Question 1

Blue-collar and clerical workers who punch a time clock typically are paid a(n):

Accepted Answer

Blue-collar and clerical workers who punch a time clock are typically paid an hourly wage, meaning they earn a set amount of money per hour worked. This is in contrast to salaried workers, who earn a fixed annual amount regardless of the number of hours worked, or those paid by commission or piecework rate, who earn a percentage of the sales they generate or the number of units they produce.

Question 2

A common way of compensating teams is a ___________ system, in which bonuses are based on improvements over a previous performance baseline.

Accepted Answer

The description given in the question perfectly fits the definition of gain-sharing system, where the bonus is provided to the team based on the improvement they achieve over the previous performance baseline. Commission system rewards individuals for achieving certain sales targets, stock options are a form of equity compensation granted to individual employees, and skill-based pay is provided based on the level of expertise an employee possesses.

Question 3

Salespeople often are paid a _______ based on a percentage of their sales.

Accepted Answer

Commission is a type of payment where salespeople are paid a percentage of their sales. This is a common practice in sales jobs where the incentive is to sell as much as possible to earn more money. Salary, royalty, and piece rate are also types of payment but they are not directly related to the amount of sales made.

Question 4

Managers at the Allerton Bank get a performance appraisal one time each year. The bank uses a relatively new evaluation process that provides feedback about performance not only from superiors but also from subordinates and other managers at the same level. This type of evaluation is known as a(n):

Accepted Answer

The evaluation process described is known as a 360-degree review, which involves feedback from multiple sources including superiors, subordinates, and peers at the same level.

Question 5

Which of the following statements about performance appraisals is the most accurate?

Accepted Answer

The discussion phase of a performance appraisal should allow two-way communication. One of the advantages of a performance evaluation is that it not only gives a manager a chance to help an employee improve his or her performance; it also gives the employee an opportunity to make suggestions on how a particular task could be better performed.

Question 6

Unlike a traditional performance appraisal, a 360-degree review:

Accepted Answer

A 360-degree review gathers feedback from multiple sources, including supervisors, peers, subordinates, and sometimes even customers, to give a well-rounded evaluation of the employee's performance. This is different from a traditional performance appraisal, which usually only involves a supervisor evaluating the employee. While the review may include some objective measures of performance, it also incorporates subjective feedback from those who work closely with the employee. A 360-degree review is not intended to compare workers to each other but to provide individualized feedback for each employee.

Question 7

As a project manager for a large construction company, Kevin decided to make the performance appraisal process as painless as possible for his crew. He spent a considerable amount of time creating performance standards he felt were reasonable, and after six months' time, he scheduled individual appointments with each worker to discuss strengths and weaknesses and areas that needed improvement according to the standards he privately set. Some employees were sent to vestibule training, and one even got a promotion with additional compensation. What did Kevin fail to do correctly?

Accepted Answer

While Kevin spent time creating reasonable performance standards, he failed to communicate them to the employees. This is a crucial step in the performance appraisal process, as employees need to be aware of what is expected of them in order to improve their performance. Without clear communication, the appraisal process and the resulting feedback may be confusing and ineffective. Providing a pleasant environment or dismissing employees is not relevant to the issue at hand, and copying the HR department on all results may vary by company policy.

Question 8

For many types of service organizations such as hospitals, banks and airlines, the primary cost of operations is:

Accepted Answer

Compensation of labor is the primary cost of operations for service organizations like hospitals, banks, and airlines, as the majority of their work is done by highly skilled professionals such as doctors, nurses, bankers, and pilots. The cost of labor includes salaries, benefits, and training expenses. While the other options given may also be costs incurred by these organizations, they are not the primary costs of operations.

Question 9

Workers who are paid a __________ receive a fixed compensation weekly, biweekly, or monthly.

Accepted Answer

Workers who receive a salary are paid a fixed amount of money on a regular basis, such as weekly, biweekly, or monthly. This is in contrast to workers who are paid based on commission (a percentage of sales), piece rate (based on the number of units produced), or royalty (based on sales of a particular product or intellectual property).

Question 10

The __________ system is a pay system that is based on job tiers, with each tier having a strict pay range.

Accepted Answer

The Hay System, also called the Hay Guide Chart, is a job evaluation method that allocates points to different levels of responsibility and effort required for each job. The points for each job are then used to determine a specific pay range. This system is widely used in organizations to ensure fair and consistent pay for employees based on their job responsibilities and requirements. The other options (A, B, D) are not pay systems based on job tiers with strict pay ranges.

