Strategic Human Resource Management Gaining a Competitive Advantage 2nd Edition By Raymond Noe – Test Bank

Strategic Human Resource Management Gaining a Competitive Advantage 2nd Edition By Raymond Noe – Test Bank

c8

Student: ___________________________________________________________________________

1. The equity theory suggests that people often evaluate their situations by comparing them with those of other people.
   True False

2. Internal equity pay comparisons focus on what employees in other organizations are paid for doing the same general job.
   True False

3. Product market competition places a lower bound on labour costs and compensation.
   True False

4. Essentially, labour market competition is the amount an organization must pay to compete against other companies that hire similar types of employees.
   True False

5. Benchmarking is a procedure in which a company compares its own practices against those of the competition.
   True False

6. Product market comparisons that focus on labour costs deserve greater weight when labour costs represent a large share of total costs.
   True False

7. It is usually valid to compare return-on-investment ratios, such as revenues/labour costs, among organizations in different industries.
   True False

8. Conceptually, a job structure can be defined as the relative pay of various jobs in an organization.
   True False

9. Non-key, or non-benchmark, jobs have relatively stable content and are common to many organizations.
   True False

10. Job evaluation can be defined as the relative worth of various jobs in the organization based on internal comparisons.
    True False

11. A market pay policy line may be developed using job evaluation data and market pay survey data.
    True False

12. A disadvantage of using pay grades is the increased administrative burden and costs.
    True False

13. When resolving conflicts between external and internal pay data, there is a growing sentiment that external comparisons deserve greater weight because organizations are finding it increasingly difficult to ignore market competitive pressures.
    True False

14. A compa-ratio equivalent to 1 suggests that actual pay is not consistent with the pay policy.
    True False

15. Under a two-tier wage plan, employees doing the same job are paid two different rates, depending on their background and training.
    True False

16. As a manager you would have the most crucial role of communication as you have the day-to-day interactions with your employees.
    True False

17. Broad band pay programs can lead to weaker budgetary controls and rising labour costs.
    True False

18. The use of “banding” in organizations may mean fewer promotional opportunities for employees.
    True False

19. Skill-based pay systems fit well with the increased breadth and depth of skill that changing technology continues to bring.
    True False

20. The quality and productivity of national labour forces do not vary dramatically between industrialized countries and developing countries.
    True False

21. Any consideration of where to locate production can be based on labour considerations alone.
    True False

22. Long-term compensation, typically in the form of stock plans, is the major component of CEO pay.
    True False

23. Executive pay is not symbolic and has no influence to the tone or culture of the organization.
    True False

24. The Canada Labour Code covers 90 percent of Canadian workers.
    True False

25. Workers’ compensation legislation is federally governed and provides a no-fault, employer-funded program to protect employees from “the financial hardships associated with work-related injuries and occupational diseases.”
    True False

26. In a recent research study, more effective communication of the reasons for an organization’s pay-cuts had:
    A. little effect on employees’ attitudes and behaviours.
    B. a negative effect on employee retention rates.
    C. a large effect on reducing employee theft rates.
    D. no effect on employees’ perceived equity of pay.

27. Weighting factors based on expert judgment refers to:
    A. pay policy weights.
    B. empirical weights.
    C. a priori weights.
    D. ex post weights.

28. A pay system where employees doing the same jobs are paid two different rates, depending on when they were hired is called _________.
    A. an unfair wage plan
    B. a two-tier wage plan
    C. a two-level wage plan
    D. an inequitable wage plan

29. Research conducted on a two-tier wage plan found that lower-paid employees were more satisfied than average. This supports which theory?
    A. Expectancy
    B. Equity
    C. Agency
    D. Efficiency wage

30. Which of the following theories describes the conditions under which the benefits of higher pay outweigh the higher costs?
    A. Equity theory
    B. Expectancy theory
    C. Agency theory
    D. Efficiency wage theory

31. Which of the following is a factor to consider in keeping many types of production in one’s own country which has high labour costs rather than shifting to low labour cost countries?
    A. Relative labour costs are stable over time.
    B. The quality and productivity of national labour forces generally do not vary.
    C. Any consideration of where to locate production can be based on labour considerations alone.
    D. The combination of lower labour costs and higher productivity translates into lower unit labour costs.

