Question 1

_____ is employees' beliefs that requisite job performance will be rewarded by the organization.

Accepted Answer

A)  Valence 
B)  Expectancy 
C)  Instrumentality 
D)  Utility 
A)  Valence 
B)  Expectancy 
C)  Instrumentality 
D)  Utility C

Question 2

A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded.

Accepted Answer

A) True 
 B)False  True

Question 3

Gain sharing poses greater risk to individual employees than profit sharing.

Accepted Answer

A) True 
 B)False  False

Question 4

All of the following EXCEPT _____ require periodically re-earning the added pay.

Accepted Answer

A)  success-sharing plans 
B)  merit bonuses 
C)  profit-sharing plans 
D)  cost-of-living increases 
A)  success-sharing plans 
B)  merit bonuses 
C)  profit-sharing plans 
D)  cost-of-living increases

Question 5

When pay raises are based on events over which employees lack significant control,they are likely to regard the system as unfair.

Accepted Answer

A) True 
 B)False

Question 6

When an organization's performance has regular and large swings and individual performance is unclear and hard to measure,the most effective compensation mix is to offer _____.

Accepted Answer

A)  a base pay with low incentives and a variety of rewards 
B)  monetary rewards with large incentives 
C)  a large base pay and low-incentive pay 
D)  a wide range of rewards and significant incentives 
A)  a base pay with low incentives and a variety of rewards 
B)  monetary rewards with large incentives 
C)  a large base pay and low-incentive pay 
D)  a wide range of rewards and significant incentives

Question 7

The most obvious sorting factor is _____.

Accepted Answer

A)  seniority 
B)  ability 
C)  experience 
D)  educational qualification 
A)  seniority 
B)  ability 
C)  experience 
D)  educational qualification

Question 8

Which of the following is NOT true?

Accepted Answer

A)  More companies are using pay systems based upon individual,group,and organization performance. 
B)  Workers with high security needs may accept lower pay if they come in a package that is stable. 
C)  Workers may need higher pay to stay and perform in a company that uses at-risk pay plan. 
D)  Companies are moving back to entitlement-oriented pay to reduce turnover. 
A)  More companies are using pay systems based upon individual,group,and organization performance. 
B)  Workers with high security needs may accept lower pay if they come in a package that is stable. 
C)  Workers may need higher pay to stay and perform in a company that uses at-risk pay plan. 
D)  Companies are moving back to entitlement-oriented pay to reduce turnover.

Question 9

According to research,which of the following is NOT one of the most important factors for employees influencing their pay systems?

Accepted Answer

A)  Team-based pay 
B)  Changes in cost of living 
C)  Pay at market rate 
D)  Seniority 
A)  Team-based pay 
B)  Changes in cost of living 
C)  Pay at market rate 
D)  Seniority

Question 10

Company X pays for performance.Allan,an employee of the company,is not in favor of this reward system and,therefore,leaves Company X in search of another company with different rules for getting rewards.This is an example of the:

Accepted Answer

A)  design effect. 
B)  compensation effect. 
C)  sorting effect. 
D)  incentive effect. 
A)  design effect. 
B)  compensation effect. 
C)  sorting effect. 
D)  incentive effect.

Question 11

Agency theory argues that employees prefer risky pay as rewards can be greater than a salary.

Accepted Answer

A) True 
 B)False

Question 12

_____ is an individual level form of performance pay.

Accepted Answer

A)  Risk sharing 
B)  Gain sharing 
C)  Merit bonus 
D)  Success sharing 
A)  Risk sharing 
B)  Gain sharing 
C)  Merit bonus 
D)  Success sharing

Question 13

When pay is based on individual performance,turnover tends to be highest among _____.

Accepted Answer

A)  poor performers 
B)  good performers 
C)  single women with children 
D)  ethnic minorities 
A)  poor performers 
B)  good performers 
C)  single women with children 
D)  ethnic minorities

Question 14

_____ theory argues that performance-based pay is the optimal compensation choice for complex jobs,where monitoring employee performance is difficult.

Accepted Answer

A)  Reinforcement 
B)  Goal-setting 
C)  Agency 
D)  Expectancy 
A)  Reinforcement 
B)  Goal-setting 
C)  Agency 
D)  Expectancy

Question 15

_____ theory states that success-sharing plans will be motivating,whereas at-risk plans will be demotivating.

Accepted Answer

A)  Equity 
B)  Expectancy and agency 
C)  Herzberg's two-factor 
D)  Agency 
A)  Equity 
B)  Expectancy and agency 
C)  Herzberg's two-factor 
D)  Agency

Question 16

Which of the following theories states that people choose the behavior that leads to the greatest reward?

