Question 1

The awarding of cash bonuses is especially common in the __________ of organizations.
A) lower ranks
B) nonexempt levels
C) union members
D) senior executive ranks
E) contingency workforce

Accepted Answer

Cash bonuses are most commonly awarded to senior executives as a way to incentivize and retain top talent in the organization.

Question 2

Bill is an employee at Burgers-Are-Us. He works hard each and every day so that his picture may be displayed in the restaurant lobby and that he might earn the title "Employee-of-the-Month." Bill is motivated by __________ rewards.
A) expected
B) implied
C) valence
D) extrinsic
E) intrinsic

Accepted Answer

Bill is motivated by extrinsic rewards because he is working for the external recognition and reward of having his picture displayed in the restaurant lobby and earning the title of "Employee-of-the-Month."

Question 3

Which of the following statements is NOT correct with regard to skill-based pay?
A) Although it has popular appeal, it is a fairly slow-growing pay innovation.
B) Skill-based pay compensates people for the mix and depth of skills they possess.
C) A potential advantage of skill-based pay is flexibility.
D) A potential disadvantage of skill-based pay is higher training costs.
E) A potential advantage of skill-based pay is employee cross-training.

Accepted Answer

Skill-based pay has actually been growing rapidly in recent years, so statement A is incorrect. The other statements are all valid advantages or potential disadvantages of skill-based pay.

Question 4

__________ is a pay system that links pay and performance by giving workers the opportunity to share in productivity gains through increased earnings.
A) Skill-based pay
B) Sanctioned pay
C) Performance pay
D) Gain sharing
E) Statutory pay

Accepted Answer

Gain sharing is a compensation strategy that allows employees to benefit from the company's financial performance through bonuses or increased pay, directly linking their earnings to their collective productivity improvements.

Question 5

In a(n) __________, employees are rewarded by being given company stock or by being allowed to purchase it at a price below market value.
A) single payoff
B) employee stock ownership plan
C) gain-sharing plan
D) individualized payoff
E) lump sum increase

Accepted Answer

An Employee Stock Ownership Plan (ESOP) is a program that provides a company's workforce with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership, often at no upfront cost to the employees. ESOPs are used by companies as a corporate finance strategy and also to align the interests of their employees with those of the company's shareholders.

Question 6

Jason works as a social worker at a local hospital. He loves his job and derives great satisfaction from feeling as though he has helped others and made a difference in the community. Jason is driven by __________.
A) unexpected rewards
B) performance-contingent pay
C) gain sharing rewards
D) extrinsic motivation
E) intrinsic motivation

Accepted Answer

Jason's satisfaction from helping others and making a difference indicates that he is driven by intrinsic motivation, which refers to doing something because it is inherently interesting or enjoyable, not for some separable consequence.

Question 7

All of the following statements about profit sharing are true EXCEPT that:
A) profit sharing is somewhat similar to gain sharing.
B) profit sharing rewards individuals according to some measure of organizational performance.
C) profit-sharing plans do not reward employees for specific productivity gains.
D) profit-sharing plans reward employees based on overall organizational profits.
E) profit-sharing plans adversely impact cooperation and teamwork.

Accepted Answer

Profit-sharing plans are designed to reward employees based on the overall profits of the organization, which can actually enhance cooperation and teamwork among employees. They are not known to adversely impact these aspects.

Question 8

Which of the following are considered advantages of skill-based pay?
A) Flexibility
B) Employee cross-training
C) Fewer supervisors
D) Willingness to take on self-management responsibilities
E) A reduction in compensation costs

Accepted Answer

The answer of Which of the following are considered advantages...

Question 9

All of the following statements about gain sharing are true EXCEPT that:
A) gain-sharing plans decrease personal responsibility.
B) gain-sharing plans offer workers a share of any increase in total organizational productivity.
C) gain sharing increases work motivation because of pay-for-performance incentives.
D) with gain sharing, employees have a greater sense of personal responsibility for making performance contributions to the organization.
E) gain sharing encourages workplace cooperation and teamwork.

Accepted Answer

Gain-sharing plans are designed to increase personal responsibility by aligning individual efforts with organizational performance, contrary to the statement that they decrease personal responsibility. These plans typically encourage teamwork, enhance motivation through performance-based incentives, and offer employees a share of productivity gains, thus increasing their sense of personal responsibility and contribution to the organization's success.

Question 10

Although research supports the logic and theoretical benefits of merit pay, it also indicates that __________.
A) human resource specialists are necessary to administer merit pay plans
B) employees are overpaid for the jobs they perform
C) merit system cannot discriminate between high and low performers
D) the implementation of merit pay plans is not easy
E) managers believe that merit pay plans properly reflect employee productivity

Accepted Answer

The correct answer is D because research indicates that while merit pay has theoretical benefits, implementing these plans in practice is challenging due to various factors such as defining and measuring performance accurately, ensuring fairness, and managing employee perceptions and reactions.

Question 11

Since stock prices can fall as well as rise, there is a risk associated with respect to __________ and that risk must be considered when evaluating the motivational value of such pay systems.
A) merit pay systems
B) employee stock ownership plans
C) lump sum increases
D) lump sum payments
E) fringe benefit systems

Accepted Answer

Employee stock ownership plans (ESOPs) directly link compensation to the company's stock price, making them subject to market fluctuations. This introduces a risk for employees, as their compensation can decrease if the stock price falls. Other options like merit pay, lump sum increases/payments, and fringe benefits do not inherently fluctuate with the stock market.

