MNGT 463 Exam 1: Test Bank Questions

A compensation system that focuses on competitors' labor costs is most closely associated with a(n) ________ strategy.

cost-cutter

Compensable factors, skill blocks, and competency sets are used for:

determining what to value

A compensation system focusing on operational excellence is most closely associated with a(n) ________ strategy.

differentiated

Flexible-generic job descriptionswould most likely be used with a(n) ________ strategy.

innovator

A set of identical positions makes a

job

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

job analysis

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

job description

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

job evaluation

in the context of job analysis, engineering, office support, and marketing are examples of

job families

Content refers to the:

work performed in a job and how it gets done.

Which form of pay does NOT permanently increase labor costs?

Incentives

Which of the following is true of internal alignment?

It addresses relationships inside an organization.

Employees in a multiskill system earn pay increases:

by acquiring new knowledge

A major decision in job evaluation is to:

choose among alternative approaches

________ are often linked to mission statements that express an organization's philosophy, values, business strategies, and plans.

core competencies

A compensation system focusing on system control and work specifications is most closely associated with a(n) ________ strategy.

cost-cutter

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, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a(n):

customer-focused strategy.

According to Frito-Lay's list of competencies for managerial work, the behavior of modeling, teaching, and coaching company values is linked to the ________ competency dimension.

doing it the right way

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

external competitiveness

The exchange value of a job is its

external market value

The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n):

incentive effect

A compensation system using market-based pay is most likely to be part of a(n) ________ strategy.

innovator

The majority of applications of skill-based pay have been in:

manufacturing industries.

One of the reasons why the great majority of the uninsured in the United States are from working families is that

many small employers are much less likely than larger employers to offer health insurance to their employees.

The second step in developing a total compensation strategy is to:

map the strategy

A group of tasks performed by one person makes up a(n)

position

________ refers to the process by which a decision is reached: the right to an attorney, the right to an impartial judge, and the right to receive a copy of the arresting officer's statement.

procedural justice

In a contemporary job description of a specific job, the job summary section

provides an overview of the job.

A specific statement of what a worker does on a job is known as a(n)

task

Common bases for modern pay structures include all but which of the following?

the extent of external competitiveness and equity

A structure based on value typically ranks jobs on:

the relative contribution of skills.

Routine work is also termed

transactional work

Marginal productivity theory argues that employers pay

use value

In the context of job analysis, which of the following is the smallest unit of analysis?

A task

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

A) MH Corp., which increases the number of paid holidays given to its senior employees B) Kay Corp., which increases the transport allowance for its employees by 10 percent

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

Content has intrinsic value outside the external market.

The roots of job-based pay structures are traced to

Frederick Taylor

________ refers to the education, experience, knowledge, abilities, and skills required to perform work.

Human capital

Which of the following is given as an increment to base pay in recognition of past work behavior?

Merit Pay

Mike, a job analyst, conducts a job analysis at Great Bread, Inc. George, a first-level supervisor at Great Bread, conducts an initial tour of the work site for Mike. According to the conventional job analysis procedures developed by the U.S. federal government, which of the following steps should Mike perform immediately after the initial tour?

Mike should conduct an interview withGeorge to get an overview of the job and to understand how the major duties fit together.

Which of the following is an advantage of skill-based pay plans?

They aid in deploying workers in a way that better matches the work flow.

Which of the following is true of incentives?

They are re-earned each pay period.

Which of the following is a characteristic of benchmark jobs?

They employ a reasonable proportion of the workforce.

GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a board meeting with the senior executives to discuss the issue. Who among the following suggests increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?

Tom, who suggests increasing the decision-making authorities given to the employees to make work more challenging

Which of the following programs introduced by Congress includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks"?

Troubled Asset Relief Program

Which of the following is least likely to be used in establishing skill-based certification methods?

college degree

The most common bases for determining internal structures are:

work content and its value.

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

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

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

Which of the following is an example of a relational return?

Employment security

_________ is defined as employee belief that returns and/or rewards are due regardless of individual or company performance.

Entitlement

Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision?

Internal alignment

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

It is developed using benchmark jobs and then applied to nonbenchmark jobs.

Which of the following is true about a job specification?

It is the list of knowledge, skills, and abilities that are necessary for an individual to have to perform a specific job.

In the context of internal alignment, which of the following is the correct sequence?

Job description > Job evaluation > Job structure

In the formula for predicting performance, the component most closely related to compensation is

M.

MXB, Inc. is a carwash service provider. It orders the jobs in the company 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

Most job structures are best described as:

both person- and job-based structures.

In a strategic approach to pay, internal alignment is the ________ issue to be decided.

second

An employee's focus in a job-based approach is to

seek promotions to earn more pay