Deck 11: Strategic Reward Management

Question 1

Linda believes that the harder she works at her job the more likely it is that she will receive a reward that is of value to her.This is an example of:

A) expectancy theory
B) equity theory
C) goal setting theory
D) reinforcement theory

Answer 1

A

Question 2

Jamie is a full-time employee who is paid a fortnightly rate of $1516 after taxes.This represents:

A) base pay
B) a salary
C) a wage
D) a bonus

Answer 2

B

Question 3

Annie is a casual employee who is paid an hourly rate of $17.50.This represents:

A) base pay
B) a salary
C) a wage
D) a bonus

Answer 3

C

Question 4

If organisations want to foster performance improvement through multi-skilling and flexibility to work with a wider range of employees, then a hierarchical reward management system should be adopted.

Question 5

Group incentives often take the form of rewarding employees for exceeding productivity targets or deducting a percentage of performance loading if targets are not met.

Question 6

As employees are promoted in GDY Corporation they are also given a car parking space that is closer to the building's entrance.Most employees value this reward, especially during the rainy season.What type of reward does this represent?

A) intrinsic rewards
B) extrinsic rewards
C) first choice rewards
D) non-financial rewards

Question 7

When Candy compared her sales bonus to the bonus given to Jack she did not believe that her bonus was fair as she had sold twice as many air conditioners as Jack did.This is an example of:

A) expectancy theory
B) equity theory
C) goal setting theory
D) reinforcement theory

Question 8

It is important, when designing, implementing and using a reward strategy, for it to meet individual and organisational needs.Which of the following is NOT an organisational need?

A) use a fair and objective performance management system with regular performance reviews
B) reinforce the key values and the desired culture and behaviours through clear performance indicators
C) motivate employees to continue improving their performance by making sure that high performers will be rewarded for their contributions
D) attract and develop the desired quality mix of employees

Question 9

Job evaluation is a method of ranking jobs in relation to their worth to the organisation.Giles compared the jobs of various employees and based their pay on the relative importance of each job to the organisation.This process aims to ensure:

A) external equity
B) internal equity
C) job satisfaction
D) job motivation

Question 10

The effectiveness of the performance pay process is closely linked to the effectiveness of the performance management process.

Question 11

In order to perform her job, Yvonne needs to have good communication skills.She should have a Bachelor of Business or equivalent degree and should be able to lead and manage projects.When evaluating her job the relative importance of each factor was assessed in comparison to the importance of these factors to performing other jobs.This is an example of:

A) qualitative job evaluation
B) quantitative job evaluation
C) the point system
D) the factor comparison system

Question 12

Team-based rewards should pay all members equally for achieving team goals, even if all members of the team are not contributing equally.

Question 13

A reward is defined as an item (either tangible or intangible) that is received in recognition for behaviour or output.

Question 14

Members of which generation place a much higher value on work-life balance, are particularly career-oriented and money-focused and place a high value on rewards that allow them to maintain more of a work-life balance:

A) Members of Gen Y
B) The baby-boomers
C) members of Gen X
D) none of the above

Question 15

A wage is pay that is paid consistently from period to period and a salary refers to hourly, daily or weekly payment based on the time worked.

Question 16

An employee's assessment of the fairness of his or her compensation, based on the amount received, is based on equity theory.

Question 17

There are four essential building blocks in the total reward management process.They are:

A) pay, performance pay, employee benefits and non-financial rewards.
B) an accurate job description, strategic skills, company knowledge and technical abilities
C) pay, employee benefits, strategic skills and technical skills.
D) non-financial rewards, company knowledge, technical skills and employee benefits.

Question 18

Pay, bonuses and incentives are examples of intrinsic rather than extrinsic rewards.

Question 19

In order to more closely link pay to performance and increase the variability of pay discretionary bonuses, profit sharing schemes and incentives should be used to reward employees.

Question 20

The remuneration and pay of employees should only consider internal organisational factors such as job analyses, the relative worth of employees and performance appraisals.

Question 21

When is performance pay most useful?

Question 22

Pay has undergone a tremendous transformation from rigid and inflexible and tenure-based pay to flexible pay in response to the demands of a dynamic changing environment.Under this new belief about pay what are four key reward features that HR managers need to consider?

Question 23

Organisations can choose to reward employees individually or as members of a group.Why is it useful for organisations to think in terms of using both types of reward?

Question 24

Molly, who works in a sock factory, is paid to pack pairs of socks into boxes.In order to accomplish this she has to fold the socks, place them in plastic bags seal the bags and pack 100 individual pairs into a cardboard box.She works on a piece rate of $20 per 100 socks packed.The more socks she packs the more she is paid.This is an example of:

A) individual incentives
B) group incentives
C) organisation-wide incentives
D) discretionary bonuses

Question 25

Performance pay is most useful when it:

A) uses extrinsic rewards to alter the behaviours and attitudes of employees
B) reduces risk-taking and enforces employee compliance
C) fosters teamwork and unit cohesiveness by paying individuals on teamwork results
D) makes employees more competitive as this is good for employee morale

Question 26

Jenny, who works in a sock factory, is paid to pack pairs of socks into boxes.In order to accomplish this she has to fold the socks, place them in plastic bags seal the bags and pack 100 individual pairs into a cardboard box.The organisation is always looking for ways to operate more efficiently and so rewards employees for implementing cost-saving initiatives.This is an example of:

A) individual incentives
B) group incentives
C) organisation-wide incentives
D) discretionary bonuses

Question 27

Orange Taxi Service, a small taxi company entering the domestic market, advertised jobs for experienced drivers at salaries that were below market value.The organisation promised applicants that as the taxi service grew it was anticipated that it would offer drivers salaries that were well above market value.Which policy was Orange Taxi Service adopting in relation to rewarding employees?

A) lead-lead policy
B) lead-lag policy
C) lag-lead policy
D) lag-lag policy

Question 28

Which contemporary reward strategy best reflects the notion that a person's ability to contribute to high organisational performance reaps a competitive edge?

A) employability pay
B) person-based pay
C) market-determined pay
D) team-based rewards

Question 29

Improved performance may be calculated by using the following equation:

A) improved performance = block 1 + block 2 + block 3
B) improved performance = block 1 + block 2 + block 3 + block 4
C) improved performance = base pay, plus performance pay, plus employee benefits, plus non-financial rewards
D) both b and c

Question 30

Factors external to the organisation may affect the pay strategies used in an organisation.For example, increases in mortgage rates and increases to the costs of goods and services may affect how much employers pay their employees.This is an example of:

A) labour market conditions
B) area market conditions
C) cost of living
D) social values

Question 31

The total remuneration an employee receives for the work performed is a combination of:

A) base pay, plus performance pay, plus employee benefits
B) wages, plus bonuses, plus incentives
C) salaries, plus wages, plus employee benefits
D) base pay, plus bonuses, plus incentives

Question 32

Qualitative job evaluation methods include all of the following except:

A) the points system
B) job grading
C) job ranking
D) job classification

Question 33

There are several internal factors that may influence pay strategies.Name and describe these strategies.

Question 34

An example(s) of incentives that Australian executives would be likely to have include:

A) a percentage change in the value of the company earnings
B) net profit before tax and growth in sales revenue or production
C) only long term incentives
D) only short term incentives

Question 35

Employers can reward employees using intrinsic or extrinsic rewards.Outline the two different methods of reward, contrast the two methods and supply examples of each type of reward method.

Question 36

State the differences that are evident when rewarding employees in generations including Generation Y, Generation X and the baby boomers.