31._____ refers to the relative pay of jobs in an organization.
A.Pay level
B.Pay grade
C.Compa-ratio
D.Range spread
E.Job structure
32.According to the _____, a person compares her own ratio of perceived outcomes to perceived inputs to the ratio of a comparison other.
A.reinforcement theory
B.predicted outcome value theory
C.social exchange theory
D.equity theory
E.expectancy theory
33.External equity pay comparisons focus on what:
A.other employees within the same organization in the same job are paid.
B.other employees within the same organization but in a different job are paid.
C.employees in other organizations are paid for doing the same general job.
D.employees in other organizations are paid for doing other jobs with higher responsibility.
E.employees in other organizations are paid for doing other jobs with lower responsibility.
34.Which of the following observations is true about the equity theory?
A.It suggests that managers compare the performance of employees with their potential to improve.
B.It suggests that employees’ performance should be evaluated based on their developmental needs.
C.It suggests that internal equity pay comparisons focus on what employees in other organizations are paid for doing the same general job.
D.It suggests that when a person’s outcome-input ratio is greater than the comparison other’s ratio, underreward inequity is perceived.
E.It suggests that people evaluate the fairness of their situations by comparing them with those of other people.
35.Which of the following is a likely consequence of external equity perception?
A.Job rotation
B.Transfer
C.Retention
D.Promotion
E.Cooperation among employees
36.Which of the following is a likely consequence of an internal equity perception?
A.Attraction of efficient employees
B.Retention of quality employees
C.Labor costs
D.Job rotation
E.Pay scales of competitors
37.Which of the following is true of external equity pay comparison?
A.It involves comparisons with employees with lower level jobs in the organization.
B.It involves comparisons with employees with higher level jobs in the organization.
C.It influences whether employees accept transfers.
D.It influences employees’ willingness to accept promotions.
E.It influences decisions of employees of whether to stay or move to another organization.
38.Internal equity pay comparison is:
A.influenced primarily by an organization’s choice of pay level.
B.the primary administrative tool organizations use in choosing a pay level.
C.focused on what employees within the same organization but in different jobs are paid.
D.determined using market pay surveys.
E.more likely to influence the decisions of applicants to accept job offers than external equity pay comparison.
39.Which of the following administrative tools is used by organizations to design job structures?
A.Job rotation
B.Job evaluation
C.Market pay survey
D.Job description
E.Job specification
40.Which of the following is true of labor market competition?
A.Labor market focuses primarily on competing through providing quality product or service at a competitive price in the market.
B.Labor market places an upper bound on labor costs and compensation.
C.The upper bound placed by the labor market is more constrictive when labor costs are a very small share of the total costs.
D.An indirect payment such as Social Security, a major component of labor costs, is not included in calculating the average cost of an employee.
E.Labor market competition places a lower bound on pay levels.
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