Comp ch 7

_____ is an example of a bourse.

Bourse = a market that allows haggling over terms and conditions until an agreement is reached. Total Compensation for a Top Athlete

Wages tend to be the lowest in which of the following industries?

Education and Healthcare

The _____ theory is the most influential in explaining pay-level differences.

Human Capital Theory

Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the

Labor Costs

_____ refers to the average of the array of rates inside an organization.

Pay Level

All of the following are advantages of a lead pay-level policy

Reduce Vacancy Rates Reduced Absenteeism Better Quality Employees Not: higher turnover rates

Among pay-mix alternatives, base pay is largest in _______________.

Security or Commitment

What is true of the relationship between employer size and its ability to pay?

Talented Individuals have a larger marginal value in a larger organization

In which of the following would data from labor market competitors be given more weight than product market competitors' data?

The Supply of Labor is responsive to price changes

All the following are important factors in defining a market for compensation purposes

The skill and knowledge required Geography Product Competitors and/or market Competitors

Reasons a company might pay base wages above market

To Increase Employee Productivity To Increase Wage Satisfaction To Attract More Applicants

Pay level decisions have a significant impact on expenses. Other things being equal, the higher the pay level, the higher the:

labor costs.

The pay policy that is most closely associated with the decreased ability to attract employees is a(n) _____ policy.

lag

In a hiring situation, considering that other potential costs will not change in the short run, the level of demand that maximizes profits is that level at which the ______________ of the last hire is equal to the _______________ for that hire.

marginal revenue; wage rate

All of the following EXCEPT the ______________ shape external competitiveness.

skill level of employees are: Nature of the Demand Industry Strategy Level of Product Demand

Segmented labor supply involves all of the following

Hiring from different sources Paying workers differently who are performing the same work Employing regulars, part-times, and temps not: hiring from different sources and differential pay and benefits for the same work.

Which of the following is an example of the supply side of labor?

Level of pay applicants will accept, qualifications of applicants, locations of potential employees

These are true of pay level

Pay level is directly proportional to labor costs; the more you pay the more it costs. Pay level is not the same across all organizations for the same job. The higher the pay level to what competitors pay, the higher their relative cost to provide relative products or services. Pay level is not independent of the number of employees in an organization

In which of the following conditions would product market competitors' data be given more weight than data from labor market competitors?

Product demand is responsive to product price changes

The best way to establish _____ is to account for competing explanations, either statistically or through control groups.

causation

Which of the following is NOT a reason a company might pay base wages above market competitors?

competitor production costs are lower are:Employees are more productive Turnover will be lower To attract more job applicants

Which of the following is an example of the demand side of labor?

pay Level Offered by an Employer

According to the text, the market rate is the:

point at which supply and demand line cross

A study of graduating college students found they sought jobs with all of the following pay characteristics EXCEPT _____

variable Pay

The pay-mix policy alternative in which the percentage of benefits is likely to be the highest is known as _____.

work/life balance policy

Which theory supports the idea that coal mining should be paid more than office clerical work?

Compensating Differentials

_____ puts a lid on the maximum pay level an employer can set.

The Product Market

________________ sets a maximum pay level an employer can pay.

The Product Market

In which of the following would data from labor market competitors be given more weight than product market competitors' data?

The Supply of Labor is responsive to changes in pay

The most common pay policy is a(n) _____.

match policy

Evidence shows that in manufacturing, _____ is positively correlated with hourly wage level.

productivity

Implication of the _______________ theory is that pay level affects in employer's ability to recruit.

reservation wage

Which of the following is NOT true of the relationship between employer size and its ability to pay?

talented people prefer to work in larger organizations. true: Talented Individuals have a higher marginal value in a larger organization. Talented people can influence more people with decisions. Talented people leads to more profits.

Output associated with hiring an additional person, holding constant other production factors, in referred to as:

the marginal product of labor.

The assumption of the upward sloping supply curve may NOT hold when ________________.

unemployment is low