Chapter 3 Defining Internal Alignment

Seniority and experience

1. 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. Seniority and experience D. Relative value for achieving organizational objectives

explain to them how pay was determined

10. 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

comparing their pay raises to others in their organization

11. 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

hierarchical

12. 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

true

13. Internal alignment is sometimes called internal equity. True False

true

14. A pay structure refers to the array of pay rates for different work or skills within a single organization. True False

false

16. A job-based structure focuses on the skills, knowledge and competencies employees possess. True False

true

17. Both external and organizational factors shape internal pay structures. True False

true

18. A potential problem in egalitarian pay structures is high performing employees may feel underpaid and quit. True False

The pay structure

2. _____ 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

Performance pay

3. 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

line-of-sight

4. 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.

work performed in a job and how it gets done

5. 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

both person- and job-based

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

the internal structure of their home employer

7. 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.

procedural justice

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

distributive justice

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