Deck 6: Motivating Employee Performance Through Rewards

Question 1

Goal specificity has been shown to be consistently related to .

A)job satisfaction.
B)company image.
C)performance.
D)social responsibility.
E)ethical behavior

Answer 1

C

Question 2

Goals are used in organizations for two primary purposes.Goals are an effective control device and

A)means of communicating with employees.
B)provide a useful framework for managing motivation.
C)training tool.
D)means of increasing individual self-efficacy.
E)social learning mechanism.

Answer 2

B

Question 3

Which of the following is true about 360-degree feedback?

A)Very few companies have adopted 360-degree systems.
B)Traditional evaluations are usually more effective than 360.
C)Evaluators in a 360-degree system tend to focus on objective performance.
D)Managers are likely to hear some personal comments on sensitive topics.
E)Using 360-degree feedback has several key advantages, and virtually no disadvantages.

Answer 3

D

Question 4

Two of the most important issues regarding how to conduct a performance appraisal are

A)whether the appraiser takes a judgmental or developmental orientation and whether pay is linked to performance.
B)where the appraisal takes place and who is present at the time.
C)who does the appraisal and the frequency of the appraisal.
D)how long the appraisal lasts and how often it occurs.
E)whether the appraisal uses past or current information and whether one or many raters are used.

Question 5

Self-efficacy refers to the extent to which an individual

A)is willing to expend effort in order to attain a goal.
B)believes he or she can accomplish goals even if he or she failed to do so in the past.
C)is personally interested in reaching a goal.
D)accepts a goal as his or her own.
E)believes that a goal is worthwhile.

Question 6

Expansions on goal-setting theory argue that goal-directed effort is a function of four goal attributes: goal acceptance, goal commitment, goal difficulty and

A)goal clarity.
B)goal prevalence.
C)goal importance.
D)goal specificity
E)goal attainability.

Question 7

What can supervisors do to avoid measurement problems when they have only limited knowledge of the employee's performance?

A)Prevent the employee from working with the supervisor in the appraisal
B)Avoid allowing employees to evaluate themselves
C)Use a multiple-rater system
D)Perform the evaluation with the information currently available to the supervisor
E)Plan training programs to improve observation and categorization skills

Question 8

According to the goal-setting theory, actual performance is determined by the interaction of

A)organizational support, goal-directed effort, and individual abilities.
B)availability of resources, employee attitudes, and goal clarity.
C)goal-directed effort, employee motivation, and goal specificity.
D)goal difficulty, employee attitudes, and organizational support.
E)goal importance, goal attachment, and goal specificity.

Question 9

Which of the following reasons explains why 360-degree feedback is very beneficial to managers?

A)Managers receive a much wider range of feedback information than if they had conducted the appraisal on their own.
B)This type of feedback is performed more frequently than traditional methods of feedback.
C)This form of feedback is the easiest to administer and is the most cost-efficient form of appraisal.
D)It helps managers to be more aware of their employees' day-to- day performance.
E)The feedback focuses on objective performance criteria.

Question 10

Information from performance measurement is commonly used as a basis for all of the following functions except

A)training and development.
B)equal opportunity employment.
C)feedback.
D)recruitment.
E)promotions.

Question 11

Which of the following statements about performance measurement with a developmental orientation is true?

A)A developmental orientation entails a focus on past performance.
B)Developmental performance measurement focuses on the employees' growth since the last appraisal.
C)Developmental performance appraisals are used to determine wages and pay raises.
D)Performance appraisals with a developmental orientation provide information for future performance improvement.
E)A developmental orientation helps managers punish undesirable behaviors and demote low-performing employees.

Question 12

is defined as the extent to which a person accepts a goal as his or her own.

A)Goal importance
B)Goal commitment
C)Goal acceptance
D)Goal attachment
E)Goal specificity

Question 13

Goal specificity is defined as

A)defining the degree of difficulty of the goal.
B)defining how a goal will affect the total organization.
C)a general "do your best" attitude.
D)defining a general goal.
E)the clarity and precision of a goal.

Question 14

Goal-setting theory has been tested in a variety of settings.Which of the following statements is not true regarding the findings of these studies?

A)Goal setting is an important way for managers to convert motivation into improved job performance.
B)Goal difficulty and goal specificity are closely related to performance.
C)Little is currently known about how individuals accept and become committed to goals.
D)Goal setting may focus too much on the short-term at the expense of long-term issues.
E)Goals set for organizations as a whole are typically more

Question 15

Organizations typically conduct performance appraisals

A)when the employee asks for one.
B)when the manager asks for one.
C)quarterly.
D)once a year.
E)more frequently for older employees than for younger ones.

Question 16

What is the primary use of performance appraisal information?

