Comp. Ch. 3

Which of the following is not a comparison employees use to judge the fairness of their organization's pay structure? A. Comparing jobs similar to their own B. Comparing their pay to external pay levels C. Comparing their pay raises to others in their organization D. Comparing their job's pay to other jobs in their organization

Comparing their pay raises to others in their organization

Which of the following is not a characteristic of an aligned pay structure? A. Supports the way work gets done B. Fits the organization's business strategy C. Is fair to employees D. Complies with the Fair Labor Standards Act

Complies with the Fair Labor Standards Act

Which of the following pay structure procedures would not increase perceptions of pay fairness? A. Consistency across all employees B. Use of accurate data C. Consultants develop the pay structure D. Including appeals procedures

Consultants develop the pay structure

Equal pay act 1963

protects women; differences in effort, skills, performance, seniority; differences in pay between genders

Which of the following is not one of the changes in organization design that may affect pay structures? A. Outsourcing B. Dual careers C. Delayering D. Temporary workers

Dual careers

Which of the following concepts best explains why newly hired workers may be paid more than longer tenure workers performing very similar work? A. Marginal revenue product B. Supply and demand C. Exchange value D. Internal labor market

Internal labor market

Which of the following is not a factor in defining equal work in the Equal Pay Act? A. Skill B. Effort C. Knowledge D. Working conditions

Knowledge

Which of the following is not part of the description of a pay structure? A. Pay differentials B. Criteria determining pay differences C. Performance pay D. Number of levels

Performance pay

_____ should support the organization strategy, support the work flow and motivate behavior toward organization objectives. A. The job evaluation process B. Strategic compensation objectives C. Employee contributions D. The pay structure

The pay structure

Most job structures are best described as A. job-based. B. person-based. C. both person- and job-based. D. competency based.

both person- and job-based.

Common bases for modern pay structures include all but which of the following? A. Content of the work B. Skills and knowledge required to perform the work C. External competitiveness and equity D. Relative value for achieving organizational objectives

External competitiveness and equity

Which of the following are related to greater performance when the work flow depends on individual contributors? A. Egalitarian B. Hierarchical C. Tournament D. Institutional

Hierarchical

Which of the following is an intention of differentials? A. Motivating people to strive for promotion to a higher-paying level B. Motivating workers to seek additional training C. Influencing rate of turnover D. Motivating worker by productivity incentives

Motivating people to strive for promotion to a higher-paying level

Which of the following is not a component of human capital? A. Seniority level B. Experience C. Knowledge D. Education

Seniority level

Unions prefer which of the following? A. Small pay differences between jobs and seniority-based promotions B. Large pay differences between jobs and seniority-based promotions C. Small pay differences between jobs and performance-based promotions D. Equal pay raises for employees

Small pay differences between jobs and seniority-based promotions

Consistency

Some steps you can make to increase perception of fairness? based on same occupation, reliable act of data, repeal process, transparency (people can see why)

Hierarchical pay structures have all but which of the following characteristics? A. Supports a close fit with the organization B. Supports cooperation C. Many levels D. Is based upon the job or person

Supports cooperation

Egalitarian pay structures have all but which of the following characteristics? A. Few levels B. Small differentials C. Supports equal treatment D. Supports individual performers

Supports individual performers

Which theory predicts individual performance will be maximized when the pay differentials between job levels is large? A. Tournament B. Equity C. Marginal productivity D. Reinforcement theory

Tournament

Which of the following is not true? A. Large pay differences in a top management team are associated with high turnover. B. Egalitarian structures are a better fit for executive groups that need to work closely as a team. C. Large raises with a promotion increases effort and reduces absenteeism. D. Tournament theory raises performance of the top performers but reduces motivation of poorer performers.

Tournament theory raises performance of the top performers but reduces motivation of poorer performers.

All of the following statements regarding aligned structures are true except they _____________ A. support the way work is done. B. are externally competitive. C. fit the business strategy D. are fair to employees.

are externally competitive.

