Chapter 3 Flashcards
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
Level of work
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
Responsibilities to the organization’s goals
The exchange value of a job is determined by
A) negotiation.
B) job evaluation.
C) the value of goods or services produced
D) performance.
Negotiation
Which of the following is not an organizational factor? A) Strategy B) Technology C) Cultures and customs D) Human capital
Cultures and Customs–it is an external factor
Which of the following structures do labor unions prefer? A) Tailored B) Loosely coupled C) Hierarchical D) Egalitarian
Egalitarian
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
F
The pay relationship among different jobs within a single organization is called internal equity.
A) True
B) False
T
Differences in productivity are a good rationale for internal pay structures.
A) True
B) False
T
The major determinant of pay of a senior engineer is most likely the rate other competitors are paying.
A) True
B) False
F
CEO’s seeking high salaries are more likely to find them in organizations with hierarchical pay structures.
A) True
B) False
T
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
Seniority and experience
\_\_\_\_\_\_\_\_\_\_\_\_\_ 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
Line of sight
Delayering likely leads to higher pay levels.
A) TRUE
B) FALSE
T
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
Exchange
Small differentials is to large differentials as \_\_\_\_\_\_\_\_\_\_ is to performance. A) cooperation B) teams C) equal treatment D) individual performers
Equal Treatment
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
F
\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 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
Internal labor market
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
refers to firms that copy innovative practices adopted by other organizations
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
T
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
Tournament
What is internal alignment?
Pay relationships among different jobs/skills within single organization
What is a pay structure?
array of pay rates for different work in a single organization
What 3 things should a pay structure do?
- Support organization strategy
- Support work flow
- Motivate behavior toward organization objectives
What is work flow?
process by which goods and services are delivered to the customer
How is an internal pay structure defined?
- number of levels of work
- the pay differentials between the levels
- the criteria or bases used to determine those levels and differentials
What are the most common bases for determining internal structures?
Content and value
What is use value?
reflects the value of goods or services an employee produces in a job
What is exchange value?
whatever wage the employer and employee agree on or a job
What are External factors that shape internal structures?
economic pressures
Government policies, laws, etc.
Stakeholders
Cultures and customs
What are Organization factors that shape internal structures?
Strategy Technology Human capital HR policy Employee acceptance Cost implications
