Exam 9: Pay-For-Performance: the Evidence

A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded.

Grabhouse Inc.is experiencing an increase in turnover rates of its top employees.Upon consulting with its managers for the reasons for this increase, Grabhouse finds that employees are uneasy with the current pay mix as it involves too many risky elements.In order to make its pay mix less risky, Grabhouse needs to:

What predictions can be made about performance-based pay based on Maslow's theory?

The authors argue that a system of flexible compensation could lead to more desirable employee behaviors at a lower total cost.

According to research, which of the following is NOT one of the most important factors for employees influencing their pay systems?

When employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____.

Which of the following is NOT true?

When a company moves from an individual incentive plan to a group incentive plan, the company is most likely to experience _____.

All of the following EXCEPT _____ require periodically re-earning the added pay.

When an organization's performance has regular and large swings and individual performance is unclear and hard to measure, the most effective compensation mix is to offer _____.

When employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____.

_____ is an individual level form of performance pay.

Agency theory argues that employees prefer risky pay as rewards can be greater than a salary.

Maslow's theory suggests that performance-based pay can be demotivating if it impinges upon employees' capacity to meet daily living needs.

When identifying what is important to employees, which theory would be most useful?