Compensation Ch 2
In the formula predicting performance, the component most closely related to compensation is
"M"
The alignment test A. is difficult to imitate. B. is the most difficult test. C. helps ensure passing the differentiation test. D. becomes difficult if the differentiation test is not clear.
Helps ensure passing the differentiation test.
Trying to measure an ROI for any compensation strategy implies that
People are "human capital," similar to other factors of production
The steps of developing a total compensation strategy:
Steps: 1. Assess Total Compensation Implications; 2. Map a Total Compensation Strategy; 3. Implement strategy; 4. Reassess
_____ refers to openness and communication about pay.
Transparency
A compensation system using market-based pay is most likely to be part of a(n) _____ strategy.
innovator
Which of the following tests of competitive advantage is probably the easiest test to pass?
Alignment is the easiest test to pass and also helps ensure passing the differentiation test
Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage?
Are: Alignment test, differentiation test, value-addition test Not: cost-effectiveness test
Which of the following is NOT included in a strategy map?
Are: External Competitiveness, management, employee contributions, internal alignment Not: HR Alignment
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.
Cost-cutter
Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high-performance practices.
Improves attitudes and behaviors
Career growth, hierarchy, and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.
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
Internal alignment
_____ is the measure of how important total compensation is in the overall HR strategy.
Prominence
Which of the following statements regarding allowing employees a choice in their pay mix is NOT true?
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 False: Allowing employees their choice is easy for competitor companies to imitate
Which of the following statements is NOT true?
True: 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. Not true: Focusing only on one dimension of pay strategy is a best practice.
Based on the opinions of 10,000 U.S. workers, Hudson found that when given their choice of unconventional benefits, most employees would select _____.
a more flexible work schedule.
Union preferences are a major factor in _____ a total compensation strategy.
assessing
All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy.
customer satisfaction incentives
Comparisons on the forms of compensation used by other companies are part of _____.
external competitiveness
Flexible-generic job descriptions would most likely be used with a(n) _____ strategy.
innovator
Research shows that _____ will effectively shift an organization in a downward performance spiral to an upward one.
it is unclear what compensation practices
Issues of transparency, technology, and choice are most closely associated with the _____ aspect of mapping a total compensation strategy.
management
According to the Hudson survey, _____ is the single thing that would make 41 percent of the U.S. workers happier.
more money
In mapping a total compensation strategy, the question of how important compensation is in the overall HR strategy is part of _____.
objectives
The role non-HR managers play in making pay decisions is called _____.
ownership
When organization performance declines
performance-based pay plans do not pay off.