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

A) True
B) False

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Egalitarian pay structures may be characterized as delayered or compressed.

A) True
B) False

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_____ 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

E) C) and D)
F) B) and C)

Correct Answer

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


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

E) None of the above
F) All of the above

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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) External competitiveness and equity
D) Relative value for achieving organizational objectives

E) A) and B)
F) A) and C)

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

A) True
B) False

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

A) True
B) False

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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

E) All of the above
F) A) and B)

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State the theory of marginal productivity.

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The theory of marginal productivity says...

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Labor unions support small pay differentials.

A) True
B) False

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

A) True
B) False

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Both external and organizational factors shape internal pay structures.

A) True
B) False

Correct Answer

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Research shows that one quarter to one third of employees question the fairness of their pay frequently.

A) True
B) False

Correct Answer

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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

E) A) and B)
F) A) and C)

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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.

E) B) and D)
F) A) and B)

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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.

E) A) and B)
F) A) and C)

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

A) True
B) False

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(p 83)Recent pay research shows that employee participation is the most important factor influencing employee perceptions of procedural justice.

A) True
B) False

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

A) True
B) False

Correct Answer

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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.

E) A) and B)
F) B) and C)

Correct Answer

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