Question 1

Which of the following makes outcome-oriented contracts less likely to occur?

Accepted Answer

A)  Risk aversion among agents 
B)  High outcome uncertainty 
C)  More programmable jobs 
D)  Less measurability of outcomes 
E)  Low risk premium in compensations 
A)  Risk aversion among agents 
B)  High outcome uncertainty 
C)  More programmable jobs 
D)  Less measurability of outcomes 
E)  Low risk premium in compensations A

Question 2

Which of the following components is a perceived link between behavior and pay?

Accepted Answer

A)  Expectancy 
B)  Instrumentality 
C)  Reinforcement 
D)  Valence 
E)  Equity 
A)  Expectancy 
B)  Instrumentality 
C)  Reinforcement 
D)  Valence 
E)  Equity B

Question 3

Explain why it is crucial to communicate the reasons for any changes in a compensation system to employees. Describe various ways an organization can communicate these changes.

Accepted Answer

A change in any part of the compensation system is likely to give rise to employee concerns. Rumors and assumptions based on poor or incomplete information are always an issue in administering compensation, partly because of its importance to employee economic security and well-being. Therefore, in making any changes, it is crucial to determine how best to communicate reasons for the changes to employees. Some organizations rely heavily on video messages from the chief executive officer to communicate the rationale for major changes. Brochures that include scenarios for typical employees are also used, as are focus group sessions where small groups of employees are interviewed to obtain feedback about concerns that can be addressed in later communication programs.

Question 4

Which of the following is an example of an ownership plan used in compensation systems?

Accepted Answer

A)  Gainsharing plan 
B)  Profit-sharing program 
C)  Group incentive 
D)  Stock option 
E)  Individual incentive plan 
A)  Gainsharing plan 
B)  Profit-sharing program 
C)  Group incentive 
D)  Stock option 
E)  Individual incentive plan

Question 5

Which of the following compensation programs uses a management style that gives importance to control?

Accepted Answer

A)  Gainsharing plan 
B)  Incentive pay 
C)  Ownership 
D)  Merit pay 
E)  Profit sharing 
A)  Gainsharing plan 
B)  Incentive pay 
C)  Ownership 
D)  Merit pay 
E)  Profit sharing

Question 6

Gainsharing can motivate employees as much as individual plans do because

Accepted Answer

A)  it allows more control over the performance measure and the frequency of payouts. 
B)  it uses organization-level performance measures. 
C)  it involves payouts that are deferred. 
D)  it encourages individual-oriented plans rather than broader goals. 
E)  it focuses more on the monetary component than on employee skills. 
A)  it allows more control over the performance measure and the frequency of payouts. 
B)  it uses organization-level performance measures. 
C)  it involves payouts that are deferred. 
D)  it encourages individual-oriented plans rather than broader goals. 
E)  it focuses more on the monetary component than on employee skills.

Question 7

As jobs become less programmable,

Accepted Answer

A)  outcome-oriented contracts become less likely. 
B)  monitoring becomes less difficult. 
C)  behavior-oriented contracts become less likely. 
D)  the agent's risk decreases. 
E)  the requirement for compensating wage deferential increases. 
A)  outcome-oriented contracts become less likely. 
B)  monitoring becomes less difficult. 
C)  behavior-oriented contracts become less likely. 
D)  the agent's risk decreases. 
E)  the requirement for compensating wage deferential increases.

Question 8

One solution to profit sharing during a downturn is to design plans that have upside but not downside risk.

Accepted Answer

A) True 
 B)False

Question 9

________ focuses on the link between rewards and behaviors and emphasizes anticipated rewards.

Accepted Answer

A)  Equity theory 
B)  Agency theory 
C)  Expectancy theory 
D)  Theory Z 
E)  McGregor's theory X 
A)  Equity theory 
B)  Agency theory 
C)  Expectancy theory 
D)  Theory Z 
E)  McGregor's theory X

Question 10

How can executive pay be linked to organization performance?

Accepted Answer

From an agency theory perspective, the g

Question 11

Allan works as a typesetter in a publishing company. If the organization uses merit pay programs, Allan's salary is based primarily on information collected from

Accepted Answer

A)  his colleagues. 
B)  the human resource manager. 
C)  his immediate supervisor. 
D)  Allan himself. 
E)  performance indicators. 
A)  his colleagues. 
B)  the human resource manager. 
C)  his immediate supervisor. 
D)  Allan himself. 
E)  performance indicators.

Question 12

In skill-based pay systems, pay is based on

Accepted Answer

A)  a supervisor's appraisal. 
B)  individual productivity. 
C)  company profits. 
D)  company stock returns. 
E)  changes to base pay. 
A)  a supervisor's appraisal. 
B)  individual productivity. 
C)  company profits. 
D)  company stock returns. 
E)  changes to base pay.

Question 13

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. Followers of cognitive evaluation theory are likely to question this assumption, arguing that

Accepted Answer

A)  monetary rewards may decrease extrinsic motivation. 
B)  intrinsic rewards do not affect job satisfaction. 
C)  monetary rewards may decrease intrinsic motivation. 
D)  extrinsic rewards are not effective for managers. 
E)  behaviors are determined by genes rather than reinforcement. 
A)  monetary rewards may decrease extrinsic motivation. 
B)  intrinsic rewards do not affect job satisfaction. 
C)  monetary rewards may decrease intrinsic motivation. 
D)  extrinsic rewards are not effective for managers. 
E)  behaviors are determined by genes rather than reinforcement.

Question 14

A(n) ________ is suitable for an organization with a culture that promotes individual competition.

