Deck 12: The Organizational Reward System

Question 1

Formal rewards provided by organizations are almost always determined by performance.

Answer 1

False

Question 2

Compensation refers to all the intrinsic rewards employees receive in exchange for their work.

Answer 2

False

Question 3

Garnishment is illegal in most states.

Answer 3

False

Question 4

The Equal Pay Act was designed to eliminate pay discrimination based solely on sex.

Question 5

Job satisfaction is synonymous with organizational morale.

Question 6

The Fair Labor Standards Act regulates minimum wages and overtime pay.

Question 7

In a recent survey of job incentives,money came in first.

Question 8

Organizational pay equity addresses how profits are divided up within an organization.

Question 9

Research has shown that for employees who believe their pay exceeds what they think it should be,they often experience feelings of guilt,inequity,and discomfort.

Question 10

The responsibility for coordinating and administering the organizational rewards system usually resides with the finance manager.

Question 11

When a job decreases in attractiveness,the employee is more likely to be tardy,quit,or become dissatisfied with the job itself.

Question 12

The concept of external pay equity deals with comparisons of whether compensation at different companies is fair in relation to market conditions.

Question 13

Job satisfaction has been shown to always result in a high level of job performance.

Question 14

The Davis-Bacon Act was passed in 1931.

Question 15

In 1992,the NLRB ruled that forbidding employees to discuss their pay constitutes a violation of Title VII of the Civil Rights Act.

Question 16

Individual equity addresses the issue of rewarding individual contributions and is very closely related to the pay-for-performance issue.

Question 17

There is little doubt that organizations need to do a better job of explaining and communicating their compensation system to employees.

Question 18

An example of an intrinsic reward is job satisfaction.

Question 19

The Equal Pay act first went into effect in 1991.

Question 20

Comparable worth is about pay practices that would ostensibly address the practice of undervaluing work primarily performed by women.

Question 21

Which of the following rewards is often provided but not related to performance?

A)Bonus
B)Merit raise
C)Paid leave
D)Incentive pay

Question 22

The primary organizational variable used to reward employees and reinforce performance is:

A)intrinsic rewards.
B)wages and salary.
C)benefits.
D)performance pay.

Question 23

All the following are reasons that rewards-to-performance practices are not more widespread EXCEPT that:

A)union contracts often require that rewards be based on totally objective variables.
B)the practice of rewards-to-performance lacks evidence of practical benefit to companies.
C)discipline is required to facilitate such practices.
D)across-the-board allocation of rewards is simple and popular among administrators.

Question 24

Rewards that are controlled and distributed directly by the organization and are of a tangible nature are known as _____ rewards.

A)extrinsic
B)implicit
C)intrinsic
D)explicit

Question 25

The traditional view of managers toward employee rewards was that:

A)they could capably decide what rewards the workers need and want.
B)only the workers could determine the value of the rewards.
C)intrinsic rewards hold more value for workers.
D)all workers want equal distribution of any available reward.

Question 26

_____rewards are normally derived from involvement in certain activities or tasks.Job satisfaction and feelings of accomplishment are examples of this type of rewards.

A)Implicit
B)Explicit
C)Intrinsic
D)Extrinsic

Question 27

A satisfied employee:

A)is not necessarily motivated or productive.
B)is,by definition,a motivated employee.
C)will necessarily outproduce a nonsatisfied employee.
D)does not respond to or require motivation.

Question 28

_____ is a feeling of being accepted by and belonging to a group of employees through adherence to common goals,confidence in the desirability of those goals,and the desire to progress toward the goals.

A)Job satisfaction
B)Motivation
C)Organizational morale
D)Role perception

Question 29

An employee who receives a promotion also feels a sense of accomplishment.This exemplifies how:

A)most organizations offer the same mix of rewards to all employees.
B)managers and employees consider only the tangible benefits associated with a reward.
C)often an extrinsic reward provides the recipient with intrinsic rewards.
D)rewards have to be costly to be valued.

Question 30

In the context of organizational rewards,social relationships are an example of:

A)intrinsic rewards.
B)rewards that are both extrinsic and intrinsic.
C)extrinsic rewards.
D)rewards that are easily manipulated by the organization.

Question 31

Paying for performance means:

A)providing top wages to all employees.
B)basing compensation decisions on the quantity and quality of work performed.
C)sharing profits with employees so that they share the fortunes of the company.
D)paying all employees market wages.

Question 32

Rewards employees receive as a result of their employment and position with the organization are called:

A)pay.
B)incentives.
C)benefits.
D)motivation.

Question 33

Which of the following is an example of an extrinsic reward?

