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Compensation Test

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Chapter 2: Strategy: The Totality of Decisions

Multiple Choice Questions

1. (p. 39) “Everyone wears several hats” and “succeed by working together” are examples of which of the following?
A. Objectives
B. Internal alignment
C. Externally competitive
D. Employee contributions

Difficulty: Medium

2. (p. 41) “Putting some skin in the game” refers to:
A. employees paid entirely on commission
B. being paid as a contract vs. a regular employee
C. below market base pay with stock ownership
D. above market base pay with low benefits

Difficulty: Medium

3. (p. 41) A compensation system that pays employees such that “some skin is in the game” means that
A. a portion of employee pay is at risk
B. employers risk high labor costs
C. level of base pay is below competitors
D. base pay is low while benefits are generous

Difficulty: Medium

4. (p. 41)______________ changed its compensation strategy as the company grew and matured?

A. SAS
B. Google
C. Microsoft
D. CNET

Difficulty: Medium

5. (p. 42) At the corporate level, a strategic compensation perspective addresses the question:
A. What business should we be in?
B. What is our desired return on assets?
C. How can our total compensation help gain competitive advantage to achieve organization success?
D. How can job analysis help us select the most appropriate certain compensation technique(s) for our organization?

Difficulty: Medium

6. (p. 42) What level of strategy is the question “how do we gain competitive advantage”?
A. Corporate
B. Business unit
C. HR
D. Departmental

Difficulty: Medium

7. (p. 42) The social, competitive and regulatory environment factors are most important for which type of strategy?
A. Corporate
B. Business unit
C. HR
D. Strategic compensation Difficulty: Medium

8. (p. 42) Which of the following

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