Question 1

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

Accepted Answer

A) Gainsharing plans 
B) Profit sharing programs 
C) Group incentives 
D) Stock options 
E) Individual incentive plans 
A) Gainsharing plans 
B) Profit sharing programs 
C) Group incentives 
D) Stock options 
E) Individual incentive plans D

Question 2

One way of achieving employee ownership is through stock options, which give employees the opportunity to buy stock at a fixed price.

Accepted Answer

A) True 
 B)False  True

Question 3

An employee's assessment of the fairness of his or her compensation based on how much pay they receive is referred to as procedural fairness.

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

E. L. Thorndike's Law of Effect states that _____.

Accepted Answer

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

Question 6

_____ 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 7

What are some of the potential consequences of employee involvement in compensation decision making?

Accepted Answer

Involvement in the design and implementa

Question 8

_____ perception is the perceived link between effort and performance.

Accepted Answer

A) Reinforcement 
B) Actual 
C) Expectancy 
D) Agency 
E) Equity 
A) Reinforcement 
B) Actual 
C) Expectancy 
D) Agency 
E) Equity

Question 9

Why is it useful for organizations to think in terms of designing a mix of programs rather than choosing one overall compensation program? Give examples.

Accepted Answer

Every pay program has its advantages and

Question 10

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 11

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 12

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, agent's 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, agent's 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 13

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

Question 14

Which of the following is most likely to provide extrinsic motivation to employees?

Accepted Answer

A) Autonomy 
B) Challenging tasks 
C) Variety of work 
D) Recognition 
E) Responsibility 
A) Autonomy 
B) Challenging tasks 
C) Variety of work 
D) Recognition 
E) Responsibility

Question 15

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 16

Perceptions of inequity may cause employees to take actions that may not help the organization.

Accepted Answer

A) True 
 B)False

Question 17

In incentive pay, performance measures are primarily based on _____.

Accepted Answer

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

Question 18

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

Accepted Answer

To reduce agency costs, the agency theor

Question 19

Merit pay systems rely on 360-degree performance feedback.

Accepted Answer

A) True 
 B)False

Question 20

From a(n)_____ standpoint, the effect on performance motivation may be limited in ownership program because of the less obvious link between pay and performance.

Accepted Answer

A) agency theory 
B) equity theory 
C) efficiency wage theory 
D) reinforcement theory 
E) contract theory 
A) agency theory 
B) equity theory 
C) efficiency wage theory 
D) reinforcement theory 
E) contract theory

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

One way of achieving employee ownership is through stock options, which give employees the opportunity to buy stock at a fixed price.

An employee's assessment of the fairness of his or her compensation based on how much pay they receive is referred to as procedural fairness.

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

E. L. Thorndike's Law of Effect states that _____.

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

What are some of the potential consequences of employee involvement in compensation decision making?

_____ perception is the perceived link between effort and performance.

Why is it useful for organizations to think in terms of designing a mix of programs rather than choosing one overall compensation program? Give examples.

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

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

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

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.

Which of the following is most likely to provide extrinsic motivation to employees?

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

Perceptions of inequity may cause employees to take actions that may not help the organization.

In incentive pay, performance measures are primarily based on _____.

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

Merit pay systems rely on 360-degree performance feedback.

From a(n)_____ standpoint, the effect on performance motivation may be limited in ownership program because of the less obvious link between pay and performance.

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 is an example of an ownership plan used in compensation systems?

One way of achieving employee ownership is through stock options, which give employees the opportunity to buy stock at a fixed price.

An employee's assessment of the fairness of his or her compensation based on how much pay they receive is referred to as procedural fairness.

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

E. L. Thorndike's Law of Effect states that _____.

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

What are some of the potential consequences of employee involvement in compensation decision making?

_____ perception is the perceived link between effort and performance.

Why is it useful for organizations to think in terms of designing a mix of programs rather than choosing one overall compensation program? Give examples.

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

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

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

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.

Which of the following is most likely to provide extrinsic motivation to employees?

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

Perceptions of inequity may cause employees to take actions that may not help the organization.

In incentive pay, performance measures are primarily based on _____.

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

Merit pay systems rely on 360-degree performance feedback.

From a(n)_____ standpoint, the effect on performance motivation may be limited in ownership program because of the less obvious link between pay and performance.

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