Question: Which of the following is not true of legally required benefits?

Answer: (NOT THE ANSWER)

-Legally required benefits are not at-risk compensation.

-Legally required benefits are not usually a good means to make employment more attractive than working for a competitor.

Question: Organizations with a uniform relational compensation strategy:

Answer: are likely to use benefits such as health insurance and retirement benefits as a part of compensation.

Question: Paying some people more than others can actually harm an organization’s performance when workers are required to work together and when group incentives are used.

Answer: TRUE

Question: Benefits such as health insurance, retirement savings, and flexible schedules destroy employee loyalty to an organization.

Answer: FALSE

Question: A market-based pay approach seeks to create a wage structure where people are paid fairly in comparison to what they could earn doing a similar job at another company.

Answer: TRUE

Question: An organization using variable relational compensation:

Answer: provides top performers immediate rewards and also offers long-term incentives such as a retirement program to retain workers.

Question: Organizations with a uniform transactional compensation strategy are likely to link pay increases with time employed with the organization.

Answer: FALSE

Question: A differentiation strategy is associated with uniform transactional compensation.

Answer: FALSE

Question: Organizations with an internal labor orientation are willing to accept low retention rates because high levels of turnover create advancement and promotion opportunities for current employees.

Answer: FALSE

Question: Which of the following is not true about variable transactional compensation?

Answer: Future rewards such as retirement benefits are likely to be used as a part of compensation.