Exam 9: Pay-For-Performance: the Evidence

Most experts agree that employees do not begin to consider changing their behaviors unless payouts are at least _____ percent higher.

Group pay is always more effective than individual pay.

In the formula "Behavior = f (M, A, E)," M denotes monetary incentives.

An important implication of reinforcement theory is that the timing of payouts to employees is very important.

_____ theory argues that performance-based pay is the optimal compensation choice for complex jobs, where monitoring employee performance is difficult.

Security in terms of compensation refers to the predictability of one's paycheck from one time to the next.

When pay is based on individual performance, turnover tends to be highest among _____.

According to the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.

Which of the following theories states that people choose the behavior that leads to the greatest reward?

_____ is the value employees attach to the organization rewards offered for satisfactory job performance.

Risk-sharing plans include a provision for cuts in base pay that are only recaptured in years when an organization meets performance objectives.

Group incentive pay increases turnover of better performers, while individual incentive increases turnover of poorer performers.

The amount of fairness given to employees refers to _____.

The ability triangle includes _____.

Evidence suggests that skill-based pay may not increase productivity.

According to the agency theory, because employees prefer a salary, they will demand a wage premium in exchange for accepting performance-based pay.

Evidence suggests that talented people are motivated to join organizations with strong links between performance and pay.

Explain the expectancy theory of motivation.

_____ theory states that success-sharing plans will be motivating, whereas at-risk plans will be demotivating.

Goal-setting theory argues that employees' performance is maximized when performance targets are unchallenging and unspecific.