Deck 12: The Organizational Reward System

Question 1

The Davis-Bacon Act was passed in 1931.

Answer 1

True
Explanation: Passed by Congress on March 3, 1931, the Davis-Bacon Act required that contractors and subcontractors on federal construction contracts in excess of $2,000 pay the prevailing wage rates for the locality of the project.

Question 2

Organizational pay equity addresses how profits are divided up within an organization.

Answer 2

True
Explanation: In the context of pay equity, organizational equity concerns how profits are divided up within an organization.

Question 3

Compensation refers to all the intrinsic rewards employees receive in exchange for their work.

Answer 3

False
Explanation: Compensation refers to all the extrinsic rewards employees receive in exchange for their work.

Question 4

Research has shown that for employees who believe their pay exceeds what they think it should be,they often experience feelings of guilt,inequity,and discomfort.

Question 5

The responsibility for coordinating and administering an organization's reward system usually resides with the finance manager.

Question 6

Job satisfaction is synonymous with organizational morale.

Question 7

Job satisfaction has been shown to always result in a high level of job performance.

Question 8

Comparable worth theory is about pay practices that would ostensibly address the practice of undervaluing work primarily performed by women.

Question 9

When a job decreases in attractiveness,an employee is more likely to be tardy,quit,or become dissatisfied with the job itself.

Question 10

The Equal Pay Act was designed to eliminate pay discrimination based solely on sex.

Question 11

Formal rewards provided by organizations are almost always determined by performance.

Question 12

The Fair Labor Standards Act regulates minimum wages and overtime pay.

Question 13

An example of an intrinsic reward is job satisfaction.

Question 14

The role of the human resource manager in the overall organizational reward system is to assist in its design and to administer the system.

Question 15

In the context of pay equity,individual equity addresses the issue of rewarding individual contributions and is very closely related to the pay-for-performance issue.

Question 16

In 1992,the National Labor Relations Board (NLRB)ruled that forbidding employees to discuss their pay constitutes a violation of Title VII of the Civil Rights Act.

Question 17

The Equal Pay Act first went into effect in 1991.

Question 18

There is little doubt that organizations need to do a better job of explaining and communicating their compensation system to employees.

Question 19

In a recent survey on job incentives,money was ranked first.

Question 20

Wage garnishment is illegal in most states.

Question 21

In the absence of strong evidence to the contrary,employees will naturally assume that a pay increase is a(n):

A) cost-of-living or seniority adjustment.
B) performance-based adjustment.
C) ability and effort adjustment.
D) merit adjustment.

Question 22

Which of the following rewards is often provided but not related to performance?

A) Bonus
B) Commission
C) Paid holiday
D) Incentive pay

Question 23

____ is a feeling of being accepted by and belonging to a group of employees through adherence to common goals,confidence in the desirability of those goals,and the desire to progress toward the goals.

A) Job enrichment
B) Motivation
C) Morale
D) Role perception

Question 24

Which of the following is an example of an intrinsic reward?

A) Pay
B) Fringe benefits
C) Physical work environment
D) Job satisfaction

Question 25

Passed by Congress in 1931,the ____ required that contractors and subcontractors on federal construction contracts in excess of $2,000 pay the prevailing wage rates for the locality of a project.

A) Fair Labor Standards Act
B) Equal Pay Act
C) Davis-Bacon Act
D) Walsh-Healey Public Contracts Act

Question 26

____are normally derived from an individual's involvement in certain activities or tasks.Job satisfaction and feelings of accomplishment are examples of this type of rewards.

A) Closed rewards
B) Explicit rewards
C) Intrinsic rewards
D) Open rewards

Question 27

Only a few firms in the textile industry of United Malva,a developing country,have adopted the practice of relating organizational rewards to employee performance.All of the following reasons can be attributed to the limited use of performance-reward practice EXCEPT:

A) union contracts often require that rewards be based on totally objective variables.
B) such practices lack evidence of practical benefits to companies.
C) discipline is required to facilitate such practices.
D) such practices require that performance be accurately measured, and this is not easily accomplished.

Question 28

Juana was recently promoted to the position of a team manager in her organization.Due to the promotion,she feels a sense of accomplishment.This exemplifies how:

A) organizations throughout the globe offer a standard mix of rewards to all employees.
B) managers and employees consider only the tangible benefits associated with a reward.
C) extrinsic rewards can provide the recipient with intrinsic rewards.
D) rewards have to be costly to be valued by employees.

Question 29

In designing a reward system,an organization should:

A) understand what employees value.
B) acknowledge that rewards have to be costly to be valued.
C) maximize direct pay and limit the benefits provided.
D) recognize that a standard mix of rewards fits all employees.

Question 30

The ____,passed by Congress in 1936,requires that organizations manufacturing or furnishing materials,supplies,articles,or equipment in excess of $10,000 to the federal government pay at least the minimum wage for the industry as determined by the secretary of labor.

A) Davis-Bacon Act
B) Lilly Ledbetter Fair Pay Act
C) Fair Labor Standards Act
D) Walsh-Healey Public Contracts Act

Question 31

Paying for performance means:

A) planning employees' salary on the basis of seniority.
B) basing compensation decisions on the quantity and quality of work performed.
C) compensating employees based of the performance of the entire industry.
D) paying all employees market wages.

Question 32

In the context of employee compensation,which of the following is an appropriate compromise on the issue of pay secrecy?

