Deck 3: Defining Internal Alignment

Question 1

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

A)Workflow value
B)Marginal value
C)Use value
D)Differential value
E)Exchange value

Answer 1

C

Question 2

is the shared norms and values that a group of people share in common

A)Culture
B)Cognition
C)Biasing
D)Selection
E)Recruiting

Answer 2

A

Question 3

refer to the pay variances between job levels in an organization.

A)Job benchmarks
B)Anomalies
C)Factor levels
D)Differentials
E)Earmarks

Answer 3

D

Question 4

Which of the following is a consequence of an internally aligned pay structure?

A)It hinders career progression.
B)It increases employees' experience.
C)It increases turnover.
D)It increases pay-related grievances.
E)It increases pay-related work stoppages.

Question 5

structure is a pay structure for well-defined jobs with relatively small differences in pay.

A)Egalitarian
B)Loosely coupled
C)Tailored
D)Flexible
E)Adaptive

Question 6

Which of the following is an external factor that influences internal structures?

A)cost implication
B)employee acceptance
C)culture and custom
D)HR policy
E)human capital

Question 7

Delayering is a work design change that involves:

A)reducing the budget allocated to individual departments
B)creating a union-free workforce
C)cutting down the number of work levels
D)establishing an ergonomic workflow
E)creating more number of supervisory jobs

Question 8

Research suggests that pay procedures are more likely to be perceived as fair if:

A)the data used are unverified
B)they are applied selectively to a few employees
C)employees participate in the process
D)there are no appeals procedures
E)employees' wages are very low

Question 9

Hierarchical pay structure is different from egalitarian pay structure in that:

A)the pay differentials between the levels in a hierarchical pay structure are small.
B)the job structure in a hierarchical pay structure has fewer levels.
C)hierarchical pay structure encourages employees to expect equal treatment irrespective of performance.
D)hierarchical pay structure places greater emphasis on individual performance than team performance.
E)hierarchical pay structure supports a fit that is loosely coupled.

Question 10

The array of pay rates for different work or skills within a single organization is referred to as _.

A)rate board
B)pay band
C)total cash
D)pay structure
E)pay scale

Question 11

An egalitarian pay structure is different from hierarchical pay structure in that:

A)the egalitarian pay structure supports individual performers more than teams.
B)the job structure in an egalitarian pay structure has greater number of levels.
C)the egalitarian pay structure supports a fit that is tailored.
D)the pay differentials between the levels in an egalitarian pay structure are large.
E)the egalitarian pay structure supports equal treatment of employees.

Question 12

The process by which goods and services are delivered to the customer is known as ________.

A)pay structure
B)workflow
C)line-of-sight
D)salary administration
E)procedural justice

Question 13

Setting greater pay differentials at the top of the pay structure is based on:

A)marginal productivity theory
B)institutional theory
C)equity theory
D)tournament theory
E)marginal utility theory

Question 14

Internal alignment refers primarily to:

A)the pay relationships among jobs, skills, and competencies within a single organization
B)the pay relationships in a geographic region
C)the strategy of paying above market salaries
D)the value of the work of one individual compared to that of another individual
E)the pay relationships of all jobs within the same industry

Question 15

With respect to the criteria used to determine the number of levels of work and differentials, refers to the work performed in a job and how it gets done.

A)value
B)content
C)return
D)procedure
E)contribution

Question 16

fairness, and legal compliance are the 3 consequences of an internally aligned pay structure.

A)Culture
B)Economic pressures
C)Organization factors
D)Efficiency
E)Human capital

Question 17

Whatever wage the employer and the employee agree upon is called:

A)differential value
B)nominal value
C)marginal value
D)use value
E)exchange value

Question 18

is the ability of the employee to see the link between an individual employee's work and the achievement of organizational objectives.

A)Marginal productivity
B)Workflow
C)Job evaluation
D)Internal alignment
E)Line-of-sight

Question 19

refers to the pay relationships between the jobs/skills/competencies within a single organization.

A)External alignment
B)Internal equity
C)Total alignment
D)Base pay
E)Total cash

Question 20

refer to rules and procedures that determine the pay for different jobs within a single organization and that allocate employees to those different jobs.