A)To provide job performance feedback
B)To develop training and development programs
C)To provide support for human resource decision making
D)To provide human resource planning information
E)To allocate organizational rewards

Question 17

The research of Edwin Lock assumes that behavior is a result of

A)the requirements established by the organization.
B)the organizational culture.
C)conscious goals and intentions.
D)the internal organizational forces to increase profits.
E)None of these are correct.

Question 18

All of the following statements are true above MBO except

A)it is a collaborative goal-setting process.
B)goals systematically cascade down through the organization.
C)it is the same as the 360-degree feedback system.
D)top managers establish overall goals.
E)the manager acts as a counselor.

Question 19

Which of the following is not part of the performance measurement process?

A)Comparing an employee's work behavior with previously established standards
B)Communicating the results to the employee
C)Rewarding the employee according to his or her performance
D)Evaluating an employee's work behavior by measurement
E)Documenting the results

Question 20

The problems with the 360-degree feedback system include all of the following except

A)the manager must have a think skin.
B)some comments may be threatening.
C)it gives a wider range of performance-related feedback.
D)must focus on constructive criticism.
E)the manager may hear some personal comments on sensitive

Question 21

Which of the following grants additional earnings to employees or work groups for cost-reduction ideas?

A)Merit pay plan
B)Gain-sharing program
C)Profit-sharing program
D)Employee stock option plan
E)Piecework program

Question 22

All of the following are examples of incentive programs except

A)piecework programs.
B)gain-sharing programs.
C)bonus systems
D)payment for time not worked
E)merit pay plans.

Question 23

Goals are used for one purpose: as a framework for managing motivation.

Question 24

All of the following are typically part of the employee benefits plan except

A)life and health insurance.
B)payment for time not worked, both on and off the job.
C)bonuses for exceptional organization performance.
D)social security contributions.
E)unemployment compensation.

Question 25

In exchange for employee contributions, an organization provides rewards such as pay and insurance benefits.These kinds of rewards are combined to create

A)compensation packages.
B)intangible compensation.
C)symbolic rewards.
D)system rewards.
E)resource exchanges.

Question 26

Alfredo was one of very few employees to receive a Christmas bonus.Even though the bonus was small, it likely carries value for Alfredo.

A)symbolic
B)tangible
C)surface
D)compensation
E)intangible

Question 27

Which of the following best describes a reward system that involves employees in its design and administration?

A)Open pay system
B)Bonus systems
C)Participative pay system
D)Merit pay plans
E)Flexible reward system

Question 28

The organization's compensation structure should be all of the following, except

A)equitable.
B)open to the public.
C)in compliance with the law.
D)competitive in the external labor market.
E)fair reward for the individual's contribution.

Question 29

In a highly individualistic culture such as the United States, performance appraisals almost always need to be focused more on

A)individual effort and results.
B)group performance and feedback.
C)competitive analysis with coworkers.
D)accurate collection of information.
E)360-degree feedback.

Question 30

Why are flexible reward systems becoming an increasingly popular form of compensation systems?

A)The benefits of the flexible approach outweigh the costs, and employees may develop strong loyalty and attachment to an employer.
B)The flexible reward system allows the organization to trade off salary increases for benefit increases as ways of rewarding the employee.
C)Flexible reward systems allow the organization to standardize the benefits package for all employees.
D)Organizations get fewer benefits for their dollar than they do with standard approaches, but their employees are more satisfied.
E)Flexible systems require less administrative time to develop and maintain than do conventional approaches.

Question 31

The courts and Equal Employment Opportunity guidelines have mandated that performance measurements be based on

A)age and sex.
B)race and national origin.
C)industry standards.
D)job-related criteria.
E)competitive benchmarks.

Question 32

Plans in which employees can earn additional compensation in return for certain types of performance are called

A)performance management systems.
B)performance appraisal systems.
C)incentive systems.
D)compensation packages.
E)base pay.

Question 33

All of the following are true about employee benefits except

A)some organizations pay the entire cost of benefits.
B)offering benefits became a standard component of compensation during the industrial revolution.
C)some employees demand benefits through union bargaining.
D)the burden of providing employee benefits is heavier for firms in the United States than it is for organizations in other countries.
E)organizations are required by law to offer certain benefits.

Question 34

The National Labor Relations Board (NLRB) recently upheld a decision regarding pay secrecy that states that

A)discussion of salaries is not a right protected under the National Labor Relations Act.
B)employers cannot enforce a rule that forbids employees from discussing their salaries.
C)state governments may not publicize the salaries of their employees.
D)employers must keep all salary information secret.
E)employers but not employees may openly discuss salary information.

Question 35

What is the likely impact of perquisites on the employees who receive them?

A)A lowered sense of commitment toward the organization
B)An elevated sense of status in the organization
C)A perceived leveling out of special privileges among employees
D)Increased turnover due to lower restrictions on travel
E)Reduced job satisfaction since perquisites can be taxed

Question 36

The choice of which behaviors to reward is a function of the

A)compensation system.
B)performance measurement system.
C)performance management system.
D)managerial system.
E)total quality management system.

