Exam 12: Pay-For-Performance and Financial Incentives

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Intrinsically motivated behaviors are those behaviors that are motivated by the underlying need for competency and self-determination.

(True/False)
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Which plan uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement?

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Identity in the Scanlon plan refers to a focus on .

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List the basic steps in implementing a gainsharing plan.

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Scanlon plans involve putting some portion of an employee's weekly pay at risk for the opportunity to earn incentives if the employee meets or exceeds his or her goals.

(True/False)
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Which of the following is not a basic tenet of behavior modification?

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Managers should consider the work of motivation experts when designing incentive pay plans.

(True/False)
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Which incentive plan is based on a philosophy that managers and employees must cooperate together?

(Multiple Choice)
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Most firms have annual bonus plans aimed at motivating the short-term performance of managers and executives.

(True/False)
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According to the two-factor theory, good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.

(True/False)
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Which of the following is a disadvantage of using straight salary to compensate salespeople?

(Multiple Choice)
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IRS regulations preclude companies from deducting golden parachute payments made to executives and the executive must pay a 20% excise tax on the golden parachute payments.

(True/False)
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Herzberg's Hygiene-Motivator theory of motivation suggests that extrinsic factors like cause dissatisfaction.

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Why do many incentive plans fail?

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The Sarbanes-Oxley Act of 2002 makes board members personally liable for violating their fiduciary responsibilities to their shareholders.

(True/False)
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Vroom's expectancy theory states that a person's motivation to exert some level of effort is a function of all of the following except .

(Multiple Choice)
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Which of the following is an advantage of using a combination of salary and commission as compensation for salespeople?

(Multiple Choice)
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Which of the following is true of recognition programs?

(Multiple Choice)
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With a phantom stock plan, employees receive stocks that can be sold after a set period of time.

(True/False)
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Sharing of benefits in the Scanlon plan refers to a focus on .

(Multiple Choice)
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