Chapter 3 Review Questions

Hierarchical pay structures have all BUT which of the following characteristics? (List what they DO have)

Do have: close fit with organization, many levels, greater differences in pay between levels and top/bottom jobs, and pay based on job or person

Egalitarian pay structures have all BUT which of the following characteristics? (List what they DO have)

Do have: fewer levels, small differentials between levels, and support equal treatment

Organization factors that shape internal pay structures include all BUT which of the following? (List what IS included)

Do include: strategy, technology, human capital, HR policy, employee acceptance, cost implications

Which of the following is NOT one of the factors that define an internal pay structure? (List what does define)

Does define: pay differentials between levels, criteria used to determine pay differentials, number of levels work

______ are related to greater performance when the work flow depends on individual contributors.

More hierarchical

The well-defined jobs at McDonald's and their small differences in pay are an example of a ______ internal pay structure.

closely tailored

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

second (setting objectives is the first)

Content refers to the _____.

work that is performed in a job and how it gets done

Which of the following is NOT true?

A greater pay dispersion is related to higher turnover among executives Egalitarian structures are a better fit for executive groups that need to work closely as a team **Large raises with a promotion decreases effort and increases absenteeism** Employees judge the fairness of their pay structure by making multiple pay comparisons

Which of the following is NOT a factor in defining equal work according to the Equal Pay Act? (List what ARE factors)

Are factors: equal skill, equal effort, equal responsibility

In firefighting and rescue squads and global software design teams, an ______ structure is most closely associated with higher performance.

egalitarian

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

egalitarian pay structure

External factors are dominant influences on jobs filled via _______.

hiring graduates

The most common bases for determining internal structures are ______.

work content and its value

Common bases for modern pay structures include all BUT which of the following? (List what it does include)

Does include: the content of work, the skills and knowledge required to perform work, the work's relative value for achieving organizational objectives

Which of the following is NOT a characteristic of aligned pay structures? (List what IS)

IS a characteristic: support the way work gets done, fit organization's business strategy, fair

Most unions prefer which of the following?

Small pay differences among jobs and seniority-based promotions

Which of the following pay structure procedures would NOT increase perceptions of pay fairness? (List what WOULD increase)

Would increase: consistently applying pay procedures to all employees, using accurate data (including appeals procedures)

Most job structures are best described as _____.

both person and job-based structures

Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a ______ internal pay structure.

loosely coupled

James says, "I don't trust the way the company determines pay rates in my department." If James feels this way despite being happy with his current salary, he is most likely concerned about ______.

procedural justice

The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____.

the difficulty in external recruitment

Pay for temporary workers is based upon _____.

the internal structure of their home employer

Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large?

tournament theory

Marginal productivity theory argues that employers pay _____.

use value