MGT 208 @ EGCC
Test 4
Question 1
An organization that is pursuing a cost strategy:
will tend to have little difference in pay between high and low performers.
Question 2
The employees working part-time at a local McDonald's all perform the same duties and
receive the same hourly pay. Which type of compensation strategy is McDonald's
using?
Uniform transactional compensation.
Question 3
Paying some people more than others can actually harm an organization's performance
when workers are required to work together and when group incentives are used.
True
Question 4
An organization with a lead-the-market strategy will likely establish a higher
compensation level than an organization with a lag-the-market strategy.
True
Question 5
All of the following are true about line of sight except:
line of sight is motivating for members of a project group preparing a group report.
Question 6
An organization with a Free Agent HR strategy:
must be concerned with external equity, which concerns the fairness of what the
company pays compared to other possible employers.
Question 7
An organization pursuing a differentiation strategy will pay some employees much more
than others and compensation is used to encourage risk taking.
True
Question 8
Uniform relational compensation provides similar rewards to all employees while
building a sense of commitment to the organization and is associated with the Loyal
Soldier HR strategy.
True
Question 9
Netflix focuses on innovation and high individual employee performance. Netflix pursues
a differentiation strategy and employees have a significant portion of their pay at risk.
False
Question 10
Paying employees by the hour rather than a salary:
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