Deck 10: Implementing Productivity Improvement Programs

Question 1

Job enrichment generally requires an increase in direct supervision of workers.

Answer 1

False
Workers are generally given more autonomy when they are given responsibility for doing things previously done by supervisors so there should be a reduction in direct supervision.

Question 2

The burden of finding ways to motivate workers to engage in appropriate behavior is on the shoulders of employers.

Answer 2

True
The burden of finding ways to motivate workers to engage in appropriate behaviors is on the shoulders of employers.

Question 3

Merit pay guidecharts show the size of pay raise relative to seniority earned by the employee.

Answer 3

False
The guidecharts show the size of the pay raise associated with each level of job performance.

Question 4

If the job is relatively complex and requires teamwork for successful performance, individual incentive plans should generally not be used.

Question 5

Merit pay plans grant employees annual pay raises based on their level of job performance.

Question 6

Employees performing highly automated easy jobs are likely to oppose job enrichment efforts.

Question 7

To contribute to competitive advantage, performance standards in pay-for-performance programs should be easy to achieve.

Question 8

When a straight piecework plan is used, workers are paid depending on whether they have met the required standards.

Question 9

Piece rate plans base an individual's wages on the number of product units produced by the employee.

Question 10

Pay-for-performance programs link employees' financial rewards directly to their performance.

Question 11

Unlike merit pay plans, the performance standards set in piece rate plans are easily influenced by supervisory bias.

Question 12

Profit-sharing plans never help employees develop a sense of ownership.

Question 13

According to the expectancy theory of motivation, workers make conscious decisions about how hard they are going to work based on perceptions of what they can gain from working hard.

Question 14

The focus of employee empowerment is to give employees a greater voice in decisions about work-related matters.

Question 15

Getting a good feeling after successfully completing a challenging assignment is an example of an intrinsic reward.

Question 16

Employees are more likely to accept decisions when they have participated in the decision-making process.

Question 17

It is not necessary for employers to offer valued rewards to implement a successful productivity improvement program.

Question 18

The most effective rewards are those given as soon as possible after the good behavior occurs.

Question 19

The size of the merit pay pool has little to do with the effectiveness of a merit pay plan.

Question 20

Profit-sharing plans create a strong effort-performance-reward link.

Question 21

Quality circles have proven to be excellent quick fixes for addressing real problems underlying poor productivity.

Question 22

A(n) ____ program must ensure that job performance is accurately measured and the ratings reflect actual job performance levels to build employee trust in the system.

A) pay-for-performance
B) employee empowerment
C) performance appraisal
D) performance evaluation

Question 23

All but which of the following are productivity improvement programs based on the allocation of extrinsic rewards?

A) Merit pay plans
B) Piece rate plans
C) Gainsharing plans
D) Quality circle plans

Question 24

Unfair administration of pay-for-performance programs create legal problems by violating:

A) the Employee Benefit Protection Act.
B) the National Labor Relations Act.
C) Title VII of the Civil Rights Act.
D) the Fair Labor Standards Act.

Question 25

Which theory states that employees will not be motivated to attain a reward if they do not value the reward?

A) Equity theory
B) Expectancy theory
C) Value theory
D) Reinforcement theory

Question 26

Automobile assembly line jobs are easy to enrich.

Question 27

____ link financial rewards to successful job performance.

A) Merit pay programs
B) Quality circle programs
C) Empowerment programs
D) Job enrichment programs

Question 28

A pay-for-performance program cannot enhance competitive advantage unless rewarded performance contributes to the:

A) individual's job satisfaction.
B) organization's overall mission.
C) supervisor's expectations.
D) firm's EEO efforts.

Question 29

Continuous quality improvement programs are attempts to build quality into all phases of the design, production, and delivery of a product or service.

Question 30

Successful productivity improvement programs are able to establish a clear connection between employee efforts and:

A) pay structure.
B) valued rewards.
C) job performance.
D) job enrichment.

Question 31

Within the framework of expectancy theory, in the ____ link, employees will be motivated to perform well to the extent they believe their own individual efforts can lead to successful performance.

A) effort-performance
B) performance-reward
C) value of the reward
D) timeliness of the reward

Question 32

There is no downside to forcing employees to accept empowerment.

Question 33

Worker empowerment takes the form of self-managed work teams in continuous quality improvement programs.

Question 34

Supervisory responsibility and control generally increases when organizations utilize self-managed work teams.

Question 35

Self-managed work teams tend to reduce organizational flexibility.

Question 36

Empowerment programs should be imposed by decree.

