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Worksheets

STRATEGIC COMPENSATION

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Pay-for-performance programs ________.

a)

tie rewards to firms' profitability

b)

are easy to implement and measure

c)

tie rewards to employee effort

d)

result in negligible increases in output

2.

Which of the following is NOT a common goal of a strategic compensation policy?

a)

To reward employees' past performance

b)

To mesh employees' past performance with organizational goals

c)

To remain competitive in the labor market

d)

To attract new employees

3.

The fact that people make comparisons to others is central to _______

a)

expectancy theory

b)

the need for pay secrecy

c)

pay-for-performance programs

d)

equity theory

4.

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 ________.

a)

equity theory

b)

instrumentality theory

c)

pay secrecy

d)

expectancy theory

5.

There is reason to believe that pay secrecy can do all of the following except:

a)

generate distrust in the compensation system

b)

reduce employee motivation

c)

inhibit organizational effectiveness

d)

generate feelings of commitment

6.

In _______, employees are paid according to the number of units they produce

a)

hourly work

b)

piecework

c)

commission

d)

bonus

7.

An employee's relative worth can be determined by ____.

a)

job analysis

b)

labor market conditions

c)

wage-rate surveys

d)

an effective performance management system

8.

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?

a)

point system

b)

job ranking

c)

job grade system

d)

factor comparison method

9.

Which system of job evaluation is being used when jobs are listed according to a series of predetermined wage grades?

a)

Hay profile method

b)

Job ranking

c)

Factor comparison method

d)

Job classification system

10.

Collapsing many salary grades into a few wide salary bands is known as ______.

a)

Pay Range

b)

Broadbanding

c)

Competence-based pay

d)

Factor comparison

11.

Indirect compensation includes healthcare benefits and commissions.

a)

TRUE

b)

FALSE

12.

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.

a)

TRUE

b)

FALSE

13.

Rewarding an employee's past performance is NOT a goal of strategic compensation policy.

a)

TRUE

b)

FALSE

14.

Pay-for-performance programs have little if any effect on employee productivity.

a)

TRUE

b)

FALSE

15.

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

a)

TRUE

b)

FALSE

16.

Pay secrecy is still prevalent in organizations despite its negative effect on motivation and employee trust.

a)

TRUE

b)

FALSE

17.

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.

a)

TRUE

b)

FALSE

18.

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.

a)

TRUE

b)

FALSE

19.

Direct compensation encompasses employee wages and salaries, incentives, bonuses, and commissions.

a)

TRUE

b)

FALSE

20.

In hourly pay, employees are paid according to the number of units they produce.

a)

TRUE

b)

FALSE