchange value is always higher than use value.

False

Experienced workers judge the fairness of their pay by developing an intuitive sense of what is fair pay.

True

Large raises that come with a promotion, increases effort and reduces absenteeism

Living wage

The modern concept of a "___________" is most similar to just wage doctrine.

internal structures

The most common bases for determining ____________ are work content and its value.

human resource policies

The number of job and pay levels in an organization is an example of ______________

exchange value

The pay for the job of accountant in London, Los Angeles and Berlin is likely to be different due to _____________

True

The phenomena of engineers receiving salaries higher than longer tenure engineers in an organization, is consistent with the concept of internal labor markets.

tailored internal pay structure

The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) closely ____________

Content

__________ refers to the work performed in a job and how it gets done.

External factors

_____________ that shape internal pay structures include economic pressure, government policies, laws, and regulations, stakeholders, and cultures and customs.

Hierarchical

_____________: related to greater performance when the work flow depends on individual contributors.

Internal alignment

_______________ is the second issue to be decided - addresses relationships inside the organization

Setting objectives

________________ is the first in a strategic approach to pay

False

Egalitarian pay structures are built using person-based criteria.

True

Egalitarian pay structures may be characterized as de-layered or compressed

False

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

True

Egalitarian structures are a better fit for executive groups that need to work closely as a team

The equal pay act

Factors in defining equal work in _________________: skill, effort, and working conditions

pay was determined

If a manager wants employees to accept the organization's pay structure, the best strategy is to explain to them how _______________

higher performance

In firefighting and rescue squads and global software design teams, a(n) egalitarian structure is associated with ____________

True

Labor unions support small pay differentials.

True

Large pay differences in a top management team are associated with high turnover

True

Pay structures with more levels, though relatively small pay differences between levels, offer a sense of career progress

True

Self-managed work teams and outsourcing can affect the pay structure

False

The institutional model predicts that it is best to wait for other organizations to adopt innovative practices.

egalitarian pay structure

There is evidence that a relatively poor performing team member's performance will improve under a(n) _____________________

False

There is little evidence that adding additional levels and titles to a career path without significant pay increases, motivates employees.

Egalitarian pay structures

________________ have few levels, small differentials, and support equal treatment.

True

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

True

A potential problem in egalitarian pay structures is high performing employees may feel underpaid and quit

External recruitment

A problem faced by some organizations using an egalitarian pay structure is difficulty in ________

False

A well-designed pay structure is the major factor affecting an organization's external competitiveness.

egalitarian

According to the text, when cooperation is important for successful organization performance, the best form of pay is _______________

False

CEOs of organizations with egalitarian pay structures usually have higher salaries than CEOs in hierarchical pay structures

organization design

Changes in _______________ that may affect pay structures: outsourcing, delayering, and temporary workers

Aligned pay structure

Characteristics of an _______________: supports the way work gets done, fits the organization's business strategy, and is fair to employees.

person and job-based

Most job structures are best described as both ______________

True

Organizations are more likely to be successful when their pay structures are in internal alignment.

coupled internal pay structure

Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a(n) loosely _______________

True

Pay differences between levels in an organization are called differentials.

temporary workers

Pay for ______________ is based upon the internal structure of their home employer

pay fairness

Pay structure procedures that would increase perceptions of __________: consistency across all employees, use of accurate data, and including appeals procedures.

True

Teachers who pay is relatively low in their pay structure will feel their pay structure is fair if they work in a high-paying district.

True

Technology influences organization design, the work and ultimately, the pay structure. (

True

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

False

The content of a job refers to the relative contribution of skills, tasks and responsibilities to the organization's goals.

False

Tournament theory raises performance of the top performers but reduces motivation of poorer performers

Line-of-sight

When an employee can see the relationships between his/her work, the work of others and the organization's objectives, this is called_____________

False

When employees compare the fairness of their pay, they focus primarily on how their job compares with similar jobs in other organizations

Comparisons employees

____________________ use to judge the fairness of their organization's pay structure: comparing jobs similar to their own, comparing their pay to external pay levels, and comparing their job's pay to other jobs in their organizations.

The institutional model

________________refers to firms that copy innovative practices adopted by other organizations

The pay structure

_______________should support the organization strategy, support the work flow and motivate behavior toward organization objectives.

Unions

_________prefer small pay differences between jobs and seniority-based promotions