Question 37

____ states that workers make conscious decisions about how hard they are going to work to achieve organizational goals.

A) Reinforcement theory
B) Equity theory
C) Two-factor theory
D) Expectancy theory

Question 38

Employee empowerment programs are based on:

A) intrinsic rewards.
B) extrinsic rewards.
C) pay-for-performance.
D) merit pay.

Question 39

Companies implementing gainsharing and profit-sharing plans do not need to explain how rewards are determined to be successful.

Question 40

Reinforcement theory does not provide managers with a useful guide for using extrinsic rewards to motivate employees.

Question 41

A portion of a company's profits are contributed to employee accounts in:

A) profit-sharing plans.
B) gainsharing plans.
C) quality circle plans.
D) piece rate plans.

Question 42

Gainsharing programs are most commonly found in:

A) manufacturing firms.
B) government offices.
C) professional service firms.
D) financial institutions.

Question 43

A major problem with both merit pay and piece rate plans is their emphasis on:

A) competition.
B) individual performance.
C) unrealistic performance goals.
D) stress-inducing performance expectations.

Question 44

____ offer employees a cash reward for meeting or exceeding goals based on the collaborative performance of a team of employees.

A) Quality circle plans
B) Gainsharing plans
C) Piece rate plans
D) Merit pay plans

Question 45

Coworkers who violate production norms are often referred to as:

A) rate-busters.
B) scabs.
C) rats.
D) strikebreakers.

Question 46

____ grant employees annual pay raises based on their level of job performance.

A) Job enrichment plans
B) Piece rate plans
C) Merit pay plans
D) Quality circle plans

Question 47

Publicized merit pay guidecharts serve to strengthen the:

A) value of rewards.
B) effort-performance links.
C) performance-reward links.
D) performance-organizational mission links.

Question 48

Gainsharing plans feature all but which of the following?

A) Productivity goals that can be achieved through effective teamwork.
B) Employees receive cash bonuses if those goals are met.
C) Employees are discouraged from making suggestions for cutting production costs.
D) Productivity is measured by an explicit formula with objective measures.

Question 49

While implementing the Scanlon Plan, what is the base period for which production costs are averaged to calculate the ratio of production cost to sales value of production?

A) Two years
B) Three to five years
C) Five to seven years
D) Seven years

Question 50

____ gives employees the right to receive benefits from a plan in the future.

A) Gaining
B) Vesting
C) Profit-sharing
D) Deferred sharing

Question 51

Gainsharing plans tend to be more cost effective than merit pay plans because gainsharing payments represent:

A) fixed costs.
B) variable costs.
C) sunk costs.
D) average costs.

Question 52

Industrial engineers use ____ to determine how many units a person can be expected to produce in a given period of time.

A) job enrichment studies
B) quality circle studies
C) continuous improvement studies
D) time-and-motion studies

Question 53

According to Edward Lawler, all but which of the following is recommended for organizations interested in starting a merit pay plan?

A) Make pay increases public.
B) Do not deliver rewards as a salary increase.
C) Do not deliver instant or spot rewards.
D) Make sure individual performance can be measured accurately.

Question 54

Merit pay plans fail for all but which of the following reasons?

A) The merit pay pool is unlimited.
B) The employees do not value the rewards offered by the company.
C) Supervisors are reluctant to make distinctions between employees.
D) The time lag that occurs between behavior and rewards

Question 55

Problems associated with gainsharing plans are due to all but which of the following reasons?

A) Employee perceptions of unfairness.
B) Dwindling employee suggestions for improving efficiency.
C) Inflexibility of payout formulas.
D) Reduction of competition among team members.

Question 56

Which type of profit-sharing plan fully distributes each period's earnings as soon as the profit-sharing pool is calculated?

A) Functional plans
B) Deferred plans
C) Distribution plans
D) Combination plans

Question 57

Which type of profit-sharing plan distributes the individual's earnings at retirement?

A) Retirement plans
B) Deferred plans
C) Distribution plans
D) Combination plans

Question 58

____ base an individual's wages on the number of units he/she produces.

A) Job enlargement plans
B) Quality circle plans
C) Piece rate plans
D) Merit pay plans

Question 59

All but which of the following are considered strengths of piece rate plans?

A) They ensure cost efficiency.
B) They use subjective performance standards.
C) They remove supervisory bias.
D) They tie rewards directly to performance.

Question 60

All but which of the following can contribute to an effective merit pay plan?

A) Training managers to properly implement the system.
B) Make payouts annually.
C) Frequently communicate performance expectations to employees.
D) Measure an employee's performance on the basis of job behaviors that have a proven impact on the success of the business.

