1. Chapter 01-001 - firms. *a. True b. False 2. Chapter 01-002 An e...

Chapter 1

• Chapter 01-001

There is no one best compensation system that fits all firms.

*a. True

• False

• Chapter 01-002

An effective compensation system is important to most organizations because it can mean the difference between company success and failure.

*a. True

• False

• Chapter 01-003

The main similarity between extrinsic rewards and intrinsic rewards is that they both satisfy so -called higher order needs such as survival and security.

• True

*b. False

• Chapter 01-004

A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.

*a. True

• False

• Chapter 01-005

Compensation strategy includes the â €œhow†and “how much†in terms of compensation to be paid.

*a. True

• False

(Strategic Compensation in Canada, 7e Parbudyal Singh, Richard Long) (Test Bank, Correct Answer are marked with*) 1 / 4

• Chapter 01-007

A compensation system has two components: base pay and

performance pay.

• True

*b. False

• Chapter 01-008

The optimal compensation system is one that adds the most value to the organization, after considering all its costs.

*a. True

• False

• Chapter 01-009

There is often one so -called best compensation system that applies to a broad spectrum of organizations.

• True

*b. False

• Chapter 01-010

According to the "Road Map to Effective Compensation," the first step is formulating your reward and compensation strategy.

• True

*b. False

• Chapter 01-011

Which of the following statements is supported by evidence in the textbook?

• Canadian firms spend 50 to 80 percent of their

capital budgets on compensation.

• Properly designed compensation systems usually

promote unproductive behaviour.

• Reward systems should be static and rarely

reviewed.*d. Canadian firms spend 40 to 70 percent of their operating budgets on compensation.

• / 4

• Chapter 01-012

Which of the following statements most accurately describes extrinsic rewards?

• They focus on factors inherent in the work itself-the job content.
• They satisfy higher -order human needs.

*c. They include monetary and nonmonetary rewards and come from the job context.

• They involve skill variety, task identity, task

significance, autonomy, and feedback.

• Chapter 01-013

Jackson, a service manager, loves his job. He particularly appreciates the level of autonomy his job provides. From a rewards perspective, which kind of reward appears to be motivating Jackson?

• Extrinsic
• Incentives

*c. Intrinsic

• Compensation

• Chapter 01-014

Compensation means different things to different stakeholders. For shareholders, what is an important consideration?

• take-home pay of employees
• effectiveness of the compensation system in

attracting employees *c. financial value of the compensation system to the firm’s bottom line

• fairness of the compensation system

• Chapter 01-015

As a small business owner committed to the total rewards approach to compensation, what do you need to establish before you start to develop your compensation system?

• a reward system
• an incentive program
• a compensation strategy

*d. a reward strategy

• / 4

• Chapter 01-016

Which item is considered part of a compensation system?

*a. performance pay

• flexible work schedules
• positive organizational culture
• work/life programs

• Chapter 01-017

Which of the following best describes the term â €œreward strategyâ€?

• the means through which performance bonuses are

paid *b. the mix of rewards provided to organization members

• the means for recognizing outstanding a chievement
• the means for identifying the key contextual

variables for an organization

• Chapter 01-018

An owner of an enterprise asks you to describe the major components of a compensation system. What would you exclude from your description?

• base salary
• performance pay
• employee benefits

*d. flexible work schedules and some element of job autonomy

• Chapter 01-019

Which of the following best explains intrinsic rewards?

• Intrinsic rewards focus on increasing an

employee’s financial position.*b. Intrinsic rewards are provided by job content.

• Intrinsic rewards provide security and employee

services.

• Intrinsic rewards relate to bonuses based on

performance.

• / 4