Question 1

Which of the following is true of how managers may differ from shareholders?

Accepted Answer

A) Managers can diversify the risks more easily. 
B) Managers are more likely to pursue projects with high potential payoffs. 
C) Managers diversify investments more easily. 
D) Managers are less averse to risk. 
E) Managers are likely to prefer more emphasis on uncertain incentives than base pay. 
A) Managers can diversify the risks more easily. 
B) Managers are more likely to pursue projects with high potential payoffs. 
C) Managers diversify investments more easily. 
D) Managers are less averse to risk. 
E) Managers are likely to prefer more emphasis on uncertain incentives than base pay.

Question 2

Which of the following theories suggests that high employee performance not followed by a monetary reward will make future high performance less likely?

Accepted Answer

A) Herzberg's Two-factor theory 
B) Reinforcement theory 
C) Freud's Psychoanalytical theory 
D) McGregor's Theory X 
E) Theory Z 
A) Herzberg's Two-factor theory 
B) Reinforcement theory 
C) Freud's Psychoanalytical theory 
D) McGregor's Theory X 
E) Theory Z

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

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

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

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

Like merit pay, individual incentives re

Question 8

Which of the following is true of individual incentives?

Accepted Answer

A) They contribute to a more disintegrated workforce. 
B) They are helpful in the pursuit of total quality management objectives. 
C) They encourage employees to go beyond the call of duty. 
D) They reduce the motivation of acquiring multiple skills and proactive problem solving. 
E) They must be continuously earned and re-earned. 
A) They contribute to a more disintegrated workforce. 
B) They are helpful in the pursuit of total quality management objectives. 
C) They encourage employees to go beyond the call of duty. 
D) They reduce the motivation of acquiring multiple skills and proactive problem solving. 
E) They must be continuously earned and re-earned.

Question 9

Which of the following pay programs has the highest frequency of payout?

Accepted Answer

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

Question 10

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

Accepted Answer

A) Merit-pay is an example of an outcome-based contract. 
B) Behavior-oriented contracts do not transfer risk to the agent. 
C) Outcome-oriented contracts do not require a compensating wage differential. 
D) Outcome-oriented contracts decrease the agent's risks. 
E) In behavior-based contracts, information asymmetry is not an important issue. 
A) Merit-pay is an example of an outcome-based contract. 
B) Behavior-oriented contracts do not transfer risk to the agent. 
C) Outcome-oriented contracts do not require a compensating wage differential. 
D) Outcome-oriented contracts decrease the agent's risks. 
E) In behavior-based contracts, information asymmetry is not an important issue.

Question 11

Gainsharing plans differ from profit-sharing plans in that:

Accepted Answer

A) gainsharing plans use organization-wide performance parameters. 
B) gainsharing plans distribute payouts more frequently. 
C) gainsharing plans make lump sum payments. 
D) gainsharing plans can be attached to all types of jobs in the organization. 
E) gainsharing plans discourage pursuit of broader goals of the group. 
A) gainsharing plans use organization-wide performance parameters. 
B) gainsharing plans distribute payouts more frequently. 
C) gainsharing plans make lump sum payments. 
D) gainsharing plans can be attached to all types of jobs in the organization. 
E) gainsharing plans discourage pursuit of broader goals of the group.

Question 12

In merit pay programs, an individual's compa-ratio represents his or her _____.

Accepted Answer

A) ability to multitask 
B) performance rating 
C) position in the pay range 
D) knowledge of business 
E) ratio of pay to benefits 
A) ability to multitask 
B) performance rating 
C) position in the pay range 
D) knowledge of business 
E) ratio of pay to benefits

Question 13

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 14

Discuss any five governance practices that support director independence from management.

Accepted Answer

The student may discuss any five of the

Question 15

Group incentives tend to measure performance in terms of _____.