Question 11

The last step in performance appraisal is to:

Accepted Answer

The last step in performance appraisal is to use the results to make decisions about compensation, promotions, and additional training. This is the final outcome of the appraisal process, and it is essential in ensuring that performance appraisals are used to improve employee performance and help the organization achieve its goals. After the performance appraisal, decisions can be made about employee compensation, promotions, or additional training, which will help improve employee morale, motivation, and productivity.

Question 12

Sick-leave pay, vacation pay, pension plans, and health plans that provide additional compensation to employees are called:

Accepted Answer

Sick-leave pay, vacation pay, pension plans, and health plans are examples of fringe benefits, which are additional compensation provided to employees beyond their regular salary or wages.

Question 13

The two most common compensation methods for teams are:

Accepted Answer

Skill-based pay rewards team members based on the level of skill and knowledge they possess, while gain-sharing incentivizes teams to achieve collective goals and share in the financial benefits of their success. These methods encourage collaboration, teamwork, and a focus on achieving common objectives, which can lead to improved performance and overall team success. The other options (cash bonuses and cashless bonuses, piecework pay and commissions, salaries and capital gains) may not be as effective at motivating and rewarding teams as a whole.

Question 14

A newer form of performance appraisal is called the ___________ because it encourages feedback from all around the employee including those who report to him/her.

Accepted Answer

The 360-degree review is a newer form of performance appraisal that allows feedback from a variety of sources, including those who report to the employee being evaluated. The other options are not commonly used terms for types of performance appraisals.

Question 15

Jorge hates to do performance appraisals of his subordinates because he always struggles when he has to evaluate their performance. In order to make the actual performance evaluations a better experience for all, Jorge should:

Accepted Answer

Setting clear, measurable performance standards and communicating them to subordinates can help Jorge feel more confident in his evaluations and make the process more objective and consistent. This approach also helps employees understand what is expected of them and provides a basis for constructive feedback and improvement. Using a written test (A) may not be relevant or appropriate for all positions, and it is important to evaluate a range of skills and behaviors. A democratic approach (B) may not be practical or effective in all situations, particularly if there are concerns about bias or conflict among employees. Using motion economy (D) is a specific technique for improving efficiency and reducing waste in work processes, but it may not directly address the subjective nature of performance evaluations.

Question 16

The information contained in performance appraisals helps managers:

Accepted Answer

Performance appraisals provide valuable feedback on an employee's strengths and weaknesses, which can be used to inform decisions about promotions, compensation, training, and firing. They are not typically used to write job descriptions, compute the firm's overall performance, or evaluate job applicants.

Question 17

Although the skills learned do not always translate into profits for the company, ______ pay rewards the growth of both the individual and team participation.

Accepted Answer

Skill-based pay rewards individuals for the skills and competencies they acquire, which encourages both personal growth and team participation, even if those skills do not directly translate into immediate profits for the company.

Question 18

The purpose of a performance appraisal is to:

Accepted Answer

The purpose of a performance appraisal is to improve employee performance by providing feedback, setting goals, and identifying areas for improvement. While performance appraisals can also help in legal defense and provide information on company financials, these are not the primary purposes of the appraisal process. Comparing the firm to competitors may be a useful outcome of the appraisal, but it is not the primary purpose.

Question 19

A department manager evaluated the performance of her subordinates as part of a performance appraisal process. If she follows the six-step appraisal process, the next step is:

Accepted Answer

The next step in the appraisal process after the evaluation is to meet with employees to discuss the results. This step allows the manager to provide feedback, clarify any misunderstandings and work with employees to set goals for future performance. This step is important for employee development, motivation and performance improvement.

Question 20

Managers at Wrise & Schein want to make sure their decisions about compensation, promotions and firings are based on sound information that meet legal requirements. One way to achieve this objective would be to:

Accepted Answer

Establishing an effective performance appraisal system would provide managers with the necessary information to make informed decisions about compensation, promotions, and firings. By measuring and evaluating employees' job performance and providing feedback, managers can ensure that their decisions are based on objective and relevant criteria. This would also help managers avoid making decisions based on personal biases or subjective opinions. Additionally, a performance appraisal system would help Wrise & Schein meet legal requirements by ensuring that employment decisions are based on job-related factors and not discriminatory or arbitrary reasons. Outsourcing all decision-making to an outside expert or basing decisions solely on the Hay system would not be as effective or appropriate for a company's internal decision-making process.

Quiz 11: Human Resource Management: Finding and Keeping the Best Employees

Blue-collar and clerical workers who punch a time clock typically are paid a(n) :