Question 1

The degree of discretion managers have to make total compensation a strategic tool is _____.

Accepted Answer

The degree of discretion managers have to make total compensation a strategic tool is managerial autonomy. This refers to the level of authority and decision-making power that managers have in designing and implementing compensation programs that align with organizational goals and objectives.

Question 2

Which of the following statements about the role of works councils in Germany is true?

Accepted Answer

C

Question 3

One of the main reasons the European Union is trying to provide common labor standards for all members is to _____.

Accepted Answer

D

Question 4

Uncertainty avoidance is _____.

Accepted Answer

Uncertainty avoidance refers to the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Option A refers to gender roles, option B refers to gratification, and option C refers to power distance.

Question 5

Trade unions and employer federations are examples of _____ factors in international compensation.

Accepted Answer

Trade unions and employer federations are considered institutional factors as they are external organizations that influence compensation practices in a country or region. Economic factors refer to market conditions, employee factors refer to individual characteristics, and organizational factors refer to internal company factors.

Question 6

Which of the following countries has the highest number of people in the workforce belonging to unions?

Accepted Answer

Sweden has the highest number of people in the workforce belonging to unions, with approximately 70% of its workforce unionized. Japan has a relatively low rate of unionization, with less than 20% of the workforce belonging to unions. Italy and the United Kingdom have higher rates of unionization than Japan, but lower rates than Sweden.

Question 7

_____ is an example of a country with a highly decentralized approach to pay setting with little government involvement.

Accepted Answer

The United States has a highly decentralized approach to pay setting with little government involvement. Wages are typically negotiated between individual employers and employees, and there is no national minimum wage. Instead, each state and sometimes each city sets its own minimum wage, resulting in significant variation across the country. Additionally, there is no national system of collective bargaining, and unions operate differently depending on the industry and location.

Question 8

Which of the following is true of bonuses paid in Japan? They are _____.

Accepted Answer

The answer of Which of the following is true of...

Question 9

According to Hofstede's cultural dimensions,in Malaysia and Mexico where there is high power distance,_____ pay structures are appropriate.

Accepted Answer

High power distance cultures like Malaysia and Mexico value hierarchy and respect for authority. Therefore, a hierarchical pay structure that reflects the different levels of authority and status within the organization would be most fitting. Equitable or egalitarian pay structures may not align with these cultural values. A parallel pay structure may also not be appropriate as it implies equal pay regardless of hierarchy and status.

Question 10

According to Hofstede's cultural dimensions,in low-power-distance nations such as Australia and the Netherlands,_____ pay structures are appropriate.

Accepted Answer

In low-power-distance nations, where it is expected that individuals have relatively equal power, an egalitarian pay structure is appropriate. This aligns with the cultural value of striving for equality among individuals. The other options such as variable, hierarchical, and inequitable pay structures may not be as well-received or appropriate in these cultures.

Question 11

Which of the following is a factor determining base pay in the Japanese national system?

Accepted Answer

The answer of Which of the following is a factor...

Question 12

Traditionally,Japan's employment relationships were supported by _____.

Accepted Answer

Japan's employment relationships were traditionally supported by lifetime security within the company, meaning employees could expect to have a job at the same company for their entire career. This was based on the concept of "lifetime employment" and was seen as a way to provide stability and loyalty between the employee and employer. Performance-based pay systems, centralized unions, and performance-based promotion systems have also been a part of Japanese employment practices, but were not as foundational or defining as lifetime employment.

Question 13

Which of the following statements about ownership and financial markets is true?

Accepted Answer

The answer of Which of the following statements about ownership...

Question 14

The purpose of examining the price of a Big Mac in other countries is to _____ for expatriates.

Accepted Answer

The purpose of examining the price of a Big Mac in other countries is to maintain the same level of purchasing power for expatriates. By comparing the cost of a Big Mac in different countries, companies can determine if their employees' salaries are sufficient to maintain their standard of living while living abroad. This can help ensure that employees are not financially strained while on assignment and can ultimately increase employee satisfaction and retention.

Question 15

Companies operating in nations with "collectivistic" cultures should use _____.

Accepted Answer

In collectivistic cultures, individuals prioritize the goals of their group or community over their own personal goals. Therefore, group-based performance incentives align with this cultural value and encourage collaboration and teamwork. Individual-based pay increases and hierarchical pay structures may be seen as unfair or divisive in such cultures. Inequitable pay increases are not a viable option in any culture.

Question 16

All of the following are reasons why companies may make changes in their pay systems except _____.

Accepted Answer

The answer of All of the following are reasons why...

Question 17

Individualism is _____.

Accepted Answer

Individualism refers to the degree to which individuals are supposed to look after themselves or remain integrated into groups, usually around the family. Option B refers to gender roles, option C refers to the concept of delayed gratification, and option D refers to uncertainty avoidance. Therefore, option A is the best choice.

Question 18

Which of the following is not true of tariff agreements in Germany?

Accepted Answer

The answer of Which of the following is not true...

Question 19

The employment relationship includes all of the following except _____.

Accepted Answer

The International Labor Organization is not part of the employment relationship, but rather a global organization focused on promoting and improving labor conditions worldwide. The employment relationship consists of the exchange between the employee and employer, as well as any legal and regulatory requirements set forth by the government, and the responsibilities and obligations of enterprise owners towards their employees.

Question 20

In comparing the pay systems of two well-known Japanese companies,Toyota and Toshiba,Toyota _____.

Accepted Answer

The answer of In comparing the pay systems of two...

Quiz 16: International Pay Systems