Accepted Answer

A) employee retention 
B) individual motivation 
C) organizational environment 
D) physical output 
E) organizational profitability 
A) employee retention 
B) individual motivation 
C) organizational environment 
D) physical output 
E) organizational profitability

Question 16

Which of the following makes employee stock ownership plans (ESOPs)less attractive?

Accepted Answer

A) Less diversification of investment risk 
B) Lack of tax and financial advantages 
C) High levels of liquidity 
D) Inability to serve as a takeover defense 
E) Giving employees the right to vote their securities 
A) Less diversification of investment risk 
B) Lack of tax and financial advantages 
C) High levels of liquidity 
D) Inability to serve as a takeover defense 
E) Giving employees the right to vote their securities

Question 17

Which of the following components is a perceived link between behavior and pay?

Accepted Answer

A) Expectancy 
B) Instrumentality 
C) Reinforcement 
D) Valence 
E) Equity 
A) Expectancy 
B) Instrumentality 
C) Reinforcement 
D) Valence 
E) Equity

Question 18

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. Followers of cognitive evaluation theory are likely to question this assumption, arguing that:

Accepted Answer

A) monetary rewards may decrease extrinsic motivation. 
B) intrinsic rewards do not affect job satisfaction. 
C) monetary rewards may decrease intrinsic motivation. 
D) extrinsic rewards are not effective for managers. 
E) behaviors are determined by genes rather than reinforcement. 
A) monetary rewards may decrease extrinsic motivation. 
B) intrinsic rewards do not affect job satisfaction. 
C) monetary rewards may decrease intrinsic motivation. 
D) extrinsic rewards are not effective for managers. 
E) behaviors are determined by genes rather than reinforcement.

Question 19

The _____ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Accepted Answer

A) Bureau of Economic Analysis 
B) Federal Bureau of Investigation 
C) Federal Trade Commission 
D) Securities and Exchange Commission 
E) Bureau of Industry and Security 
A) Bureau of Economic Analysis 
B) Federal Bureau of Investigation 
C) Federal Trade Commission 
D) Securities and Exchange Commission 
E) Bureau of Industry and Security

Question 20

Which of the following is an example of a behavior-oriented contract?

Accepted Answer

A) Stock option 
B) Profit sharing 
C) Commission 
D) Merit pay 
E) Revenue sharing 
A) Stock option 
B) Profit sharing 
C) Commission 
D) Merit pay 
E) Revenue sharing

Which of the following is true of how managers may differ from shareholders?

Which of the following theories suggests that high employee performance not followed by a monetary reward will make future high performance less likely?

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

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.

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

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

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

Which of the following is true of individual incentives?

Which of the following pay programs has the highest frequency of payout?

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

Gainsharing plans differ from profit-sharing plans in that:

In merit pay programs, an individual's compa-ratio represents his or her _____.

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

Discuss any five governance practices that support director independence from management.

Group incentives tend to measure performance in terms of _____.

Which of the following makes employee stock ownership plans (ESOPs)less attractive?

Which of the following components is a perceived link between behavior and pay?

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. Followers of cognitive evaluation theory are likely to question this assumption, arguing that:

The _____ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Which of the following is an example of a behavior-oriented contract?

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 true of how managers may differ from shareholders?

Which of the following theories suggests that high employee performance not followed by a monetary reward will make future high performance less likely?

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

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.

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

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

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

Which of the following is true of individual incentives?

Which of the following pay programs has the highest frequency of payout?

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

Gainsharing plans differ from profit-sharing plans in that:

In merit pay programs, an individual's compa-ratio represents his or her _____.

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

Discuss any five governance practices that support director independence from management.

Group incentives tend to measure performance in terms of _____.

Which of the following makes employee stock ownership plans (ESOPs)less attractive?

Which of the following components is a perceived link between behavior and pay?

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. Followers of cognitive evaluation theory are likely to question this assumption, arguing that:

The _____ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Which of the following is an example of a behavior-oriented contract?

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