32. Key, or benchmark, jobs have all of the following characteristics EXCEPT:
    A. relatively stable content.
    B. are common to many organizations.
    C. are jobs on which it is possible to obtain market pay survey data.
    D. have many incumbents within the organization.

33. Which of the following is an example of an indirect payment?
    A. Wages
    B. Employment Insurance
    C. Bonuses
    D. Salaries

34. The compa-ratio:
    A. measures the degree to which actual pay is consistent with pay policy.
    B. is defined as actual average pay for the grade divided by the minimum pay for the grade.
    C. can range from 0 to 100 percent.
    D. uses data from market pay surveys.

35. _____ are the different pay rates various employees may get for the same job.
    A. Wage differentials
    B. Key proximities
    C. Compensable factors
    D. Rate ranges

36. As in other areas of human resource management, _____ are typically responsible for making policies work.
    A. top management teams
    B. team leaders
    C. consultants
    D. line managers

37. Which of the following is a consequence of external equity perceptions in making pay level decisions?
    A. Transfer
    B. Promotion
    C. Cooperation among employees
    D. Attraction and retention of quality employees

38. When using pay surveys to establish pay levels, all of the following are important activities EXCEPT:
    A. include all jobs in an organization in the survey.
    B. include both labour market and product market competitors.
    C. decide if multiple surveys will be used.
    D. decide how to weigh and combine pay data.

39. Skill-based and competency-based approaches have all but one of the following potential disadvantages. Name the exception.
    A. Increased bureaucracy.
    B. The challenge an organization faces in terms of using new skills effectively.
    C. Decreased worker flexibility.
    D. Employees “topping out.”

40. _____ is reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases.
    A. Remunerating
    B. Reorganization
    C. Downsizing
    D. Delayering

41. Which theory states that market forces provide the most efficient means of pricing and allocating people to jobs?
    A. Equity theory
    B. Efficiency wage theory
    C. Economic theory
    D. Expectancy theory

42. __________ is pay based on the skills employees acquire and are capable of using.
    A. Labour-based pay
    B. Skill-based pay
    C. Education-based pay
    D. Knowledge-based pay

43. Who are employees who are not eligible for overtime pay?
    A. Exempt employees.
    B. Employees paid via skill-based pay systems.
    C. Employees paid via knowledge-based pay systems.
    D. Employees paid via job-based systems.

44. Implications of the equity theory for managing employee compensation include all but one of the following. Name the exception.
    A. Employees evaluate their pay by comparing it with what others get paid.
    B. Employees look at the intrinsic aspect of their work when making pay evaluations.
    C. Employees work attitudes and behaviours are influenced by their pay comparisons.
    D. Employee perceptions are what determine their pay evaluations.

45. Minimum wage, hours of work, and overtime are a few examples of minimum standards that employers must adhere to under the:
    A. Employment Equity Act.
    B. Equal Employment Act.
    C. Equal Pay Act.
    D. Employment Standards Act.

46. The issue of ___________ has received widespread attention in the press although there are very few top executives and their compensation accounts for only a small share of an organization’s total labour costs.
    A. executive expense accounts
    B. executive retirement plans
    C. executive buy outs
    D. executive pay

47. Which of the following statements about exemption is TRUE?
    A. Exempt occupations include most hourly jobs.
    B. Exempt status depends on job qualifications and experience.
    C. Exempt employees are covered by the Employee Standards Act.
    D. Exempt employees are not eligible for overtime pay.

48. Competency-based pay is generally directed toward:
    A. non-exempt employees.
    B. international employees.
    C. exempt employees.
    D. unionized employees.

