Chapter 3

Question 1

The reporting relationships of an internal pay structure is a part of which of the following? 
  A) Work process 
  B) Level of work 
  C) Differential 
  D) Criteria

Answer 1

Level of work

Question 2

Which of the following does not refer to content?
A) Skills required
B) Complexity of tasks
C) Problem solving
D) Responsibilities to the organization’s goals

Answer 2

Responsibilities to the organization’s goals

Question 3

The exchange value of a job is determined by
A) negotiation.
B) job evaluation.
C) the value of goods or services produced
D) performance.

Answer 3

Negotiation

Question 4

Which of the following is not an organizational factor? 
  A) Strategy 
  B) Technology 
  C) Cultures and customs 
  D) Human capital

Answer 4

Cultures and Customs–it is an external factor

Question 5

Which of the following structures do labor unions prefer? 
  A) Tailored 
  B) Loosely coupled 
  C) Hierarchical 
  D) Egalitarian

Answer 5

Egalitarian

Question 6

In the parable of the vineyard owner, compensation was regarded as fair by the laborers because it was based upon hours each worked.
A) True
B) False

Answer 6

F

Question 7

The pay relationship among different jobs within a single organization is called internal equity.
A) True
B) False

Answer 7

T

Question 8

Differences in productivity are a good rationale for internal pay structures.
A) True
B) False

Answer 8

T

Question 9

The major determinant of pay of a senior engineer is most likely the rate other competitors are paying.
A) True
B) False

Answer 9

F

Question 10

CEO’s seeking high salaries are more likely to find them in organizations with hierarchical pay structures.
A) True
B) False

Answer 10

T

Question 11

Common bases for modern pay structures include all but which of the following?
A) content of the work
B) skills and knowledge required to perform the work
C) seniority and experience
D) relative value for achieving organizational objectives

Answer 11

Seniority and experience

Question 12

\_\_\_\_\_\_\_\_\_\_\_\_\_ is when workers can see the links between their work, the work of others and the organization's objectives. 
  A) procedural justice 
  B) internal equity 
  C) line of sight 
  D) strategic goal congruence

Answer 12

Line of sight

Question 13

Delayering likely leads to higher pay levels.
A) TRUE
B) FALSE

Answer 13

T

Question 14

Use value is to "the value of goods or services produced by an employee" as \_\_\_\_\_\_\_\_\_\_ value is to "the wage of a job agreed upon by employer and employee". 
  A) marginal productivity 
  B) exchange 
  C) surplus 
  D) exploitation

Answer 14

Exchange

Question 15

Small differentials is to large differentials as \_\_\_\_\_\_\_\_\_\_ is to performance. 
  A) cooperation 
  B) teams 
  C) equal treatment 
  D) individual performers

Answer 15

Equal Treatment

Question 16

To maintain internal equity, pay for temporary workers is determined by how the job fits into the pay structure of the client employer rather than the temporary agency.
A) TRUE
B) FALSE

Answer 16

F

Question 17

\_\_\_\_\_\_\_\_\_\_\_\_\_\_ refers to rules and procedures that determine pay for different jobs in an organization and allocates employees among these jobs. 
  A) Job evaluation 
  B) Pay structure 
  C) HR policies 
  D) Internal labor market

Answer 17

Internal labor market

Question 18

The institutional model __________________
A) is adopted by high performing, innovative organization
B) refers to firms that copy innovative practices adopted by other organizations
C) is another name for the bureaucratic model
D) is a hybrid of the hierarchical and egalitarian model

Answer 18

refers to firms that copy innovative practices adopted by other organizations

Question 19

Recent research indicates that the performance effects of pay dispersion depends upon the basis of dispersion and to what degree pay is dispersed.
A) TRUE
B) FALSE

Answer 19

T

Question 20

According to what theory would you and other players tend to do better in a game if there were 3 prizes and the money for first was $60,000, second, $88) 30, 000 and third, $10,000? 
  A) institutional 
  B) marginal revenue product 
  C) reinforcement 
  D) tournament

Answer 20

Tournament

Question 21

What is internal alignment?

Answer 21

Pay relationships among different jobs/skills within single organization

Question 22

What is a pay structure?

Answer 22

array of pay rates for different work in a single organization

Question 23

What 3 things should a pay structure do?

Answer 23

1. Support organization strategy
2. Support work flow
3. Motivate behavior toward organization objectives

Question 24

What is work flow?

Answer 24

process by which goods and services are delivered to the customer

Question 25

How is an internal pay structure defined?

Answer 25

1. number of levels of work
2. the pay differentials between the levels
3. the criteria or bases used to determine those levels and differentials

Question 26

What are the most common bases for determining internal structures?

Answer 26

Content and value

Question 27

What is use value?

Answer 27

reflects the value of goods or services an employee produces in a job

Question 28

What is exchange value?

Answer 28

whatever wage the employer and employee agree on or a job

Question 29

What are External factors that shape internal structures?

Answer 29

economic pressures
Government policies, laws, etc.
Stakeholders
Cultures and customs

Question 30

What are Organization factors that shape internal structures?

Answer 30

Strategy
Technology
Human capital
HR policy
Employee acceptance
Cost implications