Question 1

Which of the following is not one of the tests to determine if a pay strategy is a source of competitive advantage?

Accepted Answer

A)  Alignment of the pay system with the organization's business strategy 
B)  Differentiation of an organization's strategy from its competitors 
C)  Internal alignment of the pay strategy with the organization's strategy 
D)  External competitiveness of the pay system 
A)  Alignment of the pay system with the organization's business strategy 
B)  Differentiation of an organization's strategy from its competitors 
C)  Internal alignment of the pay strategy with the organization's strategy 
D)  External competitiveness of the pay system D

Question 2

What is strategy? How is it defined?

Accepted Answer

Strategy refers to the fundamental directions that an organization chooses.An organization defines its strategy through the tradeoffs it makes in choosing what to do and what not to do.

Question 3

What is the first step in assessing total compensation implications?

Accepted Answer

The first step in assessing total compensation implications includes an understanding of the specific industry in which the organization operates and how the organization plans to compete in that industry.This corresponds with the strategic choices in the corporate and the business unit levels:What business should we be in,and how do we win in that business?

Question 4

An organization's strategy is defined by the tradeoffs in choices of what to do and what not to do.

Accepted Answer

A) True 
 B)False

Question 5

Although three separate compensation strategies may be identified,many companies use a combination of all three.

Accepted Answer

A) True 
 B)False

Question 6

A strategy map contains strategies about all but which of the following?

Accepted Answer

A)  External competitiveness 
B)  Management 
C)  HR alignment 
D)  Employee contributions 
A)  External competitiveness 
B)  Management 
C)  HR alignment 
D)  Employee contributions

Question 7

A compensation system using market-based pay is most likely to be part of a _____ strategy.

Accepted Answer

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

Question 8

The role non-HR managers play in making pay decisions is called _____.

Accepted Answer

A)  ownership 
B)  transparency 
C)  technology 
D)  decentralized decision-making 
A)  ownership 
B)  transparency 
C)  technology 
D)  decentralized decision-making

Question 9

"Putting some skin in the game" refers to:

Accepted Answer

A)  employees paid entirely on commission 
B)  being paid as a contract vs.a regular employee 
C)  below market base pay with stock ownership 
D)  above market base pay with low benefits 
A)  employees paid entirely on commission 
B)  being paid as a contract vs.a regular employee 
C)  below market base pay with stock ownership 
D)  above market base pay with low benefits

Question 10

Compensation systems can be tailored to general business strategies.List and explain these strategies.

Accepted Answer

Compensation systems can be tailored to

Question 11

One of Whole Foods' employee contributions strategic compensation choices is to seek and engage employees who are going to help the company make money.

Accepted Answer

A) True 
 B)False

Question 12

Compensation systems focusing on competitor labor costs typically follow a cost-cutter strategy.

Accepted Answer

A) True 
 B)False

Question 13

In which of the following country would it be most difficult for someone to move from one employer to another?

Accepted Answer

A)  U.S. 
B)  Korea 
C)  Germany 
D)  Canada 
A)  U.S. 
B)  Korea 
C)  Germany 
D)  Canada

Question 14

Which of the following is not a test of whether a pay strategy is a source of competitive advantage?

Accepted Answer

A)  Alignment with business strategy 
B)  Cost effectiveness 
C)  Differentiation 
D)  Adding value 
A)  Alignment with business strategy 
B)  Cost effectiveness 
C)  Differentiation 
D)  Adding value

Question 15

The second step of developing a total compensation strategy is to:

Accepted Answer

A)  implement strategy. 
B)  assess total compensation implications. 
C)  estimate the cost of the strategy. 
D)  map a total compensation strategy. 
A)  implement strategy. 
B)  assess total compensation implications. 
C)  estimate the cost of the strategy. 
D)  map a total compensation strategy.

Question 16

Union preferences is a major factor in _____ of a total compensation strategy.

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Explain AMO theory.

Accepted Answer

Boxall and Purcell find an increasingly

Question 19

Research on the effects of pay level showed that pay level affects financial performance while how employees are paid has no effect.

Accepted Answer

A) True 
 B)False

Question 20

"To maintain good citizenship as a company" and "To make a fair profit on current operations" are examples of _____.

Accepted Answer

A)  values 
B)  mission 
C)  goals 
D)  operating principles 
A)  values 
B)  mission 
C)  goals 
D)  operating principles

Which of the following is not one of the tests to determine if a pay strategy is a source of competitive advantage?

What is strategy? How is it defined?

What is the first step in assessing total compensation implications?

An organization's strategy is defined by the tradeoffs in choices of what to do and what not to do.

Although three separate compensation strategies may be identified,many companies use a combination of all three.

A strategy map contains strategies about all but which of the following?

A compensation system using market-based pay is most likely to be part of a _____ strategy.

The role non-HR managers play in making pay decisions is called _____.

"Putting some skin in the game" refers to:

Compensation systems can be tailored to general business strategies.List and explain these strategies.

One of Whole Foods' employee contributions strategic compensation choices is to seek and engage employees who are going to help the company make money.

Compensation systems focusing on competitor labor costs typically follow a cost-cutter strategy.

In which of the following country would it be most difficult for someone to move from one employer to another?

Which of the following is not a test of whether a pay strategy is a source of competitive advantage?

The second step of developing a total compensation strategy is to:

Union preferences is a major factor in _____ of a total compensation strategy.

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

Explain AMO theory.

Research on the effects of pay level showed that pay level affects financial performance while how employees are paid has no effect.

"To maintain good citizenship as a company" and "To make a fair profit on current operations" are examples of _____.

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 Structures

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

Which of the following is not one of the tests to determine if a pay strategy is a source of competitive advantage?

What is strategy? How is it defined?

What is the first step in assessing total compensation implications?

An organization's strategy is defined by the tradeoffs in choices of what to do and what not to do.

Although three separate compensation strategies may be identified,many companies use a combination of all three.

A strategy map contains strategies about all but which of the following?

A compensation system using market-based pay is most likely to be part of a _____ strategy.

The role non-HR managers play in making pay decisions is called _____.

"Putting some skin in the game" refers to:

Compensation systems can be tailored to general business strategies.List and explain these strategies.

One of Whole Foods' employee contributions strategic compensation choices is to seek and engage employees who are going to help the company make money.

Compensation systems focusing on competitor labor costs typically follow a cost-cutter strategy.

In which of the following country would it be most difficult for someone to move from one employer to another?

Which of the following is not a test of whether a pay strategy is a source of competitive advantage?

The second step of developing a total compensation strategy is to:

Union preferences is a major factor in _____ of a total compensation strategy.

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

Explain AMO theory.

Research on the effects of pay level showed that pay level affects financial performance while how employees are paid has no effect.

"To maintain good citizenship as a company" and "To make a fair profit on current operations" are examples of _____.

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 Structures

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