49. Actual pay is lagging behind the pay policy when the compa-ratio is:
    A. greater than 1.00.
    B. less than 1.00.
    C. greater than 100.
    D. in the range of 1 to 10.

50. Which pay-setting approach places the highest relative emphasis on external comparisons?
    A. Basing pay on market surveys that cover as many key jobs as possible.
    B. Deriving pay rates for all jobs based on the number of job evaluation points.
    C. Grouping jobs into a smaller number of pay grades.
    D. Basing pay on skills employees have acquired.

51. Comparable worth is a public policy that:
    A. advocates remedies for any undervaluation of jobs based on market-pay data.
    B. advocates equal pay for jobs of equal content.
    C. has been consistently upheld in court rulings.
    D. advocates remedies for any undervaluation of women’s jobs.

52. All of the following are ways of enhancing the organization’s competitive position in the product market EXCEPT:
    A. staff expansion.
    B. wage and salary freezes.
    C. hiring freezes.
    D. sharing benefits costs with employees.

53. Company Ontarioba has an average pay of 3, 500 for the Human Resources Specialist with a midpoint of 3, 400 and an average pay of 2, 000 for the Human Resources Generalist with a midpoint of 3, 000. According to the compa-ratio the:
    A. HR Specialist is exceeding and the HR Generalist is lagging.
    B. HR Specialist is lagging and the HR Generalist is exceeding.
    C. HR Specialist is lagging and the HR Generalist is lagging.
    D. HR Specialist is exceeding and the HR Generalist is exceeding.

54. Compensation management could be improved in most organizations by:
    A. improving the technical merit of compensation decisions.
    B. developing better theoretical bases for pay decisions.
    C. increasing employee participation in compensation decision making.
    D. offering better justification for the selection of compensation programs.

55. An organization is paying their Associate Vice President of Human Resources the equivalent to the pay of the other Associate Vice Presidents within the organization as they all have relatively equal job evaluation points. The AVP of HR is earning more than HR AVPs in other organizations. The organization is focusing on what with regards to their approach to compensation?
    A. External comparison
    B. Cross-functional comparison
    C. Internal comparison
    D. Linear comparison

56. _____ pay comparisons focus on what employees within the same organization, but in different jobs, are paid.
    A. External equity
    B. Interior incentive
    C. Internal equity
    D. Exterior incentive

57. A broad band:
    A. is a combination of pay grades that reduces the number of levels in a pay structure.
    B. refers to the distance between the minimum and maximum pay rate in a pay grade.
    C. is the salary range attached to white-collar jobs.
    D. reduces flexibility in assigning merit increases.

58. Which of the following is not a true statement concerning product market competition?
    A. In the absence of clear evidence of on productivity differences, costs need to be closely monitored.
    B. Organizations compete on multiple dimensions (e.g., quality, service, and price).
    C. It is the degree to which an organization must pay to compete against other companies that hire similar employees.
    D. It places an upper bound on labour costs and compensation.

59. Which of the following is not a recognized limitation of a job-based pay structure?
    A. It encourages a bureaucratic orientation due to its reliance on inflexible job descriptions.
    B. It reinforces top-down decision-making and information flow.
    C. It may not reward desired behaviours, particularly in a rapidly changing environment.
    D. It is difficult to explain to employees.

60. A disadvantage of using the pay-setting approach that groups jobs into a smaller number of pay grades is that:
    A. it increases administrative burden.
    B. it permits less flexibility in moving employees from job to job.
    C. it results in some jobs being underpaid and others overpaid.
    D. it increases costs of surveying the market.

61. _____ refers to the relative pay of jobs in an organization.
    A. Pay structure
    B. Equity structure
    C. Job structure
    D. Task structure

62. When deciding where to locate production an increasing number of organizations have decided it is more important to focus on ________________.
    A. skill levels
    B. labour laws
    C. labour costs
    D. non-labour considerations

63. Lower labour costs can be a reflection of __________________.
    A. lower average skill of the workforce
    B. lower rates of unemployment
    C. labour laws
    D. the type of labour

64. Which of the following is a major factor when comparing the differences in the cost of labour between countries?
    A. The country’s Gross Domestic Product.
    B. Exchange rates.
    C. Labour laws.
    D. The type of labour.

