Question 1

Regarding team evaluations and rater biases, of the following descriptions, what is the best definition of the primacy and recency bias?
A) People want to hold the same opinion of someone, as does the rest of the group.
B) People are overly affected by their first impression or most recent interaction with a person.
C) People feel a strong obligation to return favorable treatment to a person who has shown them favorable treatment.
D) People tend to perceive people's behaviors as reflecting their personality rather than temporary, situational factors.

Accepted Answer

Primacy bias refers to the tendency to form an overall impression of an individual based on the first information received about them, while recency bias refers to the tendency to be strongly influenced by the most recent information received about an individual.

Question 2

When using incentives to motivate a team, the team can respond with unintended negative behaviors such as __________.
A) social loafing and free riding.
B) severely pressuring other team members to decrease performance.
C) a decrease in team competitiveness.
D) performance gains and increased communication.

Accepted Answer

Using incentives can lead to social loafing and free riding as team members may feel the rewards are not worth the effort or rely on others to do the work while still receiving the benefit. This may lead to a decrease in overall team performance and productivity. While there may still be performance gains and increased communication, the negative behaviors of social loafing and free riding can outweigh these benefits. Severely pressuring other team members to decrease performance and a decrease in team competitiveness are not common unintended negative behaviors when using incentives to motivate a team.

Question 3

People feel a strong social obligation to return favors. Thus a potential flaw of 360-degree programs is that they are subject to collusion: "I'll give you a good rating if you give me one." This situation is an example of:
A) experience effect.
B) bandwagon bias.
C) reciprocity bias.
D) conflict of interest bias.

Accepted Answer

The situation described in the question is an example of reciprocity bias, where people feel obliged to reciprocate favors. In this case, individuals may collude to give positive ratings to each other even if they don't deserve it, in return for getting a positive rating themselves. This bias can undermine the validity and reliability of 360-degree feedback programs.

Question 4

When a team member receives insight that changes their perspective about a manager's business decision, such as the business reasons and considerations behind a manager's ultimate decision to pursue a certain course of action, this team member:
A) will likely find it difficult to take on the uninformed perspective of a coworker who was not privy to the options the manager weighed when considering what decision she was going to make.
B) will not tolerate to talk with any other team member who is uninformed about the reasons behind the manager's decision.
C) will feel morally superior to those team members who are still uninformed about the manager's reasons for the decision.
D) avoids social interaction with other team members who were also privy to this information.

Accepted Answer

The team member now has a more informed perspective, and it may be difficult for them to revert to an uninformed perspective. However, this does not necessarily imply that they will feel morally superior or avoid social interaction with other team members who were not privy to the same information. They may still be willing to discuss and explain the manager's decision to these team members.

Question 5

All of the following are potential problems with 360-degree feedback EXCEPT:
A) getting enough sources of feedback.
B) some systems can be abused or compromised if members make side-deals to rate one another favorably.
C) team members may be unpopular for reasons other than performance.
D) raters are guaranteed anonymity, and because they don't fear retaliation, they are overly critical in their evaluations.

Accepted Answer

The statement "raters are guaranteed anonymity, and because they don't fear retaliation, they are overly critical in their evaluations" is not typically considered a potential problem with 360-degree feedback. In fact, many organizations use anonymity as a way to encourage honest and constructive feedback. Choices A, B, and C are all potential issues with 360-degree feedback, including difficulties in getting enough sources of feedback, the potential for abuse or compromise within the system, and the possibility that team members may be rated poorly for reasons unrelated to their performance.

Question 6

Recognition is considered one type of team-based pay. Recognition is best described as an):
A) opportunity to indirectly point out the worst performers in a team.
B) monetary award of at least $2500.
C) percentage of corporate profits given to the highest performing teams on an annual basis.
D) one-time award for a team performing well beyond expectations, or for completing a project, program, or product.

Accepted Answer

Recognition is a type of team-based pay that involves a one-time award for a team that has performed exceptionally well, gone beyond expectations, or completed a project or program successfully. It does not necessarily involve monetary compensation or a percentage of corporate profits, and it should not be used to point out poor performers in a team.

Question 7

A situation in which people believe they are more talented and contribute more than others give them credit for illustrates which type of bias?
A) Social comparison bias
B) Egocentric bias
C) Fairness bias
D) Intrinsic interest bias

Accepted Answer

This situation illustrates egocentric bias, as individuals believe they are more talented and contribute more than others give them credit for, which is a reflection of an overemphasis on one's own abilities and self-importance.

Question 8

The 360-degree feedback method is best described as:
A) an employee is rated by others each day of the year for a full year.
B) an employee is evaluated on 360-data-points by a group of upper management directors who generally have no day- to-day contact with the employee.
C) multiple raters from different levels and vantage points evaluate an employee.
D) an employee evaluates his or her own performance, and compares it to the standards put forth by the company at large.

