MGMT 434 CH 3

The content of a job refers to the worth of the job and its relative contribution to the organization's objectives

FALSE

Which of the following is true of inteternal alignment?

It addresses relationships inside an organization

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

More egalitarian structures are related to greater performance when close collaboration and sharing knowledge are required

A potential problem in egalitarian pay structure is that high-performing employees may feel underpaid and quit.

TRUE

Most job structures are best described as

both person and job bases structures

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

closely tailored

___ are related to greater performance when the workflow deepens on individual contributors

more hierarchal structures

The most common bases for determining internal structures are

work content and its value

Content refers to the

work preformed in a job and how it gets done

Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her?

A company that uses a hierarchal pay structure to pay irs employees based on performance

Egalitarian pay structures have all but which of the following characteristics

Preference for individual performance over team performance

______ 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

internal alignment is sometimes called internal equity

TRUE

State the theory of marginal productivity

The theory of marginal productivity says that employers pay use value. Unless an employee can produce a value equal to the value received in wages, it will not be worthwhile to hire that worker. One job is paid more or less than another because of the differences in relative productivity of the job and/or differences in how much consumer values the output.

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

egalitarian

Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance with his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels. In this case, he is most likely to use a(n) :

egalitarian pay structure

External factors are dominant influences on jobs filled via

hiring graduates

Which of the following is true of procedural justice?

it addresses how designed and administration decisions are made

In strategic approach to pay, internal alignment is the ______issue to be decided

second

Explain tailored and loosely coupled structures

A low-cost, customer-focused business strategy is supported by a closely tailored structure. Jobs are well defined with detailed tasks or steps to follow. All the jobs are very well defined in order to eliminate variance in how they are performed. It seems hard to make a mistake in these jobs. Differences in pay among jobs are very small. Loosely coupled structure: this business strategy requires constant product innovation and short product design to market cycle times. This structure is suitable for companies that are in turbulent and unpredictable competitive environments. No steps at all are laid out. employees work on several teams developing serval products at the same time,. The pay structures are more loosely linked to the organization in order to provide flexibility.

CEOs of organizations with egalitarian pay structures usually have higher salaries with hierarchical pay structure.

FALSE

Egalitarian pay structures send the message that an organization values differences in work content, individual skills, and contributions to the organization.

FALSE

Exchange value is always higher than use value

FALSE

Greater pay dispersion is related to lower turnover among executives.

FALSE

Pay structure refers to the array of pay rates for different work or skills between competing companies

FALSE

Pay structures are immune to changes in external factors such as skill shortages

FALSE

The institutional model states that it is best to wait for other organization to adopt innovative practices and then copy those practices

FASLE

Most unions prefer the following?

Small pay differences among jobs and seniority promotion

A layered pay structure is more hierarchical than a delayered pay structure and less egalitarian in terms of the number of levels

TRUE

Both external and organization factors shape internal pay structures

TRUE

Labor unions support small pay differentials

TRUE

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

They are designed to increase the turnover rate.

The problem that is most likely to be faced by an organization using egalitarian pay structure is

the difficulty in external recruitment

Pay for temporary workers is based upon

the internal structure of their home employer

a structure based on value typically ranks jobs on

the skills required to complete tasks

Marginal productivity theory argues that employers pay

use value

In addition to supply and demand for labor, supply and demand for products and services also affect internal structres

TRUE

Organizations design their pay structures around jobs and job levels

TRUE

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

An egalitarian pay structure

How do employees judge the fairness of their pay?

Employees judge the fairness of their pay through comparisons with the compensation paid to others for work related in some fashion to their own. Accordingly, an important factor influencing the internal pay structure is its acceptability to the employees involved. Employees make multiple pay comparisons to assess the fairness of an internal pay structure. They compare both with other jobs in the same internal structure and with the pay for their job in the external market. (ie at competing employers) Two sources of fairness are important: the procedures for determining the pay structure, called procedural justice; and the results of those procedures-the pat structure itself-called distributive justice.

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

Equal experience

According to the text, when are pay procedure more likely to be perceived as fair?

Pay procedure are more likely to be perceived as fair (1) if they are consistently applied to all employees, (2) if employees participated in the process, (3) if appeals procedures are included, and (4) if the data used are accurate.

Write a short note on pay structure

Pay structure refers to the array of pay rates for different work or skills within a single organization. The number of levels, the differentials in pay between the levels, and criteria used to determine those differences describe the structure.

Pay differences among levels in an organization are called differentials

TRUE

Teachers will feel pay structures are fair even when they are relatively low in the internal structure if they work in a high-paying school district

TRUE

Technology used in producing goods and services influences the organizational design, the work to be performed, and the skills/knowledge required to perform the work

TRUE

The difference between exchange value and use value surfaces when on firm acquires another

TRUE

Wage legislation affects wage structure at both the minimum and maximum pay level

TRUE

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

The extent of external competitiveness and equity

Which of the following theories predicts that individual performance will be maximized when the pay differentials between job levels are large?

Tournament theory

Jacob works at PrimeClean Corp. a car wash company. He is asked to follow a set of instructions in a predetermined order to wash a car. All the details include the amount of washing liquid to use for each type of care are clearly specified. In this case, Jacob's company is most likely to use a:

closely tailored pay structure.

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.

egalitarian

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

_____ Refers to the education, experience, knowledge, abilities, and skills required to perform work.

Human Capital

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

It sends the messages that all employees are valued equally