Deck 6: Motivating Employee Performance Through Rewards

Question 1

All of the following statements are true about MBO EXCEPT:

A)It is a collaborative goal-setting process.
B)Goals systematically cascade down through the organization.
C)It is the same as the 360-degree feedback system.
D)Top managers establish overall goals.
E)The manager acts as a counselor.

Answer 1

C

Question 2

As a new human resources intern, Michael was interested in learning about 360-degree feedback. Which of the following reasons explains why it is very beneficial to managers?

A)Managers receive a much wider range of feedback information than if they had conducted the appraisal on their own.
B)This type of feedback is performed more frequently than traditional methods of feedback.
C)This form of feedback is the easiest to administer and is the most cost-efficient form of appraisal.
D)It helps managers to be more aware of their employees' day-to- day performance.
E)The feedback focuses on objective performance criteria.

Answer 2

A

Question 3

Goal-setting theory has been tested in a variety of settings. Which of the following statements is NOT true regarding the findings of these studies?

A)Goal setting is an important way for managers to convert motivation into improved job performance.
B)Goal difficulty and goal specificity are closely related to performance.
C)Little is currently known about how individuals accept and become committed to goals.
D)Goal setting may focus too much on the short-term at the expense of long-term issues.
E)Goals set for organizations as a whole are typically more effective than goals set for individual employees.

Answer 3

E

Question 4

The research of Edwin Lock assumes that behavior is a result of

A)the requirements established by the organization.
B)the organizational culture.
C)conscious goals and intentions.
D)the internal organizational forces to increase profits.
E)its consequences.

Question 5

Two of the most important issues regarding how to conduct a performance appraisal are

A)whether the appraiser takes a judgmental or developmental orientation and whether pay is linked to performance.
B)where the appraisal takes place and who is present at the time.
C)who does the appraisal and the frequency of the appraisal.
D)how long the appraisal lasts and how often it occurs.
E)whether the appraisal uses past or current information and whether one or many raters are used.

Question 6

Which of these is NOT a problem identified with the 360-degree feedback system?

A)The manager must have a thick skin.
B)Some comments may be threatening.
C)It gives a wider range of performance-related feedback.
D)Must focus on constructive criticism.
E)The manager may hear some personal comments on sensitive topics.

Question 7

Which of the following is NOT part of the performance measurement process?

A)Comparing an employee's work behavior with previously established standards
B)Communicating the results to the employee
C)Rewarding the employee according to his or her performance
D)Evaluating an employee's work behavior by measurement
E)Documenting the results

Question 8

Which of these describes self-efficacy? It refers to the extent to which an individual

A)is willing to expend effort in order to attain a goal.
B)believes he or she can accomplish goals even if he or she failed to do so in the past.
C)is personally interested in reaching a goal.
D)accepts a goal as his or her own.
E)believes that a goal is worthwhile.

Question 9

Ellen is an external manager at City Place Coffee. She has only limited knowledge of her employee's performance. What can Ellen do to avoid measurement problems?

A)Prevent the employee from working with the supervisor in the appraisal
B)Avoid allowing employees to evaluate themselves
C)Use a multiple-rater system
D)Perform the evaluation with the information currently available to the supervisor
E)Plan training programs to improve observation and categorization skills

Question 10

Information from performance measurement is commonly used as a basis for all of the following functions EXCEPT

A)to guide recruiting, training, and development programs.
B)to forecast future human resource needs.
C)to plan management succession.
D)to decide and justify reward allocations.
E)to analyze competition.

Question 11

Goals are used in organizations for two primary purposes. Goals are an effective control device and

A)means of communicating with employees.
B)provide a useful framework for managing motivation.
C)training tool.
D)means of increasing individual self-efficacy.
E)social learning mechanism.

Question 12

Which of these defines goal specificity?

A)The extent to which a goal is challenging and requires effort
B)Defining how a goal will affect the total organization
C)A general "do your best" attitude
D)Defining a general goal
E)The clarity and precision of a goal

Question 13

Which of the following is true about 360-degree feedback?

A)Very few companies have adopted 360-degree systems.
B)Traditional evaluations are usually more effective than 360-degree systems.
C)Evaluators in a 360-degree system tend to focus on objective performance.
D)Managers are likely to hear some personal comments on sensitive topics.
E)Using 360-degree feedback has several key advantages, and virtually no disadvantages.

Question 14

The primary use of performance appraisal information is to

A)provide job performance feedback.
B)develop training and development programs.
C)provide support for human resource decision making.
D)provide human resource planning information.
E)allocate organizational rewards.

Question 15

Goal specificity has been shown to be consistently related to

A)job satisfaction.
B)company image.
C)performance.
D)social responsibility.
E)ethical behavior.

Question 16

Goal ____ is defined as the extent to which a person is interested in reaching a goal.

A)importance
B)commitment
C)acceptance
D)attachment
E)specificity

Question 17

Actual performance, according to goal-setting theory, is determined by the interaction of

A)organizational support, goal-directed effort, and individual abilities.
B)availability of resources, employee attitudes, and goal clarity.
C)goal-directed effort, employee motivation, and goal specificity.
D)goal difficulty, employee attitudes, and organizational support.
E)goal importance, goal attachment, and goal specificity.