65. All of the following are counterproductive ways of restoring equity EXCEPT:
    A. decreasing one’s outcomes.
    B. reducing one’s own inputs.
    C. leaving the situation that generates perceived inequity.
    D. refusing to cooperate with employees who are perceived as over-rewarded.

66. An example of a typical compensable factor is:
    A. social status.
    B. working conditions.
    C. longevity.
    D. gender.

67. Research on the effects of two-tier wage plans has found that:
    A. lower-paid employees were less satisfied on average than higher-paid employees.
    B. those in the lower tier used lower comparison standards than those in the higher tier.
    C. lower-paid employees compared their pay to those in the higher tier.
    D. lower-paid employees expected over time to be promoted into the second tier.

68. The lowest hourly wage an employer is legally allowed to pay an employee in the relevant province or territory of Canada for which such wages are determined is known as:
    A. Maximum wage
    B. Minimum wage
    C. Mandatory wage
    D. Wage equity

69. Compensation management could be improved in most organizations by
    A. Developing better theoretical bases for pay decisions.
    B. Increasing employee participation in compensation decision making.
    C. Offering better justification for the selection of compensation programs.
    D. Improving the technical merit of compensation decisions.

70. Both pay level and job structure are characteristics of organizations and reflect decisions about:
    A. human resource development.
    B. individual employees.
    C. organizational goals.
    D. jobs.

71. Consider the same two jobs in two different organizations. In Organization 1, jobs A and B are paid an annual average compensation of 30, 000 and 50, 000, respectively. In Organization 2, the pay rates are 25, 000 and 55, 000, respectively. Which of the following is true?
    A. Organizations 1 and 2 have the same pay level
    B. Organizations 1 and 2 have the same job structures
    C. Organizations 1 and 2 have the same individual pay rates
    D. Organizations 1 and 2 use incentive pay systems

72. The process of reducing the number of job levels within an organization is called ___________.
    A. benchmarking
    B. delayering
    C. pay grading
    D. range spreading

73. Which of the following is NOT a pay-setting approach to developing pay structure?
    A. Market survey data
    B. Pay remuneration
    C. Pay policy line
    D. Pay grades

74. The job evaluation process includes all of the following EXCEPT:
    A. compensable factors.
    B. a weighting scheme.
    C. pay ranges.
    D. scores (ratings).

75. Typically, long-term compensation for a CEO pay comes in:
    A. Stock plans.
    B. Health benefits.
    C. Pension plans.
    D. Salary.

76. _____ comparisons may be more important when attracting and retaining qualified employees is difficult, and when the costs of recruiting replacements are high.
    A. Labour market
    B. International
    C. Product market
    D. Commodity market

77. Pay rate range spreads:
    A. are usually larger at higher grade levels.
    B. represent the distance between the midpoint and the maximum pay rates in each grade.
    C. represent a measure of the range of pay rates paid across an entire organization.
    D. are usually largest for blue-collar jobs in unionized settings.

78. According to the efficiency wage theory, being a higher-pay employer is more beneficial when organizations:
    A. can easily monitor employee performance.
    B. are centralized.
    C. require highly skilled employees.
    D. have specialized work structures.

79. A market pay policy line:
    A. is developed using non-key jobs.
    B. can be generated using a statistical procedure called regression analysis.
    C. requires market pay rate data on all jobs in the organization.
    D. is always expressed as a linear relationship between job evaluation points and pay rates.

80. Glass ceiling refers to a(n):
    A. situation where actual job performance is used in decisions in which women are less likely to encounter unequal treatment.
    B. advancement opportunity for women and other protected groups that may be hindered by unequal access to the “old boy” or informal network.
    C. situation where there are statistically significant compensation disparities between similarly situated employees.
    D. opportunity that allows women and minorities to come within sight of the top management, but not advance to them.

