Deck 2: A Strategic Framework for Compensation

Question 1

As the business environment has become more complex,and demands on employee performance have gotten higher,it is important to simplify compensation systems.

Answer 1

False

Question 2

The key feature of an organizational system is that it transforms input resources into outputs that are valued by a body or group.

Answer 2

True

Question 3

To determine the most appropriate managerial strategy for a firm to utilize,it is necessary to examine the firm's structural variables.

Answer 3

False

Question 4

To expand your scope as an HR practitoner,you recently transferred from a smaller manufacturing firm to a larger one and discovered that,although entirely different,both compensation systems are effective.How is this possible?

A) Both companies have well-trained managers.
B) Both companies do similar work and hire the same kinds of employees.
C) Both systems fit the organization and its strategy.
D) Both take a universal approach using the best practices of Canada's top employers.

Question 5

Knowing which organization structure to use requires first understanding which of the following aspects?

A) structural variables
B) corporate strategy
C) managerial strategy
D) technology

Question 6

Which of the following dimensions is not a structural variable?

A) job design
B) coordination/departmentation
C) reward systems
D) corporate strategy

Question 7

Of the five contextual variables,the most important is the environment that faces a given firm.

Question 8

In the classical managerial strategy the main role of the supervisor is to control and evaluate subordinates.

Question 9

What can you determine by examining a firm's contextual variables?

A) the managerial strategy a firm is actually using
B) the best type of structure for the organization
C) the firm's competitive advantage
D) organizational goals

Question 10

The link between contextual and structural variables is the managerial strategy.

Question 11

A strategic framework is used as a tool to help determine which aspect of compensation?

A) the most effective compensation system
B) corporate goals
C) corporate strategy
D) the business plan

Question 12

The three main managerial strategies described in the text are: the classical style,the human relations style,and the high involvement style.

Question 13

The only sure way to know whether a particular pay practice will be successful in your organization is to determine if it has been successful in other organizations.

Question 14

The organization's domain is its country of origin.

Question 15

Which of the following components is not part of the strategic framework for compensation?

A) resource providers
B) structural variables
C) contextual variables
D) managerial strategy

Question 16

As a new business owner you have decided to take a contingency approach to organizational design.What must first be considered in order to identify the most appropriate structure for your company?

A) structural variables
B) managerial strategy
C) financial variables
D) contextual variables

Question 17

What can you determine by examining a firm's structural variables?

A) the managerial strategy a firm is actually using
B) the managerial strategy a firm should be using
C) a firm's corporate strategy
D) the corporate strategy a firm should be using

Question 18

The strategic framework for compensation helps to identify the corporate strategy that will best suit a firm's compensation strategy.

Question 19

Which of the following sets of resources is used by an organization to transform inputs into outputs?

A) human, logistical, administrative, and financial
B) data bases, inventory, customers, and employees
C) human, information, physical, and financial
D) sales, service, marketing and policies

Question 20

Which of the following variables refers to the set of procedures and resources used to transform input into output?

A) domain
B) technology
C) task environment
D) work force

Question 21

What determines the most appropriate managerial strategy?

A) organizational processes
B) factors of production
C) contextual variables
D) structural variables

Question 22

Which of the following key cultural values would be detrimental to a high-involvement organization?

A) honesty
B) trustworthiness
C) doing things the way they have always been done
D) open communication

Question 23

Which reward strategy is appropriate for companies using a human relations approach to management?

A) Rewards are mainly extrinsic and focus on loyalty to the organization
B) A wide variety of both intrinsic and extrinsic rewards are used.
C) Only extrinsic rewards are offered.
D) Only intrinsic rewards are offered.

Question 24

What is the best way to determine which managerial strategy a firm is actually using?

A) examine structural variables
B) review organizational policies and procedures
C) examine contextual variables
D) observe the behaviours of managers

Question 25

Which of the following concepts refers to the informal structure of the organization and can help to guide employee behaviour?

A) engagement
B) ethics
C) climate
D) culture

Question 26

Which of the following sets of strategies reflects different assumptions about employees and how they should be managed?

A) classical, human relations, and high-involvement
B) low-cost, differentiator, focused differentiator
C) corporate, competitive, and business
D) defender, prospector and analyzer

Question 27

Which of the following conditions has not made it increasingly difficult for Canadian firms to make the classical managerial strategy work for them?

A) Educational levels have increased.
B) Globalization has allowed work to be outsourced to a variety of developing countries.
C) Economic security and social security have improved.
D) Social values have become more democratic and egalitarian.

Question 28

What determines the contextual variables?

A) organizational goals
B) structural variables
C) managerial strategy
D) corporate strategy

Question 29

Which of the following leadership styles is appropriate for companies pursuing a classical managerial strategy?

A) The leader is controlling and employee-oriented.
B) The leader is controlling and task-oriented.
C) The leader gives free rein to employees.
D) The leader is facilitating and both task- and employee-oriented.

Question 30

You are in the process of designing a new reward system for your firm.What is the most important single determinant of what will or will not be a successful reward system for your firm?

A) the particular managerial strategy used
B) the interrelationships among the structural variables
C) corporate strategy
D) competitive advantage

Question 31

Which of the following characteristics typifies a classical organization?

A) joint employee-management planning and goal-setting
B) positive social environment
C) loyal employees who are dedicated to the norms of the organization
D) high turnover

Question 32

As a highly skilled,well-educated younger professional looking for employment you are generally more suited to what type of organization?

A) classical
B) human relations
C) high-involvement
D) hybrid

Question 33

Why is it so important to understand the managerial strategy used by a firm?

A) Managerial strategy determines the most appropriate reward system.
B) Managerial strategy determines the most appropriate corporate strategy.
C) Managerial strategy determines the most appropriate contextual variables.
D) Managerial strategy determines the most appropriate way to manage employees.

Question 34

Which of the following production processes refers to long-linked technology?

A) Standardized transactions are used to connect mutually interested people.
B) Tasks are divided into sequential steps and carried out by different employees.
C) Each item or case is unique and dealt with individually.
D) There is no standardization used to produce the product.

Question 35

This term is used to describe the specific products or services offered by a given organization:

A) Task environment
B) Differentiation
C) Craft
D) Domain

Question 36

A defender strategy,a stable environment,a long-linked technology,a relatively low-skilled work force,and a large organization would be a good combination of variables for which managerial strategy?

A) classical
B) human relations
C) high-involvement
D) hybrid

Question 37

Which of the following actions is not a current trend in compensation practices?

A) more noncash employee recognition programs
B) increased use of contingent workers
C) expanded use of hourly pay
D) flexible benefit plans

Question 38

Which of the following dimensions is not a contextual variable?

A) control system
B) technology
C) work force
D) organization size

Question 39

You are the new owner of a microcircuit design company which operates in a very unstable and complex environment.Which of the following managerial strategies should you adopt to increase company performance?

A) human relations
B) classical
C) hybrid
D) high-involvement

Question 40

According to Perrow's approach to classifying technology,an electrical utility or a plant that manufactures washing machines are examples of what type of technology?

A) routine
B) nonroutine
C) mediating
D) focused low-cost

Question 41

Explain the concept of organizations as systems.

Question 42

Identify the six structural variables that make up the organization structure and explain why they are so important.

Question 43

Briefly explain the difference between the three managerial strategies described in the text.

Question 44

What is the purpose of the strategic framework for compensation?

Question 45

What are the five contextual variables and why are they important?