Question : 31. All of the following counterproductive ways of restoring equity EXCEPT: A. decreasing : 1250901

31. 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 overrewarded.

Increasing one’s outcomes is one of the counterproductive ways of restoring equity.

32. 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

External equity pay comparisons focus on what employees in other organizations are paid for doing the same general job. Such comparisons are likely to influence the decisions of applicants to accept job offers as well as the attitudes and decisions of employees about whether to stay with an organization or take a job elsewhere.

33. _____ 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

Internal equity pay comparisons focus on what employees within the same organization, but in different jobs, are paid.

34. 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 labor costs and compensation.

Labor market competition is the amount an organization must pay to compete against other companies that hire similar employees.

35. Which of the following is an example of an indirect payment? 
A. Wages
B. Health insurance
C. Bonuses
D. Salaries

A major component is the average cost per employee. This is made up of both direct payments (such as wages, salaries, and bonuses) and indirect payments (such as health insurance, social security, and unemployment compensation).

36. 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.

Staff reductions, hiring freezes, wage and salary freezes, and sharing benefits costs with employees are several ways of enhancing the organization’s competitive position in the product market.

37. 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

Efficiency wage theory states that wages influence worker productivity.

38. 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.

Efficiency wage theory states that wages influence worker productivity.

39. 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 labor market and product market competitors.
C. decide if multiple surveys will be used.
D. decide how to weigh and combine pay data.

The use of pay surveys requires answers to several important questions. Like, which jobs are included in the survey? Because only a sample of jobs is ordinarily used, care must be taken that the jobs are representative in terms of level, functional area, and product market. Also, the job content must be sufficiently similar.

40. 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 labor costs to total costs
B. The elasticity of product demand
C. The costs of recruiting replacements
D. The elasticity of the supply of labor

Labor market comparisons may be more important when the costs (administrative, disruption, and so on) of recruiting replacements are high.