MGMT 3860 CH 11 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS
Every year, performance standards are what?
Raised
At lower levels, ___________ Systems almost guarantee cost control.
Variable pay
Under _______________ pay systems, workers are paid on the basis of skill or
depth of knowledge.
Competency based
Under what circumstances do open pay systems work best?
1. Individual performance can be measured objectively.
2. Effort and performance are closely related in a short term span.
Managers' ____________ impact pay in addition to how much an employer can
afford to pay its employees.
Philosophy and attitudes
What are ways employers can attempt to eliminate the trust gap?
1. Make sure your door is really open.
2. Start with the obvious.
Sarbanes-Oxley requires that _____________.
Executives cannot retain bonuses or profits from selling company stock if they mislead
the public
Companies do what when compensation from a strategic perspective?
, 1. They make the pay system an Integral part of strategy formulation.
2. They recognize the compensation is a pivotal control.
Team incentives provide the opportunity for each team member will receive a
bonus based on what?
Output of the team as a whole
What are disadvantages to pay openness?
1. It forces managers to publicly defend their pay decisions.
2. It may induce some managers to reduce pay differences.
What are the wages paid by an organization that are competitive outside the
organization?
External equity
What are included in the major changes in company philosophy today concerning
pay and benefits?
1. Less concerned with pay position relative to competitors.
2. Increased willingness to reduce the size of the workforce.
Once a pay structure is in place, the determination of ________ becomes a more
systematic, orderly procedure.
An individuals pay
What are alternatives to pay systems based on job evaluations?
1. Competency-based pay systems.
2. Market based pay systems.
What occurs when formally productive employees are allowed to slack off for
several years yet still receive high pay?
COMPLETE SOLUTIONS
Every year, performance standards are what?
Raised
At lower levels, ___________ Systems almost guarantee cost control.
Variable pay
Under _______________ pay systems, workers are paid on the basis of skill or
depth of knowledge.
Competency based
Under what circumstances do open pay systems work best?
1. Individual performance can be measured objectively.
2. Effort and performance are closely related in a short term span.
Managers' ____________ impact pay in addition to how much an employer can
afford to pay its employees.
Philosophy and attitudes
What are ways employers can attempt to eliminate the trust gap?
1. Make sure your door is really open.
2. Start with the obvious.
Sarbanes-Oxley requires that _____________.
Executives cannot retain bonuses or profits from selling company stock if they mislead
the public
Companies do what when compensation from a strategic perspective?
, 1. They make the pay system an Integral part of strategy formulation.
2. They recognize the compensation is a pivotal control.
Team incentives provide the opportunity for each team member will receive a
bonus based on what?
Output of the team as a whole
What are disadvantages to pay openness?
1. It forces managers to publicly defend their pay decisions.
2. It may induce some managers to reduce pay differences.
What are the wages paid by an organization that are competitive outside the
organization?
External equity
What are included in the major changes in company philosophy today concerning
pay and benefits?
1. Less concerned with pay position relative to competitors.
2. Increased willingness to reduce the size of the workforce.
Once a pay structure is in place, the determination of ________ becomes a more
systematic, orderly procedure.
An individuals pay
What are alternatives to pay systems based on job evaluations?
1. Competency-based pay systems.
2. Market based pay systems.
What occurs when formally productive employees are allowed to slack off for
several years yet still receive high pay?
