Question 1

________ perception is the perceived link between effort and performance.

Accepted Answer

A) Reinforcement 
B) Actual 
C) Expectancy 
D) Agency 
E) Equity 
A) Reinforcement 
B) Actual 
C) Expectancy 
D) Agency 
E) Equity

Question 2

________ focuses on the link between rewards and behaviors and emphasizes anticipated rewards.

Accepted Answer

A) Equity theory 
B) Agency theory 
C) Expectancy theory 
D) Theory Z 
E) McGregor's theory X 
A) Equity theory 
B) Agency theory 
C) Expectancy theory 
D) Theory Z 
E) McGregor's theory X

Question 3

According to expectancy theory,motivation is hypothesized to be a function of

Accepted Answer

A) cognitive capacity. 
B) social structure. 
C) genes. 
D) instrumentality. 
E) self-esteem. 
A) cognitive capacity. 
B) social structure. 
C) genes. 
D) instrumentality. 
E) self-esteem.

Question 4

In the ________ dimension,employees base their fairness assessments on the processes that were used to decide the amount of compensation.

Accepted Answer

A) distributive 
B) procedural 
C) quantitative 
D) ownership 
E) outcome 
A) distributive 
B) procedural 
C) quantitative 
D) ownership 
E) outcome

Question 5

In a merit increase grid,the ________ determines the size and frequency of pay increases.

Accepted Answer

A) time spent in the current pay grade 
B) overall profitability of the company 
C) employees' seniority 
D) compa-ratio of employees 
E) the skill developed by the employee 
A) time spent in the current pay grade 
B) overall profitability of the company 
C) employees' seniority 
D) compa-ratio of employees 
E) the skill developed by the employee

Question 6

Peers and subordinates provide feedback on manager performance in merit pay programs.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about outcome-oriented or behavior-oriented contracts is true?

Accepted Answer

A) Merit pay is an example of an outcome-based contract. 
B) Behavior-oriented contracts do not transfer risk to the agent. 
C) Outcome-oriented contracts do not require a compensating wage differential. 
D) Outcome-oriented contracts decrease the agent's risks. 
E) In behavior-based contracts,information asymmetry is not an important issue. 
A) Merit pay is an example of an outcome-based contract. 
B) Behavior-oriented contracts do not transfer risk to the agent. 
C) Outcome-oriented contracts do not require a compensating wage differential. 
D) Outcome-oriented contracts decrease the agent's risks. 
E) In behavior-based contracts,information asymmetry is not an important issue.

Question 8

Krispy Donut wants its employees to share in the ownership of the company.The company is ready to sell its stocks and offer the employees to be first to buy the stocks at a fixed price.

Accepted Answer

A) True 
 B)False

Question 9

During Benjamin's orientation he considers leaving the company because he saw a few people whispering and making fun of another colleague.Which of the following are influencing his decision?

Accepted Answer

A) Membership behaviors 
B) Organizational behaviors 
C) Group dynamics 
D) Organizational structures 
E) Organizational norms 
A) Membership behaviors 
B) Organizational behaviors 
C) Group dynamics 
D) Organizational structures 
E) Organizational norms

Question 10

Explain why it is crucial to communicate the reasons for any changes in a compensation system to employees.Describe various ways an organization can communicate these changes.

Accepted Answer

A change in any part of the compensation

Question 11

Which of the following must a principal do to reduce agency costs?

Accepted Answer

A) Encourage the agent to maximize his or her benefits 
B) Provide complete autonomy to the agent 
C) Discourage the agent from pursuing projects with high potential payoffs 
D) Increase information asymmetry and goal congruence 
E) Align the agent's interests with the principal's interests 
A) Encourage the agent to maximize his or her benefits 
B) Provide complete autonomy to the agent 
C) Discourage the agent from pursuing projects with high potential payoffs 
D) Increase information asymmetry and goal congruence 
E) Align the agent's interests with the principal's interests

Question 12

Which of the following is true of how managers may differ from shareholders?

Accepted Answer

A) Managers can diversify the risks more easily. 
B) Managers are more likely to pursue projects with high potential payoffs. 
C) Managers diversify investments more easily. 
D) Managers are less averse to risk. 
E) Managers are likely to prefer more emphasis on uncertain incentives than base pay. 
A) Managers can diversify the risks more easily. 
B) Managers are more likely to pursue projects with high potential payoffs. 
C) Managers diversify investments more easily. 
D) Managers are less averse to risk. 
E) Managers are likely to prefer more emphasis on uncertain incentives than base pay.

Question 13

Gainsharing plans encompass more than just a monetary component.

