Chapter 7 - Defining competitiveness
Labor cost =
(pay level) times (number of employees)
what shapes the external competitiveness?
1) competition in the labor market for people with various skills. 2)competition in the product and service markets. 3) characteristics unique to each organizations
efficiency wage theory
A theory stating that wages influence worker productivity
Which of the following are not relevant labor market competitors
Charles Schwab and Gold's Gym
The supply side theory that suggests that workers compete for jobs with established wages is
Job competition theory
Which pay level policy is most likely reduce the ability to attract employees, reduce labour costs and contribute to pay dissatisfaction?
LAG
External competitiveness refers to the __________ of one organization's pay to that of its __________ .
Relationship; competitors
Companies often set different pay level policies for different job families.
TRUE
When the supply of labor is not responsive to changes in pay, product market competitor data are likely to be weighted more than labor market competitor data.
TRUE
marginal product of labor
The additional output a firm produces as a result of hiring one more worker
External competitiveness
The pay relationships among organizations - the organizations pay relative to its competitors
If you were seeking a job, which of the following is most likely to offer the highest pay?
a large (over 500 employees) petroleum company
bourse
a market that allows haggling over terms and conditions until an agreement is reached.
A company can achieve external competitiveness by setting pay levels _____ that of competitors.
above, equal to, OR Below
The demand side of the labor market looks at
amount of pay employers are willing to pay their employees
Pay forms
are various types of payments, or pay mix, that make up total compensation.
The concept underlying marginal product is _________
constant factors of production lead to diminished productivity with additional hires
A compensation mix is
different percentages allocated to base, bonuses, benefits and options
If an employer wanted reduce turnover, use fewer supervisors and have less "screwing around" by employees, following which wage theory would be most likely to achieve these goals?
efficiency wage
) Which of the following pay policies are most likely to attract, retain and contain labor costs
employer of choice
The four basic assumptions that begin most labor market theories include all EXCEPT _____.
employers always seek to maximize profits, pay rates reflect all costs associated with employment, markets faced by employers are competitive. people are not homogeneous and therefore not interchangeable CORRECT
Competitiveness policy affects the compensation objectives of
fairness, compliance, efficiency
An organization becomes known as an employer of choice because it _____
has a reputation as a good place to work
Other things being equal, the higher the pay level, the
higher the labor costs
marginal revenue of labor
is the additional revenue generated when the firm employs additional person with other production factors held constant
A non-unionized company may use a_____ to ensure employee satisfaction with pay, attract new employees and head off unions.
lead policy
Conventional policies that establish pay-level policies include all EXCEPT _
level policy
The additional output from hiring one additional production worker (with other production factors held constant) is
marginal product of labor
Which of the following is not a labor demand theory?
matching
A reservation wage is the ______.
minimum wage job seekers will accept
organizational factors that influence pay level and mix decisions include all EXCEPT _____.
organization size,industry, employee preferences provincial and federal regulations CORRECT
Business strategy, technology and productivity and experience of the work force are factors that influence _____.
pay-level and pay-mix decisions
Under the human capital theory, a ____ is paid more than a _____
person with a college degree; person without a college degree
Pay level
refers to the average of the array of rates paid by an employer, Base + bonuses + benefits +value of stock / number of employes
In which of the following pay-mixes are bonuses and options the smallest?
security or commitment
Which of the following theories is most similar to establishing a brand for a product or service?
signaling
The three factors usually used to define the relevant labor market for a particular job include all of the following EXCEPT _
skill and knowledge, willingness of workers to relocate, commute or become virtual employees, nationwide averages of labor market rates other employers in the same product/service and labor market CORRECT
Quoted price
stores that label each items price or ads that list a jobs opening starting wage are examples of quoted markets
A study of graduating college students found they were looking for all but which of the following?
team-based pay
utility theory
the dollar value created by increasing revenues and/or increasing costs by changing one or more human resource practice.
