15.HUMAN RESOURCE MANAGEMENT - FINAL EXAM PREDICTED
QUESTIONS AND ANSWERS.
Pay level - correct answer the compensation decision concerning how much to pay employees
relative to what they could earn doing the same job elsewhere; external equity, internal equity
External equity - correct answer employee perceptions of fairness based on how much they are
paid relative to people working in other organizations; determined using pay surveys
Pay survey - correct answer gathering information to learn how much employees are being paid
by other organizations
Internal equity - correct answer employee perceptions of fairness based on how much they are
paid relative to others working in the same organization; determined using point systems
Point system - correct answer a process of assigning numerical values to each job in order to
compare the value of contributions within and across organizations
Meet-the-market strategy - correct answer a compensation decision to pay employees an
amount similar to what they can make working for other organizations
Lead-the-market strategy - correct answer a compensation decision to pay employees an
amount above what they might earn working for another organization
Lag-the-market strategy - correct answer a compensation decision to pay employees an
amount below what they might earn working for another organization
Transactional commitment - correct answer a sense of obligation to an organization that is
created primarily by financial incentives; bargain laborer, free agent
, Relational commitment - correct answer a sense of loyalty to an organization that is based not
only on financial incentives but also on social ties; loyal soldier, committed expert
Uniform rewards - correct answer a reward system that minimizes differences among workers
and offers similar compensation to all employees; bargain laborer, loyal soldier
Variable rewards - correct answer a reward system that pays some employees substantially
more than others in order to emphasize differences between high and low performers; free
agent, committed expert
Reinforcement theory - correct answer a psychological theory suggesting that people are
motivated by antecedents (environmental cues) and consequents (rewards and punishment);
pay-for-performance
Pay-for-performance - correct answer compensation practices that use differences in employee
performance to determine differences in pay
Goal-setting theory - correct answer a psychological theory suggesting that an individual's
conscious choices explain motivation
Justice theory - correct answer a psychological theory suggesting that motivation is driven by
beliefs about fairness
Equity theory - correct answer a justice perspective suggesting that people determine the
fairness of their pay by comparing what they give to and receive from the organization with
what others give and receive; distributive justice, procedural justice
Distributive justice - correct answer perceptions of fairness based on the outcomes (such as
pay) received from an organization
QUESTIONS AND ANSWERS.
Pay level - correct answer the compensation decision concerning how much to pay employees
relative to what they could earn doing the same job elsewhere; external equity, internal equity
External equity - correct answer employee perceptions of fairness based on how much they are
paid relative to people working in other organizations; determined using pay surveys
Pay survey - correct answer gathering information to learn how much employees are being paid
by other organizations
Internal equity - correct answer employee perceptions of fairness based on how much they are
paid relative to others working in the same organization; determined using point systems
Point system - correct answer a process of assigning numerical values to each job in order to
compare the value of contributions within and across organizations
Meet-the-market strategy - correct answer a compensation decision to pay employees an
amount similar to what they can make working for other organizations
Lead-the-market strategy - correct answer a compensation decision to pay employees an
amount above what they might earn working for another organization
Lag-the-market strategy - correct answer a compensation decision to pay employees an
amount below what they might earn working for another organization
Transactional commitment - correct answer a sense of obligation to an organization that is
created primarily by financial incentives; bargain laborer, free agent
, Relational commitment - correct answer a sense of loyalty to an organization that is based not
only on financial incentives but also on social ties; loyal soldier, committed expert
Uniform rewards - correct answer a reward system that minimizes differences among workers
and offers similar compensation to all employees; bargain laborer, loyal soldier
Variable rewards - correct answer a reward system that pays some employees substantially
more than others in order to emphasize differences between high and low performers; free
agent, committed expert
Reinforcement theory - correct answer a psychological theory suggesting that people are
motivated by antecedents (environmental cues) and consequents (rewards and punishment);
pay-for-performance
Pay-for-performance - correct answer compensation practices that use differences in employee
performance to determine differences in pay
Goal-setting theory - correct answer a psychological theory suggesting that an individual's
conscious choices explain motivation
Justice theory - correct answer a psychological theory suggesting that motivation is driven by
beliefs about fairness
Equity theory - correct answer a justice perspective suggesting that people determine the
fairness of their pay by comparing what they give to and receive from the organization with
what others give and receive; distributive justice, procedural justice
Distributive justice - correct answer perceptions of fairness based on the outcomes (such as
pay) received from an organization
