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1 | |
Pay plans are typically used to energize, direct, or control employee behavior. |
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| | A) | True |
| | B) | False |
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2 | |
Regardless of cost differences, different programs can have very different consequences for productivity and return on investment. |
|
| | A) | collective action |
| | B) | collaboration |
| | C) | pay |
| | D) | arbitration |
|
3 | |
The Agency Theory states that a response followed by a reward is more likely to recur in the future. |
|
| | A) | True |
| | B) | False |
|
4 | |
The ________ theory focuses on expected rather than experienced rewards. |
|
| | A) | expectancy |
| | B) | reinforcement |
| | C) | agency |
| | D) | motivational |
|
5 | |
The _______ theory focuses on the divergent interests and goals of the organization's stakeholders and the ways that employee compensation can be used to align these interests and goals. |
|
| | A) | reinforcement |
| | B) | agency |
| | C) | expectancy |
| | D) | behavioral modification |
|
6 | |
The perceived link between behaviors and pay is called |
|
| | A) | valence. |
| | B) | equity. |
| | C) | expectancy. |
| | D) | instrumentality. |
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7 | |
In agency theory, the manager is typically considered |
|
| | A) | the agent |
| | B) | the principle |
| | C) | the owner |
| | D) | the adversary |
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8 | |
The agency theory explanation of the influence of pay on employee behavior spotlights: |
|
| | A) | the relationship between a rewarded target response and the future recurrence of that response. |
| | B) | the relation of job performance to expected rewards. |
| | C) | how the quality of feedback to employees (principals) about the market performance of their certificates of deposit options can be manipulated by top managerial officers (agents). |
| | D) | the alignment of the interests of managers (principals) with that of their subordinates (agents). |
|
9 | |
With regards to agency theory, the type of contract that an organization should use depends on any of the following factors except |
|
| | A) | risk aversion |
| | B) | law of effect |
| | C) | job programmability |
| | D) | tradition |
|
10 | |
In merit pay programs, annual pay increases are usually linked to organizational versus individual performance. |
|
| | A) | True |
| | B) | False |
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11 | |
The two contingencies that may influence whether each pay program fits the situation are management style and type of work. |
|
| | A) | True |
| | B) | False |
|
12 | |
In which of these programs, the payment method is a bonus? |
|
| | A) | Gainsharing |
| | B) | Incentive pay |
| | C) | Profit sharing |
| | D) | All of these. |
|
13 | |
Which of these programs presents a clear performance-reward connection? |
|
| | A) | Incentive pay |
| | B) | Profit sharing |
| | C) | Ownership |
| | D) | Merit pay |
|
14 | |
With regard to management style, all of these programs work best with participation except: |
|
| | A) | profit sharing. |
| | B) | ownership. |
| | C) | incentive pay |
| | D) | skill-based pay. |
|
15 | |
The popularity of the merit pay approach is based on the fact that merit programs enable an organization to define and reward a wide-range of behaviors or dimensions that are related to performance. |
|
| | A) | True |
| | B) | False |
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16 | |
Profit sharing, ownership, and gain-sharing are the pay programs that generate the strongest performance motivation in large firms. |
|
| | A) | True |
| | B) | False |
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17 | |
W. Edwards Deming advocated that it is unfair to rate individual performance because apparent differences between people arise almost entirely from the system that they work in not from the people themselves. |
|
| | A) | True |
| | B) | False |
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18 | |
Under _____, payments are based on a measure of organizational performance and the payments do not become part of the base salary. |
|
| | A) | profit sharing plans |
| | B) | employee stock ownership plans |
| | C) | gainsharing plans |
| | D) | advanced benefit packages |
|
19 | |
__________ reward(s) individual performance with payments that are not rolled into base pay and by measuring performance as physical output. |
|
| | A) | Merit pay |
| | B) | Individual incentives |
| | C) | Gainsharing |
| | D) | Profit sharing |
|
20 | |
Stock options are used under which of these programs? |
|
| | A) | Merit pay |
| | B) | Ownership |
| | C) | Gainsharing |
| | D) | Skill-based pay |
|
21 | |
Employee stock ownership plans (ESOPs) heighten employees' mentality of ownership but also significantly increase their compensation risk because: |
|
| | A) | legal guidelines require that stock option prices be linked to performance goals. |
| | B) | tax legislation has reduce corporate control of the timing of dividend pay-outs. |
| | C) | USA law requires ESOP companies to invest a minimum of 51% of the companies' assets into its own stock. |
| | D) | All of these. |
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22 | |
_______ programs offer a means of sharing productivity gains with employees. |
|
| | A) | ESOP |
| | B) | EAP |
| | C) | Attitudinal structuring |
| | D) | Gainsharing |
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23 | |
All of these organization conditions should be in place for gainsharing to be successful except |
|
| | A) | employment security. |
| | B) | goal setting. |
| | C) | command-and-control management style. |
| | D) | agreement on a performance standard and calculation that is understandable, seen as fair, and closely related to managerial objectives. |
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24 | |
Team award plans tend to use all of the following performance measures except |
|
| | A) | cost savings |
| | B) | successful completion of product design |
| | C) | physical output |
| | D) | meeting deadlines |
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25 | |
Which of these is described as a way for companies to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth? |
|
| | A) | The balanced scorecard |
| | B) | Quality circles |
| | C) | Compensation communication |
| | D) | Skill-based pay |
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26 | |
Which of the following is not a performance measure aspect of the Balanced Scorecard Incentive Concept? |
|
| | A) | Financial |
| | B) | Customer |
| | C) | Learning and Growth |
| | D) | External |
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27 | |
The Omnibus Budget Reconciliation Act of 1993 reestablished the deductibility of executive pay that exceeds $1 million. |
|
| | A) | True |
| | B) | False |
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28 | |
______ theory suggests that monitoring would be less costly and more effective if performed by employees because they have knowledge about the workplace and behavior of fellow employees that managers do not have. |
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| | A) | Agency |
| | B) | Customer |
| | C) | Reinforcement |
| | D) | Expectancy |
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29 | |
Concentration-oriented organizations are thought to require a very different set of pay practices by virtue of all of these except |
|
| | A) | more stable work force. |
| | B) | lower rate of growth. |
| | C) | more decentralization and flexibility in pay decisions. |
| | D) | greater need for consistency and standardization. |
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30 | |
An organizational strategy of growth tends to decentralize pay decisions. |
|
| | A) | True |
| | B) | False |