Deck 2: Strategy-The Totality of Decisions

Question 1

Which of the following is NOT an employee preference?

A) deferring taxes
B) changing benefit coverage
C) cultural differences
D) child care coverage
E) flexible working arrangements

Answer 1

C

Question 2

Making compensation decisions based on how the organization wants to compete is based on _______.

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

Answer 2

E

Question 3

Context refers to a wide range of factors EXCEPT:

A) legal requirements
B) changing demographics
C) cultural differences
D) HR strategy
E) expectations

Answer 3

D

Question 4

"How much does pay differ among job levels and how well does compensation support career growth" relates to which of the following:

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

Question 5

This step recognizes that the compensation strategy must change to fit changing conditions.

A) mapping a total compensation strategy
B) implementing cultural and regulatory changes
C) assessing total compensation implications
D) reassessing the fit
E) implementing strategy

Question 6

Which of the tests of competitive advantage is the most difficult to achieve?

A) align
B) compete
C) differentiate
D) innovate
E) add value

Question 7

Unless _____, the downward spiral will speed up.

A) increased risks are offset by larger returns
B) pay is externally competitive
C) employee contributions are equal
D) decreased risks are taken
E) pay is internally aligned

Question 8

As organizational performance increases, pay-for-performance should _______.

A) stay the same to avoid a vicious circle
B) decrease
C) increase
D) become risk averse
E) none of the above

Question 9

"How should total compensation help this business gain and sustain competitive advantage" is a corporate level strategic choice.

Question 10

Greater focus on variable pay is most appropriate with the innovator strategy

Question 11

From a strategic perspective, organizations may try to shape the sociopolitical environment.

Question 12

The alignment test helps pass the differentiation test

Question 13

What are the strategic choices at the three different organizational levels?

Question 14

How do compensation systems differ for innovators, cost cutters, and customer-focused strategies?

Question 15

How does context shape organizational objectives as it relates to internal alignment and external competitiveness?