Question 1

All organizations that pay their employees have a compensation strategy even though it may not be stated or written.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is NOT true?

Accepted Answer

A)  The effect of performance incentives depends on the context. 
B)  Embedding compensation strategy in HR strategy affects results. 
C)  Focusing only on one dimension of the pay strategy is a best practice. 
D)  The effect of paying more than competitors depends on the context. 
A)  The effect of performance incentives depends on the context. 
B)  Embedding compensation strategy in HR strategy affects results. 
C)  Focusing only on one dimension of the pay strategy is a best practice. 
D)  The effect of paying more than competitors depends on the context.

Question 3

The alignment test

Accepted Answer

A)  is difficult to imitate. 
B)  is the most difficult test. 
C)  helps ensure passing the differentiation test. 
D)  becomes difficult if the differentiation test is not clear. 
A)  is difficult to imitate. 
B)  is the most difficult test. 
C)  helps ensure passing the differentiation test. 
D)  becomes difficult if the differentiation test is not clear.

Question 4

Trying to measure an ROI for any compensation strategy implies that

Accepted Answer

A)  it is possible to align and differentiate and still fail to add value. 
B)  people are "human capital," similar to other factors of production. 
C)  adding value is the most difficult test. 
D)  value created as a result of costs is difficult to specify. 
A)  it is possible to align and differentiate and still fail to add value. 
B)  people are "human capital," similar to other factors of production. 
C)  adding value is the most difficult test. 
D)  value created as a result of costs is difficult to specify.

Question 5

Write short notes on virtuous and vicious circles.

Accepted Answer

Virtuous circle - Thinking of pay as par

Question 6

A compensation system focusing on system control and work specifications is most closely associated with a(n)_____ strategy.

Accepted Answer

A)  innovator 
B)  customer-focused 
C)  cost-cutter 
D)  differentiated 
A)  innovator 
B)  customer-focused 
C)  cost-cutter 
D)  differentiated

Question 7

All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy.

Accepted Answer

A)  focus on competitor's labor costs 
B)  focus on system control and work specifications 
C)  increase in variable pay 
D)  customer satisfaction incentives 
A)  focus on competitor's labor costs 
B)  focus on system control and work specifications 
C)  increase in variable pay 
D)  customer satisfaction incentives

Question 8

In mapping a total compensation strategy,the question of how important compensation is in the overall HR strategy is part of _____.

Accepted Answer

A)  objectives 
B)  internal alignment 
C)  external competitiveness 
D)  corporate responsibility 
A)  objectives 
B)  internal alignment 
C)  external competitiveness 
D)  corporate responsibility

Question 9

Mich Inc. ,a hardware store,has a rating system in place that rates employees on their friendliness,usefulness,and product knowledge.Based on the ratings an employee receives,he or she gets an incentive.The compensation strategy followed by Mich is most closely described as a:

Accepted Answer

A)  customer-focused strategy. 
B)  cost-cutter strategy. 
C)  innovator strategy. 
D)  differentiation strategy. 
A)  customer-focused strategy. 
B)  cost-cutter strategy. 
C)  innovator strategy. 
D)  differentiation strategy.

Question 10

Which of the following tests of competitive advantage is probably the easiest test to pass?

Accepted Answer

A)  Alignment test 
B)  Differentiation test 
C)  Integration test 
D)  Value-addition test 
A)  Alignment test 
B)  Differentiation test 
C)  Integration test 
D)  Value-addition test

Question 11

A compensation system that focuses on competitor's labor costs is most closely associated with a(n)_____ strategy.

Accepted Answer

A)  innovator 
B)  customer-focused 
C)  cost-cutter 
D)  differentiated 
A)  innovator 
B)  customer-focused 
C)  cost-cutter 
D)  differentiated

Question 12

A major challenge in the design of future pay systems is how to better satisfy individual needs and preferences.

Accepted Answer

A) True 
 B)False

Question 13

_____ refers to openness and communication about pay.

Accepted Answer

A)  Transparency 
B)  Ownership 
C)  Prominence 
D)  Centrality 
A)  Transparency 
B)  Ownership 
C)  Prominence 
D)  Centrality

Question 14

Career growth,hierarchy,and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.

