Question 1

When an organization is using concentration strategy,it will

Accepted Answer

A) have short-run pay levels below the market. 
B) have a long-term orientation. 
C) make centralized pay decisions. 
D) maintain high variable pay levels. 
E) have benefit levels below the market.

Question 2

Deferred profit-sharing plans increase employee motivation.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a criticism of traditional merit pay programs?

Accepted Answer

A) Peer and subordinate ratings are frequent and they tend to receive more weight than supervisory ratings. 
B) The feedback under this system tends to occur too frequently,which may cause average employees to feel more discouraged than appreciated. 
C) These programs lack emphasis on individual performance and focus too much on teamwork. 
D) These programs often involve gathering inappropriate feedback from external sources. 
E) Employees are encouraged to focus on personal gains rather than what is good for the organization.

Question 4

Which of the following is true of how the agency theory views monitoring?

Accepted Answer

A) Monitoring is more expensive when done by employees. 
B) Employees' knowledge of the workplace is not reliable. 
C) Monitoring is less effective when performed by employees. 
D) Employees understand fellow employees better than managers do. 
E) A compensation system does not influence peer monitoring.

Question 5

Which of the following makes employee stock ownership plans (ESOPs)less attractive?

Accepted Answer

A) Less diversification of investment risk 
B) Lack of tax and financial advantages 
C) High levels of liquidity 
D) Inability to serve as a takeover defense 
E) Giving employees the right to vote their securities

Question 6

If Jonah and Xiomara want to keep their individual incentives,then

Accepted Answer

A) they will need to contribute to a more disintegrated workforce. 
B) they will be helpful in the pursuit of total quality management objectives. 
C) they will encourage other employees to go beyond the call of duty. 
D) they will reduce their motivation of acquiring multiple skills and proactive problem solving. 
E) they must realize that they are continuously earned and re-earned.

Question 7

Scan Master Company has weak incentives and poor performance pay.what is most likely to happen to the employees?

Accepted Answer

A) Sales,executives,and stockbrokers will have greater motivation. 
B) High performers will be motivated to stay with the organization and improve their efficiency. 
C) There is a greater chance for unintended,undesirable behavior driven by pay-linked incentives. 
D) Employees will take excessive risks for greater premium and compensation. 
E) Competitors possibly will win over high performers with stronger incentive intensity.

Question 8

The ________ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Accepted Answer

A) Bureau of Economic Analysis 
B) Federal Bureau of Investigation 
C) Federal Trade Commission 
D) Securities and Exchange Commission 
E) Bureau of Industry and Security

Question 9

Which of the following trade-offs does a company need to consider with compensation management?

Accepted Answer

A) Performance-reward 
B) Risk-reward 
C) Motivation-reward 
D) Ability-reward 
E) Behavior-reward

Question 10

A pay plan's ability to draw highly qualified applicants for jobs at a particular organization is known as the incentive effect.

Accepted Answer

A) True 
 B)False

Question 11

Why is it useful for organizations to think in terms of designing a mix of programs rather than choosing one overall compensation program? Give examples.

Accepted Answer

The answer of Why is it useful for organizations to...

Question 12

Merit pay has the ability to define and reward a broad range of performance dimensions.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a tool that allows companies to track financial results while monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth?

Accepted Answer

A) HR scorecard 
B) External employee grid 
C) Balanced scorecard 
D) ESOP plan 
E) Merit increase grid

Question 14

When an organization has a growth strategy,the short-run pay level and benefit level tend to be below market level.

Accepted Answer

A) True 
 B)False

Question 15

Gainsharing can motivate employees as much as individual plans do because

Accepted Answer

A) it allows more control over the performance measure and the frequency of payouts. 
B) it uses organization-level performance measures. 
C) it involves payouts that are deferred. 
D) it encourages individual-oriented plans rather than broader goals. 
E) it focuses more on the monetary component than on employee skills.

Question 16

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 17

Which of the following is an example of the sorting effect?

Accepted Answer

A) A mid-year merit bonus encourages Lavar to keep improving his productivity at Star Industries. 
B) Bevlink's full match for employee retirement plan contributions encourages Tina to apply for a job there. 
C) Two years without a wage increase for employees at Fractal Castings has led to a decrease in product quality. 
D) Implementation of profit sharing at RedCube Robotics inspires Zack's team to identify potential supply chain savings. 
E) Freezing of year-end bonuses at Harvest Organics leads employees to question the organization's values.

Question 18

Intellix gives annual pay increases linked to the employee performance ratings using an incentive pay program.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following pay strategy dimensions best fits with a business strategy of concentration?

Accepted Answer

A) Long-term time orientation 
B) Below-market short-run pay level 
C) High levels of variable pay 
D) Above-market benefits levels 
E) Decentralization of pay decisions

Question 20

Palm Keys Inc.believes in using a supervisor's performance rating to award merit pay.

Accepted Answer

A) True 
 B)False

Exam 12: Recognizing Employee Contributions With Pay

When an organization is using concentration strategy,it will

Deferred profit-sharing plans increase employee motivation.

Which of the following is a criticism of traditional merit pay programs?

Which of the following is true of how the agency theory views monitoring?

Which of the following makes employee stock ownership plans (ESOPs) less attractive?

If Jonah and Xiomara want to keep their individual incentives,then

Scan Master Company has weak incentives and poor performance pay.what is most likely to happen to the employees?

The ________ requires companies to report compensation levels for the five highest paid executives and the company's performance relative to that of competitors over a five-year period.

Which of the following trade-offs does a company need to consider with compensation management?

A pay plan's ability to draw highly qualified applicants for jobs at a particular organization is known as the incentive effect.

Why is it useful for organizations to think in terms of designing a mix of programs rather than choosing one overall compensation program? Give examples.

Merit pay has the ability to define and reward a broad range of performance dimensions.

Which of the following is a tool that allows companies to track financial results while monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth?

When an organization has a growth strategy,the short-run pay level and benefit level tend to be below market level.

Gainsharing can motivate employees as much as individual plans do because

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

Which of the following is an example of the sorting effect?

Intellix gives annual pay increases linked to the employee performance ratings using an incentive pay program.

Which of the following pay strategy dimensions best fits with a business strategy of concentration?

Palm Keys Inc.believes in using a supervisor's performance rating to award merit pay.