Question 1

Gainsharing plans encompass more than just a monetary component.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is compensation system used in behavior-oriented contracting schemes?

Accepted Answer

A) Stock options 
B) Profit sharing 
C) Commissions 
D) Merit pay 
E) Revenue sharing 
A) Stock options 
B) Profit sharing 
C) Commissions 
D) Merit pay 
E) Revenue sharing

Question 3

Which of the following theories emphasizes expected rewards rather than experienced rewards?

Accepted Answer

A) Social exchange theory 
B) Equity theory 
C) Agency theory 
D) Expectancy theory 
E) Reinforcement theory 
A) Social exchange theory 
B) Equity theory 
C) Agency theory 
D) Expectancy theory 
E) Reinforcement theory

Question 4

The flow of feedback tends to be multi-directional in merit pay programs.

Accepted Answer

A) True 
 B)False

Question 5

According to expectancy theory, motivation is a function of which of the following functions?

Accepted Answer

A) Effort 
B) Power 
C) Structure 
D) Instrumentality 
E) Confirmation 
A) Effort 
B) Power 
C) Structure 
D) Instrumentality 
E) Confirmation

Question 6

Agency costs can arise when _____.

Accepted Answer

A) principals and agents have different goals 
B) ownership of a company is not separated from organizational control 
C) most stockholders are involved the day-to-day operations of companies 
D) payments are not rolled into base pay 
E) there is information symmetry between the agent and the principal 
A) principals and agents have different goals 
B) ownership of a company is not separated from organizational control 
C) most stockholders are involved the day-to-day operations of companies 
D) payments are not rolled into base pay 
E) there is information symmetry between the agent and the principal

Question 7

Explain why it is crucial to communicate reasons for the changes to employees. Describe various ways using which organizations communicate changes.

Accepted Answer

A change in any part of the compensation

Question 8

An employee's assessment of the fairness of his or her compensation based on the amount received is referred to as distributive fairness.

Accepted Answer

A) True 
 B)False

Question 9

Discuss the expectancy theory.

Accepted Answer

Although expectancy theory focuses on th

Question 10

Differentiate between outcome-oriented contracts and behavior-based contracts.

Accepted Answer

To reduce agency costs, the theory says

Question 11

Which of the following is true of individual incentive pay programs?

Accepted Answer

A) Individual incentive pay programs are not rolled into base pay. 
B) Individual incentives often motivate employees do whatever they get paid for and nothing else. 
C) Individual incentives are calculated based on the annual profit of the company. 
D) Individual incentives are not effective in manufacturing industries where employees work independently. 
E) Individual incentive pay programs are common in organizations. 
A) Individual incentive pay programs are not rolled into base pay. 
B) Individual incentives often motivate employees do whatever they get paid for and nothing else. 
C) Individual incentives are calculated based on the annual profit of the company. 
D) Individual incentives are not effective in manufacturing industries where employees work independently. 
E) Individual incentive pay programs are common in organizations.

Question 12

In merit pay programs majority of information on individual performance is collected from _____.

Accepted Answer

A) organizational databases 
B) human resource managers 
C) the immediate supervisor 
D) the employee being evaluated 
E) performance indicators 
A) organizational databases 
B) human resource managers 
C) the immediate supervisor 
D) the employee being evaluated 
E) performance indicators

Question 13

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

Accepted Answer

A) Attitude 
B) Behavior 
C) Reinforcement 
D) Team work 
E) Expectancy 
A) Attitude 
B) Behavior 
C) Reinforcement 
D) Team work 
E) Expectancy

Question 14

Agency theory is of particular value in compensation management because of its emphasis on the _____ trade-off.

Accepted Answer

A) performance-reward 
B) risk-reward 
C) motivation-reward 
D) ability-reward 
E) behavior-reward 
A) performance-reward 
B) risk-reward 
C) motivation-reward 
D) ability-reward 
E) behavior-reward

Question 15

Which compensation program offers payouts on a monthly or quarterly basis?

Accepted Answer

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

Question 16

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 17

Gainsharing plans often encompass more than just a monetary component. Describe some of the employment or organizational conditions that are recommended to be in place for gainsharing to be successful.

Accepted Answer

A number of recommendations have been ma

Question 18

Which of the following makes ESOPs less attractive?

Accepted Answer

A) Less diversification of investment risk 
B) Increased dependence on individual performance 
C) High levels of liquidity 
D) Lack of dependence on organizational performance 
E) The right they offer employees to vote securities 
A) Less diversification of investment risk 
B) Increased dependence on individual performance 
C) High levels of liquidity 
D) Lack of dependence on organizational performance 
E) The right they offer employees to vote securities

Question 19

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 20

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

Accepted Answer

A) Unlike an ownership plan, base pay is not reduced when a profit-sharing plan in introduced. 
B) Ownership focuses on the success of the organization as a whole unlike profit-sharing. 
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 an ownership plan, base pay is not reduced when a profit-sharing plan in introduced. 
B) Ownership focuses on the success of the organization as a whole unlike profit-sharing. 
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.

Gainsharing plans encompass more than just a monetary component.

Which of the following is compensation system used in behavior-oriented contracting schemes?

Which of the following theories emphasizes expected rewards rather than experienced rewards?

The flow of feedback tends to be multi-directional in merit pay programs.

According to expectancy theory, motivation is a function of which of the following functions?

Agency costs can arise when _____.

Explain why it is crucial to communicate reasons for the changes to employees. Describe various ways using which organizations communicate changes.

An employee's assessment of the fairness of his or her compensation based on the amount received is referred to as distributive fairness.

Discuss the expectancy theory.

Differentiate between outcome-oriented contracts and behavior-based contracts.

Which of the following is true of individual incentive pay programs?

In merit pay programs majority of information on individual performance is collected from _____.

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

Agency theory is of particular value in compensation management because of its emphasis on the _____ trade-off.

Which compensation program offers payouts on a monthly or quarterly basis?

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

Gainsharing plans often encompass more than just a monetary component. Describe some of the employment or organizational conditions that are recommended to be in place for gainsharing to be successful.

Which of the following makes ESOPs less attractive?

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

Which of the following is a difference between a profit-sharing plan and an employee ownership 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

Gainsharing plans encompass more than just a monetary component.

Which of the following is compensation system used in behavior-oriented contracting schemes?

Which of the following theories emphasizes expected rewards rather than experienced rewards?

The flow of feedback tends to be multi-directional in merit pay programs.

According to expectancy theory, motivation is a function of which of the following functions?

Agency costs can arise when _____.

Explain why it is crucial to communicate reasons for the changes to employees. Describe various ways using which organizations communicate changes.

An employee's assessment of the fairness of his or her compensation based on the amount received is referred to as distributive fairness.

Discuss the expectancy theory.

Differentiate between outcome-oriented contracts and behavior-based contracts.

Which of the following is true of individual incentive pay programs?

In merit pay programs majority of information on individual performance is collected from _____.

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

Agency theory is of particular value in compensation management because of its emphasis on the _____ trade-off.

Which compensation program offers payouts on a monthly or quarterly basis?

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

Gainsharing plans often encompass more than just a monetary component. Describe some of the employment or organizational conditions that are recommended to be in place for gainsharing to be successful.

Which of the following makes ESOPs less attractive?

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

Which of the following is a difference between a profit-sharing plan and an employee ownership 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