Question 18

Which of the following statements about goal difficulty is NOT true?

A)The goal should be challenging.
B)The goal should require effort.
C)The goals must be set by top management.
D)The goal should not be too difficult.
E)The goal should be attainable.

Question 19

Expansions on goal-setting theory argue that goal-directed effort is a function of four goal attributes: goal acceptance, goal commitment, goal specificity and

A)goal clarity.
B)goal prevalence.
C)goal importance.
D)goal difficulty.
E)goal attainability.

Question 20

Samuel is interested in the developmental orientation of a performance measurement. Which of these statements would you offer him?

A)A developmental orientation entails a focus on past performance.
B)Developmental performance measurement focuses on the employees' growth since the last appraisal.
C)Developmental performance appraisals are used to determine wages and pay raises.
D)Performance appraisals with a developmental orientation provide information for future performance improvement.
E)A developmental orientation helps managers punish undesirable behaviors and demote low-performing employees.

Question 21

Cynthia was one of many employees who received a generous Christmas bonus, which carried ____ value for Cynthia.

A)symbolic
B)tangible
C)surface
D)compensation
E)intangible

Question 22

The organization's compensation structure should be

A)equitable.
B)open to the public.
C)established outside of legal constraints.
D)below the external labor market.
E)be based on interview data.

Question 23

The National Labor Relations Board (NLRB) recently upheld a decision regarding pay secrecy that states that

A)discussion of salaries is not a right protected under the National Labor Relations Act.
B)employers cannot enforce a rule that forbids employees from discussing their salaries.
C)state governments may not publicize the salaries of their employees.
D)employers must keep all salary information secret.
E)employers but not employees may openly discuss salary information.

Question 24

For evaluating individual performance, one of the most popular methods involves

A)graphic rating scales.
B)bell curve ratings.
C)forced distributions.
D)rankings.
E)paired comparisons.

Question 25

Jermaine was recently promoted to the international position based in Japan. He should understand that in a highly collectivist culture such as Japan, performance appraisals almost always need to be focused more on

A)individual effort and results.
B)group performance and feedback.
C)competitive analysis with coworkers.
D)accurate collection of information.
E)360-degree feedback.

Question 26

Which of the following is an example of an incentive program?

A)Salary
B)Gain-sharing
C)Hourly rate
D)Wages
E)Benefits

Question 27

The courts and Equal Employment Opportunity guidelines have mandated that performance measurements be based on

A)age and sex.
B)race and national origin.
C)industry standards.
D)job-related criteria.
E)competitive benchmarks.

Question 28

Sonia, Raj, and Jessica, three employees out of sixty at ABC Telecom, are given a small reward to show that they are appreciated. The reward carries a(n) ____ value.

A)symbolic
B)tangible
C)surface
D)compensation
E)intangible

Question 29

An organization provides, in exchange for employee contributions, rewards such as pay and insurance benefits. These kinds of rewards are combined to create

A)compensation packages.
B)intangible compensation.
C)symbolic rewards.
D)system rewards.
E)resource exchanges.

Question 30

One of the most popular methods for evaluating the performance of two or more employees involves

A)graphic rating scales.
B)essays.
C)checklists.
D)diaries.
E)rankings.

Question 31

Why are flexible reward systems becoming an increasingly popular form of compensation systems?

A)The benefits of the flexible approach outweigh the costs, and employees may develop strong loyalty and attachment to an employer.
B)The flexible reward system allows the organization to trade off salary increases for benefit increases as ways of rewarding the employee.
C)Flexible reward systems allow the organization to standardize the benefits package for all employees.
D)Organizations get fewer benefits for their dollar than they do with standard approaches, but their employees are more satisfied.
E)Flexible systems require less administrative time to develop and maintain than do conventional approaches.

Question 32

Which of the following best describes a reward system that involves employees in its design and administration?

A)Open pay system
B)Bonus systems
C)Participative pay system
D)Merit pay plans
E)Flexible reward system

Question 33

All of the following are true about employee benefits except

A)some organizations pay the entire cost of benefits.
B)offering benefits became a standard component of compensation during World War II.
C)some employees demand benefits through union bargaining.
D)the burden of providing employee benefits is easier for firms in the United States compared to organizations in other countries.
E)organizations are required by law to offer certain benefits.

Question 34

Organizations typically conduct performance appraisals

A)when the employee asks for one.
B)when the manager asks for one.
C)quarterly.
D)once a year.
E)more frequently for older employees than for younger ones.

Question 35

An expatriate's compensation package could potentially consist of six components. Which of the following would not be one of the these components?

A)Income to cover taxes and Social Security payments in the Unites States.
B)Pays an amount adequate to the employee's current consumption levels in the Unites States.
C)Could receive semi-annual pay raises based upon performance.
D)The company pays excess foreign costs.
E)The company could pay an additional foreign service premium or hardship allowance.

Question 36

Which of the following ties a worker's earnings to the number of units produced?