Accepted Answer

The 360-degree feedback method involves multiple raters from different levels and vantage points evaluating an employee. This can include managers, peers, subordinates, and even clients or customers. The feedback is used to provide a more comprehensive and well-rounded view of an employee's performance and can help identify areas of strength or development. Option A is incorrect as it suggests continuous evaluation, which is not necessarily the case with 360-feedback. Option B is incorrect as it suggests only upper management is involved, which is not always the case. Option D is incorrect as it involves self-evaluation, which is not a key aspect of the 360-feedback method.

Question 9

The extrinsic incentives bias is best described as the tendency for people to:
A) care more about short-term gain than long-term interest.
B) care more about what others think of them than their own self-view.
C) believe that others are motivated more by money than by the meaning of the work.
D) believe that others are self-motivated when, in fact, they are free riders.

Accepted Answer

The extrinsic incentives bias refers to the tendency to believe that others are motivated more by money than by the meaning of the work. This bias can lead people to over-rely on monetary incentives when motivating others, and underestimate the importance of intrinsic motivation in driving behavior.

Question 10

A student feels less proud of an "A" they received on a difficult test when they learn that everyone in the class received an "A" on the test. This type of ratee bias is attributed to:
A) listening to advice bias.
B) fairness bias.
C) bandwagon bias.
D) social comparison bias.

Accepted Answer

The student's change in perception of their grade is due to social comparison bias, where they compare their performance to others and feel less special or accomplished when everyone else achieved the same result.

Question 11

Base pay is a person's regular salary. Base pay differs from variable pay. Base pay is based on:
A) internal equity job evaluation) and external equity market data).
B) the number of people applying for the position, and how quickly the position needs to be filled.
C) government-determined diversity quotas, and the tax credits available to the employer.
D) the familiarity with a candidate's professional reputation, and the size of the candidate's network of social connections.

Accepted Answer

Base pay is typically determined through a combination of internal equity job evaluation and external equity market data. Internal equity job evaluation involves assessing the relative value of a position within an organization, while external equity market data involves analyzing market trends and compensation for similar jobs in the industry. This helps to ensure that employees are paid fairly and competitively.

B, C, and D are not correct because they do not accurately describe how base pay is typically determined.

Question 12

The Team Diagnostic Survey, developed by Wageman, Hackman, and Lehman, assesses team members' quality of work relationships, motivation, satisfaction, and:
A) financial health.
B) policy compliance.
C) effectiveness of team task processes.
D) emotional maturity.

Accepted Answer

The Team Diagnostic Survey assesses the effectiveness of team task processes, as well as quality of work relationships, motivation, and satisfaction. It does not assess financial health, policy compliance, or emotional maturity.

Question 13

An incentive plan where a portion of the bottom-line economic company profits is given to employees is called __________. An incentive plan that combines a measurement of productivity with a financial bonus related to any increases in organizational productivity is called __________.
A) job-based pay; skill-based pay
B) competency-based pay; productivity-based pay
C) profit sharing; gain sharing
D) bonus sharing; incentive pay

Accepted Answer

Profit sharing refers to sharing a portion of the economic profits of the company with employees, while gain sharing combines productivity measurements with financial rewards tied to increases in organizational productivity. None of the other options match these descriptions accurately.

Question 14

There are several useful "guiding principles" that leaders should follow when instituting team-based pay. All of the following are useful guidelines EXCEPT:
A) the balance between individual- and team-based pay should be in proportion to the amount of individual and team-based work an employee does.
B) the goals should be difficult enough that members cannot actually reach them so as to provide a true stretch of performance.
C) team members who will be affected by the program should be consulted ahead of time.
D) the criteria used to determine the pay should be quantified.

Accepted Answer

Setting goals that are impossible to achieve can actually demotivate team members and decrease performance. Therefore, it is not a useful guiding principle for instituting team-based pay.

Question 15

Of the following, which is an advantage of competency-based pay?
A) Competency-based pay systems promote less flexibility in employees.
B) Individuals who get the opportunity to use their multi-faceted skill set often develop accurate perspectives on organizational problems and challenges.
C) This pay system leads to less committed employees.
D) An organization with a competency-based pay system must invest a large amount of company money in training and evaluating employees.

Accepted Answer

Competency-based pay systems encourage employees to develop a wider range of skills, which can lead to a more accurate understanding of organizational challenges and problems. This can be an advantage for the organization as it results in employees who are more versatile and adaptable.

Question 16

In addition to biases existing on the part of people who do the ratings, the people who receive evaluations i.e., the ratees) can be biased as well. One example of ratee bias is egocentric bias, which is best described as the tendency to:
A) evaluate oneself more favorably than others do.
B) believe that one is not in touch with their inner needs.
C) believe that oneself is less fortunate and more incompetent than others.
D) believe that others are envious of one's good looks and competencies.

Accepted Answer

Egocentric bias is the tendency to rate oneself more positively than others would rate that person. This bias stems from a self-serving bias tendency where people have a natural inclination to evaluate themselves more positively than other people would evaluate them. Therefore, choice A, i.e., evaluating oneself more favorably than others do, most closely describes egocentric bias.

