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Pay structure refers to the array of pay rates for different work or skills within a single organization.

A) True
B) False

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According to the marginal productivity theory, employers pay use value to their employees.

A) True
B) False

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Hierarchical pay structures have all BUT which of the following characteristics?


A) Support a close fit with the organization
B) Prefer team performance over individual performance
C) Many levels
D) Based upon the job or person

E) A) and B)
F) A) and C)

Correct Answer

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Joshua believes that treating employees equally will improve their job satisfaction, which in turn will increase their work productivity and performance.In accordance to his beliefs, he wants to reduce the number of job levels and the pay differentials between the levels.In this case, he is most likely to use a(n) :


A) highly layered pay structure.
B) hierarchical pay structure.
C) highly inequitable pay structure.
D) egalitarian pay structure.

E) C) and D)
F) All of the above

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According to the text, when are pay procedures more likely to be perceived as fair?

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Pay procedures are more likely to be per...

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The problem that is most likely to be faced by organizations using an egalitarian pay structure is _____.


A) the difficulty in external recruitment
B) in maintaining cooperation among employees
C) the perception of excessive CEO pay
D) the difficulty in performing teamwork

E) A) and C)
F) A) and B)

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Common bases for modern pay structures include all BUT which of the following?


A) The content of the work
B) The skills and knowledge required to perform the work
C) The extent of external competitiveness and equity
D) The work's relative value for achieving organizational objectives

E) All of the above
F) C) and D)

Correct Answer

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Teachers will feel pay structures are fair even when they are relatively low in the internal structure if they work in a high-paying school district.

A) True
B) False

Correct Answer

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Most unions prefer which of the following?


A) Small pay differences among jobs and seniority-based promotions
B) Large pay differences among jobs and seniority-based promotions
C) Large pay differences among jobs and performance-based promotions
D) Equal pay raises for employees

E) B) and C)
F) A) and D)

Correct Answer

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Which theory predicts that individual performance will be maximized when the pay differentials between job levels is large?


A) Tournament theory
B) Equity theory
C) Marginal productivity theory
D) Reinforcement theory

E) B) and C)
F) A) and B)

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A

Distributive justice is more important than procedural justice for employee acceptance of their pay.

A) True
B) False

Correct Answer

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False

_____ are related to greater performance when the work flow depends on individual contributors.


A) More egalitarian structures
B) More hierarchical structures
C) More delayered structures
D) More even-handed structures

E) A) and B)
F) B) and D)

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Which of the following is NOT a characteristic of aligned pay structures?


A) They support the way the work gets done.
B) They fit an organization's business strategy.
C) They are fair to employees.
D) They are designed to increase the turnover rate.

E) B) and C)
F) All of the above

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Both external and organization factors shape internal pay structures.

A) True
B) False

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Exchange value is always higher than use value.

A) True
B) False

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Pay structure refers to the array of pay rates for different work or skills between competing companies.

A) True
B) False

Correct Answer

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The most common bases for determining internal structures are:


A) work content and its value
B) seniority and experience
C) use value and exchange value
D) pay surveys and job evaluation

E) C) and D)
F) B) and C)

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The institutional model states that it is best to wait for other organizations to adopt innovative practices and then copy those practices.

A) True
B) False

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Write a short note on pay structure.

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Pay structure refers to the array of pay...

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The content of a job refers to the worth of the job and its relative contribution to the organization's objectives.

A) True
B) False

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False

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