Deck 3: Defining Internal Alignment

Question 1

Pay for temporary workers is based upon

A)the internal structure of their home employer.
B)the internal structure of the temporary workplace.
C)the strict requirements set by an international workers union.
D)education only.

Answer 1

A

Question 2

Most unions prefer which of the following?

A)Small pay differences among jobs and seniority-based promotions
B)Large pay differences among jobs and seniority-based promotions
C)Large pay differences among jobs and performance-based promotions
D)Equal pay raises for employees

Answer 2

A

Question 3

Common bases for modern pay structures include all BUT which of the following?

A)The content of the work
B)The skills and knowledge required to perform the work
C)The extent of external competitiveness and equity
D)The work's relative value for achieving organizational objectives

Answer 3

C

Question 4

Content refers to the

A)worth of the work.
B)work performed in a job and how it gets done.
C)relative contribution of the work to the organization objectives.
D)different pay level policies.

Question 5

Which of the following pay structure procedures would NOT increase perceptions of pay fairness?

A)Consistently applying pay procedures to all employees
B)Using accurate data
C)Hiring consultants to develop the pay structure
D)Including appeals procedures

Question 6

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

A)Equal skill
B)Equal effort
C)Equal experience
D)Equal responsibility

Question 7

The most common bases for determining internal structures are:

A)work content and its value
B)seniority and experience
C)use value and exchange value
D)pay surveys and job evaluation

Question 8

Which of the following is NOT a characteristic of aligned pay structures?

A)They support the way the work gets done.
B)They fit an organization's business strategy.
C)They are fair to employees.
D)They are designed to increase the turnover rate.

Question 9

The parable of the vineyard owner and the compensation paid to the laborers illustrated:

A)the payment to the laborers according to their productivity.
B)the payment to the laborers based upon the content of the job.
C)the payment to the laborers based upon the hours of work.
D)the ignorance of the owner toward the content of work.

Question 10

James says, "I don't trust the way the company determines pay rates in my department." If James feels this way despite being happy with his current salary, he is most likely concerned about _____.

A)procedural justice
B)distributive justice
C)internal equity
D)external equity

Question 11

In the strategic approach to pay, internal alignment is the _____ issue to be decided.

A)first
B)second
C)third
D)fourth

Question 12

External factors are dominant influences on jobs filled via:

A)demotions.
B)promotions.
C)transferring employees.
D)hiring graduates.

Question 13

Most job structures are best described as

A)job-based structures.
B)person-based structures.
C)both person- and job-based structures.
D)competency-based structures.

Question 14

Marginal productivity theory argues that employers pay _____.

A)use value
B)exchange value
C)surplus value
D)differential value

Question 15

Organization factors that shape internal pay structures include all BUT which of the following?

A)Technology
B)Cost implications
C)HR policy
D)Economic pressures

Question 16

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

A)closely tailored
B)loosely coupled
C)very competitive
D)egalitarian

Question 17

Which of the following is NOT one of the factors that define an internal pay structure?

A)The pay differentials between the levels
B)The criteria used to determine pay differentials
C)The number of times the pay structure has been changed
D)The number of levels of work

Question 18

Organization factors that shape internal pay structures include all BUT which of the following?

A)Strategy
B)Human capital
C)Cultures and customs
D)Employee acceptance

Question 19

Jacob works at PrimeClean Corp., a carwash 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:

A)closely tailored pay structure.
B)loosely coupled pay structure.
C)pay structure with large differences in pay among jobs.
D)pay structure that is highly flexible.

Question 20

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

A)highly layered pay structure.
B)hierarchical pay structure.
C)highly inequitable pay structure.
D)egalitarian pay structure.

Question 21

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.

A)egalitarian
B)bureaucratic
C)loosely coupled
D)closely tailored

Question 22

In firefighting and rescue squads and global software design teams, a(n) _____ structure is most closely associated with higher performance.

A)hierarchical
B)pyramidal
C)egalitarian
D)layered

Question 23

The content of a job refers to the worth of the job and its relative contribution to the organization's objectives.

Question 24

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

A)A tournament theory-based pay structure
B)An egalitarian pay structure
C)An hierarchical pay structure
D)A layered pay structure

Question 25

Pay differences among levels in an organization are called differentials.

Question 26

Pay structure refers to the array of pay rates for different work or skills within a single organization.

Question 27

According to the marginal productivity theory, employers pay use value to their employees.

Question 28

Pay structure refers to the array of pay rates for different work or skills between competing companies.

Question 29

The content and value of work are the most common bases for determining internal structures.

Question 30

Internal alignment is sometimes called internal equity.

Question 31

Hierarchical pay structures have all BUT which of the following characteristics?

A)Support a close fit with the organization
B)Prefer team performance over individual performance
C)Many levels
D)Based upon the job or person

Question 32

_____ are related to greater performance when the work flow depends on individual contributors.

A)More egalitarian structures
B)More hierarchical structures
C)More delayered structures
D)More even-handed structures

Question 33

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

A)the difficulty in external recruitment
B)in maintaining cooperation among employees
C)the perception of excessive CEO pay
D)the difficulty in performing teamwork

Question 34

Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large?

A)Tournament theory
B)Equity theory
C)Marginal productivity theory
D)Reinforcement theory

Question 35

Egalitarian pay structures have all BUT which of the following characteristics?

A)Few levels
B)Small differentials
C)Support equal treatment
D)Prefer individual performance over team performance

Question 36

Wage legislation affects the wage structure at both the minimum and the maximum pay level.

Question 37

Exchange value is always higher than use value.

Question 38

Both external and organization factors shape internal pay structures.

Question 39

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

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

Question 40

Which of the following is NOT true?

A)Greater pay dispersion is related to higher turnover among executives.
B)Egalitarian structures are a better fit for executive groups that need to work closely as a team.
C)Large raises with a promotion decreases effort and increases absenteeism.
D)Employees judge the fairness of their pay structure by making multiple pay comparisons.

Question 41

Greater pay dispersion is related to lower turnover among executives.

Question 42

Pay structures are immune to changes in external factors such as skill shortages.

Question 43

Write a short note on pay structure.

Question 44

Explain tailored and loosely coupled structures.

Question 45

Labor unions support small pay differentials.

Question 46

State the theory of marginal productivity.

Question 47

According to the text, when are pay procedures more likely to be perceived as fair?

Question 48

CEOs of organizations with egalitarian pay structures usually have higher salaries than that of CEOs in organizations with hierarchical pay structures.

Question 49

How do employees judge the fairness of their pay?

Question 50

The institutional model states that it is best to wait for other organizations to adopt innovative practices and then copy those practices.

Question 51

Egalitarian pay structures send the message that the organization values differences in work content, individual skills, and contributions to the organization.

Question 52

A potential problem in egalitarian pay structures is that high-performing employees may feel underpaid and quit.

Question 53

Teachers will feel pay structures are fair even when they are relatively low in the internal structure if they work in a high-paying school district.

Question 54

A layered pay structure is more hierarchical than a delayered pay structure and less egalitarian in terms of number of levels.

Question 55

Distributive justice is more important than procedural justice for employee acceptance of their pay.