Human Resource Management 9th Edition by Gary Dessler – Test Bank
Chapter 11
Pay Structure Decisions
True / False Questions
| 1. | Pay level refers to the relative pay of jobs in an organization.
True    False |
| 2. | The equity theory suggests that people evaluate the fairness of their situations by comparing them with how they were treated in their previous organization.
True    False |
| 3. | Job evaluation is a more appropriate tool for internal equity pay comparisons than market pay surveys.
True    False |
| 4. | The upper bound placed by product market competition is more constrictive when labor costs are a larger share of total costs.
True    False |
| 5. | Labor market competition is the amount an organization must pay to compete against other companies that hire similar types of employees.
True    False |
| 6. | Benchmarking is a procedure in which a company compares its different practices with the standard set by the management.
True    False |
| 7. | Product market comparisons that focus on labor costs deserve greater weight when the product demand is inelastic.
True    False |
| 8. | For blue-collar jobs, particularly those covered by collective bargaining contracts, there may be a single rate of pay for all employees within the job.
True    False |
| 9. | Nonkey jobs are those that are common to many organizations.
True    False |
| 10. | Internal job worth can be measured using the administrative tool of job evaluation.
True    False |
| 11. | Organizations usually develop a market pay policy line based on the key jobs for which there are both job evaluation and market pay survey data available.
True    False |
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