Question 1

"Knowledge work" is a component part of which pay system?

Accepted Answer

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

Question 2

Why does E. L. Thorndike's Law of Effect work?

Accepted Answer

A)  It states a response followed by a reward is more likely to recur in the future. 
B)  It states a behavior is a function of ability and knowledge. 
C)  It states valence of pay outcomes should vary under different pay systems. 
D)  It states monetary incentives increase intrinsic motivation. 
E)  It states principals have perfect information on the degree to which an agent is pursuing goals. 
A)  It states a response followed by a reward is more likely to recur in the future. 
B)  It states a behavior is a function of ability and knowledge. 
C)  It states valence of pay outcomes should vary under different pay systems. 
D)  It states monetary incentives increase intrinsic motivation. 
E)  It states principals have perfect information on the degree to which an agent is pursuing goals.

Question 3

Employee stock ownership plans (ESOPs) give employees the right to vote their securities if registered on a national exchange.

Accepted Answer

A) True 
 B)False

Question 4

Merit pay has the ability to define and reward a broad range of performance dimensions.

Accepted Answer

A) True 
 B)False

Question 5

Palm Keys Inc. believes in using a supervisor's performance rating to award merit pay.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following makes employee stock ownership plans (ESOPs) less attractive?

Accepted Answer

A)  Less diversification of investment risk 
B)  Lack of tax and financial advantages 
C)  High levels of liquidity 
D)  Inability to serve as a takeover defense 
E)  Giving employees the right to vote their securities 
A)  Less diversification of investment risk 
B)  Lack of tax and financial advantages 
C)  High levels of liquidity 
D)  Inability to serve as a takeover defense 
E)  Giving employees the right to vote their securities

Question 7

Which of the following is most likely to provide intrinsic motivation?

Accepted Answer

A)  A sponsored vacation to Europe 
B)  A monthly salary of $10,000 
C)  Medical insurance 
D)  Paid leave for three months 
E)  An interesting work assignment 
A)  A sponsored vacation to Europe 
B)  A monthly salary of $10,000 
C)  Medical insurance 
D)  Paid leave for three months 
E)  An interesting work assignment

Question 8

The Securities and Exchange Commission (SEC) requires companies to report compensation levels for the five highest paid executives.

Accepted Answer

A) True 
 B)False

Question 9

Krispy Donut wants its employees to share in the ownership of the company. The company is ready to sell its stocks and offer the employees to be first to buy the stocks at a fixed price.

Accepted Answer

A) True 
 B)False

Question 10

The performance motivation of stock option plans is particularly high from a reinforcement theory standpoint.

Accepted Answer

A) True 
 B)False

Question 11

In ________ programs, annual compensation increases are usually linked to performance appraisal ratings.

Accepted Answer

A)  skill-based pay 
B)  gainsharing 
C)  merit pay 
D)  incentive pay 
E)  cost-based pay 
A)  skill-based pay 
B)  gainsharing 
C)  merit pay 
D)  incentive pay 
E)  cost-based pay

Question 12

Intellix gives annual pay increases linked to the employee performance ratings using an incentive pay program.

Accepted Answer

A) True 
 B)False

Question 13

When profit-sharing takes a broad view of what needs to be done to make the organization more effective, it may encourage

Accepted Answer

A)  individual competition. 
B)  a knowledge of business. 
C)  a sense of ownership. 
D)  problem-solving orientation. 
E)  learning and flexibility. 
A)  individual competition. 
B)  a knowledge of business. 
C)  a sense of ownership. 
D)  problem-solving orientation. 
E)  learning and flexibility.

Question 14

What are individual incentives? How are they different from merit pay?

Accepted Answer

Like merit pay, individual incentives re

Question 15

Discuss expectancy theory.

Accepted Answer

Although expectancy theory focuses on th

Question 16

In a(n) ________ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.

Accepted Answer

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

Question 17

Which of the following is true of how the agency theory views monitoring?

Accepted Answer

A)  Monitoring is more expensive when done by employees. 
B)  Employees' knowledge of the workplace is not reliable. 
C)  Monitoring is less effective when performed by employees. 
D)  Employees understand fellow employees better than managers do. 
E)  A compensation system does not influence peer monitoring. 
A)  Monitoring is more expensive when done by employees. 
B)  Employees' knowledge of the workplace is not reliable. 
C)  Monitoring is less effective when performed by employees. 
D)  Employees understand fellow employees better than managers do. 
E)  A compensation system does not influence peer monitoring.

Question 18

Separating the functions of principals and agents is likely to result in

Accepted Answer

A)  immobility of financial capital. 
B)  diversification of investment risk. 
C)  reduction in agency costs. 
D)  better goal congruence. 
E)  information symmetry. 
A)  immobility of financial capital. 
B)  diversification of investment risk. 
C)  reduction in agency costs. 
D)  better goal congruence. 
E)  information symmetry.

