Compensation Administration Chapter 2
Which of the following tests of competitive advantage is probably the easiest test to pass?
Alignment test
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 steps in formulation a total compensation strategy?
Assess the strategy, map the strategy, implement the strategy, and reassess the strategy
Which of the following statements is Not true ?
Focusing only on one dimension of the pay strategy is a best practice
Which of the following is NOT included in strategy map? -External competitiveness - Management - HR alignment -Employee contributions
HR alignment
Whole foods' shared- fate philosophy of limiting executive salaries to no ore than 19 times the average pay of full-time employees is an example of which strategic pay decision?
Internal alignment
In the formula predicting performance, the component most closely related to compensation is ______________.
M
___________ is the measure of how important total compensation is in the overall HR strategy
Prominence
_____________ refers to openness and communication about pay.
Transparency
Based on the opinions of 10,000 U.S. workers, Hudson found that when given choice of unconventional benefits, most employees would select ____________.
a more flexible work schedule
Union preferences are a major factor in _________ a total compensation strategy.
assessing
According to the Hudson survey, __________ is the single thing that would make 41% of the U.S. workers happier
better health insurance
A compensation system focusing on a system control and work specifications is most closely associated with a(n) ____________ strategy.
cost- cutter
a compensation system that focuses on competitor's labor costs is most closely associated with a(n) ____________ strategy.
cost- cutter
Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage?
cost- effectiveness test
all of the following EXCEPT __________ are compensation systems associated with a cost- cutter strategy.
customer satisfaction incentives
Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the rating as employee receives, he or she gets an incentives. the compensation strategy followed by Mich is closely described as a:
customer- foucused strategy
The alignment test
helps ensure passing the differentiation test.
Research investigating high- performance workplaces found that performance- based pay_______________ when combined with other high- performance practices.
improves attitude and behaviors
A compensation system using market- based pay is most likely to be part of a(n) ____________ strategy.
innovator
Flexible-generic job descriptions would most likely be used with a(n) _________________ strategy.
innovator
Career growth, hierarchy, and flexible design are most closely associated with the ___________ aspect of mapping a total compensation strategy.
internal alignment
Research shows that ________________ will effectively shift an organization in a downward performance spiral to an upward one.
it is unclear what compensation practices
Issues of Transparency, technology, and choice are most closely associated with the ___________ aspect of mapping a total compensation strategy.
management
The second step of developing a total compensation strategy is to:
map the strategy
In mapping a total compensation strategy, the question of how important compensation is in overall Hr Strategy is part of _____________.
objectives
The role non- HR managers play in making pay decisions is called ________.
ownership
Trying to measure an ROI for any compensation strategy implies that
people are "human capital," similar to other factors of production
When organization performance declines
performance- based pay plans do not pay off