HRM Chapter 11

An equitable and effective compensation system should possess:

• internal equity.

• individual equity.

• external equity.

• All of these are correct.

Which of the following is(are) true regarding compensation systems?

• Stock options are a type of incentive pay

• Direct compensation includes legally required and optional benefits

• Legally required benefits include retirement/pension plans

• Indirect compensation includes base pay and incentive pay

According to equity theory, a worker will perceive inequity when which of the following exists?

• outcomes/inputs for self = outcomes/inputs for self

• outcomes for self < outcomes for others

• outcomes/inputs for self < outcomes/inputs for others

• outcomes/inputs for others = outcomes/inputs for others

Equity and work-related outcomes include:

• motivation.

• commitment.

• performance.

• All of these are correct.

The most appropriate job evaluation method to use when there is a large organization that is looking for an easy to understand approach is:

• job ranking.

• job classification.

• Hay method.

• point method.

The best job evaluation method to use when a small organization only needs a simple, nonquantitative approach is:

• point method.

• job classification.

• job ranking.

• Hay method.

The best job evaluation method to use when a large organization needs a quantitative, rigorous approach is:

• point method.

• job ranking.

• Hay method.

• job classification.

The best job evaluation method to use when a large organization needs a quantitative approach that is appropriate for managerial and administrative jobs is:

• Hay method.

• point method.

• job classification.

• job ranking.

What is the best job evaluation method to use with an organization that is stable, and the jobs in the organization do not change much in terms of content or responsibilities?

• Hay method

• Job ranking method

• Factor comparison method

• Point method

The best market pay strategy for an organization to use when an organization wants to become an "employer of choice" is:

• lead.

• benchmark.

• match.

• lag.