Compensation :: Chapter Three

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

2nd

Which of the following is NOT true? A. Greater pay dispersion is related to higher turnover among executives. B. Egalitarian structures are a better fit for executive groups that need to work closely as a team. C. Large raises with a promotion decreases effort and increases absenteeism. D. Employees judge the fairness of their pay structure by making multiple pay comparisons.

C

Which of the following is NOT a factor in defining equal work according to the Equal Pay Act?

CORRECT: - equal skill - equal effort - equal responsibility

Which of the following pay structure procedures would NOT increase perceptions of pay fairness?

CORRECT: - consistently applying pay procedures for ALL - using accurate date - including appeals procedures

Egalitarian pay structures have all BUT which of the following characteristics?

CORRECT: - fewer levels - small differentiation between levels - equal treatment

Which of the following is NOT one of the factors that define an internal pay structure?

CORRECT: - pay differences between the levels/grades - criteria used to determine the pay differences - # of levels of work

Which of the following is NOT a characteristic of aligned pay structures?

CORRECT: - split the way it works gets done - fits an organizations business strategy - they are fair

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

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

Organization factors that shape internal pay structures include all BUT which of the following?

DO INCLUDE: strategy, technology, human capital, HR policy, employee expectancy & cost applications

Most job structures are best described as

both person + job based structures

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

closely tallied

In firefighting and rescue squads and global software design teams, a(n) _____ structure is most closely associated with higher performance.

egalitarian

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

egalitarian pay structure

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

hierarchical

External factors are dominant influences on jobs filled via:

hiring graduates

Pay for temporary workers is based upon

internal structure of their home employer

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.

loosely

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

Most unions prefer which of the following?

small pay differences among jobs + seniority promotion

Hierarchical pay structures have all BUT which of the following characteristics?

support close fit, many levels, based on job or person

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

the difficulty in external recruitment

Content refers to the

the work performed in a job + how it gets done

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

The most common bases for determining internal structures are:

work content & its value