Deck 3: Defining Internal Alignment

Question 1

_____ should support the organization strategy,support the work flow and motivate behavior toward organization objectives.

A) The job evaluation process
B) Strategic compensation objectives
C) Employee contributions
D) The pay structure

Answer 1

D

Question 2

Unions prefer which of the following?

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

Answer 2

A

Question 3

Organization factors that shape internal pay structures include all but _____.

A) technology
B) cost implications
C) HR policy
D) economic pressures

Answer 3

D

Question 4

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

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

Question 5

A pay structure based upon the relative contribution of skills,tasks and responsibilities to the organization's goals is called the _____ approach.

A) content
B) value
C) job analysis
D) job evaluation

Question 6

Which of the following is an not intention of differentials?

A) Motivating people to strive for promotion to a higher-paying level
B) Motivating workers to seek additional training
C) Influencing rate of turnover
D) Motivating worker by productivity incentives

Question 7

Which of the following is not part of the description of a pay structure?

A) Pay differentials
B) Criteria determining pay differences
C) Performance pay
D) Number of levels

Question 8

The modern concept of a "living wage" is most similar to _____.

A) marginal productivity wage
B) exchange value
C) just wage doctrine
D) bourse

Question 9

Lockheed's structure of 6 levels of engineers illustrates all of the following except )____________

A) company strategy
B) the work flow
C) line of sight
D) external equity

Question 10

The pay for the job of accountant in London,Los Angeles and Berlin is likely to be different due to

A) use value.
B) currency exchange rates.
C) demand and supply.
D) exchange value.

Question 11

Most job structures are best described as

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

Question 12

When employees can see the relationships between their work,the work of others and the organization's objectives,this is called

A) procedural justice.
B) line-of-sight.
C) goal congruence.
D) path-goal-congruence.

Question 13

Marginal productivity theory argues that employers pay _______.

A) use value
B) exchange value
C) market value
D) capital value

Question 14

Organization factors that shape internal pay structures include all but _____.

A) strategy
B) human capital
C) culture and customs
D) employee acceptance

Question 15

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

A) paying workers according to their productivity.
B) pay based upon the content of the job.
C) pay based upon hours of work.
D) ignorance of the owner towards the content of work.

Question 16

Content refers to the

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

Question 17

The effect of "living wage" laws is ____pay structures.____

A) more person-based
B) flatter more compressed
C) taller more compressed
D) more job-based

Question 18

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) External competitiveness and equity
D) Relative value for achieving organizational objectives

Question 19

Which of the following is not a factor in defining equal work in the Equal Pay Act?

A) Skill
B) Effort
C) Knowledge
D) Working conditions

Question 20

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 21

James says,"I don't trust the way the company determines pay rates in my department." James is most concerned about _____.

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

Question 22

Many levels is to opportunities for promotion as fewer levels is to ___________

A) competition.
B) teams.
C) cooperation.
D) loose fit.

Question 23

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 24

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

A) Consistency across all employees
B) Use of accurate data
C) Consultants develop the pay structure
D) Including appeals procedures

Question 25

The need to explain the rationale for compensation choices to employees is consistent with ____________ theory.

A) equity
B) tournament
C) institutional
D) marginal productivity

Question 26

Which of the following is not one of the changes in organization design that may affect pay structures?

A) Outsourcing
B) Dual careers
C) Delayering
D) Temporary workers

Question 27

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

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

Question 28

Pay for temporary workers is based upon

A) the internal structure of their home employer.
B) the internal structure of the temporary workplace.
C) strict legislative requirements.
D) education and experience.

Question 29

A problem faced by some organizations using an egalitarian pay structure is _____.

A) difficulty in external recruitment
B) maintaining cooperation among employees
C) perception of excessive CEO pay
D) difficulty in team work

Question 30

The number of job and pay levels in an organization is an example of _____.

A) organization strategy
B) human capital
C) human resource policies
D) work design

Question 31

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

A) Supports a close fit with the organization
B) Supports cooperation
C) Many levels
D) Is based upon the job or person

Question 32

Which of the following concepts best explains why newly hired workers may be paid more than longer tenure workers performing very similar work?

A) Marginal revenue product
B) Supply and demand
C) Exchange value
D) Internal labor market

Question 33

All of the following statements regarding aligned structures are true except they _____________

A) support the way work is done.
B) are externally competitive.
C) fit the business strategy
D) are fair to employees.

