Strategic Compensation Final Exam
1. What can you determine by examining a firm's structural variables?: The
managerial strategy a firm is actually using
2. Which term refers to the vehicle used by an organization for executing
its business strategy?: Its structure
3. Which of the following would be the best choice for a compensation
system?: The system is cost effective and achieves company goals.
4. The compensation system typically refers to which aspect of the reward
system?: The economic or monetary part
5. Jackson, a service manager, loves his job. He particularly appreciates
the level of autonomy his job provides. From a rewards perspective, which
kind of reward appears to be motivating Jackson?: Intrinsic
6. Which of the following statements most accurately describes extrinsic
rewards?: They include monetary and non monetary rewards and come from the
job context.
7. T or F: Horizontal fit refers to the alignment between an organization's
mission, vision, and values, and the various supportive strategies that
cascade down an organization.: False
8. Which statement best describes current compensation practices and
expectations related to the key criteria for evaluating the success of a
compensation system?: Organizations must constantly assess the effectiveness
of their reward and compensation systems.
9. You have offered your sales associate an all-expenses-paid trip for two
to Australia if she doubles her annual sales volume from last year. What type
of inducement are you offering?: Incentive
10. Which variable indicates to management the most appropriate
managerial strategy to use in an organization?: Contextual variables
11. T or F: If a particular compensation system has been successful in one
organization, it is very likely that replicating that compensation system will
bring success in another organization.: False
12. As a small business owner committed to the total rewards approach to
compensation, what do you need to establish before you start to develop your
compensation system?: A reward strategy
13. Which of the following best explains intrinsic rewards?: Intrinsic rewards
are provided by job content.
14. According to expectancy theory, which of the following would be an
example of negative instrumentality?: You believe that no matter how hard you
work your performance will not be recognized.
, 15. You operate an inbound call centre serving the various needs of your
customers. Over the last several months, you notice that customers are
waiting on hold for several minutes before being served. To motivate
operators, you introduce an incentive program that rewards those operators
that answer over 200 calls per 8-hour shift. Shortly thereafter, wait times from
but service complaints escalate. What kind of reward problem does this
vignette describe?: Production of desired behaviour and undesirable
consequences
16. A particular employee becomes dissatisfied with a decision by an
organization to decrease pay. Which of the following could be considered an
attempt by the employee to increase rewards?: Padding their expense accounts
17. When a potential employee joins an organization, there is often an
implied contract between the employee and the organization, based on
expectations of rewards and contributions. Which of the following best
describes this contract?: Psychological contract
18. T or F: Reward dissatisfaction can result from perceived inequity.: True
19. T or F: Classical management strategies generally require a reward
system that focuses on task behaviour.: True
20. T or F: Distributive justice refers to the fairness of the process in giving
rewards.: False
21. T or F: They key employee attitudes are flexibility, citizenship, and
individual goal commitment.: False
22. At a unionized firm, workers went on strike even after management
offered them a two percent increase in pay. The union representing the
workers said that the proposed increase did not match the workers'
contributions to the firm. What type of reward problem is evident in this
situation?: production of reward dissatisfaction
23. According to reinforcement theory, what happens when organization-
controlled rewards stop?: Desired behaviours eventually disappear.
24. Which term is used to describe the degree of urgency an individual
attaches to the satisfaction of a particular need?: need salience
25. You think your salary is unfair compared to others in your department,
and you threaten to quit your job. Which theory best explains your actions?:
Equity theory
26. Which short scenario best describes organization citizenship
behaviour?: Marek, a shop mechanic, approaches management with an initiative
that will improve customer service.
1. What can you determine by examining a firm's structural variables?: The
managerial strategy a firm is actually using
2. Which term refers to the vehicle used by an organization for executing
its business strategy?: Its structure
3. Which of the following would be the best choice for a compensation
system?: The system is cost effective and achieves company goals.
4. The compensation system typically refers to which aspect of the reward
system?: The economic or monetary part
5. Jackson, a service manager, loves his job. He particularly appreciates
the level of autonomy his job provides. From a rewards perspective, which
kind of reward appears to be motivating Jackson?: Intrinsic
6. Which of the following statements most accurately describes extrinsic
rewards?: They include monetary and non monetary rewards and come from the
job context.
7. T or F: Horizontal fit refers to the alignment between an organization's
mission, vision, and values, and the various supportive strategies that
cascade down an organization.: False
8. Which statement best describes current compensation practices and
expectations related to the key criteria for evaluating the success of a
compensation system?: Organizations must constantly assess the effectiveness
of their reward and compensation systems.
9. You have offered your sales associate an all-expenses-paid trip for two
to Australia if she doubles her annual sales volume from last year. What type
of inducement are you offering?: Incentive
10. Which variable indicates to management the most appropriate
managerial strategy to use in an organization?: Contextual variables
11. T or F: If a particular compensation system has been successful in one
organization, it is very likely that replicating that compensation system will
bring success in another organization.: False
12. As a small business owner committed to the total rewards approach to
compensation, what do you need to establish before you start to develop your
compensation system?: A reward strategy
13. Which of the following best explains intrinsic rewards?: Intrinsic rewards
are provided by job content.
14. According to expectancy theory, which of the following would be an
example of negative instrumentality?: You believe that no matter how hard you
work your performance will not be recognized.
, 15. You operate an inbound call centre serving the various needs of your
customers. Over the last several months, you notice that customers are
waiting on hold for several minutes before being served. To motivate
operators, you introduce an incentive program that rewards those operators
that answer over 200 calls per 8-hour shift. Shortly thereafter, wait times from
but service complaints escalate. What kind of reward problem does this
vignette describe?: Production of desired behaviour and undesirable
consequences
16. A particular employee becomes dissatisfied with a decision by an
organization to decrease pay. Which of the following could be considered an
attempt by the employee to increase rewards?: Padding their expense accounts
17. When a potential employee joins an organization, there is often an
implied contract between the employee and the organization, based on
expectations of rewards and contributions. Which of the following best
describes this contract?: Psychological contract
18. T or F: Reward dissatisfaction can result from perceived inequity.: True
19. T or F: Classical management strategies generally require a reward
system that focuses on task behaviour.: True
20. T or F: Distributive justice refers to the fairness of the process in giving
rewards.: False
21. T or F: They key employee attitudes are flexibility, citizenship, and
individual goal commitment.: False
22. At a unionized firm, workers went on strike even after management
offered them a two percent increase in pay. The union representing the
workers said that the proposed increase did not match the workers'
contributions to the firm. What type of reward problem is evident in this
situation?: production of reward dissatisfaction
23. According to reinforcement theory, what happens when organization-
controlled rewards stop?: Desired behaviours eventually disappear.
24. Which term is used to describe the degree of urgency an individual
attaches to the satisfaction of a particular need?: need salience
25. You think your salary is unfair compared to others in your department,
and you threaten to quit your job. Which theory best explains your actions?:
Equity theory
26. Which short scenario best describes organization citizenship
behaviour?: Marek, a shop mechanic, approaches management with an initiative
that will improve customer service.
