Question 1

The reinforcement theory to compensation management suggests that monetary rewards will not motivate employees.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following theories emphasizes the importance of a reward following a certain productive behavior?

Accepted Answer

A) Reinforcement theory 
B) Expectancy theory 
C) Agency theory 
D) Equity theory 
E) Social exchange theory

Question 3

Deferred profit-sharing plans increase employee motivation.

Accepted Answer

A) True 
 B)False

Question 4

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 increases the labor cost in difficult economic times. 
E) It runs the risk of contributing to employee dissatisfaction.

Question 5

A(n)_____ program is a based on group or plant performance that does not become part of the employee's base salary.

Accepted Answer

A) merit pay 
B) profit sharing 
C) stock option 
D) gainsharing 
E) individual incentive

Question 6

Discuss at least four guidelines for board of directors' structure and effective governance to ensure that they act in shareholders' best interests when making executive pay decisions.

Accepted Answer

The answer of Discuss at least four guidelines for board...

Question 7

Employees are assessing fairness using distributive dimension when they base their assessments on _____.

Accepted Answer

A) organizational procedures 
B) the systems used to assess performance 
C) how much they receive 
D) the skills and abilities they possess 
E) their judgment of the management

Question 8

Employees are assessing fairness using the _____ dimension when they base their assessments on the process that was used to decide the amount of compensation?

Accepted Answer

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

Question 9

The performance motivational effects of profit sharing is likely to be stronger in smaller firms or units than in larger organizations or units.

Accepted Answer

A) True 
 B)False

Question 10

Because employees will not realize any financial gain until they actually sell their stock, the link between pay and performance is less obvious in employee ownership. Thus, from a(n)_____ standpoint, the effect on performance motivation may be limited.

Accepted Answer

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

Question 11

Which of the following is an example of an ownership plan used in compensation systems?

Accepted Answer

A) Gainsharing plans 
B) Profit sharing programs 
C) Group incentives 
D) Stock options 
E) Individual incentive plans

Question 12

When an organization is using growth strategy, it will _____.

Accepted Answer

A) have short-run pay levels below the market 
B) have a short-term orientation 
C) make centralized pay decisions 
D) not share risks with employees 
E) have benefit levels above the market

Question 13

Which of the following is most likely to provide intrinsic motivation?

Accepted Answer

A) A sponsored vacation to Europe 
B) A monthly salary of $10,000 
C) Medical insurance 
D) Paid leave for three months 
E) An interesting work assignment

Question 14

Which of the following organizational conditions should be in place for successful gainsharing?

Accepted Answer

A) Low levels of base pay 
B) Mechanistic structure 
C) Employment security 
D) High individual competition 
E) Employee ownership

Question 15

What are some potential consequences of employee involvement in compensation decision making on employee attitudes and behaviors?

Accepted Answer

The answer of What are some potential consequences of employee...

Question 16

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 17

Employee involvement in the design and implementation of pay policies has been linked to higher pay satisfaction and job satisfaction.

Accepted Answer

A) True 
 B)False

Question 18

A(n)_____ is suitable for an organization whose culture promotes individual competition.

Accepted Answer

A) gainsharing plan 
B) profit sharing plan 
C) merit pay plan 
D) ownership plan 
E) skill-based plan

Question 19

In merit pay programs, an individual's compa-ratio represents his or her _____.

Accepted Answer

A) ability to multitask 
B) performance rating 
C) position in the pay range 
D) knowledge of business 
E) ratio of pay to benefits

Question 20

Which of the following is a design feature according to which employee contribution programs differ?

Accepted Answer

A) Employees' skills 
B) Type of work 
C) Frequency of payout 
D) Number of employee groups 
E) Company's annual output

Exam 12: Recognizing Employee Contributions With Pay

The reinforcement theory to compensation management suggests that monetary rewards will not motivate employees.

Which of the following theories emphasizes the importance of a reward following a certain productive behavior?

Deferred profit-sharing plans increase employee motivation.

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

A(n) _____ program is a based on group or plant performance that does not become part of the employee's base salary.

Discuss at least four guidelines for board of directors' structure and effective governance to ensure that they act in shareholders' best interests when making executive pay decisions.

Employees are assessing fairness using distributive dimension when they base their assessments on _____.

Employees are assessing fairness using the _____ dimension when they base their assessments on the process that was used to decide the amount of compensation?

The performance motivational effects of profit sharing is likely to be stronger in smaller firms or units than in larger organizations or units.

Because employees will not realize any financial gain until they actually sell their stock, the link between pay and performance is less obvious in employee ownership. Thus, from a(n) _____ standpoint, the effect on performance motivation may be limited.

Which of the following is an example of an ownership plan used in compensation systems?

When an organization is using growth strategy, it will _____.

Which of the following is most likely to provide intrinsic motivation?

Which of the following organizational conditions should be in place for successful gainsharing?

What are some potential consequences of employee involvement in compensation decision making on employee attitudes and behaviors?

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

Employee involvement in the design and implementation of pay policies has been linked to higher pay satisfaction and job satisfaction.

A(n) _____ is suitable for an organization whose culture promotes individual competition.

In merit pay programs, an individual's compa-ratio represents his or her _____.

Which of the following is a design feature according to which employee contribution programs differ?