Deck 3: Defining Internal Alignment

Question 1

Most job structures are best described as

A) job-based.
B) person-based.
C) both person- and job-based.
D) competency based.

Answer 1

C

Question 2

Pay for temporary workers is based upon

A) the internal structure of their home employer.
B) the internal structure of the temporary workplace.
C) strict legislative requirements.
D) education and experience.

Answer 2

A

Question 3

Which of the following is an intension of differentials?

A) Motivating people to strive for promotion to a higher-paying level
B) Motivating workers to seek additional training
C) Making workers feel it is fair that the next highest job is paid more than their job
D) Motivating worker by productivity incentives

Answer 3

A

Question 4

A pay structure based upon the relative contribution of skills,tasks and responsibilities to the organization's goals is called the _____ approach.

A) content
B) value
C) job analysis
D) job evaluation

Question 5

Which of the following is not part of the description of a pay structure?

A) Pay differentials
B) Criteria determining pay differences
C) Performance pay
D) Number of levels

Question 6

Common bases for modern pay structures include all but which of the following?

A) Content of the work
B) Skills and knowledge required to perform the work
C) Seniority and experience
D) Relative value for achieving organizational objectives

Question 7

Unions prefer which of the following?

A) Small pay differences between jobs and seniority-based promotions
B) Large pay differences between jobs and seniority-based promotions
C) Small pay differences between jobs and performance-based promotions
D) Equal pay raises for employees

Question 8

The most common bases for determining internal structures are:

A) work content and its value
B) seniority and experience
C) use value and exchange value
D) pay surveys and job evaluation

Question 9

The pay for the job of accountant in London,Los Angeles and Berlin is likely to be different due to

A) use value.
B) currency exchange rates.
C) demand and supply.
D) exchange value.

Question 10

The parable of the vineyard owner and compensation paid to the laborers illustrated:

A) paying workers according to their productivity.
B) pay based upon the content of the job.
C) pay based upon hours of work.
D) ignorance of the owner towards the content of work.

Question 11

Which of the following is not a factor in defining equal work in the Equal Pay Act?

A) Skill
B) Effort
C) Knowledge
D) Working conditions

Question 12

Content refers to the

A) worth of the work.
B) work performed in a job and how it gets done.
C) relative contribution to the organization objectives.
D) different pay level policies.

Question 13

Which of the following is not a component of human capital?

A) Seniority level
B) Experience
C) Knowledge
D) Education

Question 14

When employees can see the relationships between their work,the work of others and the organization's objectives,this is called

A) procedural justice.
B) line-of-sight.
C) goal congruence.
D) path-goal-congruence.

Question 15

Which of the following is not one of the changes in organization design that may affect pay structures?

A) Outsourcing
B) Dual careers
C) Delayering
D) Temporary workers

Question 16

Marginal productivity theory argues that employers pay _______.

A) use value
B) exchange value
C) market value
D) capital value

Question 17

In the strategic approach to pay,internal alignment is the _____ issue to be decided.

A) first
B) second
C) third
D) fourth

Question 18

_____ should support the organization strategy,support the work flow and motivate behavior toward organization objectives.

A) The job evaluation process
B) Strategic compensation objectives
C) Employee contributions
D) The pay structure

Question 19

The modern concept of a "living wage" is most similar to _____.

A) marginal productivity wage
B) exchange value
C) just wage doctrine
D) bourse

Question 20

Organization factors that shape internal pay structures include all but _____.

A) technology
B) cost implications
C) HR policy
D) economic pressures

Question 21

Bill says,"I don't trust the way the company determines pay rates in my department." Bill is most concerned about _____.

A) procedural justice
B) distributive justice
C) internal equity
D) external equity

Question 22

The number of job and pay levels in an organization is an example of _____.

A) organization strategy
B) human capital
C) human resource policies
D) work design

Question 23

The institutional model _____.

A) is adopted by high performing,innovative organization
B) refers to firms that copy innovative practices adopted by other organizations
C) is another name for the bureaucratic model
D) is a hybrid of the hierarchical and egalitarian model

Question 24

If a manager wants employees to accept the organization's pay structure,the best strategy is to

A) pay everyone the same
B) show them what competitors pay
C) explain to them how pay was determined
D) tell them the pay level is the most the company can pay

Question 25

Organizations in a turbulent and unpredictable environment requiring flexibility in jobs and work processes are likely to be more successful with a(n)_____ internal pay structure.

A) egalitarian
B) bureaucratic
C) loosely coupled
D) closely tailored

Question 26

Suzanne says,"I don't like it that those jobs that are a lot like mine pay more than my job." Suzanne is expressing concern about _____.

A) external equity
B) exchange value
C) procedural justice
D) distributive justice

Question 27

Egalitarian pay structures have all but which of the following characteristics?

A) Few levels
B) Small differentials
C) Supports equal treatment
D) Supports individual performers

Question 28

Which of the following concepts best explains why newly hired workers may be paid more than longer tenure workers performing very similar work?

A) Marginal revenue product
B) Supply and demand
C) Exchange value
D) Internal labor market

Question 29

Hierarchical pay structures have all but which of the following characteristics?

A) Supports a close fit with the organization
B) Supports cooperation
C) Many levels
D) Is based upon the job or person

Question 30

The well-defined jobs at McDonald's and their small differences in pay are an example of a(n)_____ internal pay structure.

