Question 1

Internal alignment suggests that:

Accepted Answer

A) paying higher than the average wage offered by competitors can affect results. 
B) rather than focusing on only one dimension of the pay strategy, such as pay for performance or internal pay differences, all dimensions need to be considered together. 
C) both smaller and larger pay differences among jobs inside an organization can affect results. 
D) embedding compensation strategy within the broader HR strategy affects results. 
E) performance-based pay can affect results. 
A) paying higher than the average wage offered by competitors can affect results. 
B) rather than focusing on only one dimension of the pay strategy, such as pay for performance or internal pay differences, all dimensions need to be considered together. 
C) both smaller and larger pay differences among jobs inside an organization can affect results. 
D) embedding compensation strategy within the broader HR strategy affects results. 
E) performance-based pay can affect results. C

Question 2

Describe the relationship between virtuous and vicious circles.

Accepted Answer

Some studies suggest that performance-based pay works best when the organization is performing well. An organization with increasing profits or market share is able to pay larger incentives in the form of bonuses and stock awards which is reflected in employee attitudes and work behaviours, which in turn improves their performance and ultimately results in better organizational performance. The circle gains upward momentum. Contrarily when organization performance declines, say in a recessionary period, performance-based pay plans do not pay off; there are no bonuses, and the value of stock declines-with potentially negative effects on organizational performance. Declining organizational performance increases the risks facing employees-risks of demotions, wage cuts, and even layoffs. Declining employee attitudes may speed the downward spiral, creating a vicious circle.

Question 3

Which of the following is a step in the formulation of the total compensation strategy that deals with employee or union needs?

Accepted Answer

A) implementing strategy 
B) implementing cultural and regulatory changes 
C) reassessing the fit 
D) mapping a total compensation strategy 
E) assessing total compensation implications 
A) implementing strategy 
B) implementing cultural and regulatory changes 
C) reassessing the fit 
D) mapping a total compensation strategy 
E) assessing total compensation implications E

Question 4

Describe the last step of developing a total compensation strategy.

Accepted Answer

The fourth step, reassess and realign, c

Question 5

Of the three tests of competitive advantage-align, differentiate, add value-align is the most difficult.

Accepted Answer

A) True 
 B)False

Question 6

According to the steps involved in formulating a total compensation strategy, which of the following is the step that follows the assessment of total compensation implications?

Accepted Answer

A) realigning as conditions change 
B) mapping a total compensation strategy 
C) implementing strategy 
D) implementing cultural and regulatory changes 
E) reassessing the fit 
A) realigning as conditions change 
B) mapping a total compensation strategy 
C) implementing strategy 
D) implementing cultural and regulatory changes 
E) reassessing the fit

Question 7

What three tests determine whether a compensation strategy is providing a competitive advantage to the organization?

Accepted Answer

Three tests determine whether a pay stra

Question 8

Which of the following is the first step in the development of the total compensation strategy?

Accepted Answer

A) mapping a total compensation strategy 
B) reassessing the fit 
C) implementing strategy 
D) assessing total compensation implications 
E) realigning as strategy changes 
A) mapping a total compensation strategy 
B) reassessing the fit 
C) implementing strategy 
D) assessing total compensation implications 
E) realigning as strategy changes

Question 9

According to the steps involved in the formulation of a total compensation strategy, which of the following is the next step after deciding on a total compensation strategy?

Accepted Answer

A) implementing strategy 
B) realigning as conditions change 
C) reassessing the fit 
D) assessing total compensation implications 
E) realigning as strategy changes 
A) implementing strategy 
B) realigning as conditions change 
C) reassessing the fit 
D) assessing total compensation implications 
E) realigning as strategy changes

Question 10

All organizations that pay people have a written compensation strategy.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following organizational practices assumes that rather than focusing on only one dimension of the pay strategy, such as pay for performance or internal pay differences, all dimensions need to be considered together?

Accepted Answer

A) internal alignment 
B) compensation strategy 
C) external competitiveness 
D) managing compensation 
E) employee contributions 
A) internal alignment 
B) compensation strategy 
C) external competitiveness 
D) managing compensation 
E) employee contributions

Question 12

Which of the following pay strategies is a source of competitive advantage?

Accepted Answer

A) a pay strategy that specifies low base pay and high job security 
B) a pay strategy that overemphasizes on outstanding employee performance and commitment 
C) a pay strategy that ignores individual attitudes and preferences 
D) a pay strategy that adds value and is difficult for employers to imitate 
E) a pay strategy that emphasizes on work/life programs over cash compensation and giving only limited bonuses and no stock awards 
A) a pay strategy that specifies low base pay and high job security 
B) a pay strategy that overemphasizes on outstanding employee performance and commitment 
C) a pay strategy that ignores individual attitudes and preferences 
D) a pay strategy that adds value and is difficult for employers to imitate 
E) a pay strategy that emphasizes on work/life programs over cash compensation and giving only limited bonuses and no stock awards

Question 13

A customer-focused business strategy:

Accepted Answer

A) stresses delighting customers and bases employee pay on how well they do this. 
B) focuses on business practice or process that results in better performance than one's competitors. 
C) places less emphasis on evaluating skills and jobs and more emphasis on incentives designed to encourage innovations. 
D) stresses doing more with less by minimizing costs, encouraging productivity increases, and specifying in greater detail exactly how jobs should be performed. 
E) stresses new products and short response times to market trends. 
A) stresses delighting customers and bases employee pay on how well they do this. 
B) focuses on business practice or process that results in better performance than one's competitors. 
C) places less emphasis on evaluating skills and jobs and more emphasis on incentives designed to encourage innovations. 
D) stresses doing more with less by minimizing costs, encouraging productivity increases, and specifying in greater detail exactly how jobs should be performed. 
E) stresses new products and short response times to market trends.

