Ch1 Strategic compensation

Topics: Employment compensation, Executive compensation, Strategic management Pages: 8 (1934 words) Published: September 27, 2014
Strategic Compensation, 6e (Martocchio)
Chapter 1 Strategic Compensation: A Component of Human Resource Systems

1) What is the primary factor that will prevent companies from growing in the next decade? A) increased government regulations
B) the inability to attract and retain employees
C) caps on executive pay in some organizations
D) increased global competition
Answer: B
Diff: 3Page Ref: 6

2) Which of the following would be an example of a non-monetary reward? A) medical insurance
B) vacations
C) day care assistance
D) all of the above
Answer: D
Diff: 1Page Ref: 7

3) This law made it illegal to pay women less for performing equal work as men. A) Equal Pay Act of 1963
B) Civil Rights Act of 1964
C) Davis — Bacon Act of 1931
D) Fair Labor Standards Act of 1938
Answer: A
Diff: 2Page Ref: 7

4) Which theory states that employees' knowledge and skills generate productive capital? A) job characteristics theory
B) expectancy theory
C) equity theory
D) human capital theory
Answer: D
Diff: 1Page Ref: 8

5) What is type of pay system rewards employees for partially or completely attaining a predetermined work objective? A) seniority pay
B) merit pay
C) incentive pay
D) skill-based pay
Answer: C
Diff: 2Page Ref: 8
6) Which of the following is NOT one of the three broad categories that discretionary benefits fall into? A) worker’s compensation laws
B) paid time off
C) protection programs
D) services
Answer: A
Diff: 3Page Ref: 8

7) Protection programs are what type of compensation benefits? A) external
B) non-monetary
C) internal
D) monetary
Answer: B
Diff: 2Page Ref: 4

8) These are positive employer gestures that beyond what was required by law, created in part to thwart potential union activity. A) employee benefit plans
B) welfare practices
C) scientific management practices
D) compensable factors
Answer: B
Diff: 2Page Ref: 12

9) A company’s ability to sustain market share and profitability for several years running is referred to by what term? A) differentiation
B) personnel administration
C) compensation practices
D) competitive advantage
Answer: D
Diff: 1Page Ref: 12

10) What are responsible for guiding the activities of a particular company in the market? A) strategic decisions
B) tactical decisions
C) worker majority decisions
D) informative decisions
Answer: A
Diff: 1Page Ref: 13

11) This term suggests that a loss is likely for the firm, and that the individual will be left with little control. A) reverse opportunity
B) negative equity
C) threat
D) foreclosure
Answer: C
Diff: 1Page Ref: 13
12) This strategic human resource concept allows employees to work the hours that are most suitable to them in order to meet both their personal and business needs. A) flextime
B) free time
C) personal time
D) reward time
Answer: A
Diff: 1Page Ref: 16

13) What strategy describes the use of benefit and compensation packages in order to support both HR and competitive strategies? A) worker welfare strategies
B) total compensation strategies
C) total quality management strategies
D) worker satisfaction strategies
Answer: B
Diff: 2Page Ref: 16

14) Southwest Airlines uses this competitive strategy by keeping overhead low, thus passing a price advantage on to consumers. A) differentiation strategy
B) high quality strategy
C) brand notoriety
D) lowest-cost strategy
Answer: D
Diff: 3Page Ref: 16

15) A company using this competitive strategy seeks to offer a product or service that is completely unique from other competitors in their market segment. A) differentiation strategy
B) defender strategy
C) prospector strategy
D) lowest-cost strategy
Answer: A
Diff: 2Page Ref: 16

16) Which of these actions would HR seek to encourage in attempting to create a lowest-cost competitive strategy? A) an employee long-term focus
B) unpredictable employee behavior
C) high concern for the quantity...
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