Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Individual incentives:

Accepted Answer

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

Question 3

Individual incentive plans are relatively rare because:

Accepted Answer

A) most jobs have physical output measures. 
B) they are not useful in industries where physical output is produced. 
C) they are often inconsistent with the goals of acquiring multiple skills and proactive problem solving. 
D) they reward quality of output at the expense of physical quantity. 
E) individual incentives promote negative group cohesion. 
A) most jobs have physical output measures. 
B) they are not useful in industries where physical output is produced. 
C) they are often inconsistent with the goals of acquiring multiple skills and proactive problem solving. 
D) they reward quality of output at the expense of physical quantity. 
E) individual incentives promote negative group cohesion. C

Question 4

While the agency theory has value in the analysis and design of managerial compensation, it is not applicable to nonmanagerial compensation.

Accepted Answer

A) True 
 B)False

Question 5

A major criticism of merit pay programs is that the differential in pay between high performers and mediocre or even poor performers is not significant enough to influence employee behavior or attitudes.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) Autonomy 
B) Challenging work 
C) Variety of work 
D) Hike in salary 
E) Social interaction 
A) Autonomy 
B) Challenging work 
C) Variety of work 
D) Hike in salary 
E) Social interaction

Question 7

Which of the following is the pay system where performance is measured as physical output?

Accepted Answer

A) Profit sharing 
B) Ownership program 
C) Gainsharing 
D) Individual incentive 
E) Merit pay 
A) Profit sharing 
B) Ownership program 
C) Gainsharing 
D) Individual incentive 
E) Merit pay

Question 8

Which of the following is a compensation program that relates costs to the ability to pay?

Accepted Answer

A) skill-based program 
B) incentive pay 
C) fixed pay 
D) merit pay 
E) profit sharing 
A) skill-based program 
B) incentive pay 
C) fixed pay 
D) merit pay 
E) profit sharing

Question 9

_____ programs offer a means of sharing productivity gains of a group or plant with employees.

Accepted Answer

A) Ownership 
B) Merit pay 
C) Gainsharing 
D) Individual incentive 
E) Skill-based 
A) Ownership 
B) Merit pay 
C) Gainsharing 
D) Individual incentive 
E) Skill-based

Question 10

What are some issues of procedural justice that might arise in administering merit pay?

Accepted Answer

In any situation where rewards are distr

Question 11

Individual incentives are rolled into base pay of employees.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

By law, what percent of assets must an 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 14

In expectancy theory terms, the fundamental drawback of profit sharing in encouraging employee effort occurs because of weak _____ perceptions.

Accepted Answer

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

Question 15

Organizations that provide individual incentives are more likely to attract team-oriented employees.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) The principal must monitor with little cost what the agent has done. 
B) When profits drop, agent's compensation goes up. 
C) Agents do not demand compensating wage differentials in such contracts. 
D) Agents face minimal risks in such contracts. 
E) The interests of the company and employees are aligned in such contracts. 
A) The principal must monitor with little cost what the agent has done. 
B) When profits drop, agent's compensation goes up. 
C) Agents do not demand compensating wage differentials in such contracts. 
D) Agents face minimal risks in such contracts. 
E) The interests of the company and employees are aligned in such contracts.

Question 18

A(n)_____ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

Accepted Answer

A) mutual fund 
B) gain sharing 
C) group incentive 
D) profit sharing 
E) stock option 
A) mutual fund 
B) gain sharing 
C) group incentive 
D) profit sharing 
E) stock option

Question 19

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 20

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

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

Individual incentives:

Individual incentive plans are relatively rare because:

While the agency theory has value in the analysis and design of managerial compensation, it is not applicable to nonmanagerial compensation.

A major criticism of merit pay programs is that the differential in pay between high performers and mediocre or even poor performers is not significant enough to influence employee behavior or attitudes.

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

Which of the following is the pay system where performance is measured as physical output?

Which of the following is a compensation program that relates costs to the ability to pay?

_____ programs offer a means of sharing productivity gains of a group or plant with employees.

What are some issues of procedural justice that might arise in administering merit pay?

Individual incentives are rolled into base pay of employees.

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

By law, what percent of assets must an ESOP invest in its company's stock?

In expectancy theory terms, the fundamental drawback of profit sharing in encouraging employee effort occurs because of weak _____ perceptions.

Organizations that provide individual incentives are more likely to attract team-oriented employees.

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

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

A(n)_____ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

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

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

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

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

Individual incentives:

Individual incentive plans are relatively rare because:

While the agency theory has value in the analysis and design of managerial compensation, it is not applicable to nonmanagerial compensation.

A major criticism of merit pay programs is that the differential in pay between high performers and mediocre or even poor performers is not significant enough to influence employee behavior or attitudes.

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

Which of the following is the pay system where performance is measured as physical output?

Which of the following is a compensation program that relates costs to the ability to pay?

_____ programs offer a means of sharing productivity gains of a group or plant with employees.

What are some issues of procedural justice that might arise in administering merit pay?

Individual incentives are rolled into base pay of employees.

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

By law, what percent of assets must an ESOP invest in its company's stock?

In expectancy theory terms, the fundamental drawback of profit sharing in encouraging employee effort occurs because of weak _____ perceptions.

Organizations that provide individual incentives are more likely to attract team-oriented employees.

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

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

A(n)_____ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

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

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

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