Question 17

Regarding the building of a variable team-based pay structure, which of the following choices is most true in relation to this guiding principle: "Goals should cover areas that team members can directly affect"?
A) In effective programs, rewards are contingent upon who makes the most sacrifices for the team's goals.
B) Compensation will not motivate employees unless there is a direct line of sight between performance and results.
C) When incentives are exclusively tied to the final profit of a company or group, the connection between performance and reward is strengthened.
D) In effective, variable team-based pay structures, rewards are contingent upon the employee's social status.

Accepted Answer

When setting goals for a team-based pay structure, it is important to ensure that team members have direct control over the areas that the goals cover. This implies that the goals must be specific, measurable, achievable, relevant, and time-bound (SMART goals) and should focus on individual and team performance that directly contributes to the success of the organization. Since compensation will not motivate employees unless there is a direct line of sight between performance and results, it is essential to ensure that employees know what is expected of them and how their performance will be evaluated to determine their rewards. Therefore, choice B is the most true in relation to the guiding principle that "Goals should cover areas that team members can directly affect."

Question 18

Which type of performance appraisal is best used with teams?
A) Skill-based pay
B) Job-based pay
C) Competency-based pay
D) They are all used for team performance appraisals.

Accepted Answer

Competency-based pay is best used for team performance appraisals as it focuses on the skills and behavior needed to achieve team goals and objectives. This type of appraisal encourages teamwork and collaboration, and rewards individuals for their contributions towards team success rather than individual achievements alone. Skill-based pay and job-based pay are more focused on individual performance, while competency-based pay emphasizes the importance of working together towards a common goal. Therefore, C is the best choice for team performance appraisals.

Question 19

In regard to job-based pay systems, a key advantage for organizations is:
A) the organization can determine what other companies are paying, and can assess whether they are paying more or less than their competition.
B) the team members are typically paid only for the skills that they have and are willing to use.
C) this system promotes skill flexibility in employees, thereby increasing the number of things one employee can do.
D) this system encourages decentralized control of an organization's pay system.

Accepted Answer

Job-based pay systems allow organizations to benchmark their pay against competitors, helping them to determine if they are paying more or less than the competition.

Question 20

An example of the Halo Bias is:
A) a white female manager shows more favor towards her white female subordinates than she does to the white male subordinates.
B) Kathy's work productivity has declined because she is suffering from a toothache. Kathy's boss doesn't know about her toothache and rates her work unfavorably this week.
C) Jim gives Bill more favorable feedback when he meets with him face-to-face than he would if he was able to give him feedback via e-mail.
D) a physically attractive team member is perceived to be smart.

Accepted Answer

The Halo Bias refers to the tendency to attribute positive qualities to someone based on one specific trait or characteristic. In this case, the physically attractive team member is perceived to be smart, which is an example of the Halo Bias.

Quiz 3: Rewarding Teamwork: Compensation and Performance Appraisals

Regarding team evaluations and rater biases, of the following descriptions, what is the best definition of the primacy and recency bias?

When using incentives to motivate a team, the team can respond with unintended negative behaviors such as __________.

People feel a strong social obligation to return favors. Thus a potential flaw of 360-degree programs is that they are subject to collusion: "I'll give you a good rating if you give me one." This situation is an example of:

When a team member receives insight that changes their perspective about a manager's business decision, such as the business reasons and considerations behind a manager's ultimate decision to pursue a certain course of action, this team member:

All of the following are potential problems with 360-degree feedback EXCEPT:

Recognition is considered one type of team-based pay. Recognition is best described as an) :

A situation in which people believe they are more talented and contribute more than others give them credit for illustrates which type of bias?

The 360-degree feedback method is best described as:

The extrinsic incentives bias is best described as the tendency for people to:

A student feels less proud of an "A" they received on a difficult test when they learn that everyone in the class received an "A" on the test. This type of ratee bias is attributed to:

Base pay is a person's regular salary. Base pay differs from variable pay. Base pay is based on:

The Team Diagnostic Survey, developed by Wageman, Hackman, and Lehman, assesses team members' quality of work relationships, motivation, satisfaction, and:

An incentive plan where a portion of the bottom-line economic company profits is given to employees is called . An incentive plan that combines a measurement of productivity with a financial bonus related to any increases in organizational productivity is called .

There are several useful "guiding principles" that leaders should follow when instituting team-based pay. All of the following are useful guidelines EXCEPT:

Of the following, which is an advantage of competency-based pay?

In addition to biases existing on the part of people who do the ratings, the people who receive evaluations i.e., the ratees) can be biased as well. One example of ratee bias is egocentric bias, which is best described as the tendency to:

Regarding the building of a variable team-based pay structure, which of the following choices is most true in relation to this guiding principle: "Goals should cover areas that team members can directly affect"?

Which type of performance appraisal is best used with teams?

In regard to job-based pay systems, a key advantage for organizations is:

An example of the Halo Bias is: