Athen Tech., a software company, changed its pay structure from 3,000 job titles and 12 pay grades to a simpler structure with 1,000 jobs and 5 pay grades. The managers were then asked to choose pay levels that were based on the market. This is an example of _____.

Question 25 options:

decentralizing

departmentalizing

forecasting

delayering

benchmarking

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Question 26 (1 point)

Job evaluation is a more appropriate tool for internal equity pay comparisons than market pay surveys.

Question 26 options:

True

False

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Question 27 (1 point)

Inventory levels can be dramatically reduced through just-in-time production, but suppliers need to be in close physical proximity for this to work.

Question 27 options:

True

False

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Question 28 (1 point)

Which of the following is the most widely used method in job evaluation that yields scores for each compensable factor?

Question 28 options:

Range spread approach

Point-factor system

Market survey system

Pay policy line

Pay grade approach

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Question 29 (1 point)

Product market comparisons that focus on labor costs are likely to deserve greater weight when:

Question 29 options:

product demand is inelastic.

the supply of labor is elastic.

attracting and retaining qualified employees is difficult.

the costs of recruiting replacements are high.

labor costs represent a large share of total costs.

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Question 30 (1 point)

Broad bands with their greater spread between pay minimums and maximums can lead to rising labor costs.

Question 30 options:

True

False

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Question 31 (1 point)

In skill-based pay systems, performance measures are primarily based on _____.

Question 31 options:

supervisor's appraisal

individual productivity

company profits

company stock returns

employees' competency acquisition

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Question 32 (1 point)

E. L. Thorndike's Law of Effect states that _____.

Question 32 options:

a response followed by a reward is more likely to recur in the future

behavior is a function of ability and knowledge

valence of pay outcomes should vary under different pay systems

monetary incentives increase intrinsic motivation

principals have perfect information on the degree to which an agent is pursuing goals

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Question 33 (1 point)

A(n) _____ program is based on group or plant performance that does not become part of the employee's base salary.

Question 33 options:

merit pay

profit-sharing

stock option

gainsharing

individual incentive

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Question 34 (1 point)

Gainsharing programs offer a means of sharing productivity gains with employees based on organization-level performances.

Question 34 options:

True

False

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Question 35 (1 point)

Perceptions of inequity may cause employees to take actions that may not help the organization.

Question 35 options:

True

False

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Question 36 (1 point)

The performance motivation of stock option plans is particularly high from a reinforcement theory standpoint.

Question 36 options:

True

False

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Question 37 (1 point)

In merit pay systems, performance is measured based on supervisor's rating.

Question 37 options:

True

False

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Question 38 (1 point)

Which of the following is most likely to provide extrinsic motivation to employees?

Question 38 options:

Autonomy

Challenging tasks

Variety of work

Recognition

Responsibility

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Question 39 (1 point)

Which of the following is true of individual incentives?

Question 39 options:

They contribute to a more disintegrated workforce.

They are helpful in the pursuit of total quality management objectives.

They encourage employees to go beyond the call of duty.

They reduce the motivation of acquiring multiple skills and proactive problem solving.

They must be continuously earned and re-earned.

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Question 40 (1 point)

Merit pay systems rely on 360-degree performance feedback.

Question 40 options:

True

False