Deck 10: Reward Systems and Legal Issues

Question 1

15 One example of a financial reward is a sabbatical.

Answer 1

False
Sabbaticals,or paid time off work to devote to job-related growth and development activities such as learning new skills or traveling abroad,are nonfinancial rewards.

Question 2

14 Illegal discrimination is usually referred to as adverse impact because employees claim they were intentionally treated differently because of their gender,race,ethnicity,national origin,age,disability status,or other status protected under the law.

Answer 2

False
These are examples of disparate treatment.

Question 3

3 Performance management systems are more effective when results are directly tied to the reward system.

Answer 3

True

Question 4

6 Organizations with involvement cultures are characterized by shared decision making,lateral communications,and loosely defined roles.

Question 5

7 Gainsharing links individual and group pay to an organization's ability to meet strategic goals.

Question 6

11 When compensation surveys are conducted,they include only information on base pay.

Question 7

9 A reward can be defined as something that increases the frequency of an employee action.

Question 8

19 One of several reasons a CP plan could fail is:

A)Poor performance management system is in place
B)Managers are made accountable
C)Clear difference in rewards for poor and outstanding performers
D)None of the above

Question 9

4 An organization's culture does not play an important role when selecting a contingent pay plan.

Question 10

17 When a CP plan is implemented,organizations need to make clear:

A)What is expected of employees
B)What specific behaviors or results will be rewarded
C)How employees can achieve specified behaviors or results
D)All of the above

Question 11

8 Pay is the main motivator for people in the 21^st century.

Question 12

10 Job evaluation is a process of data collection through which an organization can understand the worth of the various jobs and,as a result,can create a pay structure.

Question 13

16 Contingent pay is also referred to as ______________.

A)gainsharing
B)pay for performance
C)base pay
D)none of the above

Question 14

13 In the context of performance management,illegal discrimination means that raters assign scores differentially to various employees based on factors that are not performance-related,such as race,nationality,color,or ethnic and national origin.

Question 15

2 Contingent pay CP)plans reward individuals based on how well they perform on the job.

Question 16

1 A traditional approach to implementing reward systems is to reward employees based on how they do their work.

Question 17

20 Traditional cultures should implement which type of the following pay plans:

A)Piece rate,profit sharing,or group incentives
B)Piece rate,skill-based pay,or sales commissions
C)Piece rate,sales commissions,or group incentives
D)Group incentives,profit sharing,or skill-based pay

Question 18

5 An effective contingent pay plan for an organization with a traditional culture would be a plan that rewards specific and observable measures of performance that are clearly defined and linked directly to pay.

Question 19

12 A basic principle that guides the design of a fair system is that procedures are standardized and that the same procedures are used with all employees.

Question 20

18 All of the following are conditions that need to be present in order for a CP plan to motivate employees EXCEPT:

A)Expectancy
B)Valence
C)Desire
D)Instrumentality

Question 21

24 An employment relationship where the employer or employee can terminate the relationship at anytime is called _____________________.

A)negligence
B)employment at will
C)adverse impact
D)defamation

Question 22

28 When individuals are rewarded based on how well they perform on the job,this is called ___________________________.

A)consistency pay
B)contingent pay
C)constant pay
D)calculated pay

Question 23

34 A reward is defined as:

A)Increased base salary
B)Something that increases the frequency of an action
C)Promotion or recognition
D)One-time bonuses

Question 24

27 In a traditional award system:

A)All employees are paid the same regardless of position or performance.
B)Employees are paid based on performance regardless of position.
C)Employees are paid based on position regardless of performance.
D)Employees are paid based on an equation involving both performance and position.

Question 25

25 When an employer discloses untrue favorable performance and this information causes risk or harm to others,such an action is called ____________________.

A)misrepresentation
B)defamation
C)negligence
D)none of the above

Question 26

32 Which of the following are characteristics of a traditional culture?

A)Lateral communication
B)Top-down decision making
C)Loosely defined roles
D)Bottom-up decision making

Question 27

37 Providing a glowing recommendation for a former employee who was actually terminated due to poor performance that,if repeated in the future,could present a risk to the future employer,is called _____________________________.

A)liability
B)defamation
C)misrepresentation
D)libel

Question 28

23 Illegal discrimination is also referred to as:

A)Disparate treatment
B)Adverse impact
C)Racism
D)Favoritism

Question 29

22 Three of the most popular job evaluation methods are:

A)Ranking,classification,and banding
B)Classification,point,and banding
C)Ranking,classification,and point
D)Point,banding,and ranking

Question 30

31 An organization's culture is defined by:

A)Its employee manual
B)Its mission statement
C)Its employees' attitudes and perceptions
D)Its unwritten rules and procedures

Question 31

40 There are several reasons why contingent pay CP)plans may not work as intended.Please list and describe three of these possible reasons.

