Question 1

How does merit pay differ from a bonus?

Accepted Answer

A) A bonus becomes part of an employee's base pay, but merit pay does not. 
B) Merit pay is linked to individual performance, while a bonus is not. 
C) Merit pay becomes part of an employee's base pay, but a bonus does not. 
D) A bonus is a type of gift. 
E) A bonus is linked to individual performance, while merit pay is linked to company performance 
A) A bonus becomes part of an employee's base pay, but merit pay does not. 
B) Merit pay is linked to individual performance, while a bonus is not. 
C) Merit pay becomes part of an employee's base pay, but a bonus does not. 
D) A bonus is a type of gift. 
E) A bonus is linked to individual performance, while merit pay is linked to company performance

Question 2

Rebecca's manager wants to acknowledge her outstanding service record for the past quarter. Her manager decides to give Rebecca a bonus of $1000 as a reward. This is an example of using to reinforce behavior.

Accepted Answer

A) recognition 
B) intrinsic motivation 
C) physiological needs 
D) extrinsic motivation 
E) extinction 
A) recognition 
B) intrinsic motivation 
C) physiological needs 
D) extrinsic motivation 
E) extinction

Question 3

Phantom stock plans refer to stock plans that provide .

Accepted Answer

A) shares of stock for the achievement of predetermined financial targets such as profit or growth in earnings per share 
B) shares without cost to the executive so that the employee can sell the stock but is restricted from do so for a set period of time 
C) units instead of shares of company stock. Then at some point in the future, they receive value (usually in cash)equal to the appreciation of the units they own 
D) permit the recipient to exercise the stock option or to take any appreciation in the stock price in cash, stock, or some combination of these 
E) the option to purchase stock at a stated price, usually the fair market value at the time of the grant 
A) shares of stock for the achievement of predetermined financial targets such as profit or growth in earnings per share 
B) shares without cost to the executive so that the employee can sell the stock but is restricted from do so for a set period of time 
C) units instead of shares of company stock. Then at some point in the future, they receive value (usually in cash)equal to the appreciation of the units they own 
D) permit the recipient to exercise the stock option or to take any appreciation in the stock price in cash, stock, or some combination of these 
E) the option to purchase stock at a stated price, usually the fair market value at the time of the grant

Question 4

Behavior modification is based upon the principles of rewards and punishments advanced by .

Accepted Answer

A) Frederick Herzberg 
B) Frederick Taylor 
C) Abraham Maslow 
D) Edward Deci 
E) B.F. Skinner 
A) Frederick Herzberg 
B) Frederick Taylor 
C) Abraham Maslow 
D) Edward Deci 
E) B.F. Skinner

Question 5

In Vroom's theory of motivation, motivation is equal to E * I * V, where E represents .

Accepted Answer

A) existence 
B) energy 
C) esteem 
D) expectancy 
E) extrinsic motivation 
A) existence 
B) energy 
C) esteem 
D) expectancy 
E) extrinsic motivation

Question 6

What type of pay plan is being used when workers are paid a sum for each unit they produce?

Accepted Answer

A) piecework 
B) competency-based pay 
C) base pay 
D) bonus 
E) job-based pay 
A) piecework 
B) competency-based pay 
C) base pay 
D) bonus 
E) job-based pay

Question 7

Vroom's theory points out that when valence is very high, people will exert effort despite low expectancies of success.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance?

Accepted Answer

A) personal development 
B) intermittent pay 
C) instrumentality 
D) behavior modification 
E) internal motivation 
A) personal development 
B) intermittent pay 
C) instrumentality 
D) behavior modification 
E) internal motivation

Question 9

What type of profit-sharing plan involves the firm distributing total annual profits each year among employees based on their merit rating?

