Question 1

In incentive pay, performance measures are primarily based on

Accepted Answer

A)  a supervisor's appraisal. 
B)  individual productivity. 
C)  company profits. 
D)  company stock returns. 
E)  production costs. 
A)  a supervisor's appraisal. 
B)  individual productivity. 
C)  company profits. 
D)  company stock returns. 
E)  production costs.

Question 2

According to expectancy theory, motivation is hypothesized to be a function of

Accepted Answer

A)  cognitive capacity. 
B)  social structure. 
C)  genes. 
D)  instrumentality. 
E)  self-esteem. 
A)  cognitive capacity. 
B)  social structure. 
C)  genes. 
D)  instrumentality. 
E)  self-esteem.

Question 3

To align the interests of the agents with the principal's own interests, one option is to create a behavior-oriented contract that includes

Accepted Answer

A)  stock options. 
B)  profit sharing. 
C)  commissions. 
D)  merit pay. 
E)  revenue sharing. 
A)  stock options. 
B)  profit sharing. 
C)  commissions. 
D)  merit pay. 
E)  revenue sharing.

Question 4

Differentiate between outcome-oriented contracts and behavior-based contracts.

Accepted Answer

To reduce agency costs, the agency theor

Question 5

A ________ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

Accepted Answer

A)  mutual fund 
B)  gainsharing 
C)  group incentive 
D)  profit-sharing 
E)  stock option 
A)  mutual fund 
B)  gainsharing 
C)  group incentive 
D)  profit-sharing 
E)  stock option

Question 6

Which of the following is true about outcome-oriented contracts?

Accepted Answer

A)  They require more supervision than behavior-oriented contracts. 
B)  When profits drop, agents' compensation goes up in outcome-oriented contracts. 
C)  Agents do not demand compensating wage differentials in such contracts. 
D)  Agents face minimal risks in such contracts. 
E)  They are typically a major component of executive compensation. 
A)  They require more supervision than behavior-oriented contracts. 
B)  When profits drop, agents' compensation goes up in outcome-oriented contracts. 
C)  Agents do not demand compensating wage differentials in such contracts. 
D)  Agents face minimal risks in such contracts. 
E)  They are typically a major component of executive compensation.

Question 7

A pay plan's ability to draw highly qualified applicants for jobs at a particular organization is known as the incentive effect.

Accepted Answer

A) True 
 B)False

Question 8

Relying exclusively on merit pay or individual incentives may result in high levels of work motivation but unacceptable levels of individualistic and competitive behavior.

Accepted Answer

A) True 
 B)False

Question 9

Gainsharing programs offer a means of sharing productivity gains with employees based on organization-level performance.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following trade-offs does a company need to consider with compensation management?

Accepted Answer

A)  Performance-reward 
B)  Risk-reward 
C)  Motivation-reward 
D)  Ability-reward 
E)  Behavior-reward 
A)  Performance-reward 
B)  Risk-reward 
C)  Motivation-reward 
D)  Ability-reward 
E)  Behavior-reward

Question 11

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

Accepted Answer

A)  A mid-year merit bonus encourages Lavar to keep improving his productivity at Star Industries. 
B)  Bevlink's full match for employee retirement plan contributions encourages Tina to apply for a job there. 
C)  Two years without a wage increase for employees at Fractal Castings has led to a decrease in product quality. 
D)  Implementation of profit sharing at RedCube Robotics inspires Zack's team to identify potential supply chain savings. 
E)  Freezing of year-end bonuses at Harvest Organics leads employees to question the organization's values. 
A)  A mid-year merit bonus encourages Lavar to keep improving his productivity at Star Industries. 
B)  Bevlink's full match for employee retirement plan contributions encourages Tina to apply for a job there. 
C)  Two years without a wage increase for employees at Fractal Castings has led to a decrease in product quality. 
D)  Implementation of profit sharing at RedCube Robotics inspires Zack's team to identify potential supply chain savings. 
E)  Freezing of year-end bonuses at Harvest Organics leads employees to question the organization's values.

Question 12

The ________ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Accepted Answer

A)  Bureau of Economic Analysis 
B)  Federal Bureau of Investigation 
C)  Federal Trade Commission 
D)  Securities and Exchange Commission 
E)  Bureau of Industry and Security 
A)  Bureau of Economic Analysis 
B)  Federal Bureau of Investigation 
C)  Federal Trade Commission 
D)  Securities and Exchange Commission 
E)  Bureau of Industry and Security

Question 13

Group incentives tend to measure performance in terms of

Accepted Answer

A)  employee retention. 
B)  individual motivation. 
C)  organizational environment. 
D)  physical output. 
E)  organizational profitability. 
A)  employee retention. 
B)  individual motivation. 
C)  organizational environment. 
D)  physical output. 
E)  organizational profitability.

