Question 1

Which labour demand theory says that pay levels and pay mix are designed to indicate desired employee behaviours?

Accepted Answer

A) human capital theory 
B) signalling theory 
C) efficiency wage theory 
D) reservation wage theory 
E) compensating differentials theory 
A) human capital theory 
B) signalling theory 
C) efficiency wage theory 
D) reservation wage theory 
E) compensating differentials theory

Question 2

The mix of the various types of payments that make up total compensation is known as:

Accepted Answer

A) wage grade 
B) pay back 
C) pay forms 
D) average wage 
E) pay level 
A) wage grade 
B) pay back 
C) pay forms 
D) average wage 
E) pay level

Question 3

Marginal product and marginal revenue are directly measurable.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true about a lead policy?

Accepted Answer

A) It minimizes the ability to retain quality employees. 
B) It believes that high turnover is likely to be a compensation problem rather than a managerial problem. 
C) It pays below market rates and may hinder a firm's ability to attract potential employees. 
D) It offsets the negative job attributes that contribute to high turnover later on. 
E) It increases employee dissatisfaction. 
A) It minimizes the ability to retain quality employees. 
B) It believes that high turnover is likely to be a compensation problem rather than a managerial problem. 
C) It pays below market rates and may hinder a firm's ability to attract potential employees. 
D) It offsets the negative job attributes that contribute to high turnover later on. 
E) It increases employee dissatisfaction.

Question 5

Which of the following supply-side theories is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves?

Accepted Answer

A) compensating differentials theory 
B) signalling theory 
C) efficiency wage theory 
D) human capital theory 
E) reservation wage theory 
A) compensating differentials theory 
B) signalling theory 
C) efficiency wage theory 
D) human capital theory 
E) reservation wage theory

Question 6

Nature of demand and nature of supply are labour market factors that shape external competitiveness.

Accepted Answer

A) True 
 B)False

Question 7

Efficiency wage theory says that if a job has negative characteristics, then employers must offer higher wages to compensate for these negative features.

Accepted Answer

A) True 
 B)False

Question 8

Discuss two ways of expressing external competitiveness in practice.

Accepted Answer

to attract

Question 9

Discuss competitive pay policies.

Accepted Answer

Given the choice to match, lead, or lag,

Question 10

Which of the following statements about external competitiveness is true?

Accepted Answer

A) External competitiveness refers to an organization's pay relative to other organizations. 
B) External competitiveness refers to the total compensation paid by an employer to an employee. 
C) External competitiveness refers to pay relationships among employees of an organization. 
D) External competitiveness refers to the budget allocation for a department relative to other departments in an organization. 
E) External competitiveness refers to the competitiveness between employees of an organization. 
A) External competitiveness refers to an organization's pay relative to other organizations. 
B) External competitiveness refers to the total compensation paid by an employer to an employee. 
C) External competitiveness refers to pay relationships among employees of an organization. 
D) External competitiveness refers to the budget allocation for a department relative to other departments in an organization. 
E) External competitiveness refers to the competitiveness between employees of an organization.

Question 11

Compensating differentials theory states that:

Accepted Answer

A) higher wages must be offered to employees when chances of success are high 
B) higher wages must be offered to employees to compensate for any negative features of jobs 
C) high wages will increase efficiency and lower labour costs if they lower turnover 
D) job seekers have a reservation wage level below which they will not accept a job offer 
E) pay levels and pay mix are designed to signal desired employee behaviours 
A) higher wages must be offered to employees when chances of success are high 
B) higher wages must be offered to employees to compensate for any negative features of jobs 
C) high wages will increase efficiency and lower labour costs if they lower turnover 
D) job seekers have a reservation wage level below which they will not accept a job offer 
E) pay levels and pay mix are designed to signal desired employee behaviours

Question 12

Human capital theory assumes that people are paid at the value of their:

Accepted Answer

A) marginal product 
B) gross profit margin 
C) current life situation 
D) reservation wage 
E) minimum capacity for work 
A) marginal product 
B) gross profit margin 
C) current life situation 
D) reservation wage 
E) minimum capacity for work

Question 13

Which of the following is an assumption of economic theories of labour markets?

Accepted Answer

A) There is a huge advantage for a single employer to pay above the market rate. 
B) Pay rates reflect only the base wage associated with employment. 
C) People are homogenous and therefore interchangeable. 
D) There is a huge advantage for a single employer to pay below the market rate. 
E) Employers are not always interested in maximizing profits. 
A) There is a huge advantage for a single employer to pay above the market rate. 
B) Pay rates reflect only the base wage associated with employment. 
C) People are homogenous and therefore interchangeable. 
D) There is a huge advantage for a single employer to pay below the market rate. 
E) Employers are not always interested in maximizing profits.

