Compensation Chapter 3
When cooperation is important for successful organization performance, which of the following pay structures is most suitable?
An egalitarian pay structure
Which of the following is NOT a characteristic of aligned pay structures?
Characteristics: They support the way work gets done; they fit an organization's business strategy; they are fair. Not: They are designed to increase the turnover rate.
Which of the following is NOT one of the factors that define an internal pay structure?
Factors: The pay differentials between the levels; the criteria used to determine pay differentials; the number of levels of work NOT: The number of times the pay structure has been changed.
Which of the following is NOT a factor in defining equal work according to the Equal Pay Act?
Factors: equal skill, equal effort, equal responsibility Not: equal experience
_____ are related to greater performance when the work-flow depends on individual contributors.
More hierarchical structures
James says, "I don't trust the way the company determines pay rates in my department." If James feels this way despite being happy with his current salary, he is most likely concerned about _____.
Procedural justice
In the strategic approach to pay, internal alignment is the _____ issue to be decided.
Second Note: first issue is setting objectives.
Most unions prefer which of the following
Small pay differences among jobs and seniority-based promotions
Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large?
Tournament theory
The most common bases for determining internal structures are:
Work content and its value
Which of the following pay structure procedures would NOT increase perceptions of pay fairness?
Would: Consistently applying pay procedures to all employees; using accurate data; including appeals procedures. Not: hiring consultants to develop the pay structure
Most job structures are best described as:
both person- and job-based structures
The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure.
closely tailored
In firefighting and rescue squads and global software design teams, a(n) _____ structure is most closely associated with higher performance.
egalitarian
External factors are dominant influences on jobs filled via:
hiring graduates
Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a(n) _____ internal pay structure.
loosely coupled
The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____.
the difficulty in external recruitment. Must not have problems in maintaining cooperation among employees, the perception of excessive CEO pay, the difficulty in performing teamwork.
Pay for temporary workers is based upon:
the internal structures of their home employer.
Marginal productivity theory argues that employers pay _____.
use value
Content refers to the:
work performed in a job and how it gets done.
Hierarchical pay structures have all BUT which of the following characteristics?
Have: Support a close fit with the organization; many levels; based upon the job or person; greater differences in pay between levels and top and bottom jobs. Not: Prefer team performance over individual performance.
Egalitarian pay structures have all BUT which of the following characteristics?
Have: few levels, small differentials, support equal treatment Not Have: Prefer individual performance over team performance.
Common bases for modern pay structures include all BUT which of the following?
Include: The content of the work; the skills and knowledge required to perform the work; the work's relative value for achieving organizational objectives Not Include: The extent of external competitiveness and equity
Organization factors that shape internal pay structures include all BUT which of the following?
Include: strategy, technology, human capital, HR policy, employee acceptance and cost implications. Not: will pick something from external factors or internal structure. See pg. 80 of text.
Which of the following is NOT true?
Large raises with a promotion decreases effort and increases absenteeism.