Accepted Answer

A) cash plan 
B) Lincoln incentive system 
C) Jefferson incentive system 
D) deferred profit-sharing plan 
E) employee stock ownership plan 
A) cash plan 
B) Lincoln incentive system 
C) Jefferson incentive system 
D) deferred profit-sharing plan 
E) employee stock ownership plan

Question 10

Under , executives receive units instead of shares of company stock. Then at some point in the future, they receive value (usually in cash)equal to the appreciation of the units they own.

Accepted Answer

A) nonqualified stock options 
B) stock appreciation rights 
C) performance achievement plans 
D) Phantom stock plans 
E) restricted stock plans 
A) nonqualified stock options 
B) stock appreciation rights 
C) performance achievement plans 
D) Phantom stock plans 
E) restricted stock plans

Question 11

Which of the following methods is not used to pay using group incentive plans?

Accepted Answer

A) All members receive pay earned by the lowest producer. 
B) All members receive pay equal to the average pay earned by the group. 
C) All members receive the same pay based on the piece rate for the group's job. 
D) All members receive the pay earned by the highest producer. 
E) all of the above are possible methods 
A) All members receive pay earned by the lowest producer. 
B) All members receive pay equal to the average pay earned by the group. 
C) All members receive the same pay based on the piece rate for the group's job. 
D) All members receive the pay earned by the highest producer. 
E) all of the above are possible methods

Question 12

All merit increases are cumulative in that they become a part of an employee's base salary.

Accepted Answer

A) True 
 B)False

Question 13

Briefly explain how an at-risk variable pay plan works.

Accepted Answer

At-risk variable pay plans are plans tha

Question 14

What is the most common form of payment in gainsharing plans?

Accepted Answer

A) preferred stock 
B) electronics 
C) common stock 
D) vacation time 
E) cash 
A) preferred stock 
B) electronics 
C) common stock 
D) vacation time 
E) cash

Question 15

According to the Sarbanes-Oxley Act of 2002, if a company must restate financial statements due to material noncompliance with a financial reporting requirement, the act requires that the CEO .

Accepted Answer

A) open his or her private records for investigation by an independent auditor 
B) repay any bonuses received during the 12 months prior to the issuance of the financial statements in question 
C) make a public apology to stock holders 
D) resign from the position of CEO 
E) all of the above 
A) open his or her private records for investigation by an independent auditor 
B) repay any bonuses received during the 12 months prior to the issuance of the financial statements in question 
C) make a public apology to stock holders 
D) resign from the position of CEO 
E) all of the above

Question 16

In Vroom's theory of motivation, motivation is equal to E * I * V, where V represents .

Accepted Answer

A) viral motivation 
B) value 
C) vigilance 
D) victory 
E) valence 
A) viral motivation 
B) value 
C) vigilance 
D) victory 
E) valence

Question 17

Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so. Identify at least five positive reinforcement rewards that a manager could use on a day -to-day basis to reward employees.

Accepted Answer

There is a long list possible such as to

Question 18

If an employee earns an incentive in the form of a prize or cash award, the value of the award is not included when calculating the employee's overtime pay.

Accepted Answer

A) True 
 B)False

Question 19

Gainsharing is an incentive plan that .

Accepted Answer

A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement 
B) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company 
C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees 
D) provides tax advantages for employees by deferring income taxes, often until the employee retires 
E) involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals 
A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement 
B) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company 
C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees 
D) provides tax advantages for employees by deferring income taxes, often until the employee retires 
E) involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals

Question 20

What do members receive when incentives are based on a group incentive plan and tied to work standards for the whole team? Name five methods for determining what each team member is paid.

Accepted Answer

Members may receive the pay earned by th

How does merit pay differ from a bonus?

Rebecca's manager wants to acknowledge her outstanding service record for the past quarter. Her manager decides to give Rebecca a bonus of $1000 as a reward. This is an example of using to reinforce behavior.

Phantom stock plans refer to stock plans that provide .

Behavior modification is based upon the principles of rewards and punishments advanced by .

