Question 1

_____ is the measure of how important total compensation is in the overall HR strategy.

Accepted Answer

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

Question 2

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 B

Question 3

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 A

Question 4

_____ 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 5

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

Accepted Answer

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

Question 6

Strategy refers to the fundamental direction that an organization chooses.

Accepted Answer

A) True 
 B)False

Question 7

At the corporate level, the fundamental strategic decision involves defining the role of the HR in compensation strategies.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the correct order of the steps in formulating a total compensation strategy?

Accepted Answer

A) Assess the strategy, implement the strategy, map the strategy, and reassess the strategy. 
B) Assess the strategy, map the strategy, implement the strategy, and reassess the strategy. 
C) Map the strategy, implement the strategy, assess the strategy, and reassess the strategy. 
D) Map the strategy, assess the strategy, implement the strategy, and reassess the strategy. 
A) Assess the strategy, implement the strategy, map the strategy, and reassess the strategy. 
B) Assess the strategy, map the strategy, implement the strategy, and reassess the strategy. 
C) Map the strategy, implement the strategy, assess the strategy, and reassess the strategy. 
D) Map the strategy, assess the strategy, implement the strategy, and reassess the strategy.

Question 9

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 10

An organization defines its strategy through the tradeoffs it makes in choosing what to do and what not to do.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Alignment test 
B) Cost-effectiveness test 
C) Differentiation test 
D) Value-addition test 
A) Alignment test 
B) Cost-effectiveness test 
C) Differentiation test 
D) Value-addition test

Question 12

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 13

Explain AMO theory.

Accepted Answer

Boxall and Purcell found an increasingly

Question 14

Research on the effects of pay level shows that how employees are paid has no effect on the performance of the employees.

Accepted Answer

A) True 
 B)False

Question 15

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 16

A compensation strategy should reflect an organization's values.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

Whole Foods' shared-fate philosophy means that executive salaries are at least 19 times the average pay of full-time employees.

Accepted Answer

A) True 
 B)False

Question 20

Most organizations rely upon the market to determine how to pay their employees as compensation strategy is uncertain and complex.

Accepted Answer

A) True 
 B)False

_____ is the measure of how important total compensation is in the overall HR strategy.

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

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

_____ refers to openness and communication about pay.

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

Strategy refers to the fundamental direction that an organization chooses.

At the corporate level, the fundamental strategic decision involves defining the role of the HR in compensation strategies.

Which of the following is the correct order of the steps in formulating a total compensation strategy?

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

An organization defines its strategy through the tradeoffs it makes in choosing what to do and what not to do.

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

The alignment test

Explain AMO theory.

Research on the effects of pay level shows that how employees are paid has no effect on the performance of the employees.

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:

A compensation strategy should reflect an organization's values.

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

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

Whole Foods' shared-fate philosophy means that executive salaries are at least 19 times the average pay of full-time employees.

Most organizations rely upon the market to determine how to pay their employees as compensation strategy is uncertain and complex.

Pay-For-Performance: The Evidence

Defining Internal Alignment

R: 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

_____ is the measure of how important total compensation is in the overall HR strategy.

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

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

_____ refers to openness and communication about pay.

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

Strategy refers to the fundamental direction that an organization chooses.

At the corporate level, the fundamental strategic decision involves defining the role of the HR in compensation strategies.

Which of the following is the correct order of the steps in formulating a total compensation strategy?

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

An organization defines its strategy through the tradeoffs it makes in choosing what to do and what not to do.

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

The alignment test

Explain AMO theory.

Research on the effects of pay level shows that how employees are paid has no effect on the performance of the employees.

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:

A compensation strategy should reflect an organization's values.

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

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

Whole Foods' shared-fate philosophy means that executive salaries are at least 19 times the average pay of full-time employees.

Most organizations rely upon the market to determine how to pay their employees as compensation strategy is uncertain and complex.

Pay-For-Performance: The Evidence

Defining Internal Alignment

R: 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