Question 14

How do product market conditions determine what an organization can afford to pay?

Accepted Answer

Product market conditions determine to a

Question 15

What is a lag policy and how does it affect an organization's ability to attract employees?

Accepted Answer

A lag policy is a policy to pay below ma

Question 16

External competitiveness is expressed in practice by:

Accepted Answer

A) comparing the performance of departments within an organization 
B) increasing the compensation differences between employees in an organization 
C) encouraging the competitiveness of employees within an organization 
D) setting a pay level that is above, below, or equal to competitors' 
E) equalizing pay for all employees within the organization, irrespective of seniority 
A) comparing the performance of departments within an organization 
B) increasing the compensation differences between employees in an organization 
C) encouraging the competitiveness of employees within an organization 
D) setting a pay level that is above, below, or equal to competitors' 
E) equalizing pay for all employees within the organization, irrespective of seniority

Question 17

Although labour market conditions and legal requirements put a floor on the pay level required to attract sufficient employees, the puts a lid on the maximum pay level that an employer can set.

Accepted Answer

A) product market 
B) employee turnover 
C) labour demand 
D) job market 
E) labour supply 
A) product market 
B) employee turnover 
C) labour demand 
D) job market 
E) labour supply

Question 18

Both pay level and pay forms focus on two objectives: to control costs and to reduce the need for employees.

Accepted Answer

A) True 
 B)False

Question 19

The marginal revenue of labour refers to:

Accepted Answer

A) he technology employed by organizations 
B) the difference in technology across industries and new technology within the same industry 
C) the additional output from the employment of one additional person 
D) the level of demand for a product 
E) the low-wage, no-mix strategy employed by organizations 
A) he technology employed by organizations 
B) the difference in technology across industries and new technology within the same industry 
C) the additional output from the employment of one additional person 
D) the level of demand for a product 
E) the low-wage, no-mix strategy employed by organizations

Question 20

A flexible policy that mimics the pay mix competitors are paying is known as a:

Accepted Answer

A) security policy 
B) market mix policy 
C) market match pay with competition (match)policy 
D) work/life balance policy 
E) performance driven policy 
A) security policy 
B) market mix policy 
C) market match pay with competition (match)policy 
D) work/life balance policy 
E) performance driven policy

Which labour demand theory says that pay levels and pay mix are designed to indicate desired employee behaviours?

The mix of the various types of payments that make up total compensation is known as:

Marginal product and marginal revenue are directly measurable.

Which of the following is true about a lead policy?

Which of the following supply-side theories is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves?

Nature of demand and nature of supply are labour market factors that shape external competitiveness.

Efficiency wage theory says that if a job has negative characteristics, then employers must offer higher wages to compensate for these negative features.

Discuss two ways of expressing external competitiveness in practice.

Discuss competitive pay policies.

Which of the following statements about external competitiveness is true?

Compensating differentials theory states that:

Human capital theory assumes that people are paid at the value of their:

Which of the following is an assumption of economic theories of labour markets?

How do product market conditions determine what an organization can afford to pay?

What is a lag policy and how does it affect an organization's ability to attract employees?

External competitiveness is expressed in practice by:

Although labour market conditions and legal requirements put a floor on the pay level required to attract sufficient employees, the puts a lid on the maximum pay level that an employer can set.

Both pay level and pay forms focus on two objectives: to control costs and to reduce the need for employees.

The marginal revenue of labour refers to:

A flexible policy that mimics the pay mix competitors are paying is known as a:

The Pay Model

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 7: Defining Competitiveness

Which labour demand theory says that pay levels and pay mix are designed to indicate desired employee behaviours?

The mix of the various types of payments that make up total compensation is known as:

Marginal product and marginal revenue are directly measurable.

Which of the following is true about a lead policy?

Which of the following supply-side theories is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves?

Nature of demand and nature of supply are labour market factors that shape external competitiveness.

Efficiency wage theory says that if a job has negative characteristics, then employers must offer higher wages to compensate for these negative features.

Discuss two ways of expressing external competitiveness in practice.

Discuss competitive pay policies.

Which of the following statements about external competitiveness is true?

Compensating differentials theory states that:

Human capital theory assumes that people are paid at the value of their:

Which of the following is an assumption of economic theories of labour markets?

How do product market conditions determine what an organization can afford to pay?

What is a lag policy and how does it affect an organization's ability to attract employees?

External competitiveness is expressed in practice by:

Although labour market conditions and legal requirements put a floor on the pay level required to attract sufficient employees, the puts a lid on the maximum pay level that an employer can set.

Both pay level and pay forms focus on two objectives: to control costs and to reduce the need for employees.

The marginal revenue of labour refers to:

A flexible policy that mimics the pay mix competitors are paying is known as a:

The Pay Model

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters