Chapter 2

Which of the following statements regarding allowing employees a choice in their pay mix is NOT true?

Allowing employees their choice is easy for competitor companies to imitate

Which of the following is the correct order of the steps in formulating a total compensation strategy?

Assess the strategy, map the strategy, implement the strategy, and reassess the strategy.

In mapping a total compensation strategy, the question of how important compensation is in the overall HR strategy is part of _____.

objectives

When organization performance declines:

performance-based pay plans do not pay off.

Which of the following statements is NOT true?

Focusing only on one dimension of the pay strategy is a best practice.

Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision?

Internal alignment

Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a:

customer- focused strategy

Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high-performance practices.

improves attitudes and behaviors

Career growth, hierarchy, and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.

internal alignment

Trying to measure an ROI for any compensation strategy implies that

people are "human capital," similar to other factors of production.