Question : 41) Companies that emphasize monetary rewards primarily associated with: A) volatile : 1346303

41) Companies that emphasize monetary rewards are primarily associated with:

A) volatile markets.

B) high customer service demands.

C) high job security.

D) cross-functional teams.

42) An emphasis on monetary rewards will generally reward a company with:

A) more achievement and responsibility among employees.

B) an internal climate of cooperation among employees.

C) long-term employee commitment.

D) increased employee diversity.

43) The practice of openness in a compensation system generally leads to:

A) greater pay dissatisfaction among employees.

B) increased fairness in managerial pay decisions.

C) greater overall compensation costs.

D) increased team building.

44) You have just been hired at Corpus Entertainment, Inc. (CEI) and as part of your contract, you sign an oath that you will not divulge information about your compensation to your co-workers or any other employee of CEI. You realize that the company has a(n) ________ pay policy.

A) egalitarian

B) centralized

C) open

D) secret

45) The practice of secret pay in a compensation system generally leads to:

A) managers being more careful in their compensation decisions because they have to defend them.

B) an increase in the cost of mistakes in the pay-making decisions.

C) greater pay dissatisfaction among employees.

D) an egalitarian pay system.

46) Pay openness would work best in which of the following situations?

A) Company A – high employee involvement and a culture of trust

B) Company B – high degree of competition and employee turnover

C) Company D – significant pay differences between professionals

D) Company E – significant emphasis on nonmonetary rewards

47) Karen, president of a small restaurant chain, would like to centralize compensation decisions. She asks you about the pitfalls of such a move, and you should most likely respond that:

A) internal equity would not be maintained.

B) it is likely that the company will not be able to defend itself legally.

C) external equity is difficult to maintain.

D) it is only beneficial during great economic prosperity.

48) Decentralizing pay decisions most likely enables a company to:

A) more effectively face legal challenges to compensation decisions.

B) better utilize the expertise of their compensation specialist.

C) build a stronger link between pay and performance.

D) better manage fixed pay-based compensation.

49) Which of the following is most likely true regarding compensation systems?

A) Nonmonetary rewards tend to predominate in companies concerned with external equity.

B) External equity is easier to manage in decentralized pay systems.

C) The nine issues discussed in the text regarding compensation are interdependent with minimal influence on one another.

D) Centralized pay systems work best in large, diverse organizations.

50) When a work force is highly unionized:

A) compensation decisions are based only on performance.

B) managers have more control in compensation decisions.

C) workers are likely to disagree with internal and external equity.

D) pay is typically subject to negotiation and bargaining requirements.