Accepted Answer

A)  gainsharing plan 
B)  profit-sharing plan 
C)  merit pay plan 
D)  ownership plan 
E)  skill-based plan 
A)  gainsharing plan 
B)  profit-sharing plan 
C)  merit pay plan 
D)  ownership plan 
E)  skill-based plan

Question 15

Which of the following is a criticism of traditional merit pay programs?

Accepted Answer

A)  Peer and subordinate ratings are frequent and they tend to receive more weight than supervisory ratings. 
B)  The feedback under this system tends to occur too frequently, which may cause average employees to feel more discouraged than appreciated. 
C)  These programs lack emphasis on individual performance and focus too much on teamwork. 
D)  These programs often involve gathering inappropriate feedback from external sources. 
E)  Employees are encouraged to focus on personal gains rather than what is good for the organization. 
A)  Peer and subordinate ratings are frequent and they tend to receive more weight than supervisory ratings. 
B)  The feedback under this system tends to occur too frequently, which may cause average employees to feel more discouraged than appreciated. 
C)  These programs lack emphasis on individual performance and focus too much on teamwork. 
D)  These programs often involve gathering inappropriate feedback from external sources. 
E)  Employees are encouraged to focus on personal gains rather than what is good for the organization.

Question 16

Discuss any five governance practices that support director independence from management.

Accepted Answer

The student may discuss any five of the

Question 17

The Scanlon plan is an example of a(n) ________ plan.

Accepted Answer

A)  profit-sharing 
B)  skill-based 
C)  merit pay 
D)  individual incentive 
E)  gainsharing 
A)  profit-sharing 
B)  skill-based 
C)  merit pay 
D)  individual incentive 
E)  gainsharing

Question 18

When an organization has a growth strategy, the short-run pay level and benefit level tend to be below market level.

Accepted Answer

A) True 
 B)False

Question 19

Organizations may not need to rely on layoffs to reduce costs using which compensation program?

Accepted Answer

A)  Skill-based program 
B)  Incentive pay 
C)  Fixed pay 
D)  Merit pay 
E)  Profit sharing 
A)  Skill-based program 
B)  Incentive pay 
C)  Fixed pay 
D)  Merit pay 
E)  Profit sharing

Question 20

Kendal assesses her pay compared to others doing the same job through procedural fairness.

Accepted Answer

A) True 
 B)False

Which of the following makes outcome-oriented contracts less likely to occur?

Which of the following components is a perceived link between behavior and pay?

Explain why it is crucial to communicate the reasons for any changes in a compensation system to employees. Describe various ways an organization can communicate these changes.

Which of the following is an example of an ownership plan used in compensation systems?

Which of the following compensation programs uses a management style that gives importance to control?

Gainsharing can motivate employees as much as individual plans do because

As jobs become less programmable,

One solution to profit sharing during a downturn is to design plans that have upside but not downside risk.

________ focuses on the link between rewards and behaviors and emphasizes anticipated rewards.

How can executive pay be linked to organization performance?

Allan works as a typesetter in a publishing company. If the organization uses merit pay programs, Allan's salary is based primarily on information collected from

In skill-based pay systems, pay is based on

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. Followers of cognitive evaluation theory are likely to question this assumption, arguing that

A(n) ________ is suitable for an organization with a culture that promotes individual competition.

Which of the following is a criticism of traditional merit pay programs?

Discuss any five governance practices that support director independence from management.

The Scanlon plan is an example of a(n) ________ plan.

When an organization has a growth strategy, the short-run pay level and benefit level tend to be below market level.

Organizations may not need to rely on layoffs to reduce costs using which compensation program?

Kendal assesses her pay compared to others doing the same job through procedural fairness.

Human Resource Management: Gaining a Competitive Advantage

Strategic Human Resource Management

The Legal Environment: Equal Employment Opportunity and Safety

The Analysis and Design of Work

Human Resource Planning and Recruitment

Selection and Placement

Training

Performance Management

Employee Development

Employee Separation and Retention

Pay Structure Decisions

Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Strategically Managing the HRM Function

Filters

Exam 12: Recognizing Employee Contributions With Pay

Which of the following makes outcome-oriented contracts less likely to occur?

Which of the following components is a perceived link between behavior and pay?

Explain why it is crucial to communicate the reasons for any changes in a compensation system to employees. Describe various ways an organization can communicate these changes.

Which of the following is an example of an ownership plan used in compensation systems?

Which of the following compensation programs uses a management style that gives importance to control?

Gainsharing can motivate employees as much as individual plans do because

As jobs become less programmable,

One solution to profit sharing during a downturn is to design plans that have upside but not downside risk.

________ focuses on the link between rewards and behaviors and emphasizes anticipated rewards.

How can executive pay be linked to organization performance?

Allan works as a typesetter in a publishing company. If the organization uses merit pay programs, Allan's salary is based primarily on information collected from

In skill-based pay systems, pay is based on

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. Followers of cognitive evaluation theory are likely to question this assumption, arguing that

A(n) ________ is suitable for an organization with a culture that promotes individual competition.

Which of the following is a criticism of traditional merit pay programs?

Discuss any five governance practices that support director independence from management.

The Scanlon plan is an example of a(n) ________ plan.

When an organization has a growth strategy, the short-run pay level and benefit level tend to be below market level.

Organizations may not need to rely on layoffs to reduce costs using which compensation program?

Kendal assesses her pay compared to others doing the same job through procedural fairness.

Human Resource Management: Gaining a Competitive Advantage

Strategic Human Resource Management

The Legal Environment: Equal Employment Opportunity and Safety

The Analysis and Design of Work

Human Resource Planning and Recruitment

Selection and Placement

Training

Performance Management

Employee Development

Employee Separation and Retention

Pay Structure Decisions

Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Strategically Managing the HRM Function

Filters