Question

SOS!!

34) Identify a true statement regarding the efficiency wage theory.

a	Organizations unwilling to spend on benefits successfully convince employees to work harder than before.
b	Organizations that spend more money on employee benefits experience high employee turnover.
c	Organizations willing to spend more money on total compensation attract better-qualified people.
d	Organizations do not see any impact of social, cultural, and political forces on their benefits programs.

36)

Which of the following occurs when individuals with substantially different levels of experience, performance abilities, or both in an organization are paid wages or salaries that are relatively equal?

a	Pay inversion
b	External inequity
c	Pay compression
d	Wage elasticity

44) Elmer Inc., a software company, has a diverse workforce. Its employees work hard to meet their goals, and therefore, the management of the company has formed several extracurricular groups to help the employees relax. Everyone is free to join any or all of these groups, irrespective of their age, gender, or ethnicity. In the given scenario, which of the following statements is most likely true of Elmer Inc.?

a	It has an ethnocentric work environment.
b	It has high levels of job embeddedness.
c	It has achieved full integration of its informal networks.
d	It has a hierarchical approach to organizational control.

Answer 1

34 - Correct Answer - c

Explanation - Efficiency wage theory states that the organization which are willing to pay more to their employees gets more efficiency from the employees. Also, paying more does not allows employees to change or switch to another organization. It also states that paying more attracts better talents.

Hence, option a and b are incorrect and d is unrelated.

35. - Correct Answer - Pay compression

Explanation - External inequity is for comparing people from outside the environment. Hence, is incorrect.

Pay inversion is completely opposite of pay conversion which is the correct answer .

Wage elasticity is the tendency of the organization to make changes to the wages of employees.

Pat compression refers to two people with different experience and skills being paid the same amount.

36 - Correct Answer - b. Job embeddedness

Explanation -

Job embeddedness is the quality of the job to let people work for the same organization. Here, the informal groups are allowing the employees to stick to the job and also work harder to achieve the goals.