Management Question

QUESTION 1

1. Flexible-generic job QUESTIONs would most likely be used a(n)_________strategy.

   		customer-focused
   		cost-cutter
   		innovator
   		differentiated

1 points

QUESTION 2

1. Strategy refers to the fundamental direction that an organization chooses.

   true/ False

1 points

QUESTION 3

1. Incentives do not permanently increase labor costs because:

   		they are given based on the past performance of employees.
   		they increase the base wage.
   		they are one-time payments.
   		they rely on a subjective rating of performance.

1 points

QUESTION 4

1. Since unions represent such a small fraction of the labor force, their influence on pay decisions is insignificant.

   True False

1 points

QUESTION 5

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

   		customer-focused
   		cost-cutter
   		cost leadership
   		innovator

1 points

QUESTION 6

1. Comparisons based on the forms of compensation used by other companies are part of:

   		corporate responsibility.
   		employee contributions.
   		external competitiveness.
   		internal alignment.

1 points

QUESTION 7

1. Internal alignment pertains to the pay rates both for employees doing equal work and for those doing dissimilar work.

   True False

1 points

QUESTION 8

1. Jacob works at PrimeClean Corporation, a car wash 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:

   		closely tailored pay structure.
   		loosely coupled pay structure.
   		pay structure with large differences in pay among jobs.
   		pay structure that is highly flexible.

1 points

QUESTION 9

1. Compensation is often a company’s largest controllable expense.

   True False

1 points

QUESTION 10

1. Many employers are easily able to justify the time and expense of collecting task-level information, particularly for flexible jobs with frequently changing tasks.

   True False

1 points

QUESTION 11

1. When cooperation is important for successful organization performance, which of the following pay structures is most suitable?

   		A layered pay structure
   		A tournament theory-based pay structure
   		A hierarchical pay structure
   		An egalitarian pay structure

1 points

QUESTION 12

1. Which of the following statements is true of compensation strategies?

   		Compensation strategies may differ between industries but fail to differ between companies in the same industry.
   		Compensation strategies may differ within a company, especially one with a variety of business units.
   		Compensation strategies are static and only rarely evolve over time.
   		A simple strategy of “let the market decide our compensation” may work internationally, but not domestically.

1 points

QUESTION 13

1. All organizations that pay their employees have a compensation strategy even though it may not be stated or written.

   True False

1 points

QUESTION 14

1. Which of the following is often the largets component in an executive pay package?

   		Merit bonuses
   		Incentives
   		Stock options
   		Base pay

1 points

QUESTION 15

1. Objectives guide the design of pay systems and provide standards for evaluating their effectiveness.

   True False

1 points

QUESTION 16

1. _________are related to greater performance when the work flow depends on individual contributors.

   		More delayered structures
   		More egalitarian structures
   		More hierarchical structures
   		More even-handed structures

1 points

QUESTION 17

1. A structure based on value typically ranks jobs on:

   		the relative contribution of skills.
   		the complexity of the tasks involved.
   		the skills required to complete tasks.
   		problem-solving abilities.

1 points

QUESTION 18

1. 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.

   		closely tailored
   		bureaucratic
   		loosely coupled
   		egalitarian

1 points

QUESTION 19

1. Which of the following is a fundamental objective, and NOT a policy, of the pay model?

   		Alignment
   		Fairness
   		Competitiveness
   		Contributions

1 points

QUESTION 20

1. In the context of the job analysis process, verification often involves the jobholders as well as their supervisors to determine whether the proposed job QUESTION is accurate and complete.

   True False

1 points

QUESTION 21

1. Which of the following statements concerning cash compensation and the Fair Labor Standards Act is true?

   		Managers and professionals usually fit the category of nonexempt worker.
   		Labeling all base pay as “salary” means the employer does not have to follow the FLSA regulations.
   		Exempt workers receive overtime pay.
   		Nonexempt employees have their pay calculated at an hourly wage.

1 points

QUESTION 22

1. Work that requires more knowledge or skills, is performed under unpleasant conditions, or adds more value is usually paid more. This is usually reflected in the organization’s______________.

   		job-based structure
   		levels
   		egalitarian structure
   		differentials

1 points

QUESTION 23

1. Commissions are an example of incentives.

   True False

1 points

QUESTION 24

1. Which of the following is true about a job specification?

   		It primarily focuses on a specific job rather than on individuals who are expected to perform that job.
   		It is the list of knowedge, skills, and abilities, that are necessary for an individual to have to perform a specific job.
   		It refers to a grouping of jobs based on their job-related similarities and differences and on their value to an organization’s objectives
   		It is the list of tasks, duties, and responsibiltities that make up a job.

1 points

QUESTION 25

1. The well-defined jobs at McDonald’s and their small differences in pay are an example of a(n)________ internal pay structure.

   		loosely coupled
   		very competitive
   		egalitarian
   		closely tailored

1 points

QUESTION 26

1. A specific statement of what a worker does on a job is known as a(n)

   		position.
   		appraisal.
   		job structure.
   		task.

1 points

QUESTION 27

1. Most firms do not have generic strategies but use a blend of cost and innovation.

   True False

1 points

QUESTION 28

1. In addition to supply and demand for labor, supply and demand for products and services also affect internal structures.

   True False

1 points

QUESTION 29

1. Most unions prefer which of the following?

   		Equal pay raises for employees
   		Large pay differences among jobs and seniority-based promotions
   		Large pay differences among jobs and performance-based promotions
   		Small pay differences among jobs and seniority-based promotions.

1 points

QUESTION 30

1. An organization defines its strategy through the trade-offs it makes in choosing what to do and what not to do.

   True False

1 points

QUESTION 31

1. Which of the following theories predicts that individual performance will be maximized when the pay differentials between job levels are large?

