Question 1

When high performance is not followed by a monetary reward,future high performance is less likely according to

Accepted Answer

A) Herzberg's two-factor theory. 
B) Reinforcement theory. 
C) Freud's psychoanalytical theory. 
D) McGregor's theory X. 
E) Theory Z. 
A) Herzberg's two-factor theory. 
B) Reinforcement theory. 
C) Freud's psychoanalytical theory. 
D) McGregor's theory X. 
E) Theory Z.

Question 2

Organizations may not need to rely on layoffs to reduce costs using which compensation program?

Accepted Answer

A) Skill-based program 
B) Incentive pay 
C) Fixed pay 
D) Merit pay 
E) Profit sharing 
A) Skill-based program 
B) Incentive pay 
C) Fixed pay 
D) Merit pay 
E) Profit sharing

Question 3

When there is goal setting,employment security,and management commitment,which compensation program are you describing?

Accepted Answer

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

Question 4

How can executive pay be linked to organization performance?

Accepted Answer

From an agency theory perspective,the go

Question 5

Gainsharing plans differ from profit-sharing plans in that

Accepted Answer

A) gainsharing plans use organization-wide performance parameters. 
B) gainsharing plans distribute payouts more frequently. 
C) gainsharing plans make lump sum payments. 
D) gainsharing plans can be attached to all types of jobs in the organization. 
E) gainsharing plans discourage pursuit of broader goals of the group. 
A) gainsharing plans use organization-wide performance parameters. 
B) gainsharing plans distribute payouts more frequently. 
C) gainsharing plans make lump sum payments. 
D) gainsharing plans can be attached to all types of jobs in the organization. 
E) gainsharing plans discourage pursuit of broader goals of the group.

Question 6

Separating the functions of principals and agents is likely to result in

Accepted Answer

A) immobility of financial capital. 
B) diversification of investment risk. 
C) reduction in agency costs. 
D) better goal congruence. 
E) information symmetry. 
A) immobility of financial capital. 
B) diversification of investment risk. 
C) reduction in agency costs. 
D) better goal congruence. 
E) information symmetry.

Question 7

One solution to profit sharing during a downturn is to design plans that have upside but not downside risk.

Accepted Answer

A) True 
 B)False

Question 8

Employee stock ownership plans (ESOPs)carry significant investment risks for employees.

Accepted Answer

A) True 
 B)False

Question 9

In skill-based pay systems,pay is based on

Accepted Answer

A) a supervisor's appraisal. 
B) individual productivity. 
C) company profits. 
D) company stock returns. 
E) changes to base pay. 
A) a supervisor's appraisal. 
B) individual productivity. 
C) company profits. 
D) company stock returns. 
E) changes to base pay.

Question 10

Which of the following have tax and financing advantages and serve as a takeover defense?

Accepted Answer

A) Pay-for-performance plans 
B) PSQs 
C) ESOPs 
D) Employee groups 
E) Company's annual output 
A) Pay-for-performance plans 
B) PSQs 
C) ESOPs 
D) Employee groups 
E) Company's annual output

Question 11

Which of the following is a drawback of using profit sharing?

Accepted Answer

A) It promotes individual goals rather than organizational goals. 
B) It promotes competition between work groups. 
C) It increases the probability of individual competition. 
D) It fails to make labor costs more variable. 
E) It runs the risk of contributing to employee dissatisfaction. 
A) It promotes individual goals rather than organizational goals. 
B) It promotes competition between work groups. 
C) It increases the probability of individual competition. 
D) It fails to make labor costs more variable. 
E) It runs the risk of contributing to employee dissatisfaction.

Question 12

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

Accepted Answer

A) Unlike ownership plans,base pay is not reduced when profit-sharing plans are introduced. 
B) Ownership plans focus on the success of the organization as a whole,unlike profit-sharing plans. 
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 ownership plans,base pay is not reduced when profit-sharing plans are introduced. 
B) Ownership plans focus on the success of the organization as a whole,unlike profit-sharing plans. 
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.

Question 13

What are some of the potential consequences of employee involvement in compensation decision making?

Accepted Answer

Involvement in the design and implementa

Question 14

When profit-sharing takes a broad view of what needs to be done to make the organization more effective,it may encourage

Accepted Answer

A) individual competition. 
B) a knowledge of business. 
C) a sense of ownership. 
D) problem-solving orientation. 
E) learning and flexibility. 
A) individual competition. 
B) a knowledge of business. 
C) a sense of ownership. 
D) problem-solving orientation. 
E) learning and flexibility.

