Chapter 2 Flashcards
The question, “How do we win or gain competitive advantage?” is answered by ____________________.
business unit strategies
_________________is not associated with the compensation system associated with HR program alignment for an innovator strategy
increased variable pay
T/F IBM’s strategy of emphasizing internal alignment has proved successful despite changes in the company’s business strategy
F
Whole Foods’ decision to seek and engage employees who are going to help the company make money is an example of which strategic pay decisions?
Objectives
The Hudson survey found that \_\_\_\_ percent of employees were satisfied with their compensation but nearly \_\_\_ would change the mix of cash and benefits if they could. A) 75, half B) 30, three-fourths C) 90, one quarter D) 50, one quarter
75, half
T/F Because unions represent less than 10 percent of the private sector labor force, they have relatively little influence on companies’ pay strategies and policies.
F
T/F Although Microsoft and SAS as in the same industry, their compensation strategies are different
T
All of the following is not a test of whether a pay strategy is a source of competitive advantage? A) alignment with business strategy B) Efficient C) Differentiation D) Adding value
Efficient
Whole Food policy of "no secrets" is an example of \_\_\_\_\_\_\_\_\_\_\_ strategic compensation choice. A) objectives B) internal alignment C) employee contributions D) management
Management
Which of the following statements is not true?
A) Embedding compensation strategy within the broader HR strategy affects results.
B) It is best to consider all dimensions of compensation strategy vs one dimension.
C) Paying more than competitors is a best practice.
D) Both larger and smaller internal pay differences affect performance.
C) Paying more than competitor is best practice.
"Fostering team culture and emphasizing collaboration" falls under which of the following compensation strategies? A) Objective B) Internal alignment C) Externally competitiveness D) Employee contribution
Internal alignment
Gaining competitive advantage in the current business is a strategic choice in which of the following level? A) Corporate B) Business unit C) Functional D) Operational
Business Unit
According to Michael Porter's strategy work, firms that seek to provide a unique and/or innovative product or service at a premium price are said to follow a \_\_\_\_\_ strategy. A) prospectors B) defenders C) cost leadership D) differentiation
differentiation
"Emphasizing on productivity and operational excellence" is part of which of the following strategies? A) Innovator B) Defenders C) Cost cutter D) Customer focused
cost cutter
According to Miles and Snow, firms that operate in stable markets and compete on cost are referred to as \_\_\_\_\_. A) defenders B) prospectors C) innovators D) differentiators
defenders
Though in different businesses, Medtronic, Merrill Lynch and Google have very similar pay strategies.
A) True
B) False
F
Compensation is the key to attracting, retaining, and motivating employees with the abilities necessary to execute the business strategy and handle greater decision-making responsibilities.
A) True
B) False
T
All organizations that pay people have a compensation strategy.
A) True
B) False
T
The value of offering employees choices in compensation mix may be offset by employees’ poor choices and communication costs.
A) True
B) False
T
Alignment is often used in marketing to clarify and communicate a product’s identity.
A) True
B) False
F–mapping is used
Can companies in the same industry have different pay strategies?
Yes
Can the same company have different pay strategies?
Yes
What business strategy supports new products and short response time to market trends?
Innovator-
Michael Porter =”differentiation”
Miles and Snow=”Prospectors”
What business strategy stresses doing more with less?
Cost Cutter
Michael Porter=Cost Leadership
Miles and Snow=Defenders
What business strategy focuses on delighting customers and bases employee pay on how well they do this?
customer-focused
What are the 4 steps to developing a compensation strategy?
- Assess total compensation implications
- Map a total compensation strategy
- Implement strategy
- Reassess
T/F When given their choice of unconventional benefits, most employees would select flexible work schedule and additional family benefits over job training and supplemental insurance
T
What are the three test to determine if a pay strategy is a source of advantage?
- Is it aligned?
- Does it differentiate?
- Does it add value?
What are the differences between “best practices” and “best fit”?
Best practices are applied universally
Best fit reflects company’s strategy and vision