   		Equity theory
   		Reinforecement theory
   		Tournament theory
   		Marginal productivity theory

1 points

QUESTION 32

1. A compensation system focusing on operational excellence is most closely associated with a(n)__________strategy.

   		differentiated
   		cost-cutter
   		customer-focused
   		innovator

1 points

QUESTION 33

1. Research investigating high-performance workplaces found that performance-based pay ___________ when combined with other high-performance practices.

   		reduces labor costs
   		increases the number of middle men required
   		improves attitudes and behaviors
   		has little effect on quality

1 points

QUESTION 34

1. A set of identical positions makes a

   		task.
   		title.
   		job.
   		procedure.

1 points

QUESTION 35

1. Which of the following is an example of a relational return?

   		Income protection
   		A short-term incentive
   		Allowances
   		Employment security

1 points

QUESTION 36

1. Which of the following is NOT a factor in defining equal work according to the Equal Pay Act?

   		Equal experience
   		Equal effort
   		Equal responsibility
   		Equal skill

1 points

QUESTION 37

1. Which of the following is true of internal alignment?

   		It focuses on customer satisfaction and business growth.
   		It addresses pay relationships inside an organization.
   		It is the first issues in a strategic approach to pay.
   		It is often referred to as distributive justice.

1 points

QUESTION 38

1. Most organizations do not engage in any regular updating of job analysis information.

   True False

1 points

QUESTION 39

1. A PAQ may be used to gather which type of information?

   		Peformance criteria data
   		Job content data
   		Task data
   		Employee data

1 points

QUESTION 40

1. Managers seek internal alignment within their organization by:

   		following Fair Labor Standards Act guidelines.
   		paying on the basis of similarities among jobs.
   		matching competitors’ pay rates.
   		using fair merit increases.

1 points

QUESTION 41

1. When interpreting research evidence concerning compensation strategy, it is thought that embedding compensation strategy within the broader_______affects results.

   		business strategy
   		corporate strategy
   		HR strategy
   		business unit strategies

1 points

QUESTION 42

1. External factors are dominant influences on jobs filled via:

   		transferring employees.
   		promotions.
   		demotions.
   		hiring graduates.

1 points

QUESTION 43

1. When organization performance declines:

   		a virtuous circle may be created.
   		managers must avoid changing pay practices.
   		the employee attrition rate declines considerably.
   		performance-based pay plans do not pay off.

1 points

QUESTION 44

1. Which of the following is a fundamental strategic choice at the corporate level?

   		How should total compensation help this business gain and sustain competitive advantage?
   		Which dimension of the pay strategy should we focus on?
   		How do we gain and sustain competitive advantage in this business?
   		What buseinss should we be in?

1 points

QUESTION 45

1. Nina is a high-performing individual who works best alone. Which of the following companies is the most appropriate for her?

   		A company that pays its employees based on their seniority rather than their performance
   		A company that pays all its employees the same amount of money
   		A company that uses a hierarchical pay structure to pay its employees based on performance
   		A company that uses an egalitarian pay structure

1 points

QUESTION 46

1. _______refers to comparisons among jobs or skill levels inside a single organization.

   		Internal alignment
   		Compliance
   		Merit guidelines
   		External competitiveness

1 points

QUESTION 47

1. A difference between incentives and merit increases is that incentives

   		are relational returns, whereas merit increases are part of the total compensation.
   		rely on a subjective measure of performance, whereas merit increases rely on an objective measure of performance.
   		do not increase the base wage, whereas merit increases increase the base wage.
   		cannot be tied to the performance of an individual, whereas merit increases can be tied to the perofrmance of an individual.

1 points

QUESTION 48

1. Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance. In accordance with 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):

   		highly layered pay structure.
   		hierarchical pay structure.
   		egalitarian pay structure.
   		highly inequitable pay structure.

1 points

QUESTION 49

1. Compensation strategy, HR strategy, and business strategy ultimately seek to decrease costs or increase revenues, relative to competencies.

   True False

1 points

QUESTION 50

1. Quantitative job analysis methods help increase reliability.

   True False

1 points

QUESTION 51

1. How an organization positions its total compensation against its competitors is part of external competitiveness strategic choices.

   True False

1 points

QUESTION 52

1. A compensation system focusing on system control and work specifications is most closely associated with a(n) _________strategy.

   		differentiated
   		innovator
   		cost-cutter
   		customer-focused

1 points

QUESTION 53

1. The problem that is most likely to be faced by organizations using an egalitarian pay structure is

   		maintaining cooperation among employees
   		the perception of excessive CEO pay
   		the difficulty in external recruitment
   		the difficulty in performing teamwork

1 points

QUESTION 54

1. Mich Incorporated, a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a(n):

   		cost-cutter strategy.
   		innovator strategy.
   		customer-focused strategy.
   		differentiation strategy.

1 points

QUESTION 55

1. The list of tasks, duties, and responsibilites that make up a job is known as a

   		job search.
   		job specification.
   		job control.
   		job QUESTION.

1 points

QUESTION 56

1. Internal alignment is sometimes called internal equity.

   True False

1 points

QUESTION 57

1. The most common bases for determining internal structures are

   		pay surveys and job evaluation.
   		work content and its value.
   		seniority and experience.
   		use value and exchange value.

1 points

QUESTION 58

1. A compensation strategy should reflect an organization’s calues.

   True False

1 points

QUESTION 59

1. Pay differences among levels in an organization are called differentials.

   True False

1 points

QUESTION 60

1. A compensation system that focuses on competit