Human Resource Management - Final
Exam Questions and Answers Graded A+
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Exam Questions and Answers Graded A+
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
