56. Which of the following is NOT likely to increase motivation through compensation?
a) linking pay with goals that encourage stretch efforts
b) following principles of procedural fairness, including accurate assessment, lack of bias and provide an opportunity for input
c) ensuring that interests of owners are not disclosed to employees
d) giving higher rewards for those who assume risk
57. Variable compensation:
a) benefits a great deal from making rewards contingent upon achieving goals
b) is appropriate for organizations pursuing a lowest cost strategy
c) is appropriate for organizations pursuing a Bargain Laborer HR strategy
d) is usually appropriate when employees are not required to take risks
58. Procedural fairness is particularly important when which HR strategy is in place?
a) Free Agent HR strategy
b) Committed Expert HR strategy
c) Bargain Laborer HR strategy
d) Loyal Soldier HR strategy
59. Uniform compensation practices:
a) are as effective as variable compensation practices for encouraging high levels of performance
b) have rewards structured to reduce the emphasis on extreme levels of individual performance
c) will encourage employees to compare themselves to external reference groups
d) are employed with the Free Agent HR strategy
60. Which of the following is NOT true about pay surveys?
a) a problem with pay surveys is choosing the appropriate comparison group
b) it is difficulty to obtain salary information from employers that is specific to particular jobs
c) a good pay survey must have current up to date data
d) for most organizations, national pay surveys are the most useful for determining pay levels
61. A pay strategy that pays employees more than what they can earn with other employers:
a) is a market challenging strategy
b) is a meet-the-market strategy
c) is a lead-the-market strategy
d) is a lag-the-market strategy
62. Organizations that adopt a lead-the-market compensation strategy:
a) are more likely to use uniform transactional compensation
b) are likely to have an internal labor strategy
c) are likely to have a Bargain Laborer HR strategy because increased salary costs are offset by productivity gains
d) are likely to have pay that is on the average higher than most organizations
63. Which type of method for determining pay structure assigns a numerical value to each job position?
a) a job-based pay system
b) a skill-based point system
c) a point system
d) a point pay system
64. Under the Hay point system:
a) jobs are evaluated in terms of know-how, problem solving, accountability, and working conditions
b) jobs are evaluated based upon pay structure
c) jobs are evaluated using a lead-the-market strategy
d) jobs are evaluated using a lag-the-market strategy
65. Which of the following is NOT true of broadbanding?
a) broadbanding results in fewer pay grades
b) broadbanding allows more flexibility in determining an individual’s pay
c) under broadbanding more pay grades are available to increase flexibility
d) broadbanding groups more categories of jobs together in each pay band