Question 14

Deferred profit-sharing plans increase employee motivation.

Accepted Answer

A) True 
 B)False

Question 15

In the ________ dimension, employees base their fairness assessments on the processes that were used to decide the amount of compensation.

Accepted Answer

A)  distributive 
B)  procedural 
C)  quantitative 
D)  ownership 
E)  outcome 
A)  distributive 
B)  procedural 
C)  quantitative 
D)  ownership 
E)  outcome

Question 16

Compa-ratio controls compensation costs and maintains the integrity of the pay structure through the use of

Accepted Answer

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

Question 17

When high performance is not followed by a monetary reward, future high performance is less likely according to

Accepted Answer

A)  Herzberg's two-factor theory. 
B)  Reinforcement theory. 
C)  Freud's psychoanalytical theory. 
D)  McGregor's theory X. 
E)  Theory Z. 
A)  Herzberg's two-factor theory. 
B)  Reinforcement theory. 
C)  Freud's psychoanalytical theory. 
D)  McGregor's theory X. 
E)  Theory Z.

Question 18

An example of the sorting effect is a social media firm offering employee stock options to attract a higher caliber of applicants for positions in the organization.

Accepted Answer

A) True 
 B)False

Question 19

According to a merit increase grid, one of the factors that determine the size and frequency of pay increases is the

Accepted Answer

A)  company's annual output. 
B)  attrition rate in the company. 
C)  company's stock price. 
D)  recruitment ratio. 
E)  individual's performance rating. 
A)  company's annual output. 
B)  attrition rate in the company. 
C)  company's stock price. 
D)  recruitment ratio. 
E)  individual's performance rating.

Question 20

The Dodd-Frank Wall Street Reform and Consumer Protection Act requires shareholders to have a "say on pay," meaning that they have the right to a (nonbinding) vote on executive pay plans.

Accepted Answer

A) True 
 B)False

In incentive pay, performance measures are primarily based on

According to expectancy theory, motivation is hypothesized to be a function of

To align the interests of the agents with the principal's own interests, one option is to create a behavior-oriented contract that includes

Differentiate between outcome-oriented contracts and behavior-based contracts.

A ________ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

Which of the following is true about outcome-oriented contracts?

A pay plan's ability to draw highly qualified applicants for jobs at a particular organization is known as the incentive effect.

Relying exclusively on merit pay or individual incentives may result in high levels of work motivation but unacceptable levels of individualistic and competitive behavior.

Gainsharing programs offer a means of sharing productivity gains with employees based on organization-level performance.

Which of the following trade-offs does a company need to consider with compensation management?

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

The ________ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Group incentives tend to measure performance in terms of

Deferred profit-sharing plans increase employee motivation.

In the ________ dimension, employees base their fairness assessments on the processes that were used to decide the amount of compensation.

Compa-ratio controls compensation costs and maintains the integrity of the pay structure through the use of

When high performance is not followed by a monetary reward, future high performance is less likely according to

An example of the sorting effect is a social media firm offering employee stock options to attract a higher caliber of applicants for positions in the organization.

According to a merit increase grid, one of the factors that determine the size and frequency of pay increases is the

The Dodd-Frank Wall Street Reform and Consumer Protection Act requires shareholders to have a "say on pay," meaning that they have the right to a (nonbinding) vote on executive pay plans.

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

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Exam 12: Recognizing Employee Contributions With Pay

In incentive pay, performance measures are primarily based on

According to expectancy theory, motivation is hypothesized to be a function of

To align the interests of the agents with the principal's own interests, one option is to create a behavior-oriented contract that includes

Differentiate between outcome-oriented contracts and behavior-based contracts.

A ________ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

Which of the following is true about outcome-oriented contracts?

A pay plan's ability to draw highly qualified applicants for jobs at a particular organization is known as the incentive effect.

Relying exclusively on merit pay or individual incentives may result in high levels of work motivation but unacceptable levels of individualistic and competitive behavior.

Gainsharing programs offer a means of sharing productivity gains with employees based on organization-level performance.

Which of the following trade-offs does a company need to consider with compensation management?

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

The ________ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Group incentives tend to measure performance in terms of

Deferred profit-sharing plans increase employee motivation.

In the ________ dimension, employees base their fairness assessments on the processes that were used to decide the amount of compensation.

Compa-ratio controls compensation costs and maintains the integrity of the pay structure through the use of

When high performance is not followed by a monetary reward, future high performance is less likely according to

An example of the sorting effect is a social media firm offering employee stock options to attract a higher caliber of applicants for positions in the organization.

According to a merit increase grid, one of the factors that determine the size and frequency of pay increases is the

The Dodd-Frank Wall Street Reform and Consumer Protection Act requires shareholders to have a "say on pay," meaning that they have the right to a (nonbinding) vote on executive pay plans.

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