Exam 9: Pay-For-Performance: the Evidence

Workload and work variety are both components of a total reward system.

Compare risk-sharing and success-sharing plans.

There is evidence that every 10 percent increase in the bonus paid to employees by a firm yields a _____ percent increase in ROA to the firm.

Herzberg's two-factor theory argues success-sharing plans will be motivating, while at-risk plans will be demotivating.

The most obvious sorting factor is _____.

What are the behaviors that compensation needs to enforce?

The motivation triangle includes _____.

Which of the following is an example of the sorting effect in action?

When pay raises are based on events over which employees lack significant control, they are likely to regard the system as unfair.

Droppiece Inc.is a company that provides more performance-based pay and less base pay than its competitors.Who among the following is most likely to join Droppiece?

Company X pays for performance.Allan, an employee of the company, is not in favor of this reward system and, therefore, leaves Company X in search of another company with different rules for getting rewards.This is an example of the:

A person with low self-esteem is likely to seek _____.

Flexible compensation is based on the idea that the organization knows what package of rewards would best suit an individual employee's needs.

Gain sharing poses greater risk to individual employees than profit sharing.

_____ is employees' beliefs that requisite job performance will be rewarded by the organization.

The trend today is toward less stable and less secure compensation packages.

When an organization's performance has frequent highs and lows, but individual performance is fairly stable, and performance measures are clear, the most effective compensation mix is to offer _____.

Available evidence indicates managers believe the most important factor for pay increases is _____.

The corporate performance of Yellow Corp.is fairly stable.However, it is difficult to measure individual performance.In this case, the most effective compensation mix is to offer _____.

Briefly explain the concept of flexible compensation.