QUESTION 12 Which statement about unions is correct? They negotiate to lessen pay disparities among workers, because they care about pay equity. They enforce pay-for-performance bonuses because they are unable to influence pay equity. They cannot do anything to reduce compensation dispersion because senior management has full control over salary and benefits. They can negotiate the design of compensation to reduce pay dispersion. One way to do this is to ensure that the fringe benefits offerings are identical to those offered by non-unionized firms. None of the above QUESTION 13 Which statement about performance pay is correct? It is required by labor laws in most countries. Employers use it in hopes that it will influence worker behavior in ways that benefit the firm. It induces incentive effects that increase productivity but sorting effects that hurt talent management. It is inadvisable as part of a compensation package because it hurts productivity by crowding out intrinsic motivation. It increases retention, but unfortunately the lower-productivity workers are most likely to be retained. QUESTION 14 Which of the following scenarios could cause distortion (as opposed to manipulation) in a performance measure used as the basis for awarding performance pay? Employees lie about their performance to make their performance measures appear better than they actually are. Employees are less productive because they have lost intrinsic motivation for their work. Employees are less productive due to health problems caused from working intensively to earn more pay. Employees focus heavily on the quantity of output produced rather than on its quality. All of the above. QUESTION 15 Which of the following is not an example of performance-based pay? piece rates bonuses fringe benefits commissions tips