Chapter 7: LS

Calculate the number of employees in a company with a pay level of $43,000 and labor costs of $10,750,000

250 employees

___ refers to the image or brand a company projects to an employer

Employer of choice

Due to restrictions placed by the product market on an employer's pay level, what strategies must an employer use to compensate for paying above the maximum?

Passing the higher pay level on to consumers by increasing prices; Allocating a larger share of total revenues to cover labor expenses

How do managers choose their relevant labor markets?

They evaluate the importance of a job to their organization's success, the consider the products, size, and location of competitors, they look at the skills and knowledge required for a job

identify an accurate statement about the pay level in a company

a company may have varying pay levels for different job families

Identify the various extremes of organizational pay-level and pay-mix strategies that exist on the continuum of possible organzational strategies

a high-wage, high services strategy, a low-wage, not services strategy, a low-wage, hgih services strategy

A lead pay-level policy maximizes the ability of an organization to

attract and keep skilled employees

having a lag pay-level policy may impede an organization's ability to

attract job applicants

One of the common cuts companies make in times of high unemployment is decreasing

contributions to 401k retirement plans

According to agency theory, companies must allot resources to systems that track employee output which becomes more costly and difficult when

cultural or geographic distance is great

Identify the characteristics of jobs that are thought to make them more susceptible to offshoring

easy to routine, little need for local insight on unique cultural factors, little need for work interaction, inputs/outputs easy to transmit electronically

The underlying assumption of efficiency-wage theory is that pay level determines

effort

According to economic theory, a talented individual will have a higher marginal value when the indiviudla is

employed at a large organization

An employer will keep hiring until the marginal revenue generate by the last hire equals the

expenses associated with employing that person

Each job in the labor market has a fixed "going rate." (t/f)

false

Some Reservation-wage theorists say that job seekers accept the first job they receive where the pay is below their reservation wage (T/F)

false

Employers in exteremly competitve markets find it more difficult than other employers to

increase prices without loss of revenue

Paying below the market for base pay yet offering generous bonuses

is most likely to appeal to risk-takers who seek flexible schedules, more interesting project or more opportunities for promotion

How did the study on managers' approaches to pay decision in light of varying unemployment, profitability, and labor market conditions directly contrdict the efficieny wage theory?

managers blamed difficulties with attracting and retaining people on poor management

According to the theory of human capital, improving productive skills by making investments in training will raise one's

marginal product

The most common competitive pay level involves

matching competitors wage rates

Technology-intensive industries tend to ____ than labor-intensive indutries

pay higher

There is evidence that organization that widely use high-performance work practices and computer-based technology and employ higher-skiled employees

pay higher wages

_______ provided by an employer are considered intergral to every citizen's economic security and are regulated in most conutries

pensions and health care

Companies with higher profits than competitors can share this sucess with employees by leading competitors' pay levels and/or through bonsuses that are tied to profitability. Academics view this as

rent sharing

Identify the option to reduce labor expenses that is used when work flows ot the people

sending work to other nations and cities

Different employers set different pay levels to pay above or below what others are paying for the same work. tThat is is why there is no single "going rate" in the labor market for a specific job (T/F)

true

A lead pay-level is capable of making negative job traits that lead to high ____ late on

turnover

identify the pay-level and pay-mix strategy with the least risk

A match policy