81. _____ play the most crucial communication role because of their day-to-day interactions with employees.
    A. Managers
    B. Owners
    C. Subordinates
    D. Competitors

82. In employees’ minds, a “frame of mind that mistrusts senior management’s intentions, doubts its competence, and resents its self-congratulatory pay” is the:
    A. trust gap.
    B. communication gap.
    C. subordination gap.
    D. compliance gap.

83. _____ refers to the relative pay of different jobs and how much they are paid.
    A. Equity structure
    B. Pay structure
    C. Task structure
    D. Job structure

84. Which of the following comparisons is NOT important when deciding how to combine and weigh pay survey data from product market competitors?
    A. The ratio of labour costs to total costs
    B. The elasticity of product demand
    C. The costs of recruiting replacements
    D. The elasticity of the supply of labour

85. Which is NOT a problem with job-based pay structures?
    A. They may encourage bureaucracy.
    B. The structure’s hierarchical nature reinforces a top-down decision making and information flow.
    C. The emphasis on job levels and status employee promotion-seeking behaviour but may discourage lateral employee movement.
    D. The job-based pay structure requires updating job descriptions which is a straightforward and inexpensive process to maintain.

86. Pay grades are desirable pay structures when:
    A. there are only a few jobs in the organization.
    B. there are broad distinctions between jobs within a pay grade.
    C. there is concern about overpaying some jobs.
    D. an organization desires greater flexibility in moving employees.

87. Which of the following is a possible disadvantage of delayering and banding?
    A. They do not work for a small sample of jobs.
    B. There is a reduced opportunity for promotion.
    C. They do not permit the organization to reward employees for learning.
    D. The lesser spread does not allow managers to recognize high performers.

88. A dramatic example of the importance of communication was found in a study of how an organization communicated pay cuts to its employees and its effects on ________________.
    A. theft rates and perceived equity
    B. organizational citizenship behaviours
    C. turnover intentions
    D. sabotage

89. In developing a job evaluation system, compensable factors:
    A. are generally statistically derived.
    B. are the characteristics of jobs that a firm values and chooses to pay for.
    C. usually vary significantly across job-evaluation systems.
    D. describe all aspects of the jobs being evaluated.

90. Why are pay policies often attached to particular jobs, rather than tailored to individual employees?

91. Describe the differences between internal equity comparisons and external equity comparisons, and explain their consequences on the organization.

92. Describe benchmark jobs and nonbenchmark jobs. For which of these are market surveys attainable? Give an example of a benchmark jobs and nonbenchmark job.

93. Describe what compa-ratio is and how it is calculated. How does this relate to leading, meeting and exceeding policy?

94. Designing effective compensation programs and solving problems related to compensation is a complex matter that typically requires collecting, sorting and reporting a great deal of information before deciding what to do. What are two key factors of this process, explain them briefly.

95. What are some potential limitations of using a job-based pay structure?

96. List the potential disadvantages to skill-based and competency-based approaches.

97. What labour-related factors should be considered when deciding where to locate production from an international perspective?

98. Why has there been widespread criticism of executive pay in recent years?

99. Discuss comparable worth by (1) defining it and (2) citing potential problems in its implementation.

c8 Key

1. The equity theory suggests that people often evaluate their situations by comparing them with those of other people.
   TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-01 Describe the main decision areas and concepts in strategic compensation management.
Noe – Chapter 08 #1
Topic: 08-02 Equity Theory and Fairness

2. Internal equity pay comparisons focus on what employees in other organizations are paid for doing the same general job.
   FALSE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-01 Describe the main decision areas and concepts in strategic compensation management.
Noe – Chapter 08 #2
Topic: 08-02 Equity Theory and Fairness

3. Product market competition places a lower bound on labour costs and compensation.
   FALSE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Easy
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #3
Topic: 08-04 Market Pressures

