Chapter 11 Quiz

When Maria was starting her small business, she took a class about pay structures. She read about the benefits of person-based pay structures. She would like to use the person-based pay structure at her small business. What should she do?

tie employee pay to the unique abilities they contribute

Some organizations base their pay levels and pay structure directly on their competitors' pay levels and pay structures, a process that is referred to as ______.

market pricing

The ______ reflects the relationship between the internal job structure of the organization for benchmark jobs and the external pay practices of other organizations.

market pay line

According to Brown, women should "toot their own horn" without adjusting their approach when negotiating pay.

False

Employees rank pay as the number one reason for choosing one job over another.

False

Pay inversion occurs when the CEO earns several times what the average worker is paid.

False

Procedural justice refers to the perceived equality regarding allocation of an outcome or resource.

False

______ stems from equity theory and similarly focuses on perceptions of fairness in the workplace.

Organizational justice theory

______ occurs when a recently hired employee with relatively little experience earns nearly as much or the same as a more experienced, longer-tenured employee in the same job.

Pay compression

According to the VP of People for Procore Technologies, all their people should be paid within the market based range. To ensure this, they would likely perform a compa-ratio analysis.

True

Blount administers its pay structure in a way that is consistent with the textbook's recommendations regarding internal and external equity.

True

In 2017, African American/Black and Hispanic/Latino workers earned $0.75 and $0.74, respectively, for every $1.00 White workers earned.

True

In her TED talk, Brown states that a larger wage gap exists between male and female business owners than among male and female employees.

True

Market analyses like those conducted at Blount involve collecting pay data for benchmark jobs.

True

Within Procore Technologies, employee performance is a factor used in determining pay position within a market based range. According to your textbook, length of time in the position is also a consideration.

True

Applying equity theory principles, an employee who experiences inequity related to compensation might feel motivated to ______.

ask for a raise

In this video, the VP of People states that the worth of a Procore Technologies job is evaluated based on its value compared with market based pay. According to your textbook, what is the common denominator used when comparing jobs across different organizations?

benchmark jobs

Alli likes her job and the organization for which she works. She puts in extra hours for which she is not paid. She is comfortable with being underpaid for her time because she enjoys making a contribution to the firm. When her boss gives her a bonus for her hard work, she is uncomfortable with what she perceives as over-reward. Alli is displaying a(n) ______ orientation

benevolent

The process of collapsing multiple pay grades into one large grade with a single minimum and maximum is referred to as ______.

broadbanding

Drew, a manager, has to tell one of his direct reports that she will not receive a year-end bonus, but her teammates will. Drew knows he will have to communicate this information respectfully. What else does Drew need to do to help create a perception of interactional justice?

carefully explain that the process used to make this decision was fair

According to Casey Brown's TED talk, you can control the thinking of those that determine your pay by ______.

clearly defining and communicating your value

In job evaluation, ______ are the common dimensions by which jobs vary in terms of worth.

compensable factors

Which of these is the greatest cost for employers?

compensation

Tony thinks quarterly bonuses were allocated unfairly. Which type of organizational justice is Tony concerned with?

distributive

Travis knows that the company did not make enough in the previous year to justify giving everyone their customary cost-of-living adjustment. He wants to make sure that the process of deciding who does get a pay increase is completely ethical. Travis is attempting to balance what will be perceived as low ______ with high ______.

distributive justice; procedural justice

Theresa normally feels like she is overpaid relative to her contribution to the company. However, this overpayment does not bother her. What does bother her is being given a difficult project with a short deadline but not being given any extra money for completing it on time. This makes her feel underpaid. She complains to her manager about the lack of fair reward for this work. Theresa is displaying a(n) ______ orientation.

entitlement

At Blount, jobs with similar job evaluation point values are assigned a ______.

grade

Employees who perceive the way rewards are determined and allocated is unfair are less likely to ______.

help others on the job

To conduct an effective market review, ______ need to be available for benchmark jobs.

job descriptions

A ______ refers to the ranking of jobs in an organization based on their respective worth.

job structure

Grant is on a team of subject matter experts performing a job evaluation using the ranking method. They have already gathered the job descriptions for the company's many positions. What should they undertake next?

order the jobs in terms of their relative contribution

A ______ represents how an organization translates information about the internal job structure and external pay rates of competitors into actionable pay practices.

pay policy line

What kind of pay structure emphasizes people's unique competencies and skills when determining pay?

person-based

The three prominent approaches for conducting a job evaluation include the ranking method, the classification method, and the ______.

point-factor method

What method of job evaluation orders jobs based on their respective worth to the company?

ranking method

A ______ refers to the policies, procedures, and practices used by an organization to determine the amount and types of returns individuals, teams, and the organization receive in exchange for their membership and contributions.

reward system

In job-based pay structures, employees are paid based on ______.

the content of the jobs they perform