Question 61

Which type of jobs are good candidates for enrichment?

A) Jobs that lack intrinsic rewards.
B) Jobs that lack extrinsic rewards.
C) Jobs that require technical expertise.
D) Jobs that require decision-making capabilities.

Question 62

Characteristics of jobs that enhance intrinsic motivation include all but which of the following?

A) Piece rate pay
B) Skill variety
C) Autonomy
D) Feedback

Question 63

Which of the following is not a specific technique that can be used for enriching a job?

A) Combine tasks to increase skill variety.
B) Establish worker-client relationships.
C) Increase direct supervision.
D) Increase employee identification with company products.

Question 64

All but which of the following are potential weaknesses associated with self-managed work teams?

A) Departmental rivalries often flare up when a team is formed.
B) Handling human relations is a problem due to supervisors' absence.
C) Performance appraisals cannot be conducted due to supervisors' absence.
D) Workers lack sufficient time to handle the traditional supervisory responsibilities.

Question 65

Which employee empowerment program requires managers to communicate their commitment by providing employees with all the information needed to make good decisions?

A) Quality circles
B) Job enrichment
C) Self-managed work teams
D) Informal participative decision-making programs

Question 66

Which type of employee empowerment program is particularly prevalent in manufacturing organizations, where newer manufacturing strategies, competitive pressures, and advanced production technologies place added responsibility on shop floor employees?

A) Quality circles
B) Job enrichment
C) Self-managed work teams
D) Informal participative decision-making programs

Question 67

A(n) ____ is a group of 6 to 12 employees who identify and resolve production problems within their work unit.

A) gainsharing circle
B) quality circle
C) union circle
D) efficiency circle

Question 68

Which type of profit-sharing plan distributes a portion of each period's earnings immediately and holds the rest in reserve for future distribution?

A) Mixed plans
B) Deferred plans
C) Distribution plans
D) Combination plans

Question 69

____ aims to redesign jobs to be more intrinsically rewarding.

A) Job enlargement
B) Job accommodation
C) Job enrichment
D) Job rotation

Question 70

Which type of employee empowerment program involves managers and subordinates making joint decisions on a day-to-day basis?

A) Job enrichment programs
B) Job sharing programs
C) Formal participative decision-making programs
D) Informal participative decision-making programs

Question 71

____ attempt to build quality into all phases of design, production, and delivery of a product or service.

A) Quality circle programs
B) Gainsharing programs
C) Continuous quality improvement programs
D) Job enrichment programs

Question 72

____ programs can strengthen motivation by providing employees with the opportunity to attain intrinsic rewards from their work.

A) Employee empowerment
B) Performance appraisal
C) Productivity improvement
D) Job satisfaction

Question 73

____ is the degree to which a job requires completion of a whole and identifiable piece of work.

A) Task significance
B) Autonomy
C) Skill variety
D) Task identity

Question 74

In which of the following instances can employees be given full authority to make decisions in an participative decision-making program?

A) Employee vacation scheduling
B) Equipment purchases
C) Employee layoffs
D) Employee performance evaluations

Question 75

____ consist of 6 to 18 employees from different departments who work together to produce a well-defined segment of finished work.

A) Quality circles
B) Self-managed work teams
C) Supervisor-managed work teams
D) Participative decision-making teams

Question 76

The participative decision-making program purportedly works well because it tailors the amount of employee empowerment to the:

A) employers' needs.
B) employees' needs.
C) job requirements.
D) specific situation.

Question 77

____ would be ill advised in situations where the loss in production efficiency cannot be offset by productivity gains stemming from increased motivation.

A) Job enrichment
B) Quality circles
C) Pay-for-performance
D) Participative decision making

Question 78

All but which of the following are disadvantages associated with profit-sharing plans?

A) Profit-sharing plans only marginally address effort-performance-rewards links.
B) Profit-sharing plans are not always cost-efficient.
C) Profit-sharing plans have an adverse effect on employee retention rates.
D) Profit-sharing plans do not time rewards well.

Question 79

Companies adopting ____ programs empower their workers to trace product problems to their root causes and redesign production processes to eliminate them by using various statistical techniques.

A) continuous quality improvement
B) productivity improvement
C) participative decision-making
D) job enrichment

Question 80

Which type of training is essential for the implementation of a continuous quality improvement program due to the fact that it allows team members to move from job to job within the team?

A) On-the-job training
B) Cross-training
C) Change-related training
D) Job instruction training