4. Essentially, labour market competition is the amount an organization must pay to compete against other companies that hire similar types of employees.
   TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #4
Topic: 08-04 Market Pressures

5. Benchmarking is a procedure in which a company compares its own practices against those of the competition.
   TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #5
Topic: 08-07 Market Pay Surveys

6. Product market comparisons that focus on labour costs deserve greater weight when labour costs represent a large share of total costs.
   TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #6
Topic: 08-07 Market Pay Surveys

7. It is usually valid to compare return-on-investment ratios, such as revenues/labour costs, among organizations in different industries.
   FALSE

Accessibility: Keyboard Navigation
Blooms: Comprehension
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #7
Topic: 08-07 Market Pay Surveys

8. Conceptually, a job structure can be defined as the relative pay of various jobs in an organization.
   TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Easy
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #8
Topic: 08-08 Developing a Job Structure

9. Non-key, or non-benchmark, jobs have relatively stable content and are common to many organizations.
   FALSE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Easy
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #9
Topic: 08-07 Market Pay Surveys

10. Job evaluation can be defined as the relative worth of various jobs in the organization based on internal comparisons.
    FALSE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #10
Topic: 08-08 Developing a Job Structure

11. A market pay policy line may be developed using job evaluation data and market pay survey data.
    TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #11
Topic: 08-09 Developing a Pay Structure

12. A disadvantage of using pay grades is the increased administrative burden and costs.
    FALSE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Easy
Gradable: automatic
Learning Objective: 08-02 Describe the major administrative tools used to manage employee compensation.
Noe – Chapter 08 #12
Topic: 08-09 Developing a Pay Structure

13. When resolving conflicts between external and internal pay data, there is a growing sentiment that external comparisons deserve greater weight because organizations are finding it increasingly difficult to ignore market competitive pressures.
    TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-03 Explain the importance of competitive labour market and product market forces in compensation decisions.
Noe – Chapter 08 #13
Topic: 08-10 Conflicts between Market Pay Surveys and Job Evaluation

14. A compa-ratio equivalent to 1 suggests that actual pay is not consistent with the pay policy.
    FALSE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-03 Explain the importance of competitive labour market and product market forces in compensation decisions.
Noe – Chapter 08 #14
Topic: 08-11 Monitoring Compensation Costs

15. Under a two-tier wage plan, employees doing the same job are paid two different rates, depending on their background and training.
    FALSE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-04 Discuss the significance of process issues such as communication in compensation management.
Noe – Chapter 08 #15
Topic: 08-15 Communication

16. As a manager you would have the most crucial role of communication as you have the day-to-day interactions with your employees.
    TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Easy
Gradable: automatic
Learning Objective: 08-04 Discuss the significance of process issues such as communication in compensation management.
Noe – Chapter 08 #16
Topic: 08-15 Communication

17. Broad band pay programs can lead to weaker budgetary controls and rising labour costs.
    TRUE

Accessibility: Keyboard Navigation
Blooms: Knowledge
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-05 Describe new developments in the design of pay structures.
Noe – Chapter 08 #17
Topic: 08-18 Responses to Problems with Job-Based Pay Structures

18. The use of “banding” in organizations may mean fewer promotional opportunities for employees.
    TRUE

Accessibility: Keyboard Navigation
Blooms: Comprehension
Difficulty: Easy
Gradable: automatic
Learning Objective: 08-05 Describe new developments in the design of pay structures.
Noe – Chapter 08 #18
Topic: 08-18 Responses to Problems with Job-Based Pay Structures

19. Skill-based pay systems fit well with the increased breadth and depth of skill that changing technology continues to bring.
    TRUE

Accessibility: Keyboard Navigation
Blooms: Comprehension
Difficulty: Moderate
Gradable: automatic
Learning Objective: 08-05 Describe new developments in the design of pay structures.
Noe – Chapter 08 #19
Topic: 08-18 Responses to Problems with Job-Based Pay Structures