Compensation MGMT Quiz 2

Which of the following is the correct order of the steps in formulating a total compensation strategy?

Assess the strategy, map the strategy, implement the strategy, and reassess the strategy.

In the formula for predicting performance, the component most closely related to compensation is

M.

________ is the measure of how important total compensation is in the overall HR strategy.

Prominence

A compensation system that focuses on competitors' 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

A compensation system using market-based pay is most likely to be part of a(n) ________ strategy.

innovator

Career growth, hierarchy, and flexible design are most closely associated with the ________ aspect of mapping a total compensation strategy.

internal alignment

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.