In Vroom's theory of motivation, motivation is equal to E * I * V, where E represents .

What type of pay plan is being used when workers are paid a sum for each unit they produce?

Vroom's theory points out that when valence is very high, people will exert effort despite low expectancies of success.

Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance?

What type of profit-sharing plan involves the firm distributing total annual profits each year among employees based on their merit rating?

Under , executives receive units instead of shares of company stock. Then at some point in the future, they receive value (usually in cash)equal to the appreciation of the units they own.

Which of the following methods is not used to pay using group incentive plans?

All merit increases are cumulative in that they become a part of an employee's base salary.

Briefly explain how an at-risk variable pay plan works.

What is the most common form of payment in gainsharing plans?

According to the Sarbanes-Oxley Act of 2002, if a company must restate financial statements due to material noncompliance with a financial reporting requirement, the act requires that the CEO .

In Vroom's theory of motivation, motivation is equal to E * I * V, where V represents .

Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so. Identify at least five positive reinforcement rewards that a manager could use on a day -to-day basis to reward employees.

If an employee earns an incentive in the form of a prize or cash award, the value of the award is not included when calculating the employee's overtime pay.

Gainsharing is an incentive plan that .

What do members receive when incentives are based on a group incentive plan and tied to work standards for the whole team? Name five methods for determining what each team member is paid.

Introduction to Human Resource Management

Equal Opportunity and the Law

Strategic Human Resource Management and the Hr Scorecard

Job Analysis

Personnel Planning and Recruiting

Employee Testing and Selection

Chaper 7 Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Managing Careers

Establishing Strategic Pay Plans

Benefits and Services

Ethics, Justice, and Fair Treatment in Hr Management

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

HR Management and Organizational Strategy: Key Concepts and Considerations

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Exam 12: Pay-For-Performance and Financial Incentives

How does merit pay differ from a bonus?

Rebecca's manager wants to acknowledge her outstanding service record for the past quarter. Her manager decides to give Rebecca a bonus of $1000 as a reward. This is an example of using to reinforce behavior.

Phantom stock plans refer to stock plans that provide .

Behavior modification is based upon the principles of rewards and punishments advanced by .

In Vroom's theory of motivation, motivation is equal to E * I * V, where E represents .

What type of pay plan is being used when workers are paid a sum for each unit they produce?

Vroom's theory points out that when valence is very high, people will exert effort despite low expectancies of success.

Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance?

What type of profit-sharing plan involves the firm distributing total annual profits each year among employees based on their merit rating?

Under , executives receive units instead of shares of company stock. Then at some point in the future, they receive value (usually in cash)equal to the appreciation of the units they own.

Which of the following methods is not used to pay using group incentive plans?

All merit increases are cumulative in that they become a part of an employee's base salary.

Briefly explain how an at-risk variable pay plan works.

What is the most common form of payment in gainsharing plans?

According to the Sarbanes-Oxley Act of 2002, if a company must restate financial statements due to material noncompliance with a financial reporting requirement, the act requires that the CEO .

In Vroom's theory of motivation, motivation is equal to E * I * V, where V represents .

Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so. Identify at least five positive reinforcement rewards that a manager could use on a day -to-day basis to reward employees.

If an employee earns an incentive in the form of a prize or cash award, the value of the award is not included when calculating the employee's overtime pay.

Gainsharing is an incentive plan that .

What do members receive when incentives are based on a group incentive plan and tied to work standards for the whole team? Name five methods for determining what each team member is paid.

Introduction to Human Resource Management

Equal Opportunity and the Law

Strategic Human Resource Management and the Hr Scorecard

Job Analysis

Personnel Planning and Recruiting

Employee Testing and Selection

Chaper 7 Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Managing Careers

Establishing Strategic Pay Plans

Benefits and Services

Ethics, Justice, and Fair Treatment in Hr Management

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

HR Management and Organizational Strategy: Key Concepts and Considerations

Filters