MGT 470 Midterm

Grabhouse Inc. is experiencing an increase in turnover rates of its top employees. Upon consulting with its managers for the reasons for this increase, Grabhouse finds that employees are uneasy with the current pay mix as it involves too many risky elements. In order to make its pay mix less risky, Grabhouse needs to:

increase the base pay component of its pay mix

Flexible generic job descriptions would most likely be used with a strategy

innovator

The pay level policy that is most likely to reduce pay dissatisfaction is an

lead policy

A market pay line

links a company's benchmark jobs with market rates paid by competitors

When cooperation is important for successful organization performance, which of the following pay structures is most suitable

An egalitarian pay structure

Which of the following is an example of the sorting effect in action

An employee leaving a high paying job for one that provides more work/life balance

Which of the following is a job evaluation method that can group a wide range of work together in one system but leave too much room for manipulation

Classification

The process of identifying competencies in person based structures resembles identifying _ as part of job evaluation in job based structures

Compensable factors

Which of the following labor demand theories states that work with negative characteristics requires higher pay to attract or retain workers

Compensating differentials

What are most likely to conduct job evaluations of senior management jobs

Compensation Managers

Which of the following is the underlying assumption in the assessment of job content

Content has intrinsic value outside the external market

Which of the following are defined as comparisons among individuals doing the same job for the same organization

Employee Contributions

A PAQ may be used to gather which type of information

Employee data

Gramhold Inc., a pharmaceutical company, reduces its 10 salary grades to just three broad bands. Which of the following statements is most likely to be true in this case?

Gramhold will experience more career moves within bands than career moves between bands

The degree to which pay influences individual and aggregate motivation among employees at anypoint in time is reffered to as an

Incentive Effect

Which of the following is true of internal alignment

It addresses pay relationships inside an organization

Which of the following is true of the employment cost index

It allows a firm to compare changes in its average costs to an all industry or specific industry average.

Which of the following statements about the reliability of job analysis is true

It is a necessary condition for validity

Which of the following statements is true of a job evaluation plan

It is developed using benchmark jobs and then applid to non benchmark jobs

In the context of internal structures, which of the following is true of a delayered structure

It sends the message that all employees are valued equally

What is the process of systematically determining the relative worth of jobs to create a job structure for an organization

Job evaluation

Which of the following companies is taking efforts to improve the work life balance of its employees

Mh Corp, which increases the number of paid holidays given to its senior employees

One readily accessible source for generic job descriptions is the

Occupational Information Network

Which of the following occupations has the greatest susceptibility to automation

Real Estate brokers

Total CEO annual compensation at s and p 500 companies is roughly 12.3 million at just over half the total ($6.5 Million), Which Compensation component comprises the majority of that total compensation amount

Stock Grants

The say on pay and clawback provisions are included in which of the following Federal laws

The Dodd-Frank Wall Street Reform and Consumer Protection Act

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

The pay level offered by an employer

Refers to openness and communication about pay

Transparency

Which of the following reasons makes competencies a risky foundation for a pay system

Vagueness and subjectivity

Refers to the process by which goods and services are delivered to the customer

Workflow

Looks at how an organization does its work: activities pursued to accomplish specific objectives for specific customers

Workflow analysis

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, her or she gets an incentive. The compensation strategy followed by mich is most closely described as an

customer focused strategy

A Camper is an employee who _ in a skill based system

does not want to rotate jobs

Employers continue to hire until the marginal revenue of the last hire equals his or her wage rate. This is based on the first labor market theory assumption that:

employees seek to maximum profits

The exchange value of a job is its

external market value

One way to measure the validity of job evaluation is through - the degree to which the job evaluation plan matches an agreed upon pay structure for benchmark jobs

hit rates

The systematic process of collecting information that identifies the similarties and differences among jobs is known as

job analysis

Managers whose employers use _ plan focus on placing the right people in the right job

job based

The list of tasks, duties, and responsibilities that make up a job is known as a

job description

Aging market data to a point halfway through a plan year is called

lead/lag

When employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer

monetary rewards with larger incentives

In the context of job evaluations methods, two common ways of rankings are alternation rankings and

paired comparison

When organization performance declines

performance based pay plans do not pay off

In the context of the impact of internal structures which of the following statements is true

performance rather than seniority. More egalitarian structures are related to greater perforances when close collaboration and sharing of knowlege are required

When pay is based on individual performance, turnover tends to be highest among

poor performers

Evidence shows that in manufacturing _ is positvely correlated with hourly wage level

productivity

The size of pay differentials between grades should

support career movement through the pay structure

In most organizations the responsibility of managing a pay survey lies with

the compensation manager

Which of the following is NOT true of the usage of the multiple plans versus single job evaluation plans?

