Exam Questions Chapter 2 Strategy The Totality Of Decisions - Compensation 12e Complete Test Bank by Jerry Newman. DOCX document preview.
Chapter 02
Strategy: The Totality of Decisions
Multiple Choice Questions
1. | A compensation system that focuses on competitor's labor costs is most closely associated with a(n) _____ strategy.
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2. | A compensation system using market-based pay is most likely to be part of a(n) _____ strategy.
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3. | Flexible-generic job descriptions would most likely be used with a(n) _____ strategy.
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4. | Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a:
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5. | A compensation system focusing on system control and work specifications is most closely associated with a(n) _____ strategy.
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6. | All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy.
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7. | In the formula predicting performance, the component most closely related to compensation is _____.
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8. | Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision?
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9. | Comparisons on the forms of compensation used by other companies are part of _____.
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10. | The second step of developing a total compensation strategy is to:
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11. | Which of the following is the correct order of the steps in formulating a total compensation strategy?
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12. | Based on the opinions of 10,000 U.S. workers, Hudson found that when given their choice of unconventional benefits, most employees would select _____.
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13. | According to the Hudson survey, _____ is the single thing that would make 41 percent of the U.S. workers happier.
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14. | Which of the following statements regarding allowing employees a choice in their pay mix is NOT true?
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15. | Union preferences are a major factor in _____ a total compensation strategy.
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16. | In mapping a total compensation strategy, the question of how important compensation is in the overall HR strategy is part of _____.
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17. | _____ refers to openness and communication about pay.
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18. | _____ is the measure of how important total compensation is in the overall HR strategy.
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19. | The role non-HR managers play in making pay decisions is called _____.
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20. | Issues of transparency, technology, and choice are most closely associated with the _____ aspect of mapping a total compensation strategy.
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21. | Career growth, hierarchy, and flexible design are most closely associated with the _____ aspect of mapping a total compensation strategy.
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22. | Which of the following is NOT included in a strategy map?
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23. | Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage?
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24. | Which of the following tests of competitive advantage is probably the easiest test to pass?
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25. | The alignment test
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26. | Trying to measure an ROI for any compensation strategy implies that
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27. | Which of the following statements is NOT true?
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28. | Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high-performance practices.
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29. | When organization performance declines
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30. | Research shows that _____ will effectively shift an organization in a downward performance spiral to an upward one.
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True / False Questions
31. | Most organizations rely upon the market to determine how to pay their employees as compensation strategy is uncertain and complex. |
32. | Strategy refers to the fundamental direction that an organization chooses. |
33. | An organization defines its strategy through the tradeoffs it makes in choosing what to do and what not to do. |
34. | At the corporate level, the fundamental strategic decision involves defining the role of the HR in compensation strategies. |
35. | Customer-focused pay strategies are most likely to use market-based pay. |
36. | Compensation systems focusing on competitors' labor costs typically follow a cost-cutter strategy. |
37. | Although three separate compensation strategies may be identified, many companies use a combination of all three. |
38. | Most firms do not have generic strategies but use a blend of cost and innovation. |
39. | Whole Foods' shared-fate philosophy means that executive salaries are at least 19 times the average pay of full-time employees. |
40. | How an organization positions its total compensation against its competitors is part of external competitiveness strategic choices. |
41. | All organizations that pay their employees have a compensation strategy even though it may not be stated or written. |
42. | A compensation strategy should reflect an organization's values. |
43. | A major challenge in the design of future pay systems is how to better satisfy individual needs and preferences. |
44. | Providing unlimited compensation choices to employees would meet with disapproval from the U.S. Internal Revenue Service. |
45. | Since unions represent such a small fraction of the labor force, their influence on pay decisions is insignificant. |
46. | Pay systems should fit well with other HR systems. |
47. | In a high-performance system, pay strategy always plays a lead role. |
48. | Benchmarking and copying best practices does not lead to competitive advantage. |
49. | Research on the effects of pay level shows that how employees are paid has no effect on the performance of the employees. |
50. | In a virtuous circle, a pay-for-performance strategy results in the improvement of performance. |
Short Answer Questions
51. | Define defenders and prospectors as referred to by Miles and Snow.
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52. | Compensation systems can be tailored to general business strategies. List and explain these strategies.
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53. | Explain AMO theory.
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54. | What are the aspects of the alignment of pay strategy?
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55. | Write short notes on virtuous and vicious circles.
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