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Lockheed's structure of 6 levels of engineers illustrates all of the following except ) ____________


A) company strategy
B) the work flow
C) line of sight
D) external equity

E) B) and C)
F) A) and B)

Correct Answer

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Which of the following pay structure procedures would not increase perceptions of pay fairness?


A) Consistency across all employees
B) Use of accurate data
C) Consultants develop the pay structure
D) Including appeals procedures

E) All of the above
F) B) and D)

Correct Answer

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(p 79)According to marginal productivity theory,employers pay use not exchange value.

A) True
B) False

Correct Answer

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When employees compare the fairness of their pay,they focus primarily on how their job compares with similar jobs in other organizations.

A) True
B) False

Correct Answer

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Which of the following is not a characteristic of an aligned pay structure?


A) Supports the way work gets done
B) Fits the organization's business strategy
C) Is fair to employees
D) Complies with the Fair Labor Standards Act

E) None of the above
F) A) and B)

Correct Answer

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Internal alignment is sometimes called internal equity.

A) True
B) False

Correct Answer

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Egalitarian pay structures have all but which of the following characteristics?


A) Few levels
B) Small differentials
C) Supports equal treatment
D) Supports individual performers

E) A) and B)
F) A) and C)

Correct Answer

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If a manager wants employees to accept the organization's pay structure,the best strategy is to


A) pay everyone the same
B) show them what competitors pay
C) explain to them how pay was determined
D) tell them the pay level is the most the company can pay

E) C) and D)
F) None of the above

Correct Answer

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James says,"I don't trust the way the company determines pay rates in my department." James is most concerned about _____.


A) procedural justice
B) distributive justice
C) internal equity
D) external equity

E) A) and C)
F) C) and D)

Correct Answer

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Supply and demand for labor,but not supply and demand for products and services affect internal structures.

A) True
B) False

Correct Answer

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Distributive justice is more important than procedural justice for employee acceptance of their pay.

A) True
B) False

Correct Answer

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Which of the following is not a factor in defining equal work in the Equal Pay Act?


A) Skill
B) Effort
C) Knowledge
D) Working conditions

E) A) and B)
F) A) and C)

Correct Answer

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The content and value of work are the most common bases for determining internal structures.

A) True
B) False

Correct Answer

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Which of the following is not one of the changes in organization design that may affect pay structures?


A) Outsourcing
B) Dual careers
C) Delayering
D) Temporary workers

E) A) and B)
F) A) and C)

Correct Answer

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The modern concept of a "living wage" is most similar to _____.


A) marginal productivity wage
B) exchange value
C) just wage doctrine
D) bourse

E) A) and C)
F) B) and C)

Correct Answer

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Experienced workers judge the fairness of their pay by developing an intuitive sense of what is fair pay.

A) True
B) False

Correct Answer

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According to recent research,employees make internal pay comparisons more frequently than external.

A) True
B) False

Correct Answer

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The need to explain the rationale for compensation choices to employees is consistent with ____________ theory.


A) equity
B) tournament
C) institutional
D) marginal productivity

E) A) and D)
F) A) and B)

Correct Answer

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Equity theory research shows that an egalitarian pay structure will be seen as more fair than a hierarchical structure.

A) True
B) False

Correct Answer

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There is little evidence that adding additional levels and titles to a career path but without significant pay increases,motivate employees.

A) True
B) False

Correct Answer

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