STRATEGIC COMPENSATION

Pay-for-performance programs ________.

• tie rewards to firms' profitability

• are easy to implement and measure

• tie rewards to employee effort

• result in negligible increases in output

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

• To reward employees' past performance

• To mesh employees' past performance with organizational goals

• To remain competitive in the labor market

• To attract new employees

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

• expectancy theory

• the need for pay secrecy

• pay-for-performance programs

• equity theory

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 ________.

• equity theory

• instrumentality theory

• pay secrecy

• expectancy theory

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

• generate distrust in the compensation system

• reduce employee motivation

• inhibit organizational effectiveness

• generate feelings of commitment

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

• hourly work

• piecework

• commission

• bonus

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

• job analysis

• labor market conditions

• wage-rate surveys

• an effective performance management system

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?

• point system

• job ranking

• job grade system

• factor comparison method

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

• Hay profile method

• Job ranking

• Factor comparison method

• Job classification system

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

• Pay Range

• Broadbanding

• Competence-based pay

• Factor comparison