MGT 308 Quiz 3

Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large? a. Tournament theory b. Equity theory c. Marginal productivity theory d. Reinforcement theory

a. Tournament theory

Jacob works at PrimeClean Corp., a carwash company. He is asked to follow a set of instructions in a predetermined order to wash a car. All the details including the amount of washing liquid to use for each type of car are clearly specified. In this case, Jacob's company is most likely to use a: a. closely tailored pay structure. b. loosely coupled pay structure. c. pay structure with large differences in pay among jobs. d. pay structure that is highly flexible.

a. closely tailored pay structure.

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 _____. a. procedural justice b. distributive justice c. internal equity d. external equity

a. procedural justice

Which of the following is NOT a factor in defining equal work according to the Equal Pay Act? a. Equal skill b. Equal effort c. Equal experience d. Equal responsibility

c. Equal experience

Which of the following pay structure procedures would NOT increase perceptions of pay fairness? a. Consistently applying pay procedures to all employees b. Using accurate data c. Hiring consultants to develop the pay structure d. Including appeals procedures

c. Hiring consultants to develop the pay structure

Which of the following is NOT one of the factors that define an internal pay structure? a. The pay differentials between the levels b. The criteria used to determine pay differentials c. The number of times the pay structure has been changed d. The number of levels of work

c. The number of times the pay structure has been changed

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. a. egalitarian b. bureaucratic c. loosely coupled d. closely tailored

c. loosely coupled

Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her? a. A company that uses an egalitarian pay structure b. A company that pays its employees based on their seniority rather than their performance c. A company that uses a hierarchical pay structure to pay its employees based on performance d. A company that pays all its employees the same amount of money

c. A company that uses a hierarchical pay structure to pay its employees based on performance

Organization factors that shape internal pay structures include all BUT which of the following? a. Technology b. Cost implications c. HR policy d. Economic pressures

d. Economic pressures

Egalitarian pay structures have all BUT which of the following characteristics? a. Few levels b. Small differentials c. Support equal treatment d. Prefer individual performance over team performance

d. Prefer individual performance over team performance

Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance to his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels. In this case, he is most likely to use a(n): a. highly layered pay structure. b. hierarchical pay structure. c. highly inequitable pay structure. d. egalitarian pay structure.

d. egalitarian pay structure.

External factors are dominant influences on jobs filled via: a. demotions. b. promotions. c. transferring employees. d. hiring graduates.

d. hiring graduates.

The parable of the vineyard owner and the compensation paid to the laborers illustrated: a. the payment to the laborers according to their productivity. b. the payment to the laborers based upon the content of the job. c. the payment to the laborers based upon the hours of work. d. the ignorance of the owner toward the content of work.

d. the ignorance of the owner toward the content of work.

Most unions prefer which of the following? a. Small pay differences among jobs and seniority-based promotions b. Large pay differences among jobs and seniority-based promotions c. Large pay differences among jobs and performance-based promotions d. Equal pay raises for employees

a. Small pay differences among jobs and seniority-based promotions

The well-defined jobs at McDonald's and their small differences in pay are an example of a(n) _____ internal pay structure. a. closely tailored b. loosely coupled c. very competitive d. egalitarian

a. closely tailored

The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____. a. the difficulty in external recruitment b. in maintaining cooperation among employees c. the perception of excessive CEO pay d. the difficulty in performing teamwork

a. the difficulty in external recruitment

The most common bases for determining internal structures are: a. work content and its value b. seniority and experience c. use value and exchange value d. pay surveys and job evaluation

a. work content and its value

When cooperation is important for successful organization performance, which of the following pay structures is most suitable? a. A tournament theory-based pay structure b. An egalitarian pay structure c. An hierarchical pay structure d. A layered pay structure

b. An egalitarian pay structure

Hierarchical pay structures have all BUT which of the following characteristics? a. Support a close fit with the organization b. Prefer team performance over individual performance c. Many levels d. Based upon the job or person

b. Prefer team performance over individual performance

Content refers to the a. worth of the work. b. work performed in a job and how it gets done. c. relative contribution of the work to the organization objectives. d. different pay level policies.

b. work performed in a job and how it gets done.