Question 1

At the corporate level,the fundamental strategic decision involves defining the role of the HR in compensation strategies.

Accepted Answer

A) True 
 B)False  False

Question 2

Compensation systems can be tailored to general business strategies.List and explain these strategies.

Accepted Answer

Compensation systems can be tailored to three general business strategies:
i.The innovator stresses new products and short response time to market trends.A supporting compensation approach places less emphasis on evaluating skills and jobs and more emphasis on incentives designed to encourage innovations.
ii.The cost cutter's efficiency-focused strategy stresses doing more with less by minimizing costs,encouraging productivity increases,and specifying in greater detail exactly how jobs should be performed.
iii.The customer-focused business strategy stresses delighting customers and bases employee pay on how well they do this.

Question 3

Flexible-generic job descriptions would most likely be used with a(n)_____ strategy.

Accepted Answer

A)   innovator
B)   customer-focused
C)   differentiated
D)   cost-cutter A

Question 4

Whole Foods' shared-fate philosophy means that executive salaries are at least 19 times the average pay of full-time employees.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding allowing employees a choice in their pay mix is NOT true?

Accepted Answer

A)   Allowing employees their choice is difficult to manage
B)   Allowing employees their choice is easy for competitor companies to imitate
C)   Providing unlimited choices for employees to choose from is difficult to design
D)   Providing too many choices can confuse people

Question 6

Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision?

Accepted Answer

A)   External competitiveness
B)   Employee contributions
C)   Corporate responsibility
D)   Internal alignment

Question 7

The role non-HR managers play in making pay decisions is called _____.

Accepted Answer

A)   ownership
B)   transparency
C)   technology
D)   decentralized decision-making

Question 8

Which of the following is NOT included in a strategy map?

Accepted Answer

A)   External competitiveness
B)   Management
C)   HR alignment
D)   Employee contributions

Question 9

Customer-focused pay strategies are most likely to use market-based pay.

Accepted Answer

A) True 
 B)False

Question 10

Pay systems should fit well with other HR systems.

Accepted Answer

A) True 
 B)False

Question 11

Compensation systems focusing on competitors' labor costs typically follow a cost-cutter strategy.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage?

Accepted Answer

A)   Alignment test
B)   Cost-effectiveness test
C)   Differentiation test
D)   Value-addition test

Question 13

A compensation system using market-based pay is most likely to be part of a(n)_____ strategy.

Accepted Answer

A)   innovator
B)   cost-cutter
C)   cost leadership
D)   customer-focused

Question 14

Most firms do not have generic strategies but use a blend of cost and innovation.

Accepted Answer

A) True 
 B)False

Question 15

In the formula predicting performance,the component most closely related to compensation is _____.

Accepted Answer

A)   A
B)   M
C)   O
D)   C

Question 16

What are the aspects of the alignment of pay strategy?

Accepted Answer

The answer of What are the aspects of the alignment...

Question 17

Which of the following is the correct order of the steps in formulating a total compensation strategy?

Accepted Answer

A)   Assess the strategy,implement the strategy,map the strategy,and reassess the strategy.
B)   Assess the strategy,map the strategy,implement the strategy,and reassess the strategy.
C)   Map the strategy,implement the strategy,assess the strategy,and reassess the strategy.
D)   Map the strategy,assess the strategy,implement the strategy,and reassess the strategy.

Question 18

_____ is the measure of how important total compensation is in the overall HR strategy.

Accepted Answer

A)   Competitiveness
B)   Prominence
C)   Centrality
D)   Ownership

Question 19

Benchmarking and copying best practices does not lead to competitive advantage.

Accepted Answer

A) True 
 B)False

Question 20

The second step of developing a total compensation strategy is to:

Accepted Answer

A)   implement the strategy.
B)   assess total compensation implications.
C)   estimate the cost of the strategy.
D)   map the strategy.

Exam 2: Strategy: The Totality of Decisions

At the corporate level,the fundamental strategic decision involves defining the role of the HR in compensation strategies.

Compensation systems can be tailored to general business strategies.List and explain these strategies.

Flexible-generic job descriptions would most likely be used with a(n) _____ strategy.

Whole Foods' shared-fate philosophy means that executive salaries are at least 19 times the average pay of full-time employees.

Which of the following statements regarding allowing employees a choice in their pay mix is NOT true?

Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average pay of full-time employees is an example of which strategic pay decision?

The role non-HR managers play in making pay decisions is called _____.

Which of the following is NOT included in a strategy map?

Customer-focused pay strategies are most likely to use market-based pay.

Pay systems should fit well with other HR systems.

Compensation systems focusing on competitors' labor costs typically follow a cost-cutter strategy.

Which of the following is NOT a test of whether a pay strategy is a source of competitive advantage?

A compensation system using market-based pay is most likely to be part of a(n) _____ strategy.

Most firms do not have generic strategies but use a blend of cost and innovation.

In the formula predicting performance,the component most closely related to compensation is _____.

What are the aspects of the alignment of pay strategy?

Which of the following is the correct order of the steps in formulating a total compensation strategy?

_____ is the measure of how important total compensation is in the overall HR strategy.

Benchmarking and copying best practices does not lead to competitive advantage.

The second step of developing a total compensation strategy is to: