36. Which of the following is NOT true about employee compensation?
a) the positive feelings that come from working at a particular place are sometimes seen as a form of compensation
b) compensation includes health insurance
c) compensation consists of only the monetary rewards an employee receives for working
d) compensation includes psychological rewards as well as monetary rewards
37. Organizations choosing an external labor orientation:
a) hire new employees with the expectation that they will remain employed for a long period of time and develop a strong commitment to the organization
b) hire new employees with the expectation that they will not form a long-term attachment to the organization
c) focus on developing their employees
d) are not overly concerned with internal equity
38. An organization with a Free Agent HR strategy:
a) must be concerned with external equity, which concerns the fairness of what the company pays compared to other possible employers
b) must be concerned with justice
c) must be concerned with internal equity, which concerns the fairness of what the company pays compared to other possible employers
d) should have narrow pay bands
39. Which of the following is NOT characteristic of an organization with a differentiation strategy?
a) compensation is used to encourage risk taking
b) success depends on outstanding contributions from a few individuals
c) there is substantial difference between the pay of high performers and low performers
d) compensation is used to develop feelings of inclusion and support from the organization
40. An organization that is pursuing a cost strategy:
a) uses compensation to encourage risk taking
b) has substantial difference between the pay of high performers and low performers
c) will tend to have little difference in pay between high and low performers
d) is not concerned with internal equity
41. The employees working part-time at a local McDonald’s all perform the same duties and receive the same hourly pay. Which type of compensation strategy is McDonald’s using?
a) uniform relational compensation
b) uniform transactional compensation
c) variable transactional compensation
d) variable relational compensation
42. Which of the following is NOT true about uniform transactional compensation?
a) uniform transactional compensation is often associated with the Bargain Laborer HR strategy
b) under uniform transactional compensation, pay levels are set at the lowest level that allows the organization to attract enough workers
c) employee perceptions concerning fairness are not an issue because pay is “uniform”
d) a company that has uniform transactional compensation is not overly concerned with turnover
43. Organizations with a uniform relational compensation strategy:
a) are likely to differentiate compensation for high and low performers
b) use a Bargain Laborer HR strategy
c) are likely to have highly flexile compensation practices
d) are likely to use benefits such as health insurance and retirement benefits as a part of compensation
44. Which of the following is NOT true about variable transactional compensation?
a) future rewards such as retirement benefits are likely to be used as a part of compensation
b) an organization with variable transactional compensation will likely pay more than other employers
c) variable transactional compensation provides strong monetary incentives for high performers
d) new employees are often paid more than current employees
45. An organization using variable relational compensation:
a) strives to have high and low performers treated similarly
b) sets pay at the lowest possible level that will still attract enough workers
c) provides top performers immediate rewards and also offers long-term incentives such as a retirement program to retain workers
d) is likely to have a Loyal Soldier HR strategy