Question 34

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

A) Few levels
B) Small differentials
C) Supports equal treatment
D) Supports individual performers

Question 35

Which of the following is not a component of human capital?

A) Seniority level
B) Experience
C) Knowledge
D) Education

Question 36

Which of the following is not a comparison employees use to judge the fairness of their organization's pay structure?

A) Comparing jobs similar to their own
B) Comparing their pay to external pay levels
C) Comparing their pay raises to others in their organization
D) Comparing their job's pay to other jobs in their organization

Question 37

Victoria says,"I don't like it that those jobs that are a lot like mine pay more than my job." Victoria is expressing concern about _____.

A) external equity
B) exchange value
C) procedural justice
D) distributive justice

Question 38

If a manager wants employees to accept the organization's pay structure,the best strategy is to

A) pay everyone the same
B) show them what competitors pay
C) explain to them how pay was determined
D) tell them the pay level is the most the company can pay

Question 39

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 40

Which of the following is not a characteristic of an aligned pay structure?

A) Supports the way work gets done
B) Fits the organization's business strategy
C) Is fair to employees
D) Complies with the Fair Labor Standards Act

Question 41

Which of the following are related to greater performance when the work flow depends on individual contributors?

A) Egalitarian
B) Hierarchical
C) Tournament
D) Institutional

Question 42

(71,87)The attitudes of the workers in the vineyard parable may be explained by equity theory.

Question 43

When cooperation is important for successful organization performance,the best form of pay is _____.

A) tournament
B) egalitarian
C) hierarchical
D) institutional

Question 44

Job structures based on relative contribution may include market rates.

Question 45

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

Question 46

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

A) hierarchical
B) institutional
C) egalitarian
D) tournament

Question 47

The content of a job refers to the relative contribution of skills,tasks and responsibilities to the organization's goals.

Question 48

Both external and organizational factors shape internal pay structures.

Question 49

Internal alignment is sometimes called internal equity.

Question 50

There is evidence that a relatively poor performing team member's performance will improve under a(n)_____ pay structure.

A) egalitarian
B) hierarchical
C) bureaucratic
D) loosely-coupled

Question 51

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

Question 52

(p 79)According to marginal productivity theory,employers pay use not exchange value.

Question 53

Pay differences between levels in an organization are called differentials.

Question 54

A well-designed pay structure is the major factor affecting an organization's external competitiveness.

Question 55

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

Question 56

Which of the following is not true?

A) Large pay differences in a top management team are associated with high turnover.
B) Egalitarian structures are a better fit for executive groups that need to work closely as a team.
C) Large raises with a promotion increases effort and reduces absenteeism.
D) Tournament theory raises performance of the top performers but reduces motivation of poorer performers.

Question 57

Exchange value is always higher than use value.

Question 58

A job-based structure focuses on the skills,knowledge and competencies employees possess.

Question 59

All of the following except ___________are consequences of an aligned structure.

A) increase experience
B) increase cooperation
C) reduce work stoppages
D) facilitate career progression

Question 60

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

Question 61

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

Question 62

Experienced workers judge the fairness of their pay by developing an intuitive sense of what is fair pay.

Question 63

(p 83)Recent pay research shows that employee participation is the most important factor influencing employee perceptions of procedural justice.

Question 64

Supply and demand for labor,but not supply and demand for products and services affect internal structures.

Question 65

When employees compare the fairness of their pay,they focus primarily on how their job compares with similar jobs in other organizations.

Question 66

Technology influences organization design,the work and ultimately,the pay structure.

Question 67

Self-managed work teams and outsourcing can affect the pay structure.

Question 68

Organizations are more likely to be successful when their pay structures are in internal alignment.

Question 69

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

Question 70

Pay structures with more levels,though relatively small pay differences between levels,offer a sense of career progress.

Question 71

Equity theory research shows that an egalitarian pay structure will be seen as more fair than a hierarchical structure.

Question 72

Teachers whose pay is relatively low in their pay structure will feel their pay structure is fair if they work in a high-paying district.

Question 73

An organization's pay structure is affected more by the pay levels and benefits offered by competitors than its human capital.

Question 74

The phenomena of newly hired engineers receiving salaries higher than longer tenure engineers in an organization is consistent with the concept of internal labor markets.

Question 75

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

Question 76

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

Question 77

Egalitarian pay structures may be characterized as delayered or compressed.

Question 78

Egalitarian pay structures are built using person-based criteria.

Question 79

According to recent research,employees make internal pay comparisons more frequently than external.

Question 80

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