Question 1

Which of the following is an essential feature of Maslow's theory?&#10;A) Employees are motivated when perceived outputs are equal to perceived inputs.&#10;B) Motivation is the product of three perceptions: expectancy, instrumentality, and valence.&#10;C) Employees will react negatively if they perceive that others are paid more for the same effort.&#10;D) Pay for performance works best when focused on unmet needs.&#10;E) Challenging performance goals influence greater intensity and duration in employee performance.

Accepted Answer

Maslow's theory is based on a hierarchy of needs, stating that individual needs must be met in a specific order: physiological, safety, social, esteem, and self-actualization. Pay for performance focused on unmet needs would align with this theory, as it would incentivize employees to work harder to meet their unfulfilled needs.

Question 2

_____ theory of motivation states that people behave as though they cognitively evaluate what behaviours are possible.&#10;A) Expectancy&#10;B) Equity&#10;C) Agency&#10;D) Two-factor&#10;E) Reinforcement

Accepted Answer

Expectancy theory of motivation suggests that people behave according to their cognitive evaluation of what behaviors are possible. This theory proposes that people make rational choices based on the expected outcomes of their behaviors. They evaluate the effort required, the level of performance needed, and the potential rewards or punishments. Thus, employees will be motivated if they believe that their efforts will lead to better performance, which will then result in desirable rewards.

Question 3

Which total reward component allows employees to control their own destiny?&#10;A) security&#10;B) work conditions&#10;C) work importance&#10;D) autonomy&#10;E) development opportunity

Accepted Answer

Autonomy refers to the level of control and independence an employee has over their work. It allows employees to shape their own path and take ownership of their work, leading to increased job satisfaction and engagement.

Question 4

Which of the following might appeal to scarce talent?&#10;A) team-based incentives&#10;B) stable rewards&#10;C) fixed pay linked to organizational performance&#10;D) variable pay linked to peer ratings&#10;E) skill-based pay

Accepted Answer

The answer of Which of the following might appeal to...

Question 5

Which ranking process makes it easier to identify the extremes?&#10;A) Behaviourally anchored ranking&#10;B) Alternation ranking&#10;C) Performance ranking&#10;D) Straight ranking&#10;E) Paired comparison ranking

Accepted Answer

Alternation ranking makes it easier to identify the extremes by requiring the rater to place the best and worst performers at the top and bottom of the list, respectively, and then alternating between the remaining employees to determine their ranking. This process helps to differentiate between high and low performers and reduce the halo effect.

Question 6

Which method is both a planning tool and an appraisal tool?&#10;A) Simple ranking&#10;B) Alternation ranking&#10;C) Behaviourally anchored paired rating&#10;D) Paired comparison performance ranking&#10;E) Management by objectives

Accepted Answer

Management by objectives (MBO) is a planning tool that involves setting specific objectives and goals for employees to achieve in a given time period. It is also an appraisal tool because the employees' performance is evaluated based on their ability to meet these objectives and goals.

Question 7

_____ is a performance rating method that has suspect content validity.&#10;A) Ranking&#10;B) Behaviourally anchored objectives&#10;C) Paired comparison performance objectives&#10;D) Standard rating scales&#10;E) Behaviour rating scales

Accepted Answer

Standard rating scales often have suspect content validity because they can be too generic and may not accurately reflect the specific job-related behaviors or outcomes they are intended to measure.

Question 8

Which of the following is a key element essential for a good outcome in the appraisal process?&#10;A) Performance dimensions should be isolated from the strategic plan of the company.&#10;B) Employees should only be involved in developing performance dimensions.&#10;C) Raters should be discouraged from maintaining a diary of employee performance.&#10;D) Raters should not attempt to diagnose the reason for performance problems in advance.&#10;E) Employees should be involved in developing performance dimensions and building scales.

Accepted Answer

Involving employees in developing performance dimensions and building scales promotes a sense of ownership and understanding of what is expected of them. It also ensures that the dimensions are relevant and meaningful to the job. The other options are not ideal for a good outcome in the appraisal process - isolating performance dimensions from the strategic plan could lead to misalignment, employees developing performance dimensions without guidance may not be effective or relevant, discouraging raters from maintaining a diary could lead to a lack of documentation, and attempting to diagnose performance problems in advance may lead to bias or assumptions.

Question 9

According to the reinforcement theory of motivation, regular and specific feedback on performance goal attainment is important.

Accepted Answer

The answer of According to the reinforcement theory of motivation,...

Question 10

Seniority increases relate pay increases to performance improvements on the job.

Accepted Answer

Seniority increases are based on the amount of time an employee has been with the company, rather than their performance on the job.

Question 11

What should the compensation strategy be for companies with high variability with performance?

Accepted Answer

The answer of What should the compensation strategy be for...

Question 12

What do the motivation theories tell us about base pay?

Accepted Answer

The answer of What do the motivation theories tell us...

Question 13

What dimensions can be used to evaluate appraisal formats?

Accepted Answer

The answer of What dimensions can be used to evaluate...

Question 14

Describe the areas of concern with efficiency?

Accepted Answer

The answer of Describe the areas of concern with efficiency?...

Deck 10: Pay for Performance: Performance Appraisal and Plan Design