A)Merit pay plan
B)Gain-sharing program
C)Profit-sharing program
D)Employee stock option plan
E)Piecework program

Question 37

The choice of which behaviors to reward is a function of the

A)compensation system.
B)performance measurement system.
C)performance management system.
D)managerial system.
E)total quality management system.

Question 38

_____ distributes a portion of the company's profits to all employees at a predetermined rate.

A)Merit pay plan
B)Gain-sharing program
C)Profit-sharing program
D)Employee stock option plan
E)Piecework program

Question 39

What is the likely impact of perquisites on the employees who receive them?

A)A lowered sense of commitment toward the organization
B)An elevated sense of status in the organization
C)A perceived leveling out of special privileges among employees
D)Increased turnover due to lower restrictions on travel
E)Reduced job satisfaction since perquisites can be taxed

Question 40

Plans in which employees can earn additional compensation in return for certain types of performance are called

A)performance management systems.
B)performance appraisal systems.
C)incentive systems.
D)compensation packages.
E)base pay.

Question 41

Among the key purposes of performance measurement include reward allocation and employee feedback.

Question 42

Fortunately, in most measurement systems, the employee's top manager is his or her supervisor.

Question 43

Performance measurement with a judgmental orientation focuses on the future and use of information from evaluations to improve performance.

Question 44

Organizations can usually benefit from conducting performance appraisals on an annual basis.

Question 45

A performance management system in which people receive performance feedback from those on all sides of them in the organization refers to

A)360-degree feedback.
B)traditional evaluations systems.
C)single rater objective performance feedback.
D)personal comments system.
E)rolling feedback system.

Question 46

The _____ value of a reward to an employee is its subjective and personal meaning or worth.

A)symbolic
B)tangible
C)surface
D)tradeabletradable
E)intangible

Question 47

The _____ value of a reward to an employee is its objective meaning or worth.

A)symbolic
B)tangible
C)surface
D)tradeabletradable
E)intangible

Question 48

For difficult goals to motivate behavior, they must be set at a highest unachievable level so that employees work really hard and improve their performance and in turn organizational outcomes.

Question 49

Individual performance measurement methods include behaviorally anchored rating scales and checklists.

Question 50

Graphic rating scales and essays are considered to be comparative evaluation methods.

Question 51

In the United States, appraising performance at the individual level is acceptable.

Question 52

A relatively structured performance management technique that identifies financial and nonfinancial performance measures and organizes them into a single model is called

A)360-degree feedback.
B)forced distribution..
C)paired comparison.
D)the balance scorecard..
E)ranking method.

Question 53

The limiting aspect of a 360-degree feedback is that it includes evaluations from a boss and peers, but not from subordinates.

Question 54

A performance management system comprises the processes and activities involved in performance appraisals.

Question 55

Individual behavior, according to the goal-setting theory, results from conscious goals and intentions.

Question 56

Goal difficulty is the clarity and precision of a goal.

Question 57

To attract, retain, and motivate qualified employees is the purpose of reward systems in most organizations.

Question 58

Goals are used for two purposes: as a framework for managing motivation and as mechanism for accomplishing organizational goals with individual goals.

Question 59

Which of these is at the core of the balanced scorecard approach to performance management?

A)360-degree feedback
B)Forced distribution
C)Paired comparison.
D)Vision and strategy
E)Ranking

Question 60

To benefit from 360-degree feedback, a manager must have a thick skin.

Question 61

In organizations, the behaviors that are rewarded are the ones that tend to recur.

Question 62

___________ is essentially a collaborative goal-setting process through which organizational goals systematically cascade down through the organization.

Question 63

Comparing people's _____________ performances with their goals can be an effective way to monitor the organization's long-run goals.

Question 64

Research finds that a policy of pay secrecy improves workers' motivation.

Question 65

Most managers initially focused on ________ as the basic reward offered to employees.

Question 66

An organization's social security, unemployment, and workers' compensation contributions are set by law.

Question 67

The surface value of a reward to an employee is its objective meaning of worth.

Question 68

In most appraisal systems, the employee's primary evaluator is the _________.

Question 69

____________ and his associates most clearly established the utility of goal-setting theory in a motivational context.

Question 70

Base pay includes such compensation as gain-sharing and profit-sharing programs.

Question 71

An organization that uses a flexible reward system may allow employees to choose the combination of benefits they prefer, but not how they receive their pay.

Question 72

A(n) __________ system comprises the organizational processes and activities involved in performance measurement.

Question 73

Appraisals with a(n) ________ orientation focus on the future and use information from evaluations to improve performance.

Question 74

_________ provide a useful framework for managing motivation.

Question 75

Expatriates should be paid differently from their domestic equivalent workers when there are cost-of-living differences in their host areas.

Question 76

Bonus systems and piecework are considered to be incentive-based compensation systems.

Question 77

Interestingly, the IRS has begun to tax some perquisites given to employees.

Question 78

If a manager determines a wage increase by comparing an employee's current behavior with her or his past behavior, the manager is conducting a performance appraisal with a(n) __________ orientation.

Question 79

The extent to which a person recognizes a goal as his or her own is called goal __________.

Question 80

To motivate employees, employee stock option plans offer employees stock in the company at no charge.