Question 1

Discuss competitive pay policies.

Accepted Answer

Given the choice to match, lead, or lag,...

Question 2

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:

Accepted Answer

A)  executive pay
B)  pay forms
C)  variance
D)  pay matrix
E)  pay levelF) B) and D)
G) B) and E)

Question 3

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

Accepted Answer

A)  marginal product of labour and marginal revenue of labour
B)  product demand and the degree of competition
C)  industry and product technology
D)  reservation wage and human capital
E)  efficiency wage and reservation wageF) A) and D)
G) C) and E)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Efficiency wage theory says that sometimes high wages may:

Accepted Answer

A)  increase efficiency if they reduce "shirking"
B)  lower labour costs if they increase the need to supervise employees
C)  lower labour costs if they attract low-quality applicants
D)  increase efficiency if they increase turnover
E)  increase efficiency if they reduce worker effortF) A) and E)
G) A) and B)

Question 6

Which of the following is true about human capital theory?

Accepted Answer

A)  It assumes that job seekers have a reservation wage level below which they will not accept a job offer.
B)  It assumes that high wages lower labour costs if they reduce the need to supervise employees.
C)  It assumes employers deliberately design pay levels to signal desired employee behaviours.
D)  It assumes that people are paid at the value of their reservation wage, not marginal product.
E)  It assumes that improving productivity by investing in training will increase one's marginal product.F) A) and B)
G) All of the above

Question 7

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

Accepted Answer

A)  payroll deduction
B)  lag
C)  lead
D)  edge
E)  market matchF) B) and D)
G) A) and B)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  reservation wage
B)  signalling
C)  compensating differentials
D)  efficiency wage
E)  human capitalF) A) and E)
G) A) and D)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

Product market conditions determine to a...

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

What is the prediction of efficiency wage theory?

Accepted Answer

The prediction of efficiency wage theory...

Question 14

Discuss two ways of expressing external competitiveness in practice.

Accepted Answer

to attract...

Question 15

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?

Accepted Answer

A)  compensating differentials theory
B)  signalling theory
C)  efficiency wage theory
D)  human capital theory
E)  reservation wage theoryF) All of the above
G) C) and D)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  marginal product
B)  gross profit margin
C)  current life situation
D)  reservation wage
E)  minimum capacity for workF) A) and E)
G) A) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  security policy
B)  market mix policy
C)  market match pay with competition (match) policy
D)  work/life balance policy
E)  performance driven policyF) A) and E)
G) All of the above

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 7: Defining Competitiveness

Discuss competitive pay policies.

Correct AnswerverifiedGiven the choice to match, lead, or lag,...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Efficiency wage theory says that sometimes high wages may:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Discuss two ways of expressing external competitiveness in practice.

Correct Answerverifiedto attract...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true about human capital theory?

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedProduct market conditions determine to a...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the prediction of efficiency wage theory?

Correct AnswerverifiedThe prediction of efficiency wage theory...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

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Given the choice to match, lead, or lag,...
View Answer

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to attract...
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Product market conditions determine to a...
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Correct Answer
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Correct Answer
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The prediction of efficiency wage theory...
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Correct Answer
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