Question 12

__________ rewards employees in some proportion to changes in organizational profits.
A) A merit pay plan
B) A skill-based pay
C) A gain-sharing plan
D) A profit-sharing plan
E) A profit plan

Accepted Answer

A profit-sharing plan rewards employees based on changes in organizational profits, distributing a portion of the profits to employees.

Question 13

__________ is a system that rewards people for acquiring and developing expertise in job-relevant abilities.
A) Entitlement pay
B) Gain-sharing pay
C) Merit pay
D) Skill-based pay
E) Expert pay

Accepted Answer

Skill-based pay is a compensation system that rewards employees for acquiring and developing job-relevant skills and knowledge, rather than for job title or position.

Question 14

All of the following are steps in a typical sequence of performance management EXCEPT:
A) identifying and setting clear and measurable performance goals.
B) assigning people into the roles required to perform job responsibilities.
C) taking performance measurements to assess progress.
D) providing feedback and coaching on performance results.
E) using performance assessment for human resource management decisions.

Accepted Answer

Assigning people into the roles required to perform job responsibilities is typically part of the recruitment and selection process, not the performance management process. Performance management focuses on setting goals, measuring performance, providing feedback, and using assessments for decisions after roles have been assigned.

Question 15

Merit pay is an attempt to make pay contingent upon __________.
A) tenure in the organization
B) specific competencies
C) a willingness to acquire and develop job-related skills
D) performance
E) years of experience in the industry

Accepted Answer

Merit pay is an attempt to make pay contingent upon performance, which means that employees are rewarded based on their individual performance at work. The better they perform, the more they are paid in terms of merit pay.

Question 16

The research of Lawler generally concludes that __________.
A) Americans believe that they are paid more fairly than workers in other countries
B) pay must be combined with fringe benefits to create a significant total compensation package for employees
C) pay serves as a motivator when high levels of job performance are viewed as the path through which high pay can be achieved
D) managers do not believe that they pay their workers enough money
E) workers do not feel that they are paid fairly

Accepted Answer

Lawler's research concludes that pay serves as a motivator when employees see a clear link between their job performance and their compensation. This emphasizes the importance of perceived fairness and transparency in pay structures, where high performance is rewarded with higher pay.

Question 17

Intrinsic motivation __________.
A) is the basis of performance-contingent pay
B) is exemplified by symbolic tokens of accomplishment such as posted award certificates
C) refers to positively valued work outcomes that are given to an individual or group
D) do not require the participation of another person or source in the work setting
E) refers to tangible inducements that are provided by some other person or source in the work setting

Accepted Answer

Intrinsic motivation comes from within the individual, driven by personal interest or enjoyment in the task itself, and does not depend on external rewards or the participation of others.

Question 18

__________ refers to the tangible and external inducements that drive someone to do a task.
A) Expectancy
B) Implied reward
C) Valence
D) Extrinsic motivation
E) Intrinsic reward

Accepted Answer

Extrinsic motivation refers to the external rewards or incentives, such as money, grades, or praise, that motivate individuals to perform tasks or engage in activities. These rewards are tangible and come from an external source, in contrast to intrinsic motivation, which comes from within the individual.

Question 19

Skill-based pay plans reward people __________.
A) based on their knowledge and education
B) based on their experience
C) for the mix and depth of skills they possess
D) for the particular job assignment they hold
E) for maximizing the utilization of their skills

Accepted Answer

Skill-based pay plans are designed to reward employees for the variety and depth of skills they can bring to their work, encouraging them to develop a broader range of abilities.

Question 20

Which of the following statements does NOT accurately describe what is needed to make a merit pay plan work well?
A) Merit pay should be based on realistic and accurate measures of individual work performance.
B) Merit pay should create a belief among employees that they must perform at high levels to achieve high pay.
C) Merit pay should be higher for those employees whom the manager personally favors.
D) Merit pay should clearly differentiate between high and low performers in the amount of pay received.
E) The "merit" aspects of a pay increase must be clearly and contingently linked with the desired performance.

Accepted Answer

Merit pay should be based on objective measures of performance rather than personal favoritism to ensure fairness and effectiveness.

Quiz 5: Motivation

The awarding of cash bonuses is especially common in the __________ of organizations.

Bill is an employee at Burgers-Are-Us. He works hard each and every day so that his picture may be displayed in the restaurant lobby and that he might earn the title "Employee-of-the-Month." Bill is motivated by __________ rewards.

Which of the following statements is NOT correct with regard to skill-based pay?

__________ is a pay system that links pay and performance by giving workers the opportunity to share in productivity gains through increased earnings.

In a(n) __________, employees are rewarded by being given company stock or by being allowed to purchase it at a price below market value.

Jason works as a social worker at a local hospital. He loves his job and derives great satisfaction from feeling as though he has helped others and made a difference in the community. Jason is driven by __________.

All of the following statements about profit sharing are true EXCEPT that:

Which of the following are considered advantages of skill-based pay?

All of the following statements about gain sharing are true EXCEPT that:

Although research supports the logic and theoretical benefits of merit pay, it also indicates that __________.

Since stock prices can fall as well as rise, there is a risk associated with respect to __________ and that risk must be considered when evaluating the motivational value of such pay systems.

__________ rewards employees in some proportion to changes in organizational profits.

__________ is a system that rewards people for acquiring and developing expertise in job-relevant abilities.

All of the following are steps in a typical sequence of performance management EXCEPT:

Merit pay is an attempt to make pay contingent upon __________.

The research of Lawler generally concludes that __________.

Intrinsic motivation __________.

__________ refers to the tangible and external inducements that drive someone to do a task.

Skill-based pay plans reward people __________.

Which of the following statements does NOT accurately describe what is needed to make a merit pay plan work well?