Managing Human Resources 11th Edition By Wayne Cascio – Test Bank

True / False Questions

1. The gap between a CEO’s pay and the wages of employees has narrowed in the United States.

FALSE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 How can we tie compensation strategy to general business strategy?

2. Pay practices and policies are critical because they affect every employee.

TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 How can we tie compensation strategy to general business strategy?

3. There is a current trend away from areas where organized labor is weak and pay rates are low.

FALSE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 11-01 How can we tie compensation strategy to general business strategy?

4. Good corporate citizen awards include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others.

FALSE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 How can we tie compensation strategy to general business strategy?

5. Rewards bridge the gap between organizational objectives and individual expectations and aspirations.

TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 How can we tie compensation strategy to general business strategy?

6. Internal equity is the relative size of pay differentials among different segments of the workforce.

FALSE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 How can we tie compensation strategy to general business strategy?

7. Whether a labor market is tight or loose has a major impact on wage structures and levels.

TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 11-01 How can we tie compensation strategy to general business strategy?

8. The Sarbanes-Oxley Act states that executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial security of the company.

TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-02 What economic and legal factors should we consider in establishing pay levels for different jobs?

9. Wage structures tend to vary across firms to the extent that managers view any given position as more or less critical in their firms.

TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 11-02 What economic and legal factors should we consider in establishing pay levels for different jobs?

10. To be effective, an organizational reward system should treat each member of the organization in terms of his or her individual needs.

TRUE

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 11-03 What is the best way to develop pay systems that are understandable, workable, and acceptable to employees at all levels?

11. Different job evaluation methods yield different rank-orders of jobs and, therefore, different pay structures.

TRUE