Exam 7: Defining Competitiveness

Pay policies indicate the kinds of behaviour an employer seeks. This is a prediction of ________ labour demand theory.

Pay level is the average of the array of rates paid by an employer.

Human capital theory assumes that people are paid at the value of their:

Efficiency wage theory says that if a job has negative characteristics, then employers must offer higher wages to compensate for these negative features.

Efficiency wage theory says that sometimes high wages may:

A policy to pay below market rates is known as a(n)____________policy.

How do product market conditions determine what an organization can afford to pay?

What is the prediction of efficiency wage theory?

Nature of demand and nature of supply are labour market factors that shape external competitiveness.

Which of the following supply-side theories is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves?

Which of the following is true about human capital theory?

What are two key product market factors that affect the ability of the organization to change what it charges for its products and services?

Discuss competitive pay policies.

The average of the array of rates paid by an employer- i.e., the sum of base, bonuses, benefits, and options-is referred to as:

Discuss two ways of expressing external competitiveness in practice.

A flexible policy that mimics the pay mix competitors are paying is known as a:

The marginal product of labour is the additional output associated with the employment of one additional human resources unit, with other production factors held constant.

Given the choice to match, lead, or lag, the most common competitive pay policy is to match rates paid by competitors.

Geographic barriers to mobility between jobs do not affect the supply of labour.

Employers who use no-mix strategy compete by producing goods and services with the highest total compensation possible.