A) Asking employees to sign non-disclosure agreements
B) Disclosing pay ranges for various job levels within an organization
C) Divulging exactly what a particular employee is receiving as compensation
D) Avoiding collective bargaining within an organization

Question 33

In the context of organizational rewards,social relationships are an example of:

A) intrinsic rewards.
B) incentives linked to performance.
C) extrinsic rewards.
D) benefits planned and controlled by the organization.

Question 34

The employees of Nazen Inc.are grouped into six to eight member project teams.In this organization,employee morale will be reinforced by all of the following factors concerning group goals EXCEPT:

A) confidence in desirability of the goals.
B) adherence to common goals.
C) desire to progress toward the goals.
D) intragroup conflicts related to the goals.

Question 35

Rewards employees receive as a result of their employment and position with an organization are called:

A) rebates.
B) incentives.
C) benefits.
D) subsidies.

Question 36

An employee's general attitude toward a job is termed:

A) job dimension.
B) job specification.
C) job satisfaction.
D) job affiliation.

Question 37

Which of the following is true of job satisfaction?

A) Job satisfaction is far more tenuous than happiness.
B) Job satisfaction can contribute to morale.
C) Job satisfaction and motivation are synonymous.
D) Job satisfaction is a byproduct of a group.

Question 38

Neil has been recognized as a satisfied employee by his manager.Which of the following will be true of Neil?

A) It is not necessary that Neil will be a motivated or productive employee.
B) Neil will exhibit high levels of morale.
C) It can be guaranteed that Neil will outproduce other employees.
D) Neil will necessarily be a good employee.

Question 39

The traditional view of managers toward employee rewards was that:

A) they were fully capable of deciding just what rewards the workers need and want.
B) workers alone could assess the accurate value of the rewards.
C) rewards do not necessarily have to be costly to be valued by employees.
D) they should offer a mix of rewards based on employees' preferences and needs.

Question 40

Rewards that are controlled and distributed directly by an organization and are of a tangible nature are known as ____.

A) extrinsic rewards
B) implicit rewards
C) closed rewards
D) open rewards

Question 41

Garnishment of wages is:

A) a requirement of the Equal Pay Act of 1963 that guarantees employees their incentives irrespective of their performance.
B) a legal procedure by which an employer is empowered to withhold wages for payment of an employee's debt to a creditor.
C) commonly used as grounds for dismissal of an employee.
D) among the more popular wage policies as rated by workers.

Question 42

Describe the different components of employee compensation.

Question 43

Discuss job satisfaction and rewards.

Question 44

Discuss the concept of relating organizational rewards to employee performance.

Question 45

List some of the considerations in the selection of organizational rewards.

Question 46

Which of the following acts places restrictions on the employment of individuals between ages 14 and 18?

A) The Minimum Wage and Overtime Act
B) The Fair Labor Standards Act
C) The Davis-Bacon Act
D) The Walsh-Healey Public Contracts Act

Question 47

The Equal Pay Act:

A) eliminates pay differentials based on sex.
B) requires covered employers to pay all employees equal wages.
C) was made to protect employees between the ages 14 and 18.
D) was superseded by the Walsh-Healey Public Contracts Act.

Question 48

Describe some issues that compensation policies must address.

Question 49

The management of True Air Inc.wants to keep the organizational compensation system fair and competitive.This requires the management to ensure that there is pay equity.What dimensions of pay equity should True Air Inc.consider to develop a fair and balanced compensation system?

Question 50

Define the organizational reward system and distinguish between intrinsic and extrinsic rewards.

Question 51

NB Machines Inc.is a unionized organization.Which of the following statements will be true of NB Machines?

A) All employees must sign union contracts that oppose pay based on seniority.
B) All employees will be paid the same wages, irrespective of their positions within the organization.
C) The wage structure will be largely determined through collective bargaining.
D) The wage structure will only accommodate extrinsic rewards, disregarding intrinsic rewards.

Question 52

The law which regulates minimum wages and overtime pay is the:

A) Davis-Bacon Act.
B) Sarbanes-Oxley Act.
C) Fair Labor Standards Act.
D) Lilly Ledbetter Fair Pay Act.

Question 53

The _____ holds that while the true value of jobs to an employer may be similar,some jobs (especially those held by women)are often paid at a lower rate than other jobs (often held by men).

A) comparable worth theory
B) glass ceiling effect
C) central tendency theory
D) leniency effect

Question 54

____ concerns whether employees believe they are being fairly compensated in their jobs.

A) Central tendency
B) Pay equity
C) Role perception
D) Job depth

Question 55

Describe the satisfaction-performance relationship.

Question 56

Under the ____,the statute of limitations on pay discrimination claims begins running whenever a discriminatory pay decision is adopted,when an individual becomes subject to such a decision,and/or whenever the paycheck is issued.

A) Davis-Bacon Act
B) Fair Labor Standards Act
C) Walsh-Healey Public Contracts Act
D) Lilly Ledbetter Fair Pay Act

Question 57

____ is related to what employees in other organizations are being paid for performing similar jobs.

A) Comparable worth
B) External equity
C) Role perception
D) Central tendency

Question 58

Describe the Equal Pay Act (1963).

Question 59

Discuss the concept of pay secrecy.

Question 60

The ____ holds that employees have a strong need to maintain a balance between what they perceive as their inputs to their jobs and what they receive from their jobs in the form of rewards.

A) path-goal theory
B) systems theory
C) comparable worth theory
D) equity theory of motivation