Deck 6: Appraising and Rewarding Performance

Question 1

The appraisal process can be emotional because the manager's role calls for critical perspective,while the employee's desire to save face easily leads to defensiveness.

Answer 1

True

Question 2

Appraisal systems are necessary for proper management and for employee development.

Answer 2

True

Question 3

One difficulty of profit sharing is that employees must wait for their reward,and this lengthy delay diminishes its impact.

Answer 3

True

Question 4

The main reason for the use of wage incentives is to increase employee loyalty.

Question 5

The perceptual set states that people tend to perceive what they expect to perceive.

Question 6

The process of systematically gathering data on a person's skills,abilities,and behaviors from a variety of sources is known as self-appraisal.

Question 7

A formal appraisal system encourages managers to do more analytical and constructive thinking about their employees.

Question 8

In the context of the disadvantages associated with skill-based pay,some employees may qualify themselves for skill areas that they are unlikely to use,causing the organization to pay them higher rates.

Question 9

In a piece rate incentive,pay is determined by the amount of output.

Question 10

With regard to instrumentality,employees are sure that additional performance will lead to additional pay.

Question 11

During self-appraisals,some poor performers tend to attribute their problems to situational factors around them,and a few will rate themselves too leniently.

Question 12

In the Herzberg model,pay is viewed primarily as a hygiene factor.

Question 13

Ability and effort are situational attributions.

Question 14

Intrinsic job rewards tend to be less immediately satisfying than pay.

Question 15

The system that distributes to employees some portion of the profits of business,either immediately or deferred to a later date is called rate setting.

Question 16

The basic idea of an economic incentive system is to induce a high level of individual,group,or organizational performance.

Question 17

The break-even point is the point at which costs and rewards are equal for a certain level of expected performance.

Question 18

In addition to the complexities involved in applying various motivational models,compensation management is also complicated by the need to comply with a wide range of federal and state laws.

Question 19

Base pay,performance rewards,and profit sharing are the incentive foundation of a complete pay program.

Question 20

Behaviorally anchored rating scale help reduce a manager's tendency to focus on attitudes,personality,and quirks of an employee and shift the emphasis toward productive behaviors.

Question 21

_____ is the process similar to the break-even analysis in which the employee identifies and compares personal costs and rewards to determine the point at which they are approximately equal.

A) Cost behavior modification
B) Appraisal philosophy
C) 360-degree feedback
D) Cost-reward comparison

Question 22

_____ is the hallmark of modern appraisal philosophy that can help employees fine-tune their performance better if they know how they are doing in the eyes of the organization.

A) Management goal setting
B) Clarification of behavioral expectations
C) An extensive feedback system
D) Performance orientation

Question 23

_____ is the process by which people interpret and assign causes for their own and others' behavior.

A) Motivation
B) Attribution
C) Valence
D) Feedback

Question 24

In the context of compensation management complying with federal and state laws,the _____ affects employers who are engaged in interstate commerce and most employees of federal,state,and local governments.

A) Equal Pay Act of 1963
B) Sherman Antitrust Act
C) Patriot Act of 2001
D) Enforcement Act of 1870

Question 25

Which of the following combinations creates a desirable instrumentality condition?

A) High level of performance, low level of economic reward
B) Low level of performance, high level of economic reward
C) High level of performance, moderate level of economic reward
D) Low level of performance, low level of economic reward

Question 26

Money has an economic value as a medium of exchange for allocation of economic resources,but it is also a _____ medium of exchange.

A) psychological
B) virtual
C) social
D) symbolic

Question 27

_____ is a component of the incentive foundation of a complete pay program.

A) Seniority pay
B) Performance reward
C) Unemployment compensation
D) Overtime

Question 28

Which of the following is NOT a part of the performance appraisal process?

A) Sharing performance information with the employee
B) Searching for ways to improve employee performance
C) Assessing company goals and objectives
D) Evaluating employee performance

Question 29

Modern appraisal philosophy emphasizes _____ and future goals.

A) current seniority
B) past evaluations
C) employee deficiencies
D) present performance

Question 30

Which of the following statements holds true for performance feedback?

A) It should seldom point the way toward goals or newly targeted actions.
B) The manner of feedback presentation does not have a significant impact on the employees' performance.
C) It leads to both improved performance and improved attitudes-if handled properly by the manager.
D) It should rely on subjective opinions and references rather than on objective data.

Question 31

Which of the following components of a pay program is NOT an example of a nonwork reward?

A) Vacations
B) Seniority increase
C) Unemployment compensation
D) Pensions

Question 32

According to behavior modification principles,when employees see a direct connection between _____,instrumentality is high.