Accepted Answer

A)  objectives 
B)  internal alignment 
C)  external competitiveness 
D)  employee contributions 
A)  objectives 
B)  internal alignment 
C)  external competitiveness 
D)  employee contributions

Question 15

Since unions represent such a small fraction of the labor force,their influence on pay decisions is insignificant.

Accepted Answer

A) True 
 B)False

Question 16

Providing unlimited compensation choices to employees would meet with disapproval from the U.S.Internal Revenue Service.

Accepted Answer

A) True 
 B)False

Question 17

Define defenders and prospectors as referred to by Miles and Snow.

Accepted Answer

According to Miles and Snow,de

Question 18

Union preferences are a major factor in _____ a total compensation strategy.

Accepted Answer

A)  implementing 
B)  reassessing 
C)  assessing 
D)  mapping 
A)  implementing 
B)  reassessing 
C)  assessing 
D)  mapping

Question 19

According to the Hudson survey,_____ is the single thing that would make 41 percent of the U.S.workers happier.

Accepted Answer

A)  more personal days 
B)  flexible work schedule 
C)  more money 
D)  better health insurance 
A)  more personal days 
B)  flexible work schedule 
C)  more money 
D)  better health insurance

Question 20

How an organization positions its total compensation against its competitors is part of external competitiveness strategic choices.

Accepted Answer

A) True 
 B)False

All organizations that pay their employees have a compensation strategy even though it may not be stated or written.

Which of the following statements is NOT true?

The alignment test

Trying to measure an ROI for any compensation strategy implies that

Write short notes on virtuous and vicious circles.

A compensation system focusing on system control and work specifications is most closely associated with a(n)_____ strategy.

All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy.

In mapping a total compensation strategy,the question of how important compensation is in the overall HR strategy is part of _____.

Mich Inc. ,a hardware store,has a rating system in place that rates employees on their friendliness,usefulness,and product knowledge.Based on the ratings an employee receives,he or she gets an incentive.The compensation strategy followed by Mich is most closely described as a:

Which of the following tests of competitive advantage is probably the easiest test to pass?

A compensation system that focuses on competitor's labor costs is most closely associated with a(n)_____ strategy.

A major challenge in the design of future pay systems is how to better satisfy individual needs and preferences.

_____ refers to openness and communication about pay.

Career growth,hierarchy,and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.

Since unions represent such a small fraction of the labor force,their influence on pay decisions is insignificant.

Providing unlimited compensation choices to employees would meet with disapproval from the U.S.Internal Revenue Service.

Define defenders and prospectors as referred to by Miles and Snow.

Union preferences are a major factor in _____ a total compensation strategy.

According to the Hudson survey,_____ is the single thing that would make 41 percent of the U.S.workers happier.

How an organization positions its total compensation against its competitors is part of external competitiveness strategic choices.

The Pay Model

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 2: Strategy: The Totality of Decisions

All organizations that pay their employees have a compensation strategy even though it may not be stated or written.

Which of the following statements is NOT true?

The alignment test

Trying to measure an ROI for any compensation strategy implies that

Write short notes on virtuous and vicious circles.

A compensation system focusing on system control and work specifications is most closely associated with a(n)_____ strategy.

All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy.

In mapping a total compensation strategy,the question of how important compensation is in the overall HR strategy is part of _____.

Mich Inc. ,a hardware store,has a rating system in place that rates employees on their friendliness,usefulness,and product knowledge.Based on the ratings an employee receives,he or she gets an incentive.The compensation strategy followed by Mich is most closely described as a:

Which of the following tests of competitive advantage is probably the easiest test to pass?

A compensation system that focuses on competitor's labor costs is most closely associated with a(n)_____ strategy.

A major challenge in the design of future pay systems is how to better satisfy individual needs and preferences.

_____ refers to openness and communication about pay.

Career growth,hierarchy,and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.

Since unions represent such a small fraction of the labor force,their influence on pay decisions is insignificant.

Providing unlimited compensation choices to employees would meet with disapproval from the U.S.Internal Revenue Service.

Define defenders and prospectors as referred to by Miles and Snow.

Union preferences are a major factor in _____ a total compensation strategy.

According to the Hudson survey,_____ is the single thing that would make 41 percent of the U.S.workers happier.

How an organization positions its total compensation against its competitors is part of external competitiveness strategic choices.

The Pay Model

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters