Chapter 11 D

1.

1 point

The _____ refers to the distance between the minimum and maximum amounts in a pay grade.

range spread

mean

median

mode

standard deviation

2.

1 point

Which of the following is true regarding range spread?

It is larger at higher levels.

It is smaller at higher levels.

It is larger at lower levels.

It is used to calculate the compa-ratio.

It is used to determine the correspondence between the actual and intended pay.

3.

1 point

The major disadvantage of using _____ is that some jobs will be underpaid and other jobs will be overpaid.

delayering

pay grades

pay policy line

market survey data

compa-ratio

4.

1 point

The _____ is an index of the correspondence between actual and intended pay.

pay grade

mode

compa-ratio

range spread

mean

5.

1 point

The compa-ratio:

directly assesses the degree to which actual pay is consistent with the pay policy.

reduces the number of job levels to achieve more flexibility in job assignments.

reduces the opportunity for employee promotions.

supports pay based on employee skills.

directly assesses the relative labor costs.

6.

1 point

Actual pay is lagging behind the pay policy when the compa-ratio is:

greater than 1.00.

less than 1.00.

greater than 100.

in the range of 1 to 10.

equal to 1.00

7.

1 point

A study by Peter Cappelli and Peter Sherer on the effects of two-tier wage plans has found that:

lower-paid employees were less satisfied on average than higher-paid employees.

employees in the lower tier had lower comparison standards than those in the higher tier.

all employees were equally satisfied, irrespective of they pay.

lower-paid employees remain dissatisfied until they move into the higher-paying tier.

only the actual pay and not the comparison standard influences employee attitudes.

8.

1 point

The two-tier wage plan supports the _____ through its focus on the way employees compare their pay with other jobs and the need for managers to take this into consideration.

efficiency wage theory

social exchange theory

equity theory

expectancy theory

reinforcement theory

9.

1 point

Which of the following is true of a job-based pay structure?

It seldom facilitates control by the manager but encourages employee initiatives.

It allows the organization to take advantage of the skills of those closest to production.

It facilitates change.

It encourages bureaucracy.

It rarely facilitates performance evaluation but encourages flexibility.

10.

1 point

Job-based pay structure:

encourages top-down decision making

encourages lateral employee movement

discourages promotion-seeking behavior

encourages flexibility in employees

discourages performance evaluation by the manager