Question : 71) When management discussing whether to lead, lag, or pay : 1346306

71) When management is discussing whether to lead, lag, or pay the “going rate” for a job, they are deciding:

A) whether to be egalitarian or elitist.

B) if they want to have an open or secret compensation system.

C) how to balance internal equity.

D) their company’s pay policy.

72) As the HR director, you are reviewing the comparability of pay of each employee within a range for particular jobs. You are:

A) applying market survey data.

B) rating individual jobs.

C) reviewing individual equity.

D) conducting a job analysis.

E) assessing internal equity.

73) Job-based compensation systems have a number of disadvantages or drawbacks, such as being:

A) difficult to administrate.

B) subjective and arbitrary.

C) too flexible for managers.

D) biased against managerial jobs.

74) Job-based compensation:

A) is less appropriate at higher levels in a firm.

B) is the most objective of all compensation systems.

C) is less bureaucratic and inflexible than other systems.

D) has less bias toward women than skill-based compensation systems.

75) Job-based compensation plans have the advantage of:

A) being objective, data-based systems.

B) having a bureaucratic and definitive structure.

C) appearing rational and systematic, thereby minimizing employee complaints.

D) focusing on the three most important compensable factors, depth, breadth, and vertical skills.

76) When implementing a job-based compensation plan, it is best that a company:

A) focus on tactical, immediate issues.

B) narrow each job’s pay range.

C) avoid job banding.

D) involve employees.

77) When setting up a job-based pay plan, it is most likely important for a firm to:

A) have a relatively flat management hierarchy.

B) use an external consulting firm to ensure objectivity.

C) differentiate among depth, horizontal, and vertical skills.

D) establish a way for employees to improve pay without moving into management.

78) A skill-based approach to compensation is built on which of the following characteristics?

A) Workers are paid for performing well-defined jobs using vertical skills.

B) The greater the variety of job-related skills a worker possesses, the more he/she should be paid.

C) Each job must be very clearly described with highly defined tasks and skill requirements.

D) The primary objective is to allocate pay so that the most important jobs command the highest pay.

79) Skill-based pay plans pose some risks to the organization, such as:

A) increasing employees’ frustration when they hit the top of the pay structure.

B) being more subjective and arbitrary than job-based pay plans.

C) leading to bias against women and minorities.

D) not considering the nature of the business.

80) Which of the following is the most common compensation practice among small firms?

A) Paying below-market rates to technical workers

B) Offering stock options instead of base salaries

C) Paying bonuses based on company performance

D) Offering sign-on bonuses to attractive recruits