MNGT360 Chapter 11 Practice Exam
Questions with Complete Answers.
Which of the following is true about pay? - CORRECT ANSWER Employees attach great importance to
pay decisions when they evaluate their relationship with the organization.
Which of the following is part of benefits offered to employees? - CORRECT ANSWER unemployment
compensation
Which of the following is part of cash compensations offered to employees? - CORRECT ANSWER stock
options
______ refers to the relative pay of different jobs and how much they are paid. - CORRECT ANSWER pay
structure
The average compensation--including wages, salaries and bonuses--- of jobs in an organization is called
the ___ - CORRECT ANSWER pay level
_____ refers to the relative pay of jobs in an organization. - CORRECT ANSWER job structure
According to the _____, a person compares her own ratio of perceived outcomes to perceived inputs to
the ratio of a comparison other. - CORRECT ANSWER equity theory
External equity pay comparisons focus on what: - CORRECT ANSWER employees in other organizations
are paid for doing the same general job.
Which of the following observations is true about the equity theory? - CORRECT ANSWER It suggests
that people evaluate the fairness of their situations by comparing them with those of other people.
, Which of the following is a likely consequence of external equity perception? - CORRECT ANSWER
Retention
Which of the following is a likely consequence of an internal equity perception? - CORRECT ANSWER Job
rotation
Which of the following is true of external equity pay comparison? - CORRECT ANSWER It influences
decisions of employees of whether to stay or move to another organization.
Internal equity pay comparison is: - CORRECT ANSWER focused on what employees within the same
organization but in different jobs are paid.
Which of the following administrative tools is used by organizations to design job structures? - CORRECT
ANSWER Job evaluation
Which of the following is true of labor market competition? - CORRECT ANSWER Labor market
competition places a lower bound on pay levels.
A firm that has a manufacturing unit in China considers shifting production to Cambodia. Which of the
following would be a possible reason for it to not shift the production base? - CORRECT ANSWER Lesser
skilled labor in Cambodia
Which of the following theories describes the conditions when the benefits of higher pay outweigh
higher costs? - CORRECT ANSWER Efficiency wage theory
Which of the following theories states that pay influences worker productivity? - CORRECT ANSWER
Efficiency wage theory
Which of the following refers to a procedure in which an organization compares its own practices
against those of the competition? - CORRECT ANSWER Benchmarking
Organizations use benchmarking primarily to compete: - CORRECT ANSWER for talent.
Questions with Complete Answers.
Which of the following is true about pay? - CORRECT ANSWER Employees attach great importance to
pay decisions when they evaluate their relationship with the organization.
Which of the following is part of benefits offered to employees? - CORRECT ANSWER unemployment
compensation
Which of the following is part of cash compensations offered to employees? - CORRECT ANSWER stock
options
______ refers to the relative pay of different jobs and how much they are paid. - CORRECT ANSWER pay
structure
The average compensation--including wages, salaries and bonuses--- of jobs in an organization is called
the ___ - CORRECT ANSWER pay level
_____ refers to the relative pay of jobs in an organization. - CORRECT ANSWER job structure
According to the _____, a person compares her own ratio of perceived outcomes to perceived inputs to
the ratio of a comparison other. - CORRECT ANSWER equity theory
External equity pay comparisons focus on what: - CORRECT ANSWER employees in other organizations
are paid for doing the same general job.
Which of the following observations is true about the equity theory? - CORRECT ANSWER It suggests
that people evaluate the fairness of their situations by comparing them with those of other people.
, Which of the following is a likely consequence of external equity perception? - CORRECT ANSWER
Retention
Which of the following is a likely consequence of an internal equity perception? - CORRECT ANSWER Job
rotation
Which of the following is true of external equity pay comparison? - CORRECT ANSWER It influences
decisions of employees of whether to stay or move to another organization.
Internal equity pay comparison is: - CORRECT ANSWER focused on what employees within the same
organization but in different jobs are paid.
Which of the following administrative tools is used by organizations to design job structures? - CORRECT
ANSWER Job evaluation
Which of the following is true of labor market competition? - CORRECT ANSWER Labor market
competition places a lower bound on pay levels.
A firm that has a manufacturing unit in China considers shifting production to Cambodia. Which of the
following would be a possible reason for it to not shift the production base? - CORRECT ANSWER Lesser
skilled labor in Cambodia
Which of the following theories describes the conditions when the benefits of higher pay outweigh
higher costs? - CORRECT ANSWER Efficiency wage theory
Which of the following theories states that pay influences worker productivity? - CORRECT ANSWER
Efficiency wage theory
Which of the following refers to a procedure in which an organization compares its own practices
against those of the competition? - CORRECT ANSWER Benchmarking
Organizations use benchmarking primarily to compete: - CORRECT ANSWER for talent.