A) performance and reward
B) seniority and promotions
C) motivation and expectancy
D) extrinsic satisfaction and intrinsic reward

Question 33

A(n)_____ is the process of systematically gathering data on a person's skills,abilities,and behaviors from a variety of sources-the manager,peers,subordinates,and even customers or clients.

A) appraisal interview
B) survey
C) 360-degree feedback
D) balanced scorecard

Question 34

_____ is an example of a situational attribution.

A) Great effort
B) Poor ability
C) Task difficulty
D) All of the above

Question 35

Which of the following hallmarks of the modern appraisal philosophy states that the effort put forth by employees must result in the attainment of desired outcomes?

A) Performance orientation
B) Focus on goals or objectives
C) Mutual goal setting between supervisor and employee
D) Clarification of behavioral expectations

Question 36

Which of the following pay program components is NOT an example of a noneconomic program that may supplement an organization's complete pay program?

A) Comp time
B) On-site day care
C) Profit sharing
D) Wellness-promotion programs

Question 37

In general,people tend to exhibit a _____,claiming undue credit for their success and minimizing their own responsibility for problems.

A) fundamental attribution bias
B) perceptual set
C) self-fulfilling prophecy
D) self-serving bias

Question 38

Which of the following concepts explained in the expectancy theory means that if money is to act as a strong motivator,an employee must want more of it?

A) Motivation
B) Valence
C) Drive
D) Instrumentality

Question 39

Which of the following is the final step in the management by objectives cycle?

A) Objective setting
B) Periodic reviews
C) Action planning
D) Annual evaluation

Question 40

The concept of perceptual set enables us to witness the power of the _____.

A) fundamental attribution bias
B) Pareto principle
C) self-fulfilling prophecy
D) self-serving bias

Question 41

When is a fundamental attribution bias exhibited?

Question 42

With regard to performance management,list the ways in which employee performance can be managed and improved.

Question 43

Explain the importance of mutual goal setting between supervisor and employee.Mention at least two employee desires that make mutual goal setting important.

Question 44

With the Galatea effect,high expectations by employees themselves lead to _____.

A) high performance
B) frustration
C) self-doubt
D) behavioral bias

Question 45

Which of the following is a disadvantage of incentives linking pay with performance?

A) Narrowness of performance criteria
B) Weakening of instrumentality beliefs
C) System leniency
D) All of the above

Question 46

A _____ encourages employee suggestions,provides an incentive for coordination and teamwork,and promotes improved communication.

A) skill-based pay system
B) profit-sharing plan
C) piece rate system
D) gain-sharing plan

Question 47

Explain the concept of self-fulfilling prophecy.

Question 48

Peter was awarded a bonus for meeting the sales target set by his company for the first quarter of 2013.Which of the following incentive measures has the company used to reward Peter?

A) Amount of output
B) Quality of output
C) Success in reaching goals
D) Cost efficiency

Question 49

Which of the following statements holds true for profit sharing?

A) This plan generally works well for slow-growing organizations.
B) Some workers prefer this plan since profits are normally predictable.
C) Employees must wait for their reward, and this lengthy delay diminishes its impact.
D) Profits are directly related to an employee's effort on the job.

Question 50

Which of the following is an objective of an economic incentive system?

A) Facilitating recruitment
B) Retention of good employees
C) Satisfying key employee needs
D) All of the above

Question 51

How do wage incentives make a supervisor's job more complex?

Question 52

Explain the disadvantages of the skill-based pay system.

Question 53

Give a brief description of a gain-sharing plan.

Question 54

Who does the Equal Pay Act of 1963 affect,and what does the law demand?

Question 55

Explain the concept of valence of money.

Question 56

What are the problems encountered in the self-appraisal process?

Question 57

_____ provide an organization with a highly flexible workforce that can fill in when someone is absent.

A) Skill-based pay systems
B) Profit-sharing plans
C) Piece rate systems
D) Gain-sharing plans

Question 58

Which of the following factors does NOT contribute to the success of a gain-sharing plan?

A) Moderately small size of the business unit
B) Existence of controllable cost areas
C) Relative stability of the business
D) Lack of receptiveness to employee participation

Question 59

Which of the following statements is true of a wage incentive system that operates successfully?

A) It results in an increase in labor costs per unit of production.
B) It results in employees being satisfied from a job well done.
C) It merely provides economic rewards.
D) It discourages cooperation between workers.

Question 60

_____ is the problem associated with wage incentives that occurs when employees are able to reach standard output with less than reasonable levels of effort.

A) Output restriction
B) Rate setting
C) Loose rate
D) Groupthink