Question 37

An employee's increased buying power after receiving a promotion reflects the value of that reward.

A)symbolic
B)tangible
C)surface
D)compensation
E)intangible

Question 38

Some of the most popular methods for evaluating individual performance include all of the following except

A)graphic rating scales.
B)checklists.
C)forces distribution.
D)essays or diaries.
E)forced-choice systems.

Question 39

In most organizations, what is the purpose of the reward system?

A)To perform job analyses
B)To develop performance plans
C)To conduct performance appraisals
D)To modify the compensation philosophy
E)To attract, retain, and motivate qualified employees

Question 40

An expatriate's compensation package could potentially consist of six components.Which of the following would not be one of these components?

A)Income to cover taxes and Social Security payments in the Unites States.
B)Pays an amount adequate to the employee's current consumption levels in the Unites States.
C)Could receive semi-annual pay raises based upon performance.
D)The company pays excess foreign costs.
E)The company could pay an additional foreign service premium or hardship allowance.

Question 41

Comparative performance measurement methods compare an employee's current performance to his or her past performance.

Question 42

The behaviors in organizations that are rewarded are the ones that tend to recur.

Question 43

The IRS has begun to tax some perquisites given to employees.

Question 44

To provide useful information for the decision maker, performance appraisals must be valid, reliable, and free from bias.

Question 45

Organizations are prohibited by law from paying employees for time not worked.

Question 46

Organizations usually conduct performance appraisals on a semi-annual basis.

Question 47

In most measurement systems, the employee's primary evaluator is his or her supervisor.

Question 48

For difficult goals to motivate behavior, they must be set at a low level so they are possible to attain.

Question 49

The purpose of reward systems in most organizations is to attract, retain, and motivate qualified employees.

Question 50

Performance measurement with a developmental orientation focuses on the future and use of information from evaluations to improve performance.

Question 51

Management by Objectives' (MBO) is essentially a collaborative goal-setting process.

Question 52

Compensation plans oriented mainly toward individual employees may cause increased competition for the rewards.

Question 53

Performance appraisals with a judgmental orientation focus on past performance and are concerned mainly
with measuring and comparing performance and with the uses of the information generated.

Question 54

A performance management system comprises the processes and activities involved in performance appraisals.

Question 55

360-degree feedback includes evaluations from those on all sides of them in the organization, their boss, their colleagues, and peers, and their own subordinates.

Question 56

To benefit from 360-degree feedback, a manager must have a thick skin.

Question 57

Goal-setting theory assumes that individual behavior results from conscious and unconscious behaviors as well as from reactions to the environment.

Question 58

Managers in international settings must ensure that they incorporate cultural phenomena in their performance appraisal strategies.

Question 59

Employee stock option plans are incentive programs in which employees can purchase stock in the company at a reduced rate.

Question 60

Cafeteria-style benefit plans are an example of participative pay plans.

Question 61

The courts and Equal Employment Opportunity guidelines have mandated that performance measurements be based on
_-_ criteria.

Question 62

If a manager determines a wage increase by comparing an employee's current behavior with her or his past behavior, the manager is conducting a performance appraisal with a orientation.

Question 63

An organization that uses a flexible reward system may allow employees to choose the combination of benefits they prefer, but not how they receive their pay.

Question 64

The organization usually conducts performance appraisals on a regular basis, typically .

Question 65

A policy of pay secrecy can be expected to improve workers' motivation.

Question 66

A system comprises the organizational processes and activities involved in performance measurement.

Question 67

An organization's social security, unemployment, and workers' compensation contributions are set by law.

Question 68

convey to people not only how much they are valued by the organization but also their importance relative to others.

Question 69

Appraisals with a orientation focus on the future and use information from evaluations to improve performance.

Question 70

provide a useful framework for managing motivation.

Question 71

Expatriates should be paid the same as their domestic equivalent workers.

Question 72

Comparing people's - performances with their goals can be an effective way to monitor the organization's long- run goals.

Question 73

The is comprised of all the organizational components involved in the allocation of compensation and benefits to employees in exchange for their contributions to the
organization.

Question 74

The purpose of the reward system is to , _, and qualified employees.

Question 75

and his associates most clearly established the utility of goal-setting theory in a motivational context.

Question 76

is essentially a collaborative goal- setting process through which organizational goals systematically cascade down through the organization.

Question 77

The reward system must be competitive in the labor market for the organization to attract and retain competent workers.

Question 78

The extent to which a person is personally interested in reaching a goal is goal .

Question 79

In collective cultures, such as Japan, performance appraisals almost always need to be focused more on performance and feedback.

Question 80

In most appraisal systems, the employee's primary evaluator is the
_.