Compensation FINAL Ch 7

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

Causation

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

Education & Health Care

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

FALSE: Competitor production costs are lower

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

FALSE: Talented Individuals have a lower marginal value in a larger organization

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

Higher Turnover Rate

Segmented labor supply involves all of the following EXCEPT:

Hiring from different sources and differential pay and benefits for the same work

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

Human Capital

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

A pay policy most likely to reduce pay dissatisfaction is __________________.

Lead

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

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

Match Policy

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

Pay Level

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

Pay level offered by an employer

The market pay rate is the:

Point at which supply and demand lines cross

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 price changes

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

Productivity

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

Reservation Wage Theory

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

Security or Commitment

All of the following EXCEPT the ______________ shape external competitiveness.

Skill level of employees

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

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

The Product Market

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

The ability to pay

_____ is the additional output associated with the employment of one additional person, with other production factors held constant.

The marginal product of labor

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

The supply of labor is responsive to price changes

_____ is an example of a bourse.

Total compensation for a top athlete.

The assumption of the upward sloping supply curve that offers of higher pay will increase supply will most likely NOT hold when _____.

Unemployment is low

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 of the following statements is true of pay level?

All true statements: - 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.

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

Compensating Differentials