True False
41.
Objectives guide the design of pay systems and provide the standards for evaluating their effectiveness.
True False
42.
Even if the federal compensation laws change, it is unnecessary to change pay systems to ensure continued compliance.
True False
43.
Internal alignment refers to comparisons among jobs or skill levels inside a single organization.
True False
44.
Since HR research contains information useful to managers, most managers read research in HR management, and compensation journals.
True False
45.
Management and HR research has conclusively shown that goal setting and job enrichment produce the largest and most reliable increases in job performance.
True False
46.
Monetary incentives produce the biggest increases in job performance.
True False
47.
A study found that only a very small amount of change in CEO pay is related to changes in company performance.
True False
48.
A study of IBM showed that its long-standing policy of no layoffs was the major cause of its strong profits.
True False
49.
Causality is one of the most difficult questions to answer and continues to be an important and sometimes perplexing problem for researchers.
True False
50.
The R2, which is an output from a regression analysis, is different from correlation in that it tells us what percentage of the variation is accounted for by the variables we are using to predict or explain.
True False
Short Answer Questions
51.
Describe the perspective of stockholders on compensation.
52.
What are the different ways in which pay can influence employee motivation and behavior?
53.
Describe the various returns received from work.
54.
List the basic elements of the pay model.
55.
Explain the basic compensation objectives of pay systems.
Chapter 01 The Pay Model Answer Key
Multiple Choice Questions
1.
Which of the following programs introduced by Congress includes restrictions on executive pay that are designed to discourage executives from taking "unnecessary and excessive risks"?
A.
Corporate Welfare Program
B.
Employee Welfare Program
C.
Troubled Asset Relief Program
D.
Corporate Liability Relief Program
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Compensation: Does It Matter? (or, "So What?")
2.
Hourly compensation costs for production workers in manufacturing are higher in _____ than in the United States.
A.
Germany
B.
Czech Republic
C.
Mexico
D.
China
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
3.
One of the reasons why 8 in 10 of the uninsured in the United States are from working families is that _____.
A.
many larger employers do not offer health insurance as it does not guarantee an increase in productivity levels
B.
health insurance is more costly for larger employers
C.
many small employers are much less likely than larger employers to offer health insurance to their employees
D.
most workers decline health insurance when offered by their employers