A)Informal recognition
B)Job promotion
C)Achievement
D)Status

Question 34

An employee's general attitude toward the job is termed job:

A)affinity.
B)specification.
C)satisfaction.
D)perception.

Question 35

In the absence of strong evidence to the contrary,employees will naturally assume that a pay increase is a(n):

A)cost-of-living or seniority adjustment.
B)bonus adjustment.
C)earned incentive adjustment.
D)merit adjustment.

Question 36

The _____ Act,passed by Congress in 1936,requires that organizations manufacturing/furnishing materials,supplies,articles,or equipment in excess of $10,000 to the federal government pay at least the minimum wage for the industry as determined by the secretary of labor.

A)Davis-Bacon
B)Lilly Ledbetter Fair Pay
C)Fair Labor Standards
D)Walsh-Healey Public Contracts

Question 37

Organizational morale is reinforced by all of the following concerning group goals EXCEPT:

A)confidence in desirability of the goals.
B)adherence to common goals.
C)desire to progress toward the goals.
D)intragroup conflict related to the goals.

Question 38

In designing a reward system an organization should:

A)understand what employees value.
B)limit concerns to extrinsic rewards.
C)maximize direct pay and provide only the benefits required by law.
D)recognize that one mix of rewards fits all employees.

Question 39

Passed by Congress in 1931,the _____ Act required that contractors and subcontractors on federal construction contracts in excess of $2,000 pay the prevailing wage rates for the locality of the project.

A)Fair Labor Standards
B)Equal Pay
C)Davis-Bacon
D)Walsh-Healey Public Contracts

Question 40

Which of the following is an example of an intrinsic reward?

A)Pay
B)Fringe benefits
C)Physical work environment
D)Job satisfaction

Question 41

The Equal Pay Act:

A)eliminates pay differentials based on sex.
B)requires covered employers to pay all employees equal wages.
C)was fully phased out in 2002.
D)was superseded by the Walsh-Healey Public Contracts Act.

Question 42

The law which regulates minimum wages and overtime pay is the:

A)Davis-Bacon Act.
B)Walsh-Healey Act.
C)Fair Labor Standards Act.
D)Minimum Wage and Overtime Act.

Question 43

In a unionized organization:

A)wages are determined through individual bargaining between an employee and his/her supervisor.
B)all employees are paid the same wages.
C)the wage structure is largely determined through collective bargaining.
D)a government-industry coalition sets wages.

Question 44

List some considerations in the selection of rewards.

Question 45

Discuss the concept of relating rewards to performance.

Question 46

Under the _____ Act,the statute of limitations on pay discrimination claims begins running whenever a discriminatory pay decision is adopted,when an individual becomes subject to such a decision,and/or whenever the paycheck is issued.

A)Davis-Bacon
B)Fair Labor Standards
C)Walsh-Healey Public Contracts
D)Lilly Ledbetter Fair Pay

Question 47

_____ concerns whether employees believe they are being fairly compensated.

A)Organizational equity
B)Pay equity
C)MBO
D)Intrinsic rewards

Question 48

Discuss the concept of pay equity,internal equity,external equity,individual equity,and organizational equity.

Question 49

The issue of what employees in other organizations are being paid for performing similar jobs is termed:

A)comparable worth.
B)external equity.
C)fair labor.
D)central tendency.

Question 50

Describe the Equal Pay Act (1963).

Question 51

Garnishment of wages:

A)is a requirement of the Equal Pay Act of 1963.
B)is a legal procedure by which an employer is empowered to withhold wages for payment of an employee's debt to a creditor.
C)can be used as grounds for dismissal of an employee.
D)is among the more popular wage policies as rated by workers.

Question 52

The most recent proposals for closing discrepancies between the average pay of men and women are collectively referred to as the:

A)comparable worth theory.
B)Equal Pay Act.
C)Davis-Bacon Equity Act.
D)wage-price control theory.

Question 53

Discuss job satisfaction and rewards.List the five major components of job satisfaction.

Question 54

Define the organizational reward system and distinguish between intrinsic and extrinsic rewards.

Question 55

Discuss the concept of pay secrecy.

Question 56

Describe the satisfaction-performance relationship.

Question 57

The _____ theory of motivation holds that employees have a strong need to maintain a balance between what they perceive as their inputs to their jobs and what they receive from their jobs in the form of rewards.

A)intrinsic
B)extrinsic
C)comparable worth
D)equity

Question 58

Describe the different components of employee compensation.

Question 59

Which of the following Acts places restrictions on the employment of individuals between ages 14 and 18?

A)The Minimum Wage and Overtime Act
B)The Fair Labor Standards Act
C)The Davis-Bacon Act
D)The Walsh-Healey Public Contracts Act