BUSI 440 Chapter 3

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

More hierarchical structures

Labor unions support small pay differentials.

True

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

True

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

False

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

False

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

They are designed to increase the turnover rate.

Internal alignment is sometimes called internal equity.

True

Most job structures are best described as

both person- and job-based structures.

Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance to his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels. In this case, he is most likely to use a(n):

egalitarian pay structure.

The most common bases for determining internal structures are:

work content and its value

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 factor in defining equal work according to the Equal Pay Act?

Equal experience

The institutional model states that it is best to wait for other organizations to adopt innovative practices and then copy those practices.

False

Which of the following is NOT true?

Large raises with a promotion decreases effort and increases absenteeism.

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

True

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

True

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

True

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

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

the difficulty in external recruitment

Marginal productivity theory argues that employers pay _____.

use value