Question 14

Union interests are part of the environmental pressures that help shape compensation strategies.

Accepted Answer

A) True 
 B)False

Question 15

According to the pay model, the strategic compensation decisions regarding external competitiveness involve:

Accepted Answer

A) how pay increases should be based. 
B) how open and transparent the pay decisions should be to all employees. 
C) how the different types and levels of skills and work should be paid within the organization. 
D) how compensation should support the business strategy and be adaptive to the cultural and regulatory pressures in a global environment. 
E) how total compensation should be positioned against competitors. 
A) how pay increases should be based. 
B) how open and transparent the pay decisions should be to all employees. 
C) how the different types and levels of skills and work should be paid within the organization. 
D) how compensation should support the business strategy and be adaptive to the cultural and regulatory pressures in a global environment. 
E) how total compensation should be positioned against competitors.

Question 16

Which of the following is a step in the development of the total compensation strategy that deals with competitive dynamics?

Accepted Answer

A) implementing strategy 
B) mapping a total compensation strategy 
C) assessing total compensation implications 
D) reassessing the fit 
E) implementing cultural and regulatory progress 
A) implementing strategy 
B) mapping a total compensation strategy 
C) assessing total compensation implications 
D) reassessing the fit 
E) implementing cultural and regulatory progress

Question 17

Trial and error play a major role in developing a compensation strategy.

Accepted Answer

A) True 
 B)False

Question 18

Periodic reassessment of a compensation strategy's fit to changing conditions is needed to:

Accepted Answer

A) design work so that employees have opportunities to work independently without collaboration with others. 
B) defer taxes by putting pay into retirement funds. 
C) set objectives on alignment, competitiveness, contributions, and management. 
D) specify the four policies on alignment, competitiveness, contributions, and management. 
E) continuously learn, adapt, and improve. 
A) design work so that employees have opportunities to work independently without collaboration with others. 
B) defer taxes by putting pay into retirement funds. 
C) set objectives on alignment, competitiveness, contributions, and management. 
D) specify the four policies on alignment, competitiveness, contributions, and management. 
E) continuously learn, adapt, and improve.

Question 19

A focus on compensation decisions that help the organization gain and sustain competitive advantage is known as  __________.

Accepted Answer

A) strategic alliance 
B) strategic perspective 
C) association perspective 
D) competitive heterogeneity 
E) planned perception 
A) strategic alliance 
B) strategic perspective 
C) association perspective 
D) competitive heterogeneity 
E) planned perception

Question 20

Government relations to influence laws and regulations are never a part of compensation strategies.

Accepted Answer

A) True 
 B)False

Internal alignment suggests that:

Describe the relationship between virtuous and vicious circles.

Which of the following is a step in the formulation of the total compensation strategy that deals with employee or union needs?

Describe the last step of developing a total compensation strategy.

Of the three tests of competitive advantage-align, differentiate, add value-align is the most difficult.

According to the steps involved in formulating a total compensation strategy, which of the following is the step that follows the assessment of total compensation implications?

What three tests determine whether a compensation strategy is providing a competitive advantage to the organization?

Which of the following is the first step in the development of the total compensation strategy?

According to the steps involved in the formulation of a total compensation strategy, which of the following is the next step after deciding on a total compensation strategy?

All organizations that pay people have a written compensation strategy.

Which of the following organizational practices assumes that rather than focusing on only one dimension of the pay strategy, such as pay for performance or internal pay differences, all dimensions need to be considered together?

Which of the following pay strategies is a source of competitive advantage?

A customer-focused business strategy:

Union interests are part of the environmental pressures that help shape compensation strategies.

According to the pay model, the strategic compensation decisions regarding external competitiveness involve:

Which of the following is a step in the development of the total compensation strategy that deals with competitive dynamics?

Trial and error play a major role in developing a compensation strategy.

Periodic reassessment of a compensation strategy's fit to changing conditions is needed to:

A focus on compensation decisions that help the organization gain and sustain competitive advantage is known as __________.

Government relations to influence laws and regulations are never a part of compensation strategies.

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 2: Strategy: the Totality of Decisions

Internal alignment suggests that:

Describe the relationship between virtuous and vicious circles.

Which of the following is a step in the formulation of the total compensation strategy that deals with employee or union needs?

Describe the last step of developing a total compensation strategy.

Of the three tests of competitive advantage-align, differentiate, add value-align is the most difficult.

According to the steps involved in formulating a total compensation strategy, which of the following is the step that follows the assessment of total compensation implications?

What three tests determine whether a compensation strategy is providing a competitive advantage to the organization?

Which of the following is the first step in the development of the total compensation strategy?

According to the steps involved in the formulation of a total compensation strategy, which of the following is the next step after deciding on a total compensation strategy?

All organizations that pay people have a written compensation strategy.

Which of the following organizational practices assumes that rather than focusing on only one dimension of the pay strategy, such as pay for performance or internal pay differences, all dimensions need to be considered together?

Which of the following pay strategies is a source of competitive advantage?

A customer-focused business strategy:

Union interests are part of the environmental pressures that help shape compensation strategies.

According to the pay model, the strategic compensation decisions regarding external competitiveness involve:

Which of the following is a step in the development of the total compensation strategy that deals with competitive dynamics?

Trial and error play a major role in developing a compensation strategy.

Periodic reassessment of a compensation strategy's fit to changing conditions is needed to:

A focus on compensation decisions that help the organization gain and sustain competitive advantage is known as __________.

Government relations to influence laws and regulations are never a part of compensation strategies.

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters