Comp. Ch: 2
Cost-cutter
A compensation system focusing on system control and work specifications is most closely associated with a(n) _____ strategy.
Cost-cutter
A compensation system that focuses on competitor's labor costs is most closely associated with a(n) _____ strategy.
innovator
A compensation system using market-based pay is most likely to be part of a(n) _____ strategy.
More money
According to the Hudson survey, _____ is the single thing that would make 41 percent of the U.S. workers happier.
A more flexible work schedule
Based on the opinions of 10,000 U.S. workers, Hudson found that when given their choice of unconventional benefits, most employees would select _____.
Internal alignment
Career growth, hierarchy, and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.
external competitiveness
Comparisons on the forms of compensation used by other companies are part of _____.
innovator
Flexible-generic job descriptions would most likely be used with a(n) _____ strategy.
objectives
In mapping a total compensation strategy, the question of how important compensation is in the overall HR strategy is part of _____.
"M"
In the formula predicting performance, the component most closely related to compensation is _____.
management
Issues of transparency, technology, and choice are most closely associated with the _____ aspect of mapping a total compensation strategy.
Improves attitudes and behaviors
Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high-performance practices.
it is unclear what compensation practices
Research shows that _____ will effectively shift an organization in a downward performance spiral to an upward one.
Helps ensure passing the differentiation test.
The alignment test
Assess Total Compensation Implications
The first step of developing a total compensation strategy is to:
Reassess
The fourth step of developing a total compensation strategy is to:
ownership
The role non-HR managers play in making pay decisions is called _____.
Map a Total Compensation Strategy
The second step of developing a total compensation strategy is to:
Implement strategy
The third step of developing a total compensation strategy is to:
People are "human capital," similar to other factors of production.
Trying to measure an ROI for any compensation strategy implies that
assessing
Union preferences are a major factor in _____ a total compensation strategy.
Performance-based pay plans do not pay off (example of a vicious cycle)
When organization performance declines
Alignment test, differentiation test, value-addition test
Which of the following are a test of whether a pay strategy is a source of competitive advantage?
External Competitiveness, management, employee contributions, internal alignment
Which of the following are included in a strategy map?
cost-effectiveness test
Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage?
HR Alignment
Which of the following is NOT included in a strategy map?
The effect of performance incentives depends on the context; Embedding compensation strategy in HR strategy affects results; The effect of paying more than competitors depends on the context.
Which of the following statements is NOT False?
Focusing only on one dimension of pay strategy is a best practice.
Which of the following statements is NOT true?
Allowing employees their choice is difficult to manage; Providing unlimited choices for employees to choose from is difficult to design; Providing too many choices can confuse people
Which of the following statements regarding allowing employees a choice in their pay mix is NOT false?
Allowing employees their choice is easy for competitor companies to imitate
Which of the following statements regarding allowing employees a choice in their pay mix is NOT true?
Alignment is the easiest test to pass and also helps ensure passing the differentiation test
Which of the following tests of competitive advantage is probably the easiest test to pass?
Internal alignment
Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision?
Prominence
_____ is the measure of how important total compensation is in the overall HR strategy.
Transparency
_____ refers to openness and communication about pay.