If All Employers Pay an Efficiency Wage and If Workers

question 9

Multiple Choice

If all employers pay an efficiency wage and if workers in areas with low unemployment rates can easily find alternative jobs,then one would expect

• A) average wages to be directly (positively) related to area unemployment rates.
• B) average wages times one minus the unemployment rate to be the same across areas.
• C) the duration of unemployment in an area, but not necessarily the rate, to be inversely related to the average wage of the area.
• D) average wages will be higher in areas with low unemployment rates.

Recognize the relationship between downsizing and its impacts on organizational performance and employees.

Distinguish between short-term, medium-term, and long-term cost adjustment alternatives to downsizing.

Comprehend the importance of fairness (procedural, distributive, interactional justice) during the implementation of downsizing decisions.

Understand the implications of downsizing on future work structures and employee relationships.

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Definitions:

Asynchronous

Communication or processes that do not occur in real-time, allowing participants to engage at their own convenience.

Developmental Strategy

A plan or approach designed for growth or progress in a specific area, such as in personal skills or a business context.

Employee Attitudes

An individual’s overall feelings, beliefs, and values about their job and workplace, influencing their behavior and performance.

HR

Short for Human Resources, pertains to the department within an organization that deals with employee-related functions such as hiring, training, payroll, and benefits administration.