The key to designing a pay-for-performance system
A key factor in
increasing trust in top management is ____
·
an acceptable
appraisal system
The primary guiding
force that determines needed employee behaviors is ____
·
organization strategy
The motivation
triangle includes ____
·
culture
The ability triangle
includes ____
·
selection
A business has a
centralized structure and a compensation system that rewards sales volume.
However, sales volumes are low compared to competitors who respond more quickly
to changes in consumer demand. Which of the following is the most likely source
of the low sales performance?
·
an inappropriate
organization design
Compensation should
reinforce all but which of the following behaviors?
·
keeping turnover to
nearly zero
When employee
performance is easily measured and the organization's performance is fairly
stable over time, the most effective type of compensation is to offer ____
·
monetary rewards with
large incentives
When an organization's
performance has regular and large swings and individual performance is unclear
and hard to measure, the most effective compensation mix is to offer ____
·
base pay with low
incentives and a variety of rewards
Which of the following
best supports a culture of flexibility and innovation?
·
a strong commitment to
job security
____ involves
identifying what is important to a person and offering it to them in exchange
for some desired behaviour
·
motivation
The key ingredient in
____ is careful cost analys is to make sure the dollar cost of the package an
employee selects meets employer budgetary limits
·
cafeteria-style
compensation
When developing a
flexible compensation system, which theory or theories would be most useful
·
Maslow's theory and
Herzberg's theory
In ____ theory,
incentive pay is motivating if it helps an employee gain a sense of
achievement, recognition or approval
·
Maslow's
Which theories would
support a higher minimum wage?
·
Maslow and Herzberg's
two-factor
____ theory contends
that success-sharing plans will be motivating but at-risk plans will be
demotivating
·
Herzberg's two-factor
Which of the following
theories is least relevant to merit pay?
·
Herzberg's theory
According to
expectancy theory, effort level depends on which of these factors?
·
expectance, valence,
instrumentality
____ is the belief
that when a specified level of job performance at attained, the employee will
receive a specified reward
·
Instrumentality
For which motivation
theory is it important for organizations to pay attention to the training and
development needs of their employees?
·
Expectancy
Line of sight is an
important pay implication for which theory of theories?
·
Expectancy and goal
setting
____ theory argues
that performance-based pay is best for complex jobs where monitoring employee
performance is difficult
·
agency
As per the ____
theory, relative pay is important as employees evaluate their pay-effort
balance in comparison to other employees
·
Equity
Theories dealing with
exchange include ____
·
equity and agency
____ theory contends
that we choose to do those things that we believe are most likely to lead to
desired rewards
·
expectancy
Which among the
following components of a reward system is a dimension of empowerment?
·
control
____ is an individual
level form of performance pay
·
lump-sum bonus
Compared to other
incentive plans, line of sight is lowest in ____
·
profit sharing
Which of the following
is not true?
·
Companies are moving
back to entitlement- oriented pay to reduce turnover
A person with low
self-esteem is likely to seek ____
·
a large, decentralized
organization with little performance based pay
Turnover tends to be
highest among ____
·
poor performers
When moving from an individual
to a group incentive plan, you would expect ____
·
high turnover among
high performers
Growing evidence
suggests that the major effect of skill-based pay is ____
·
high quality products
Available evidence
indicates managers believe the most important factor for pay increases is ____
·
performance
Company X pays for
performance. Allan, an employee of the company, is not in favor of this reward
system and, therefore, leaves Company X in search of another company with
different rules for getting rewards. This is an example of the
·
sorting effect
The most obvious
sorting factor is ____
·
ability
There is evidence that
every 10 percent increase in the bonus paid to employees yields a_____percent
increase in ROA to the firm
·
1.5
The key to designing a
pay-for-performance system rests on standards. Specifically, managers need to
be concerned about the
·
objectives, measures,
eligibility, and funding
Research suggests that
for employees to notice and work hard to perform behaviors desired by the
organization, incentives need to be ____ percent
·
15-20
The amount of fairness
given to employees refers to ____
·
distributive justice
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