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Compensation 12th Edition Milkovich Test Bank
Chapter 02
1. A compensation system that focuses on competitor's labor costs is most closely associated with a(n) _____
strategy.
A. innovator
B. customer-focused
C. cost-cutter
D. differentiated
2. A compensation system using market-based pay is most likely to be part of a(n) _____ strategy.
A. innovator
B. cost-cutter
C. cost leadership
D. customer-focused
3. Flexible-generic job descriptions would most likely be used with a(n) _____ strategy.
A. innovator
B. customer-focused
C. differentiated
D. cost-cutter
4. Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness,
usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive.
The compensation strategy followed by Mich is most closely described as a:
A. customer-focused strategy.
B. cost-cutter strategy.
C. innovator strategy.
D. differentiation strategy.
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A. innovator
B. customer-focused
C. cost-cutter
D. differentiated
6. All of the following EXCEPT _____ are compensation systems associated with a cost-cutter strategy.
7. In the formula predicting performance, the component most closely related to compensation is _____.
A. A
B. M
C. O
D. C
8. Whole Foods' shared-fate philosophy of limiting executive salaries to no more than 19 times the average
pay of full-time employees is an example of which strategic pay decision?
A. External competitiveness
B. Employee contributions
C. Corporate responsibility
D. Internal alignment
9. Comparisons on the forms of compensation used by other companies are part of _____.
A. internal alignment
B. external competitiveness
C. employee contributions
D. corporate responsibility
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McGraw-Hill Education.
10. The second step of developing a total compensation strategy is to:
11. Which of the following is the correct order of the steps in formulating a total compensation strategy?
A. Assess the strategy, implement the strategy, map the strategy, and reassess the strategy.
B. Assess the strategy, map the strategy, implement the strategy, and reassess the strategy.
C. Map the strategy, implement the strategy, assess the strategy, and reassess the strategy.
D. Map the strategy, assess the strategy, implement the strategy, and reassess the strategy.
12. Based on the opinions of 10,000 U.S. workers, Hudson found that when given their choice of
unconventional benefits, most employees would select _____.
13. According to the Hudson survey, _____ is the single thing that would make 41 percent of the U.S. workers
happier.
14. Which of the following statements regarding allowing employees a choice in their pay mix is NOT true?
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McGraw-Hill Education.
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“I wish I could go over with you,” said Edwards. “I would like to see the
fun. Give me all the facts when you come back, and if there has been any
trickery or negligence on the part of the officers of the League, I will run off
two or three columns in the next issue of the Chronicle that will make their
hair curl up in knots.”
Further conversation was interrupted by the arrival of the train, and so,
bidding Edwards a hasty good by, and assuring him that a full report of the
proceedings would be made to him on our return, we boarded the cars, and
soon left Belmont station far behind us.
Berkeley was situated ten miles from Belmont, and on the banks of the
same stream that flowed into our lake, so that travel could be effected
between the two towns either by water or by rail, although the latter was a
far shorter route, for the small river Mahr wound in and out amongst the
picturesque hills of Berkshire, almost doubling the distance to Berkeley.
The trip by rail took scarcely more than twenty-five or thirty minutes,
and this time was employed by us in anticipating the business of the next
day’s meeting.
As this was my first experience of the kind, I was in no position to
express positive opinions, but was content to listen to the conversation of
my two companions, and to obtain from them all the information I could
concerning the various questions that would come up for consideration in
the convention.
The time passed quickly, therefore, and almost before we were aware of
it, the train slackened speed, the door of the car opened, and the conductor
shouted,
“Berkeley! All out for Berkeley!”
It was about ten minutes past eight when we reached the Wyman House,
which stood in the center of the town and some distance from Park College,
the latter being situated nearly a quarter of a mile from the town limits of
Berkeley.
As Ray registered our names, some one touched him on the shoulder. He
turned and found himself face to face with Slade. The latter held out his
hand.
“How do you do, Mr. Wendell? I’m glad to see you. I suppose you got
my telegram all right.”
“Yes, Mr. Slade,” answered Ray coldly, “I got your telegram; otherwise
we might have missed the convention altogether. Is it your custom to delay
notifying the delegates from the various colleges until they telegraph and
ask you when the meetings are to take place?”
“‘Custom,’ Mr. Wendell?” exclaimed Slade in amazement. “What do you
mean? I have been secretary of the League for two years, and you know my
custom well enough.”
“I know what your custom should be in notifying us,” said Ray.
“And always has been,” added Slade with an accent of annoyance. “Mr.
Wendell, suppose we stop this hinting. What is the meaning of your tone?”
“Why did you neglect to notify me of the date of this meeting?” asked
Ray.
“I did notify you,” was the instant response.
“Yes, by telegram to-day, after I had asked for the information, but why
did you fail to send me the customary formal notification that should
precede the meeting by a week at least?”
Slade looked Ray steadily in the face for several seconds, as if trying to
determine whether he was in earnest.
“Mr. Wendell,” said he firmly, “there is evidently some
misunderstanding. I sent you the regular notification ten days ago.”
Ray’s face changed.
“Mr. Slade, are you sure of that?” he asked.
“Why do you doubt it?” was the answer. “Have I ever failed before? I tell
you again, notifications were sent to all the college delegates ten days ago,
and you among them. I was puzzled at receiving your telegram of inquiry
this morning, but supposed that you had lost the notification and forgotten
the date. Do you mean to say you never received my letter?”
“Never,” answered Ray. “And are you sure you did not overlook me?”
“Perfectly. See, here is the proof,” and Slade opened the valise which he
carried in his left hand, and, taking out his letter book, hastily turned over
the pages. “I took the precaution of having those letters copied, and mailed
them myself.”
He pointed to the copy of a letter addressed to Ray, dated ten days before.
It contained the usual notification of the meeting, and ended with