Exam 12: Recognizing Employee Contributions With Pay

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

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

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.

Overtime pays better performers more in _____ programs.

Culture based on _____ is most likely to prevail in companies that use a profit-sharing compensation program.

Employees assess fairness along the distributive dimension when their assessment is based on _____.

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.

_____ can be described as a function of ability and motivation.

A(n)_____ program is based on group or plant performance that does not become part of the employee's base salary.

Which of the following is a tool that allows companies to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth?

_____ perception is the perceived link between effort and performance.

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

Employee stock ownership plans (ESOPs)carry significant investment risks for employees.

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

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

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

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

Which of the following must a principal do to reduce agency costs?

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.

Deferred profit-sharing plans increase employee motivation.