WorksheetsSTRATEGIC COMPENSATION
Total questions: 20
Worksheet time: 10mins
Pay-for-performance programs ________.
tie rewards to firms' profitability
are easy to implement and measure
tie rewards to employee effort
result in negligible increases in output
Which of the following is NOT a common goal of a strategic compensation policy?
To reward employees' past performance
To mesh employees' past performance with organizational goals
To remain competitive in the labor market
To attract new employees
The fact that people make comparisons to others is central to _______
expectancy theory
the need for pay secrecy
pay-for-performance programs
equity theory
The concept where employees should exert greater work effort if they have reason to expect it in a valued reward forms is a basis of ________.
equity theory
instrumentality theory
pay secrecy
expectancy theory
There is reason to believe that pay secrecy can do all of the following except:
generate distrust in the compensation system
reduce employee motivation
inhibit organizational effectiveness
generate feelings of commitment
In _______, employees are paid according to the number of units they produce
hourly work
piecework
commission
bonus
An employee's relative worth can be determined by ____.
job analysis
labor market conditions
wage-rate surveys
an effective performance management system
Which system of evaluation is being used when cards that lists the duties and responsibilities of the job are arranged by raters in order of the importance of the job?
point system
job ranking
job grade system
factor comparison method
Which system of job evaluation is being used when jobs are listed according to a series of predetermined wage grades?
Hay profile method
Job ranking
Factor comparison method
Job classification system
Collapsing many salary grades into a few wide salary bands is known as ______.
Pay Range
Broadbanding
Competence-based pay
Factor comparison
Indirect compensation includes healthcare benefits and commissions.
TRUE
FALSE
Strategic compensation is the compensation of employees in ways that enhance motivation and growth while concurrently aligning their efforts with the goals of the organization.
TRUE
FALSE
Rewarding an employee's past performance is NOT a goal of strategic compensation policy.
TRUE
FALSE
Pay-for-performance programs have little if any effect on employee productivity.
TRUE
FALSE
Pay equity is achieved when employees' compensation is equal to the value of the work they perform.
TRUE
FALSE
Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust.
TRUE
FALSE
The worth of a job, as it is determined by its comparative worth with jobs in other firms, is an external factor in the wage mix.
TRUE
FALSE
When employees are paid according to the skills and knowledge they have rather than the specific jobs they perform, they are paid according to competence-based compensation.
TRUE
FALSE
Direct compensation encompasses employee wages and salaries, incentives, bonuses, and commissions.
TRUE
FALSE
In hourly pay, employees are paid according to the number of units they produce.
TRUE
FALSE
