Question 1

Arax Group of Companies (AGC)has a group incentive plan for its employees.Under this plan,the company sets aside a portion of its profits and divides it among employees.Which of the following plans has the company adopted?

Accepted Answer

A frequently used type of group incentive is the profit-sharing plan. Under this kind of plan, a company sets aside a share of its profits earned during a given period, such as a year, and divides these profits among the employees. AGC has adopted a profit-sharing plan.

Question 2

Select the correct statement about wage and salary information of private (nongovernment)workers.

Accepted Answer

In our society, money is considered a private matter, and most people do not like to talk about what they earn. Thus, in private (nongovernment) organizations, employees generally do not know one another's earnings, though supervisors know what their subordinates earn.

Question 3

Profit-sharing plans and gainsharing plans are types of:

Accepted Answer

Profit-sharing plans and gainsharing plans are types of group incentive plans. Organizations today are focusing increasingly on ways to get employees and their supervisors to work together as teams.

Question 4

According to McGregor's Theory Z,_____.

Accepted Answer

Theory Z is a set of management attitudes that emphasizes employee participation in all aspects of decision making. It assumes that Japanese workers are more productive than their U.S. counterparts.

Question 5

Which of the following is a true statement about financial incentives?

Accepted Answer

Payments for meeting or exceeding objectives are known as financial incentives. Financial incentives can be given for acquiring additional skills.

Question 6

People such as independent contractors,seamsters,farm workers,and so on are often paid by:

Accepted Answer

People such as independent contractors, seamsters, farm workers, and so on are often paid by the piecework system. The piecework system pays people according to how much they produce.

Question 7

______ is a set of management attitudes that emphasizes employee participation in all aspects of decision making.

Accepted Answer

Theory Z is a set of management attitudes that emphasizes employee participation in all aspects of decision making. It assumes that Japanese workers are more productive than their U.S. counterparts.

Question 8

A Theory X manager assumes that:

Accepted Answer

Theory X is a set of management attitudes based on the view that people dislike work and must be coerced to perform. A Theory X manager assumes that people wish to avoid responsibility.

Question 9

A financial incentive plan that rewards a team of workers for meeting or exceeding an objective is called a:

Accepted Answer

A financial incentive plan that rewards a team of workers for meeting or exceeding an objective is called a group incentive plan. An organization measures the performance of a work unit against its objectives, and then pays a bonus if the group exceeds the objectives.

Question 10

Employees in a production department may receive a basic wage or salary plus a bonus that consists of a payment for each unit produced.This is called a:

Accepted Answer

Employees in a production department may receive a basic wage or salary plus a bonus that consists of a payment for each unit produced. Thus, an employee might earn
$8.50 or more an hour plus $0.20 for each unit produced. This is called a production bonus system.

Question 11

A Theory Y manager:

Accepted Answer

According to McGregor's Theory Y, working is as natural an activity as resting or playing, and people will work hard to achieve objectives to which they are committed. A Theory Y manager focuses on developing the potential of employees.

Question 12

Which financial incentive pay plan involves companies paying employees for offering ideas on how to cut costs or improve quality?

Accepted Answer

To build employee participation and communication, many companies pay employees for making suggestions on how to cut costs or improve quality. Typically, the suggestion must be adopted or save some minimum amount of money before an employee receives payment.

Question 13

The piecework system:

Accepted Answer

The piecework system pays people according to how much they produce. This method is often used to pay independent contractors, that is, people who are self-employed and perform work for an organization.

Question 14

What compromise have organizations developed to maintain the secrecy of individual salaries yet provide enough information on salary to motivate employees?

Accepted Answer

To motivate employees with the possibility of a raise and a belief that pay rates are fair, an organization must let them know what they can hope to earn. A typical compromise between maintaining privacy and sharing information is for the organization to publish pay ranges. These show the lowest and highest wage or salary the organization will pay an employee in a particular position.

Question 15

_____ is a set of management attitudes based on the view that people dislike work and must be coerced to perform.

Accepted Answer

Theory X is a set of management attitudes based on the view that people dislike work and must be coerced to perform. A Theory X supervisor would adopt an autocratic leadership role, keeping a close eye on employees and looking for occasions when they need to be disciplined to keep them performing adequately.

Question 16

According to McGregor's _____,working is as natural an activity as resting or playing,and people will work hard to achieve objectives to which they are committed.

Accepted Answer

According to McGregor's Theory Y, working is as natural an activity as resting or playing, and people will work hard to achieve objectives to which they are committed. They can learn to seek responsibility and to be creative in solving organizational problems.

Question 17

Which of the following is a true statement about wage and salary information of government workers?

Accepted Answer

In our society, money is considered a private matter, and most people do not like to talk about what they earn. However, government employees' earnings are public information, often published in local papers, because taxpayers ultimately pay their wages and salaries.

Question 18

Rhett,the supervisor of a construction crew,assumes that her employees have little ambition and dislike work.She uses this assumption to micro-manage their work.From this description of Rhett,it can be inferred that she is a:

Accepted Answer

Theory X is a set of management attitudes based on the view that people dislike work and must be coerced to perform. Hence, Rhett is a Theory X manager.

Question 19

Which of the following is a disadvantage of production bonus system?

Accepted Answer

Production department employees may receive a basic wage or salary plus a bonus that consists of a payment for each unit produced. Employees who work faster earn more money under such a system, but the pay system does not necessarily encourage high-quality work.

Question 20

Who among the following is a Theory X manager?

Accepted Answer

Theory X is a set of management attitudes based on the view that people dislike work and must be coerced to perform. Thus, a manager who micromanages his employees is a Theory X manager.

Quiz 11: Motivating Employees

Arax Group of Companies (AGC) has a group incentive plan for its employees.Under this plan,the company sets aside a portion of its profits and divides it among employees.Which of the following plans has the company adopted?

Select the correct statement about wage and salary information of private (nongovernment) workers.