Question 1

One solution to profit-sharing during a downturn is to design plans that have upside but not downside risk.

Accepted Answer

A) True 
 B)False

Question 2

Valence of pay outcomes should change according to different pay systems.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following pay strategy dimensions best fits with a business strategy of concentration?

Accepted Answer

A) Long-term time orientation 
B) Below-market short-run pay level 
C) High levels of variable pay 
D) Above-market benefits levels 
E) Decentralization of pay decisions 
A) Long-term time orientation 
B) Below-market short-run pay level 
C) High levels of variable pay 
D) Above-market benefits levels 
E) Decentralization of pay decisions

Question 4

In incentive pay programs, annual pay increases are usually linked to performance appraisal ratings.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a drawback of using profit sharing?

Accepted Answer

A) It promotes individual goals rather than organizational goals. 
B) It promotes competition between work groups. 
C) It increases the probability of individual competition. 
D) It fails to make labor costs more variable. 
E) It runs the risk of contributing to employee dissatisfaction. 
A) It promotes individual goals rather than organizational goals. 
B) It promotes competition between work groups. 
C) It increases the probability of individual competition. 
D) It fails to make labor costs more variable. 
E) It runs the risk of contributing to employee dissatisfaction.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

When an organization is using growth strategy, it will _____.

Accepted Answer

A) have pay levels that are below market levels in the short run 
B) have a time orientation that is short term 
C) make centralized pay decisions 
D) not share risks with employees 
E) have benefit levels that are above market levels 
A) have pay levels that are below market levels in the short run 
B) have a time orientation that is short term 
C) make centralized pay decisions 
D) not share risks with employees 
E) have benefit levels that are above market levels

Question 8

According to a merit increase grid, one of the factors that determines 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 9

Pay plans are typically used to energize, direct, or control employee behavior.

Accepted Answer

A) True 
 B)False

Question 10

According to the agency theory, the principals are the _____.

Accepted Answer

A) managers 
B) customers 
C) owners 
D) vendors 
E) employees 
A) managers 
B) customers 
C) owners 
D) vendors 
E) employees

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

When an organization is using concentration strategy, it will _____.

Accepted Answer

A) have short-run pay levels below the market 
B) have a long-term orientation 
C) make centralized pay decisions 
D) maintain high variable pay levels 
E) have benefit levels below the market 
A) have short-run pay levels below the market 
B) have a long-term orientation 
C) make centralized pay decisions 
D) maintain high variable pay levels 
E) have benefit levels below the market

Question 13

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 14

______ refer to decisions about whether to join or remain with an organization.

Accepted Answer

A) Membership behaviors 
B) Organizational behaviors 
C) Group dynamics 
D) Organizational structure 
E) Organizational norms 
A) Membership behaviors 
B) Organizational behaviors 
C) Group dynamics 
D) Organizational structure 
E) Organizational norms

Question 15

According to
E. L. Thorndike's Law of Effect states that a response followed by a reward is more likely to recur in the future. High performance not followed by a reward will make it less likely in the future.
E. L. Thorndike's Law of Effect, high performance followed by a reward will motivate employees to repeat the performance and make it recur more often in the future.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

Like merit pay, individual incentives re

Question 17

What is Thorndike's Law of Effect and explain its significance with reference to the reinforcement theory.
E. L. Thorndike's Law of Effect states that a response followed by a reward is more likely to recur in the future. The implication for compensation management is that high employee performance followed by a monetary reward will make future high performance more likely. By the same token, high performance not followed by a reward will make it less likely in the future. The theory emphasizes the importance of a person's actual experience of a reward.

Accepted Answer

E. L. Thorndike's Law of Effect states t

Question 18

Discuss the expectancy theory.

Accepted Answer

Although expectancy theory focuses on th

Question 19

In a merit increase grid, the _____ determines the size and frequency of pay increases.

Accepted Answer

A) time spent in the current pay grade 
B) overall profitability of the company 
C) employees' seniority 
D) compa-ratio of employees 
E) the skills developed by the employee 
A) time spent in the current pay grade 
B) overall profitability of the company 
C) employees' seniority 
D) compa-ratio of employees 
E) the skills developed by the employee

Question 20

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

Accepted Answer

A) True 
 B)False

One solution to profit-sharing during a downturn is to design plans that have upside but not downside risk.

Valence of pay outcomes should change according to different pay systems.

Which of the following pay strategy dimensions best fits with a business strategy of concentration?

In incentive pay programs, annual pay increases are usually linked to performance appraisal ratings.

Which of the following is a drawback of using profit sharing?

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

When an organization is using growth strategy, it will _____.

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

Pay plans are typically used to energize, direct, or control employee behavior.

According to the agency theory, the principals are the _____.

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

When an organization is using concentration strategy, it will _____.

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

______ refer to decisions about whether to join or remain with an organization.

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

Discuss the expectancy theory.

In a merit increase grid, the _____ determines the size and frequency of pay increases.

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

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

One solution to profit-sharing during a downturn is to design plans that have upside but not downside risk.

Valence of pay outcomes should change according to different pay systems.

Which of the following pay strategy dimensions best fits with a business strategy of concentration?

In incentive pay programs, annual pay increases are usually linked to performance appraisal ratings.

Which of the following is a drawback of using profit sharing?

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

When an organization is using growth strategy, it will _____.

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

Pay plans are typically used to energize, direct, or control employee behavior.

According to the agency theory, the principals are the _____.

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

When an organization is using concentration strategy, it will _____.

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

______ refer to decisions about whether to join or remain with an organization.

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

Discuss the expectancy theory.

In a merit increase grid, the _____ determines the size and frequency of pay increases.

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

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