6-

Marginal productivity theory states that:

Select one:

a. both employees and management will act opportunistically to obtain the most favourable exchange possible.

b. unless an employee can produce something of value from his/her job equal to the value received in wages, it will not be worthwhile for an employer to hire that employee.

c. people cognitively evaluate potential behaviours in relation to rewards offered in exchange.

d. people are concerned about fairness of the reward outcomes exchanged for employee inputs.

e. an employee can produce anything of value if the profit margin of a product or service is large enough for the employer to reap.

7-

Which of the following is true of competency-based plans?

Select one:

a. These plans are free of biases and judgments.

b. Managers who use these plans focus on placing the right people in the right job.

c. Results of these plans are always reliable and valid.

d. These plans eliminate the need to control costs.

e. These plans maximize flexibility.

8-

An egalitarian pay structure is different from hierarchical pay structure in that:

Select one:

a. the egalitarian pay structure supports equal treatment of employees.

b. the egalitarian pay structure supports individual performers more than teams.

c. the job structure in an egalitarian pay structure has greater number of levels.

d. the egalitarian pay structure supports a fit that is tailored.

e. the pay differentials between the levels in an egalitarian pay structure are large.

9-

Which of the following is an advantage of conventional questionnaires and interviews used for job analysis?

Select one:

a. The process involves employees, which increases their understanding.

b. The process is both systematic as well as objective.

c. The entire process is free from bias and favouritism.

d. The process takes lesser time than quantitative methods.

e. The process is virtually free of faulty results.

10-

Which of the following statements is true about assessing the total compensation implications?

Select one:

a. A pay system reflects the values that guide an employer's behaviour and underlie its treatment of employees.

b. The pay system seldom mirrors a company's image and reputation.

c. A highly centralized and confidential pay system controlled by a few people in a corporate unit will support a highly decentralized, flexible, open organization.

d. Pay can neither play a supporting role, as in the high performance approach, nor can it take the lead and be a catalyst for change.

e. Internationally, the role of unions in pay determination seldom varies.