A) closely tailored
B) loosely coupled
C) very competitive
D) egalitarian

Question 31

Which of the following pay structure procedures would not increase perceptions of pay fairness?

A) Consistency across all employees
B) Use of accurate data
C) Consultants develop the pay structure
D) Including appeals procedures

Question 32

Which of the following is not a characteristic of an aligned pay structure?

A) Supports the way work gets done
B) Fits the organization's business strategy
C) Is fair to employees
D) Complies with the Fair Labor Standards Act

Question 33

Which of the following are related to greater performance when the work flow depends on individual contributors?

A) Egalitarian
B) Hierarchical
C) Tournament
D) Institutional

Question 34

Which theory predicts individual performance will be maximized when the pay differentials between job levels is large?

A) Tournament
B) Equity
C) Marginal productivity
D) Reinforcement theory

Question 35

In firefighting and rescue squads and global software design teams,a(n)_____ structure is associated with higher performance.

A) hierarchical
B) institutional
C) egalitarian
D) tournament

Question 36

When cooperation is important for successful organization performance,the best form of pay is _____.

A) tournament
B) egalitarian
C) hierarchical
D) institutional

Question 37

A problem faced by some organizations using an egalitarian pay structure is _____.

A) difficulty in external recruitment
B) maintaining cooperation among employees
C) perception of excessive CEO pay
D) difficulty in team work

Question 38

Which of the following is not a comparison employees use to judge the fairness of their organization's pay structure?

A) Comparing jobs similar to their own
B) Comparing their pay to external pay levels
C) Comparing their pay raises to others in their organization
D) Comparing their job's pay to other jobs in their organization

Question 39

Which of the following is not true?

A) Large pay differences in a top management team are associated with high turnover.
B) Egalitarian structures are a better fit for executive groups that need to work closely as a team.
C) Large raises with a promotion increases effort and reduces absenteeism.
D) Tournament theory raises performance of the top performers but reduces motivation of poorer performers.

Question 40

There is evidence that a relatively poor performing team member's performance will improve under a(n)_____ pay structure.

A) egalitarian
B) hierarchical
C) bureaucratic
D) loosely-coupled

Question 41

When employees compare the fairness of their pay,they focus primarily on how their job compares with similar jobs in other organizations.

Question 42

The phenomena of engineers receiving salaries higher than longer tenure engineers in an organization is consistent with the concept of internal labor markets.

Question 43

Self-managed work teams and outsourcing can affect the pay structure.

Question 44

Supply and demand for labor,but not supply and demand for products and services affect internal structures.

Question 45

Organizations are more likely to be successful when their pay structures are in internal alignment.

Question 46

A pay structure refers to the array of pay rates for different work or skills within a single organization.

Question 47

Pay differences between levels in an organization are called differentials.

Question 48

Internal alignment is sometimes called internal equity.

Question 49

An organization's pay structure is affected more by the pay levels and benefits offered by competitors than its human capital.

Question 50

Technology influences organization design,the work and ultimately,the pay structure.

Question 51

The content of a job refers to the relative contribution of skills,tasks and responsibilities to the organization's goals.

Question 52

A job-based structure focuses on the skills,knowledge and competencies employees possess.

Question 53

Pay structures with more levels,though relatively small pay differences between levels,offer a sense of career progress.

Question 54

Exchange value is always higher than use value.

Question 55

Distributive justice is more important than procedural justice for employee acceptance of their pay.

Question 56

A well-designed pay structure is the major factor affecting an organization's external competitiveness.

Question 57

Both external and organizational factors shape internal pay structures.

Question 58

Experienced workers judge the fairness of their pay by developing an intuitive sense of what is fair pay.

Question 59

Wage legislation affects the wage structure at both the minimum and the maximum pay level.

Question 60

The content and value of work are the most common bases for determining internal structures.

Question 61

Write a short note pay structure.

Question 62

Teachers whose pay is relatively low in their pay structure will feel their pay structure is fair if they work in a high-paying district.

Question 63

Egalitarian pay structures may be characterized as delayered or compressed.

Question 64

Write a short note on institutional model.

Question 65

According to the text,when are pay procedures perceived as being fair?

Question 66

Describe the importance of an internal structure.

Question 67

How do employees judge the fairness of their pay?

Question 68

CEOs of organizations with egalitarian pay structures usually have higher salaries than CEOs in hierarchical pay structures.

Question 69

There is little evidence that adding additional levels and titles to a career path but without significant pay increases,motivate employees.

Question 70

Equity theory research shows that an egalitarian pay structure will be seen as more fair than a hierarchical structure.

Question 71

Explain tailored and loosely coupled structures.

Question 72

Egalitarian pay structures send the message that the organization values differences in work content,individual skills and contributions to the organization.

Question 73

Labor unions support small pay differentials.

Question 74

A potential problem in egalitarian pay structures is high performing employees may feel underpaid and quit.

Question 75

What is the significance of internal labor markets in an organization?

Question 76

State the theory of marginal productivity.

Question 77

What are the advantages of an egalitarian structure over a hierarchical structure?

Question 78

The institutional model predicts that it is best to wait for other organizations to adopt innovative practices.

Question 79

List and explain the various aspects of an internal pay structure.

Question 80

Egalitarian pay structures are built using person-based criteria.