A)Customary labour markets
B)External labour markets
C)Marginal labour markets
D)Internal labour markets
E)Jurisdictional labour markets

Question 21

In the context of the criteria used to determine the levels of work and pay differentials, value refers to the work performed in a job and how it gets done.

Question 22

Applied to internal structures, procedural justice addresses whether the actual pay differences among employees are acceptable.

Question 23

A hierarchical pay structure implies a belief that all workers should be treated equally.

Question 24

Research on tournament theory shows that pay differentials do not affect an employee's performance.

Question 25

change(s)the value of jobs on the team and hence changes the job structure.

A)Self-management
B)Procedural justice
C)Employee redressal
D)Labour intensity
E)Ergonomic policies

Question 26

Marginal productivity theory states that:

A)people cognitively evaluate potential behaviours in relation to rewards offered in exchange.
B)an employee can produce anything of value if the profit margin of a product or service is large enough for the employer to reap.
C)unless an employee can produce something of value from his/her job equal to the value received in wages, it will not be worthwhile for an employer to hire that employee.
D)both employees and management will act opportunistically to obtain the most favourable exchange possible.
E)people are concerned about fairness of the reward outcomes exchanged for employee inputs.

Question 27

According to tournament theory, the greater the pay differential between an employee's present salary and his or her boss's salary, the harder the employee will work.

Question 28

The equity theory could support either egalitarian or hierarchical structures.

Question 29

Pay for non-entry jobs is buffered from external forces and is more heavily influenced by internal factors.

Question 30

In the context of internal labour markets, pay for non-entry jobs is heavily influenced by:

A)the wage paid at entry level
B)tenure with the organization
C)wages paid by other organizations for similar jobs
D)internal factors of the organization
E)availability of skills in the external market

Question 31

Employees judge the fairness or equity of their pay by comparing it to that for other jobs at their own employer but not to that for jobs at other employers.

Question 32

refers to the fairness of a process by which a decision is reached.

A)Marginal productivity
B)Tailored structure
C)Procedural justice
D)Distributive justice
E)Employee redressal

Question 33

A major influence on internal structures, the education, experience, knowledge, abilities, and skills that people possess is referred to as:

A)labour intensity
B)capital goods
C)cultural diversity
D)capital formation
E)human capital

Question 34

Internal alignment is the first pay policy issue in a strategic approach.

Question 35

Institutional theory predicts that very few firms are "first movers." Instead they copy innovative practices after innovators have learned how to make the practices work.

Question 36

Egalitarian structures are related to greater performance when the workflow depends more on individual contributions.

Question 37

An internal pay structure is defined by the number of levels of work, the pay differentials between the levels, and the criteria used to determine those levels and differentials.

Question 38

A hierarchical pay structure seeks to encourage teamwork by minimizing pay differentials among employees.

Question 39

Unions, stockholders, and even political groups have a stake in establishing internal pay structures.

Question 40

With respect to the criteria used to determine the number of levels of work and differentials, refers to the worth of the work: its relative contribution to the organization objectives.

A)value
B)endowment
C)content
D)return
E)contribution

Question 41

Bring out the difference between a job structure based on content and another based on value.

Question 42

What does a person-based structure focus on?

Question 43

What results can an organization expect if they do not utilize an acceptable wage structure?

Question 44

How do internal pay structures influence employees' behaviour?

Question 45

Aligning the pay structures to fit the organization and the surrounding conditions will seldom lead to competitive advantage for the organization.

Question 46

What is human capital?

Question 47

How do external stakeholders influence an internal pay structure?

Question 48

When are pay procedures more likely to be perceived as fair?

Question 49

List the external factors that shape internal pay structures.

Question 50

A job-based structure looks at the skills, knowledge, or competencies the employee possesses.

Question 51

Bring out the difference between procedural justice and distributive justice.

Question 52

For an organization that is performing worse than its competitors, what may be an outcome of using the Institutional Theory?

Question 53

How does line-of-sight play a role in influencing employees' behaviour?

Question 54

Equal treatment of employees can result in more knowledgeable employees with more responsible jobs going unrecognized and unrewarded.

Question 55

What does it mean to fit or tailor the pay structure to be internally aligned?

Question 56

What are the factors that define an internal pay structure?