Question 32

39 Disparate treatment is:

A)When employees are treated differently because of their work performance
B)When employees are treated differently because of their position with the company
C)When employees are treated differently because of their gender,race,ethnicity,national origin,age,disability status,or other status protected under the law
D)When employees are treated differently because of their educational levels

Question 33

30 In a small municipal police department,each member of a team is expected to have higher than average numbers of reports,summonses,and arrests for that team;and promotions and increases in pay are based on these statistics.When an officer is working on a particularly difficult case,the other members of the team are often unwilling to help that officer with tasks leading to increased overtime.This is an example of _______________________________________.

A)individual versus team-oriented employees
B)poor supervision
C)folly of rewarding A while hoping for B
D)unclear expectations

Question 34

33 Which of the following are characteristics of organizations with involvement cultures?

A)Lateral communication
B)Loosely defined roles
C)Neither A or B
D)Both A and B

Question 35

38 Which of the following is an example of adverse impact?

A)At a large manufacturing company,only employees with college degrees are considered for supervisory positions.The employees working in the factory are predominantly Hispanic and Asian,but there are no Hispanic or Asian supervisors.
B)A small police department has implemented a physical agility test for all its current police officers.The test includes a short distance sprint,a wall to be climbed,and a requirement that each participant do four underhand,free-hang pull-ups.If any officer fails the test,they will be given three months to retest,and if they fail again,they are terminated.Fifteen percent of the police officers currently employed at this department are women,and they all failed the test on the first try.Five percent of male officers failed the test on the first try.
C)Language interpreters for a telephone-based interpreting firm are given written and verbal tests to ensure that their language skills are sufficient for certain types of jobs.If employees fail the test,they are given three months to retest and if they fail again,they are terminated.One quarter of the employees failed the written test the first time they took it.
D)One particular supervisor at an insurance company consistently gives lower performance ratings to employees who are Hispanic or black than he gives to employees who are white or Asian.Low performance ratings effect promotions and pay increases.

Question 36

35 Consideration of what skills,knowledge,and abilities are required for each job,how valuable the job is for the organization,and how much pay other organizations allocate to these jobs is:

A)A job evaluation
B)A job structure analysis
C)A job description evaluation
D)A job analysis

Question 37

26 The law which makes it illegal to discriminate on the grounds of sex,marital status,and gender reassignment in a limited manner is:

A)Employment Equality Religion or Belief)Regulations 2003
B)Employment Equality Sexual Orientation)Regulations 2003
C)Sex Discrimination Act of 1975
D)Race Relations Act of 1976

Question 38

21 Organizations can do which of the following to insure that rewards are actually seen as rewards:

A)Define and measure performance first,and then allocate rewards
B)Use only rewards that are available
C)Use only financial rewards
D)A and B only

Question 39

29 Contingent pay plans address which component of performance?

A)Declarative knowledge
B)Procedural knowledge
C)Organizational knowledge
D)Motivation

Question 40

36 The disclosure of untrue unfavorable performance information that damages an employee's reputation is called ______________________.

A)misrepresentation
B)derailment
C)libel
D)defamation

Question 41

54 Discuss the characteristics of a legally sound performance management system.

Question 42

42 There are several ways an organization can insure actions intended to be rewards are actually seen as rewards.Please list and describe five of the eight recommendations from the reading.

Question 43

49 Describe steps that organizations can take to ensure that actions intended as rewards are actually perceived as rewards.

Question 44

46 Discuss characteristics of the most effective type of contingent pay plan in an organization with a traditional culture.Give examples.

Question 45

51 Critically assess how an organization should decide between the methods of job evaluation.

Question 46

53 Explain disparate treatment and discuss the information an employee must provide in order to make a claim of disparate treatment.

Question 47

47 Discuss characteristics of the most effective type of contingent pay plan in an organization with an involvement culture.Give examples.

Question 48

44 Under what conditions can a contingent pay plan help improve an employee's motivation?

Question 49

48 Discuss key features of organizations other than pay)where employees are happiest and the most productive.

Question 50

45 List key factors that could lead to failure of a contingent pay plan.

Question 51

55 What are nonfinancial rewards,and what are the benefits of implementing nonfinancial rewards?

Question 52

43 What are the benefits of implementing a contingent pay plan?

Question 53

41 When considering the appropriate CP plan,it is important to take into consideration the organizational culture.You currently work in the HR Department of a large manufacturing facility and have been asked to recommend a new CP plan that will reward employees for increased unit productivity.What type of plan would you recommend and why?