Question 15

Allan works as a typesetter in a publishing company.If the organization uses merit pay programs,Allan's salary is based primarily on information collected from

Accepted Answer

A) his colleagues. 
B) the human resource manager. 
C) his immediate supervisor. 
D) Allan himself. 
E) performance indicators. 
A) his colleagues. 
B) the human resource manager. 
C) his immediate supervisor. 
D) Allan himself. 
E) performance indicators.

Question 16

Merit pay systems rely on 360-degree performance feedback.

Accepted Answer

A) True 
 B)False

Question 17

According to the agency theory,who are the principals?

Accepted Answer

A) Managers 
B) Customers 
C) Owners 
D) Vendors 
E) Employees 
A) Managers 
B) Customers 
C) Owners 
D) Vendors 
E) Employees

Question 18

According to a merit increase grid,one of the factors that determine the size and frequency of pay increases is the

Accepted Answer

A) company's annual output. 
B) attrition rate in the company. 
C) company's stock price. 
D) recruitment ratio. 
E) individual's performance rating. 
A) company's annual output. 
B) attrition rate in the company. 
C) company's stock price. 
D) recruitment ratio. 
E) individual's performance rating.

Question 19

Which of the following compensation programs uses a management style that gives importance to control?

Accepted Answer

A) Gainsharing plan 
B) Incentive pay 
C) Ownership 
D) Merit pay 
E) Profit sharing 
A) Gainsharing plan 
B) Incentive pay 
C) Ownership 
D) Merit pay 
E) Profit sharing

Question 20

From a(n)________ standpoint,the effect on performance motivation may be limited in ownership programs because of the less obvious link between pay and performance.

Accepted Answer

A) agency theory 
B) equity theory 
C) efficiency wage theory 
D) reinforcement theory 
E) contract theory 
A) agency theory 
B) equity theory 
C) efficiency wage theory 
D) reinforcement theory 
E) contract theory

When high performance is not followed by a monetary reward,future high performance is less likely according to

Organizations may not need to rely on layoffs to reduce costs using which compensation program?

When there is goal setting,employment security,and management commitment,which compensation program are you describing?

How can executive pay be linked to organization performance?

Gainsharing plans differ from profit-sharing plans in that

Separating the functions of principals and agents is likely to result in

One solution to profit sharing during a downturn is to design plans that have upside but not downside risk.

Employee stock ownership plans (ESOPs)carry significant investment risks for employees.

In skill-based pay systems,pay is based on

Which of the following have tax and financing advantages and serve as a takeover defense?

Which of the following is a drawback of using profit sharing?

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

What are some of the potential consequences of employee involvement in compensation decision making?

When profit-sharing takes a broad view of what needs to be done to make the organization more effective,it may encourage

Allan works as a typesetter in a publishing company.If the organization uses merit pay programs,Allan's salary is based primarily on information collected from

Merit pay systems rely on 360-degree performance feedback.

According to the agency theory,who are the principals?

According to a merit increase grid,one of the factors that determine the size and frequency of pay increases is the

Which of the following compensation programs uses a management style that gives importance to control?

From a(n)________ standpoint,the effect on performance motivation may be limited in ownership programs because of the less obvious link between pay and performance.

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

When high performance is not followed by a monetary reward,future high performance is less likely according to

Organizations may not need to rely on layoffs to reduce costs using which compensation program?

When there is goal setting,employment security,and management commitment,which compensation program are you describing?

How can executive pay be linked to organization performance?

Gainsharing plans differ from profit-sharing plans in that

Separating the functions of principals and agents is likely to result in

One solution to profit sharing during a downturn is to design plans that have upside but not downside risk.

Employee stock ownership plans (ESOPs)carry significant investment risks for employees.

In skill-based pay systems,pay is based on

Which of the following have tax and financing advantages and serve as a takeover defense?

Which of the following is a drawback of using profit sharing?

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

What are some of the potential consequences of employee involvement in compensation decision making?

When profit-sharing takes a broad view of what needs to be done to make the organization more effective,it may encourage

Allan works as a typesetter in a publishing company.If the organization uses merit pay programs,Allan's salary is based primarily on information collected from

Merit pay systems rely on 360-degree performance feedback.

According to the agency theory,who are the principals?

According to a merit increase grid,one of the factors that determine the size and frequency of pay increases is the

Which of the following compensation programs uses a management style that gives importance to control?

From a(n)________ standpoint,the effect on performance motivation may be limited in ownership programs because of the less obvious link between pay and performance.

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