Question 19

Which of the following is a difference between profit-sharing plans and employee ownership plans?

Accepted Answer

A)  Unlike ownership plans, base pay is not reduced when profit-sharing plans are introduced. 
B)  Ownership plans focus on the success of the organization as a whole, unlike profit-sharing plans. 
C)  Profit-sharing plans promote individual competition, whereas ownership plans promote group competition. 
D)  The link between pay and performance is less obvious under ownership than under profit sharing. 
E)  Ownership plans promote individual competition, whereas profit-sharing plans promote group competition. 
A)  Unlike ownership plans, base pay is not reduced when profit-sharing plans are introduced. 
B)  Ownership plans focus on the success of the organization as a whole, unlike profit-sharing plans. 
C)  Profit-sharing plans promote individual competition, whereas ownership plans promote group competition. 
D)  The link between pay and performance is less obvious under ownership than under profit sharing. 
E)  Ownership plans promote individual competition, whereas profit-sharing plans promote group competition.

Question 20

Scan Master Company has weak incentives and poor performance pay. what is most likely to happen to the employees?

Accepted Answer

A)  Sales, executives, and stockbrokers will have greater motivation. 
B)  High performers will be motivated to stay with the organization and improve their efficiency. 
C)  There is a greater chance for unintended, undesirable behavior driven by pay-linked incentives. 
D)  Employees will take excessive risks for greater premium and compensation. 
E)  Competitors possibly will win over high performers with stronger incentive intensity. 
A)  Sales, executives, and stockbrokers will have greater motivation. 
B)  High performers will be motivated to stay with the organization and improve their efficiency. 
C)  There is a greater chance for unintended, undesirable behavior driven by pay-linked incentives. 
D)  Employees will take excessive risks for greater premium and compensation. 
E)  Competitors possibly will win over high performers with stronger incentive intensity.

"Knowledge work" is a component part of which pay system?

Why does E. L. Thorndike's Law of Effect work?

Employee stock ownership plans (ESOPs) give employees the right to vote their securities if registered on a national exchange.

Merit pay has the ability to define and reward a broad range of performance dimensions.

Palm Keys Inc. believes in using a supervisor's performance rating to award merit pay.

Which of the following makes employee stock ownership plans (ESOPs) less attractive?

Which of the following is most likely to provide intrinsic motivation?

The Securities and Exchange Commission (SEC) requires companies to report compensation levels for the five highest paid executives.

Krispy Donut wants its employees to share in the ownership of the company. The company is ready to sell its stocks and offer the employees to be first to buy the stocks at a fixed price.

The performance motivation of stock option plans is particularly high from a reinforcement theory standpoint.

In ________ programs, annual compensation increases are usually linked to performance appraisal ratings.

Intellix gives annual pay increases linked to the employee performance ratings using an incentive pay program.

When profit-sharing takes a broad view of what needs to be done to make the organization more effective, it may encourage

What are individual incentives? How are they different from merit pay?

Discuss expectancy theory.

In a(n) ________ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.

Which of the following is true of how the agency theory views monitoring?

Separating the functions of principals and agents is likely to result in

Which of the following is a difference between profit-sharing plans and employee ownership plans?

Scan Master Company has weak incentives and poor performance pay. what is most likely to happen to the employees?

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

"Knowledge work" is a component part of which pay system?

Why does E. L. Thorndike's Law of Effect work?

Employee stock ownership plans (ESOPs) give employees the right to vote their securities if registered on a national exchange.

Merit pay has the ability to define and reward a broad range of performance dimensions.

Palm Keys Inc. believes in using a supervisor's performance rating to award merit pay.

Which of the following makes employee stock ownership plans (ESOPs) less attractive?

Which of the following is most likely to provide intrinsic motivation?

The Securities and Exchange Commission (SEC) requires companies to report compensation levels for the five highest paid executives.

Krispy Donut wants its employees to share in the ownership of the company. The company is ready to sell its stocks and offer the employees to be first to buy the stocks at a fixed price.

The performance motivation of stock option plans is particularly high from a reinforcement theory standpoint.

In ________ programs, annual compensation increases are usually linked to performance appraisal ratings.

Intellix gives annual pay increases linked to the employee performance ratings using an incentive pay program.

When profit-sharing takes a broad view of what needs to be done to make the organization more effective, it may encourage

What are individual incentives? How are they different from merit pay?

Discuss expectancy theory.

In a(n) ________ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.

Which of the following is true of how the agency theory views monitoring?

Separating the functions of principals and agents is likely to result in

Which of the following is a difference between profit-sharing plans and employee ownership plans?

Scan Master Company has weak incentives and poor performance pay. what is most likely to happen to the employees?

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