Question 1

When an organization has a growth strategy, the short-run pay level and benefit level tend to be below market level.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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

Accepted Answer

Involvement in the design and implementa

Question 4

Gainsharing plans encompass more than just a monetary component.

Accepted Answer

A) True 
 B)False

Question 5

According to the expectancy theory, compensation systems differ according to their impact on the components of motivation; the main influence of compensation is on _____.

Accepted Answer

A) expectancy 
B) instrumentality 
C) reinforcement 
D) valence 
E) equity 
A) expectancy 
B) instrumentality 
C) reinforcement 
D) valence 
E) equity

Question 6

Which of the following makes outcome-oriented contracts less likely to occur?

Accepted Answer

A) Risk aversion among agents 
B) High outcome uncertainty 
C) More programmable jobs 
D) Less measurability of outcomes 
E) Low risk premium in compensations 
A) Risk aversion among agents 
B) High outcome uncertainty 
C) More programmable jobs 
D) Less measurability of outcomes 
E) Low risk premium in compensations

Question 7

Which type of compensation program is most likely to attract learning-oriented employees?

Accepted Answer

A) Skill-based pay 
B) Merit pay 
C) Incentive pay 
D) Gainsharing 
E) Profit sharing 
A) Skill-based pay 
B) Merit pay 
C) Incentive pay 
D) Gainsharing 
E) Profit sharing

Question 8

Which of the following compensation programs uses a management style that gives importance to control?

Accepted Answer

A) Gainsharing plan 
B) Incentive pay 
C) Ownership 
D) Merit pay 
E) Profit sharing 
A) Gainsharing plan 
B) Incentive pay 
C) Ownership 
D) Merit pay 
E) Profit sharing

Question 9

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 10

Which of the following is true of how the agency theory views monitoring?

Accepted Answer

A) Monitoring is more expensive when done by employees. 
B) Employees' knowledge of the workplace is not reliable. 
C) Monitoring is less effective when performed by employees. 
D) Employees understand fellow employees better than managers do. 
E) Compensation system does not influence peer monitoring. 
A) Monitoring is more expensive when done by employees. 
B) Employees' knowledge of the workplace is not reliable. 
C) Monitoring is less effective when performed by employees. 
D) Employees understand fellow employees better than managers do. 
E) Compensation system does not influence peer monitoring.

Question 11

In _____ programs, annual compensation increases are usually linked to performance appraisal ratings.

Accepted Answer

A) skill-based pay 
B) gainsharing 
C) merit pay 
D) incentive pay 
E) cost-based pay 
A) skill-based pay 
B) gainsharing 
C) merit pay 
D) incentive pay 
E) cost-based pay

Question 12

Employee stock ownership plans (ESOPs)give employees the right to vote their securities if registered on a national exchange.

Accepted Answer

A) True 
 B)False

Question 13

Individual incentives are rolled into base pay of employees.

Accepted Answer

A) True 
 B)False

Question 14

In a(n)_____ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.

Accepted Answer

A) skill-based 
B) profit sharing 
C) individual incentive 
D) merit pay 
E) gainsharing 
A) skill-based 
B) profit sharing 
C) individual incentive 
D) merit pay 
E) gainsharing

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

By law, what percent of assets must an employee stock ownership plan (ESOP)invest in its company's stock?

Accepted Answer

A) 26 percent 
B) 51 percent 
C) 80 percent 
D) 75 percent 
E) 76 percent 
A) 26 percent 
B) 51 percent 
C) 80 percent 
D) 75 percent 
E) 76 percent

Question 17

In the _____ dimension, employees base their fairness assessments on the processes that were used to decide the amount of compensation.

Accepted Answer

A) distributive 
B) procedural 
C) quantitative 
D) ownership 
E) outcome 
A) distributive 
B) procedural 
C) quantitative 
D) ownership 
E) outcome

Question 18

Agents prefer a behavior-based contract when _____.

Accepted Answer

A) they are inclined to take more risks 
B) job outcomes are more measurable 
C) they desire higher compensation 
D) outcome uncertainty is high 
E) jobs become less programmable 
A) they are inclined to take more risks 
B) job outcomes are more measurable 
C) they desire higher compensation 
D) outcome uncertainty is high 
E) jobs become less programmable

Question 19

Agency costs are likely to arise when _____.

Accepted Answer

A) principals and agents have different goals 
B) owners and managers are the same 
C) stockholders are involved in day-to-day operations of the company 
D) the stockholders are aware of the degree to which the agents are pursuing the principal's goals 
E) there is information symmetry between the agent and the principal 
A) principals and agents have different goals 
B) owners and managers are the same 
C) stockholders are involved in day-to-day operations of the company 
D) the stockholders are aware of the degree to which the agents are pursuing the principal's goals 
E) there is information symmetry between the agent and the principal

Question 20

With respect to employee participation in decision making, the more agents there are, the lesser the monitoring cost.

Accepted Answer

A) True 
 B)False

When an organization has a growth strategy, the short-run pay level and benefit level tend to be below market level.

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

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

Gainsharing plans encompass more than just a monetary component.

According to the expectancy theory, compensation systems differ according to their impact on the components of motivation; the main influence of compensation is on _____.

Which of the following makes outcome-oriented contracts less likely to occur?

Which type of compensation program is most likely to attract learning-oriented employees?

Which of the following compensation programs uses a management style that gives importance to control?

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

Which of the following is true of how the agency theory views monitoring?

In _____ programs, annual compensation increases are usually linked to performance appraisal ratings.

Employee stock ownership plans (ESOPs)give employees the right to vote their securities if registered on a national exchange.

Individual incentives are rolled into base pay of employees.

In a(n)_____ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.

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

By law, what percent of assets must an employee stock ownership plan (ESOP)invest in its company's stock?

In the _____ dimension, employees base their fairness assessments on the processes that were used to decide the amount of compensation.

Agents prefer a behavior-based contract when _____.

Agency costs are likely to arise when _____.

With respect to employee participation in decision making, the more agents there are, the lesser the monitoring cost.

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

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Exam 12: Recognizing Employee Contributions With Pay

When an organization has a growth strategy, the short-run pay level and benefit level tend to be below market level.

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

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

Gainsharing plans encompass more than just a monetary component.

According to the expectancy theory, compensation systems differ according to their impact on the components of motivation; the main influence of compensation is on _____.

Which of the following makes outcome-oriented contracts less likely to occur?

Which type of compensation program is most likely to attract learning-oriented employees?

Which of the following compensation programs uses a management style that gives importance to control?

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

Which of the following is true of how the agency theory views monitoring?

In _____ programs, annual compensation increases are usually linked to performance appraisal ratings.

Employee stock ownership plans (ESOPs)give employees the right to vote their securities if registered on a national exchange.

Individual incentives are rolled into base pay of employees.

In a(n)_____ plan, performance is usually measured as physical output and the payment is not rolled into the base pay.

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

By law, what percent of assets must an employee stock ownership plan (ESOP)invest in its company's stock?

In the _____ dimension, employees base their fairness assessments on the processes that were used to decide the amount of compensation.

Agents prefer a behavior-based contract when _____.

Agency costs are likely to arise when _____.

With respect to employee participation in decision making, the more agents there are, the lesser the monitoring cost.

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