Multiple choice

1. A broad band: 

 is a combination of pay grades that reduces the number of levels in a pay structure. 

refers to the distance between the minimum and maximum pay rate in a pay grade. 

is the salary range attached to white-collar jobs. 

reduces flexibility in assigning merit increases. 

2.  In employees' minds, a "frame of mind that mistrusts senior management's intentions, doubts its competence, and resents its self-congratulatory pay" is the: 

trust gap. 

communication gap. 

subordination gap.

 compliance gap. 

3.  Gainsharing can motivate employees as much as individual plans do because of:

 the controllable nature of the performance measure and the frequency of payouts. 

the level of employee involvement and management cooperation. 

the relatively simplistic performance targets and large payouts. 

the high levels of employee ownership and team-based compensation. 

4.  In agency theory, the _____ seeks to direct the behavior of the _____.

 owner; 

principal agent;

 principal manager; 

agent principal; 

agent