A single universal plan is acceptable to employees if the work covered is highly diverse.

theory argues that pay should be based on outcomes if monitoring of behavior's is difficult or costly and if risk due to the variability in outcomes is not large

Agency

Which of the following statements is true of compensation strategies

Compensation strategies may differ within a company, especially one with a variety of business units

Which of the following is a policy, and not an objective, of the pay model?

Competitiveness

Which of the following is an advantage of the skill-based structure

Continuous learning and flexibility

When interpreting research evidence concerning compensation strategy, it is thought that embedding compensation strategy within the broader "What" affects results

Corporate Strategy

What is the key to attracting, retaining, and motivating employees with the abilities necesary to execute the business strategy and handle greater decision making responsibilities

Culture

According To The Text, Which of the Following Decisions Should be Made Jointly

External Competitiveness and Employee Contribution Decisions

In the context of pay influencing turnover, which of the following is a result of too little pay

Feelings of unfair treatment among employees

theory is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves

Human Capital

is employees beliefs that higher job performance will be rewarded by the organization

Instrumentality

Which of the following is true of the marginal revenue product model

It oversimplifies business conditions in the real world

Who among the following is examining the validity of a job evaluation

Keira, who is measuring the degree to which the job evaluation plan matches an agreed upon pay structure for benchmark jobs

In the context of job evaluation methods, which of the following is a common way of ranking

Paired comparison

_ refers to the average of the array of rates paid by an employer

Pay level

Jackson says I dont trust the way the company determines pay rates in my department. If james feels

Procedural Justice

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

Product demand is responsive to price changes

Which of the following is often used to set pay ranges

Quartiles and percentiles

In the context of a job analysis collecting sufficient information to adequately identify, define, describe a job, which of the following information is most likely to be categorized as related to the employee

Technical knowledge

Which of the following tests of competitive advantage is probably the easiest to pass

The alignment test

Puts a lid on the maximum pay level an employer can set

The product market

Incentives do not permantly increase labor costs because

They are one time payments

Which of the following statements is true of market prices

They assume that little value is added through internal alignment

Which of the following is the reason why skill based pay plans have a maximum flexibility

They pay employees for the highest level of skill they have achieved regardless of the work They perform

is the value employees attach to the organization rewards received for job performance

Valence

When organization's performance has frequent high and lows, but individual performance is fairly stable and performance measures are clear, the most effective compensation mix is too offer.

a large base pay and low incentive pay

mxB is a carwash service provider. It orders the jobs in the compnay on the basis of the least important job to the most important job. in this case, MXB is most likely using the

alternation ranking method

Employees in a multiskill system earn pay increases:

by acquiring new knowledge

The second major decision in setting externally competitive pay and designing the corresponding pay structures is to

define the purpose of the survey

Marie was hired as a clerk at a small local store and there was very little supervision. Marie was expected to use her judgement and initiative to run the store and help customers during her shifts. Marie was one five clerks who worked at the store, all working an equal number of hours. the ownder worked any number of shifts to round out the weekly schedules. This is an example of a

delayered

Work that requires more knowledge or skills, is performed under unpleasant conditions, or adds more value is usually paid more. This is usually reflected n the organizations

differentials

The amount of fairness given to employees refer to

distributive justice

Comparisons based on the forms of compensation used by other companies are part of

external competitiveness

A study of 400 compensation specialists revealed that:

market data had a substantially larger effect on pay decisions than job evaluation

Jane works as a copy editor at TreeTime Inc. She receives an e-mail from the human resources department with a link to a questionnaire that asks her to rate the necessary attributes required for her job. In this scenario, the approach used by TreeTime is characterized as:

quantitative job analysis

When specifying relevant markets, include employers who compete in one or more of the following areas except:

total revenues

In A Study, Causation Can be best established by:

Accounting For Competing Explanations

Which of the following fundamental strategic choice at the corporate level

What business should we be in

Jackson and Dal both start working as attendees at the new full service car wash, each starting at the same pay rate. Jackson gives the customer exactly what they request and is a friendly employee. Dal is very open and approahable and his shifts usually find the carwash selling more extras to the customers, such as upholstery detailing. Based on this you could say that

Dal has a higher use value than jackson.

Which of the following statements concerning cash compensation and the fair labor standards acts is true

Nonexempt employees have their pay calculated at an hourly wage.

The U.S federal government has developed a step-by step approach to conducting conventional job analysis. Identify a true statement about the verification process in this approach

Typed or legibly written copies of the job description are distributed to the first level supervisors and the job incumbent interviewees