Goal

as managers is to comply with law, idea of ethical behavior is that ethical behavior is good business (attracts and retains good people, loyalty)

The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure. A. closely tailored B. loosely coupled C. very competitive D. egalitarian

closely tailored

Many levels is to opportunities for promotion as fewer levels is to ___________ A. competition. B. teams. C. cooperation. D. loose fit.

cooperation

Organization factors that shape internal pay structures include all but _____. A. strategy B. human capital C. culture and customs D. employee acceptance

culture and customs

A problem faced by some organizations using an egalitarian pay structure is _____. A. difficulty in external recruitment B. maintaining cooperation among employees C. perception of excessive CEO pay D. difficulty in team work

difficulty in external recruitment

Victoria says, "I don't like it that those jobs that are a lot like mine pay more than my job." Victoria is expressing concern about _____. A. external equity B. exchange value C. procedural justice D. distributive justice

distributive justice

Organization factors that shape internal pay structures include all but _____. A. technology B. cost implications C. HR policy D. economic pressures

economic pressures and employee acceptance

In firefighting and rescue squads and global software design teams, a(n) _____ structure is associated with higher performance. A. hierarchical B. institutional C. egalitarian D. tournament

egalitarian

There is evidence that a relatively poor performing team member's performance will improve under a(n) _____ pay structure. A. egalitarian B. hierarchical C. bureaucratic D. loosely-coupled

egalitarian

When cooperation is important for successful organization performance, the best form of pay is _____. A. tournament B. egalitarian C. hierarchical D. institutional

egalitarian

line of sight

employee can see how my work fits in with the work of the people around

The need to explain the rationale for compensation choices to employees is consistent with ____________ theory. A. equity B. tournament C. institutional D. marginal productivity

equity

The pay for the job of accountant in London, Los Angeles and Berlin is likely to be different due to A. use value. B. currency exchange rates. C. demand and supply. D. exchange value.

exchange value.

If a manager wants employees to accept the organization's pay structure, the best strategy is to A. pay everyone the same B. show them what competitors pay C. explain to them how pay was determined D. tell them the pay level is the most the company can pay

explain to them how pay was determined

Lockheed's structure of 6 levels of engineers illustrates all of the following except ____________. A. company strategy B. the work flow C. line of sight D. external equity

external equity

The effect of "living wage" laws is ____pay structures.____ A. more person-based B. flatter more compressed C. taller more compressed D. more job-based

flatter more compressed

pay structure

how many levels you have, what's basic percentage/pay rate difference, and what criteria

The number of job and pay levels in an organization is an example of _____. A. organization strategy B. human capital C. human resource policies D. work design

human resource policies

The parable of the vineyard owner and compensation paid to the laborers illustrated: A. paying workers according to their productivity. B. pay based upon the content of the job. C. pay based upon hours of work. D. ignorance of the owner towards the content of work.

ignorance of the owner towards the content of work

Vicious cycle

incentive driven pay tied to profits, economic downturn you don't get incentives; as manager recognize and switch goals and targets os people still get something that you want done

All of the following except ___________ are consequences of an aligned structure. A. increase experience B. increase cooperation C. reduce work stoppages D. facilitate career progression

increase cooperation

The modern concept of a "living wage" is most similar to _____. A. marginal productivity wage B. exchange value C. just wage doctrine D. bourse

just wage doctrine

When employees can see the relationships between their work, the work of others and the organization's objectives, this is called A. procedural justice. B. line-of-sight. C. goal congruence. D. path-goal-congruence.

line-of-sight.

Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a(n) _____ internal pay structure. A. egalitarian B. bureaucratic C. loosely coupled D. closely tailored

loosely coupled

virtuous cycle

making money and you're making money, so you don't make an adjustment

Internal

number of levels of work

Two-tiered

people who are hired before this date get this amount, after this date get this amount and that effects peoples procedural justice

James says, "I don't trust the way the company determines pay rates in my department." James is most concerned about _____. A. procedural justice B. distributive justice C. internal equity D. external equity

procedural justice

The institutional model _____. A. is adopted by high performing, innovative organization B. refers to firms that copy innovative practices adopted by other organizations C. is another name for the bureaucratic model D. is a hybrid of the hierarchical and egalitarian model

refers to firms that copy innovative practices adopted by other organizations

In the strategic approach to pay, internal alignment is the _____ issue to be decided. A. first B. second C. third D. fourth

second

Pay for temporary workers is based upon A. the internal structure of their home employer. B. the internal structure of the temporary workplace. C. strict legislative requirements. D. education and experience.

the internal structure of their home employer.

Marginal productivity theory argues that employers pay _______. A. use value B. exchange value C. market value D. capital value

use value

A pay structure based upon the relative contribution of skills, tasks and responsibilities to the organization's goals is called the _____ approach. A. content B. value C. job analysis D. job evaluation

value

The most common bases for determining internal structures are: A. work content and its value B. seniority and experience C. use value and exchange value D. pay surveys and job evaluation

work content and its value

Content refers to the A. worth of the work. B. work performed in a job and how it gets done. C. relative contribution to the organization objectives. D. different pay level policies.

work performed in a job and how it gets done.