COMP CH 3 (EXAM 1)

1. Common bases for modern pay structures include all BUT which of the following?

Include: The content of the work; the skills and knowledge required to perform the work; the work's relative value for achieving organizational objectives Not Include: The extent of external competitiveness and equity

8. Organization factors that shape internal pay structures include all BUT which of the following?

Include: strategy, technology, human capital, HR policy, employee acceptance and cost implications.

Organization factors that shape internal pay structures include all BUT which of the following?

Include: strategy, technology, human capital, HR policy, employee acceptance and cost implications. Note: will pick something from external factors or internal structure. See pg. 80 of text.

26 _____ are related to greater performance when the work-flow depends on individual contributors.

More hierarchical structures

The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure.

closely tailored

5. Content refers to the:

work performed in a job and how it gets done.

24. 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. Large raises with a promotion decreases effort and increases absenteeism.

Which of the following is NOT a factor in defining equal work according to the Equal Pay Act?

Factors: equal skill, equal effort, equal responsibility Not: equal experience

15. 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

25. In firefighting and rescue squads and global software design teams, a(n) _____ structure is most closely associated with higher performance.

egalitarian

External factors are dominant influences on jobs filled via:

hiring graduates

When cooperation is important for successful organization performance, which of the following pay structures is most suitable?

An egalitarian pay structure

Which of the following is NOT a characteristic of aligned pay structures?

Characteristics: They support the way work gets done; they fit an organization's business strategy; they are fair. Not: They are designed to increase the turnover rate.

3. Which of the following is NOT one of the factors that define an internal pay structure?

Factors: The pay differentials between the levels; the criteria used to determine pay differentials; the number of levels of work NOT: The number of times the pay structure has been changed.

20. Hierarchical pay structures have all BUT which of the following characteristics?

Have: Support a close fit with the organization; many levels; based upon the job or person; greater differences in pay between levels and top and bottom jobs. Not: Prefer team performance over individual performance.

19. Egalitarian pay structures have all BUT which of the following characteristics?

Have: few levels, small differentials, support equal treatment Not Have: Prefer individual performance over team performance.

2. In the strategic approach to pay, internal alignment is the _____ issue to be decided.

Second Note: first issue is setting objectives.

Most unions prefer which of the following?

Small pay differences among jobs and seniority-based promotions

Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large?

Tournament theory

The most common bases for determining internal structures are:

Work content and its value

6. Most job structures are best described as:

both person- and job-based structures.

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 coupled

12. Pay for temporary workers is based upon:

the internal structures of their home employer.

Marginal productivity theory argues that employers pay _____.

use value

Which of the following pay structure procedures would NOT increase perceptions of pay fairness?

Would: Consistently applying pay procedures to all employees; using accurate data; including appeals procedures. Not: hiring consultants to develop the pay structure

21. The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____.

the difficulty in external recruitment. Must not have problems in maintaining cooperation among employees, the perception of excessive CEO pay, the difficulty in performing teamwork.