Accepted Answer

A)  Maslow's need theory 
B)  Expectancy theory 
C)  Herzberg's two-factor theory 
D)  Goal-setting theory 
A)  Maslow's need theory 
B)  Expectancy theory 
C)  Herzberg's two-factor theory 
D)  Goal-setting theory

Question 17

According to the _____ theory,relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.

Accepted Answer

A)  equity 
B)  expectancy 
C)  agency 
D)  reinforcement 
A)  equity 
B)  expectancy 
C)  agency 
D)  reinforcement

Question 18

The trend today is toward less stable and less secure compensation packages.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of the sorting effect in action?

Accepted Answer

A)  An employee leaving a high-paying job for one that provides more work/life balance 
B)  The provision of across-the-board pay increases by a company 
C)  The provision of cost-of-living increases by a company 
D)  An employee choosing fewer incentives in his flexible compensation plan 
A)  An employee leaving a high-paying job for one that provides more work/life balance 
B)  The provision of across-the-board pay increases by a company 
C)  The provision of cost-of-living increases by a company 
D)  An employee choosing fewer incentives in his flexible compensation plan

Question 20

Goal-setting theory argues that employees' performance is maximized when performance targets are unchallenging and unspecific.

Accepted Answer

A) True 
 B)False

_____ is employees' beliefs that requisite job performance will be rewarded by the organization.

A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded.

Gain sharing poses greater risk to individual employees than profit sharing.

All of the following EXCEPT _____ require periodically re-earning the added pay.

When pay raises are based on events over which employees lack significant control,they are likely to regard the system as unfair.

When an organization's performance has regular and large swings and individual performance is unclear and hard to measure,the most effective compensation mix is to offer _____.

The most obvious sorting factor is _____.

Which of the following is NOT true?

According to research,which of the following is NOT one of the most important factors for employees influencing their pay systems?

Company X pays for performance.Allan,an employee of the company,is not in favor of this reward system and,therefore,leaves Company X in search of another company with different rules for getting rewards.This is an example of the:

Agency theory argues that employees prefer risky pay as rewards can be greater than a salary.

_____ is an individual level form of performance pay.

When pay is based on individual performance,turnover tends to be highest among _____.

_____ theory argues that performance-based pay is the optimal compensation choice for complex jobs,where monitoring employee performance is difficult.

_____ theory states that success-sharing plans will be motivating,whereas at-risk plans will be demotivating.

Which of the following theories states that people choose the behavior that leads to the greatest reward?

According to the _____ theory,relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.

The trend today is toward less stable and less secure compensation packages.

Which of the following is an example of the sorting effect in action?

Goal-setting theory argues that employees' performance is maximized when performance targets are unchallenging and unspecific.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 9: Pay-For-Performance: the Evidence

_____ is employees' beliefs that requisite job performance will be rewarded by the organization.

A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded.

Gain sharing poses greater risk to individual employees than profit sharing.

All of the following EXCEPT _____ require periodically re-earning the added pay.

When pay raises are based on events over which employees lack significant control,they are likely to regard the system as unfair.

When an organization's performance has regular and large swings and individual performance is unclear and hard to measure,the most effective compensation mix is to offer _____.

The most obvious sorting factor is _____.

Which of the following is NOT true?

According to research,which of the following is NOT one of the most important factors for employees influencing their pay systems?

Company X pays for performance.Allan,an employee of the company,is not in favor of this reward system and,therefore,leaves Company X in search of another company with different rules for getting rewards.This is an example of the:

Agency theory argues that employees prefer risky pay as rewards can be greater than a salary.

_____ is an individual level form of performance pay.

When pay is based on individual performance,turnover tends to be highest among _____.

_____ theory argues that performance-based pay is the optimal compensation choice for complex jobs,where monitoring employee performance is difficult.

_____ theory states that success-sharing plans will be motivating,whereas at-risk plans will be demotivating.

Which of the following theories states that people choose the behavior that leads to the greatest reward?

According to the _____ theory,relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.

The trend today is toward less stable and less secure compensation packages.

Which of the following is an example of the sorting effect in action?

Goal-setting theory argues that employees' performance is maximized when performance targets are unchallenging and unspecific.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters