Pay Structures and Recognizing Employee Contributions
Which of the following is true of external equity pay comparison?
It influences employees' decisions regarding whether to stay or move to another organization.
Which of the following is true of the pay grade approach to developing a pay structure?
It permits greater flexibility in moving employees from job to job.
Which of the following is true of how managers may differ from shareholders? Managers can diversify the risks more easily. Managers are more likely to pursue projects with high potential payoffs. Managers are likely to place more emphasis on their base salary than on uncertain bonuses or incentives. Managers are less averse to risk. Managers diversify investments more easily.
NOT CORRECT - Managers diversify investments more easily.
The ________ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.
Securities and Exchange Commission
How would you describe ability and motivation?
behaviors
The TXM Corporation requires the best and brightest talent to work in its research and development labs. In order to compete for the best talent, the company has studied the best practices of other firms that compete with them for talent and compared it to their own practices. This is an example of
benchmarking.
The ________ is an index of the correspondence between actual and intended pay.
compa-ratio
The ________ hypotheses argues that women were historically restricted to entering a small number of occupations and, as a result, the supply of workers far exceeded demand, resulting in lower pay for such occupations.
crowding
Online Solutions, a software company, changed its pay structure from 3,400 job titles and 14 pay grades to a simpler structure with 1,000 jobs and 7 pay grades. The managers were then asked to choose pay levels that were based on the market. This is an example of
delayering.
Separating the functions of principals and agents is likely to result in
diversification of investment risk.
The Fair Labor Standards Act (FLSA)
established a minimum wage for jobs.
Letitia Fox, an exceptionally talented and hard-working finance middle manager at the Ryan Corporation, has been passed over for a promotion to a senior management position on three separate occasions in the last three years. She is extremely frustrated by the ________ that has kept her from becoming the first Black woman to be a senior executive at the company.
glass ceiling
When an organization is using growth strategy, it will
have pay levels that are below market levels in the short run.
In a(n) ________ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.
individual incentive
In incentive pay, performance measures are primarily based on
individual productivity.
HR managers at the Micro Motors Corporation are designing a pay system for the company. To establish equity in the pay system, which method should be used?
job evaluation
A basic feature of ________ is the compa-ratio, which controls compensation costs and maintains the integrity of the pay structure,
merit pay
Management at the LTM Corporation is working with HR to develop a new pay system. Given that management wants the system to be as rigorous and objective as possible where job values can be quantified, which method should it use for job evaluation?
point-factor system
Which of the following trade-offs does a company need to consider with compensation management?
risk-reward
If Nona and Xavier want to keep their individual incentives, then
they must realize that they are continuously earned and re-earned.