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:

Accepted Answer

Linda's belief that her effort will lead to a reward is a key principle of expectancy theory. This theory suggests that individuals are motivated by their belief that their efforts will lead to certain outcomes or rewards. In other words, Linda is motivated because she believes that her hard work will result in a desirable outcome.

Question 2

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

Accepted Answer

A salary is a fixed payment made to an employee on a regular basis, usually monthly or fortnightly. This payment is not influenced by the number of hours worked or the quality of work done by the employee. Therefore, Jamie's payment of $1516 after taxes represents a salary.

Question 3

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

Accepted Answer

Annie is paid an hourly rate, which is a common feature of a wage system. In a wage system, employees are paid for the number of hours they work and not a fixed salary or bonus. Hence, choice C, wage, is the most appropriate answer.

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.

Accepted Answer

A hierarchical reward management system may not be suitable for fostering performance improvement through multi-skilling and flexibility as it may discourage employees from acquiring new skills if there is no clear path for advancement. A flexible and inclusive reward system that recognises and rewards employees for their efforts in acquiring new skills may be more effective in promoting performance improvement.

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.

Accepted Answer

Group incentives are often tied to productivity targets, and rewards are given when the team exceeds those targets. However, it is not common to deduct a percentage of performance loading if targets are not met for the group as a whole. Individual performance may be evaluated separately for potential consequences.

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?

Accepted Answer

The answer of As employees are promoted in GDY Corporation...

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:

Accepted Answer

The situation described is an example of equity theory because Candy is comparing her bonus to the bonus given to Jack, and she believes that the ratio of her efforts (selling twice as many air conditioners) to rewards (her bonus) is not equivalent to the ratio of Jack's efforts to rewards. She perceives the situation as inequitable, and her motivation may be affected by this perception. Expectancy theory focuses on the relationship between effort, performance, and outcomes; goal setting theory emphasizes the importance of setting challenging and specific goals; and reinforcement theory is about the consequences of behavior that may increase or decrease its frequency.

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?

Accepted Answer

The correct answer is A because a fair and objective performance management system with regular performance reviews is an individual need, not an organizational need.

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:

Accepted Answer

Job evaluation is used to establish internal equity by measuring the value of different jobs within the organization. It ensures that similar jobs are compensated equally, which helps prevent dissatisfaction and inequality amongst employees. Option A is incorrect because external equity is about ensuring pay comparisons with other employers in the industry. Options C and D are incorrect because while job satisfaction and motivation may be influenced by fair pay, they are not the primary focus of job evaluation.

Question 10

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

Accepted Answer

The performance pay process involves linking an employee's pay to their performance, which is measured through the performance management process. The effectiveness of the performance management process directly affects the accuracy and fairness of performance assessments, which in turn affects the fairness and effectiveness of performance pay. Therefore, the effectiveness of the two processes is closely linked.

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:

Accepted Answer

This is an example of the factor comparison system, where the relative importance of different factors (such as communication skills and education level) is assessed for a particular job and compared to other jobs to determine its value.

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.

Accepted Answer

The answer of Team-based rewards should pay all members equally...

Question 13

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

Accepted Answer

This is the correct definition of a reward.

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:

Accepted Answer

The answer of Members of which generation place a much...

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.

Accepted Answer

A salary is usually a fixed amount paid to employees on a regular basis, regardless of the number of hours worked, while a wage is typically a pay rate based on the number of hours 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.

Accepted Answer

Equity theory proposes that employees compare their inputs (e.g. effort, skills) and outcomes (e.g. compensation, rewards) to that of others in similar positions. If they perceive themselves as receiving less than others, they may feel unfairly treated, leading to lower job satisfaction and motivation. Thus, an employee's assessment of the fairness of his or her compensation is based on equity theory.

Question 17

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

Accepted Answer

The four essential building blocks in total reward management are pay (base salary or hourly wages), performance pay (bonuses, commissions or incentives), employee benefits (health insurance, retirement plans) and non-financial rewards (recognition, career development opportunities, work-life balance). Option A lists all of these building blocks correctly. Option B lists skills and knowledge required for a job, while option C and D only list some of the building blocks and omit others.

Question 18

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

Accepted Answer

Pay, bonuses and incentives are examples of extrinsic rewards, which are external rewards given to employees in order to motivate them. Intrinsic rewards, on the other hand, are internal rewards that come from within the individual, such as a sense of accomplishment or pride in one's work.

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.

Accepted Answer

By implementing bonuses or profit-sharing schemes, employers can align the financial interests of employees with the success of the company. This encourages employees to work harder and perform better, knowing that their efforts will directly affect their compensation. Therefore, pay becomes more closely linked to performance and can increase in variability.

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.

Accepted Answer

While internal factors such as job analysis, relative worth, and performance appraisals can be considered in determining employee remuneration, external factors such as industry standards, competition, and the labour market should also be taken into account.

Quiz 11: Strategic Reward Management