Accepted Answer

A) True 
 B)False

Question 14

As jobs become less programmable,

Accepted Answer

A) outcome-oriented contracts become less likely. 
B) monitoring becomes less difficult. 
C) behavior-oriented contracts become less likely. 
D) the agent's risk decreases. 
E) the requirement for compensating wage deferential increases. 
A) outcome-oriented contracts become less likely. 
B) monitoring becomes less difficult. 
C) behavior-oriented contracts become less likely. 
D) the agent's risk decreases. 
E) the requirement for compensating wage deferential increases.

Question 15

A ________ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

Accepted Answer

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

Question 16

In a(n)________ plan,performance is usually measured as physical output and the payment is not rolled into the base pay.

Accepted Answer

A) skill-based 
B) profit-sharing 
C) individual incentive 
D) merit pay 
E) gainsharing 
A) skill-based 
B) profit-sharing 
C) individual incentive 
D) merit pay 
E) gainsharing

Question 17

Agents prefer a behavior-based contract when

Accepted Answer

A) they are inclined to take more risks. 
B) job outcomes are more measurable. 
C) they desire higher compensation. 
D) outcome uncertainty is high. 
E) jobs become less programmable. 
A) they are inclined to take more risks. 
B) job outcomes are more measurable. 
C) they desire higher compensation. 
D) outcome uncertainty is high. 
E) jobs become less programmable.

Question 18

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 19

What are individual incentives? How are they different from merit pay?

Accepted Answer

Like merit pay,individual incentives rew

Question 20

Which of the following makes outcome-oriented contracts less likely to occur?

Accepted Answer

A) Risk aversion among agents 
B) High outcome uncertainty 
C) More programmable jobs 
D) Less measurability of outcomes 
E) Low risk premium in compensations 
A) Risk aversion among agents 
B) High outcome uncertainty 
C) More programmable jobs 
D) Less measurability of outcomes 
E) Low risk premium in compensations

________ perception is the perceived link between effort and performance.

________ focuses on the link between rewards and behaviors and emphasizes anticipated rewards.

According to expectancy theory,motivation is hypothesized to be a function of

In the ________ dimension,employees base their fairness assessments on the processes that were used to decide the amount of compensation.

In a merit increase grid,the ________ determines the size and frequency of pay increases.

Peers and subordinates provide feedback on manager performance in merit pay programs.

Which of the following statements about outcome-oriented or behavior-oriented contracts is true?

Krispy Donut wants its employees to share in the ownership of the company.The company is ready to sell its stocks and offer the employees to be first to buy the stocks at a fixed price.

During Benjamin's orientation he considers leaving the company because he saw a few people whispering and making fun of another colleague.Which of the following are influencing his decision?

Explain why it is crucial to communicate the reasons for any changes in a compensation system to employees.Describe various ways an organization can communicate these changes.

Which of the following must a principal do to reduce agency costs?

Which of the following is true of how managers may differ from shareholders?

Gainsharing plans encompass more than just a monetary component.

As jobs become less programmable,

A ________ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

In a(n)________ plan,performance is usually measured as physical output and the payment is not rolled into the base pay.

Agents prefer a behavior-based contract when

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

What are individual incentives? How are they different from merit pay?

Which of the following makes outcome-oriented contracts less likely to occur?

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

________ perception is the perceived link between effort and performance.

________ focuses on the link between rewards and behaviors and emphasizes anticipated rewards.

According to expectancy theory,motivation is hypothesized to be a function of

In the ________ dimension,employees base their fairness assessments on the processes that were used to decide the amount of compensation.

In a merit increase grid,the ________ determines the size and frequency of pay increases.

Peers and subordinates provide feedback on manager performance in merit pay programs.

Which of the following statements about outcome-oriented or behavior-oriented contracts is true?

Krispy Donut wants its employees to share in the ownership of the company.The company is ready to sell its stocks and offer the employees to be first to buy the stocks at a fixed price.

During Benjamin's orientation he considers leaving the company because he saw a few people whispering and making fun of another colleague.Which of the following are influencing his decision?

Explain why it is crucial to communicate the reasons for any changes in a compensation system to employees.Describe various ways an organization can communicate these changes.

Which of the following must a principal do to reduce agency costs?

Which of the following is true of how managers may differ from shareholders?

Gainsharing plans encompass more than just a monetary component.

As jobs become less programmable,

A ________ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

In a(n)________ plan,performance is usually measured as physical output and the payment is not rolled into the base pay.

Agents prefer a behavior-based contract when

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

What are individual incentives? How are they different from merit pay?

Which of the following makes outcome-oriented contracts less likely to occur?

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