Question 1

When workers are paid according to the performance of their work group, the relationship between individual pay and productivity decreases as the group gets bigger.

Accepted Answer

As the group size increases, the direct impact of an individual's effort on their pay becomes diluted because the pay is based on the overall performance of the group, making it harder to directly correlate individual productivity with individual compensation.

Question 2

Piece rate pay systems
A)usually increase cooperation among workers on peripheral, nonproduction tasks (for example, keeping the shop clean).
B)have generally been supported by unions.
C)are especially useful when few objective performance criteria exist.
D)generally lead to increased productivity unless restriction occurs.
E)are most effective when applied to white-collar jobs.

Accepted Answer

Piece rate pay systems are designed to reward employees based on the amount of work they complete, which typically motivates increased productivity. However, if workers believe that higher productivity could lead to lower pay rates or fewer available work hours (a practice known as "rate busting"), they might restrict their output to avoid such outcomes. This system is less about cooperation, union support, subjective performance criteria, or specific job types, and more about directly incentivizing individual productivity.

Question 3

Employees and managers seriously underestimate the importance of ________ as a motivator.

Accepted Answer

pay

Question 4

Restriction of productivity is a phenomenon associated with
A)piece rate pay.
B)hourly pay.
C)MBO.
D)job enrichment.
E)merit pay.

Accepted Answer

Piece rate pay can lead to restriction of productivity as workers may limit their output to avoid setting high performance expectations or to maintain a steady work pace.

Question 5

Tanya's work group restricts its productivity.According to the text, this is a pretty good sign that the group members are paid an hourly wage.

Accepted Answer

Restricting productivity can be influenced by various factors such as management practices, work environment, or job satisfaction, and is not directly indicative of being paid an hourly wage.

Question 6

When a portion of employees' pay is based on a measure of performance it is called variable pay.

Accepted Answer

Variable pay is a compensation system where an employee's pay is based on performance measures, such as sales targets, productivity goals, or company profits, rather than being a fixed salary.

Question 7

Raoul is searching for a new job because he wants to earn more money.He is especially interested in a job in which a portion of his pay is based on a measure of his performance.What kind of pay is Raoul interested in getting?
A)Performance pay
B)Incentive pay
C)Variable pay
D)Motivational pay
E)Bonus pay

Accepted Answer

The answer of Raoul is searching for a new job...

Question 8

________ pay plans can stimulate productivity, but they can also lead to restriction of productivity.

Accepted Answer

The answer of ________ pay plans can stimulate productivity, but...

Question 9

As the size of the team ________, the relationship between any individual's productivity and his or her pay ________.
A)increases; increases
B)decreases; decreases;
C)increases; decreases
D)decreases; will approach zero
E)increases; becomes stable

Accepted Answer

As the size of the team increases, the direct impact of any individual's productivity on their pay decreases due to the diffusion of individual contributions across a larger group.

Question 10

When a portion of employees' pay is based on seniority it is called variable pay.

Accepted Answer

Variable pay is compensation that's based on performance or results achieved, rather than seniority.

Question 11

Which of the following is most accurate about the importance of pay as a motivator?
A)Employees overestimate the importance of pay as a motivator.
B)Employees and managers overestimate the importance of pay as a motivator.
C)Employees and managers underestimate the importance of pay as a motivator.
D)Employees overestimate and managers underestimate the importance of pay as a motivator.
E)Employees underestimate and managers overestimate the importance of pay as a motivator.

Accepted Answer

The answer of Which of the following is most accurate...

Question 12

Restriction of productivity has been a problem with wage incentive plans.

Accepted Answer

Wage incentive plans, designed to increase productivity by linking pay directly to output, can sometimes lead to restrictions in productivity. This occurs when workers, having reached a target income, reduce their effort or when the plan fails to account for all aspects of job performance, leading to a focus on quantity over quality.

Question 13

Joe, Margaret, and Denise are co-workers.Joe produces five widgets and is paid $5.Margaret produces twenty widgets and is paid $20.Denise produces fifty widgets and is paid $50.These workers are being paid according to a(n)________ pay plan.
A)merit
B)hourly
C)Scanlon
D)piece rate
E)lump sum

Accepted Answer

The workers are being paid based on the number of widgets they produce, which is characteristic of a piece rate pay plan. Each worker's pay is directly proportional to their output.

Question 14

When a portion of employees' pay is based on a measure of performance, it is called ________.
A)performance pay
B)incentive pay
C)variable pay
D)motivational pay
E)bonus pay

Accepted Answer

Variable pay refers to compensation that is tied to performance, where a portion of an employee's pay is based on achieving certain performance metrics.

Question 15

Pay is one of the most important and effective motivators of performance.

Accepted Answer

Pay is a significant motivator as it directly impacts an individual's livelihood and can incentivize higher performance, though other factors like job satisfaction and work environment also play crucial roles.

Question 16

Financial incentives and pay-for-performance have no effect on turnover.

Accepted Answer

Financial incentives and pay-for-performance can affect turnover by increasing job satisfaction and loyalty, thereby potentially reducing the likelihood of employees leaving the organization.

Question 17

Research on financial incentives and pay-for-performance plans have found that they
A)increase performance but have no effect on turnover.
B)increase performance and lower turnover.
C)lower performance and lower turnover.
D)lower performance and increase turnover.
E)have no effect on performance or turnover.

Accepted Answer

Research indicates that financial incentives and pay-for-performance plans can increase employee performance and also lower turnover by enhancing job satisfaction and loyalty.

Question 18

Wage incentive plans have become one of the most common forms of motivation in Canadian organizations.

Accepted Answer

The answer of Wage incentive plans have become one of...

Question 19

Financial incentives and pay-for-performance plans have been found to increase performance and lower ________.

Accepted Answer

The answer of Financial incentives and pay-for-performance plans have been...

Question 20

What is variable pay?
A)Pay that some employees receive but not others
B)Pay that an organization will give employees when they are profitable
C)Pay that changes throughout the year
D)A portion of employees' pay that is based on a measure of performance
E)A portion of employees' pay that is based on their seniority

Accepted Answer

Variable pay is a portion of employees' pay that is based on a measure of performance, often used to incentivize and reward employees for achieving specific goals or targets.

Quiz 6: Motivation in Practice

When workers are paid according to the performance of their work group, the relationship between individual pay and productivity decreases as the group gets bigger.

Piece rate pay systems

Employees and managers seriously underestimate the importance of ________ as a motivator.

Restriction of productivity is a phenomenon associated with

Tanya's work group restricts its productivity.According to the text, this is a pretty good sign that the group members are paid an hourly wage.

When a portion of employees' pay is based on a measure of performance it is called variable pay.

Raoul is searching for a new job because he wants to earn more money.He is especially interested in a job in which a portion of his pay is based on a measure of his performance.What kind of pay is Raoul interested in getting?

________ pay plans can stimulate productivity, but they can also lead to restriction of productivity.

As the size of the team , the relationship between any individual's productivity and his or her pay .

When a portion of employees' pay is based on seniority it is called variable pay.

Which of the following is most accurate about the importance of pay as a motivator?

Restriction of productivity has been a problem with wage incentive plans.

Joe, Margaret, and Denise are co-workers.Joe produces five widgets and is paid $5.Margaret produces twenty widgets and is paid $20.Denise produces fifty widgets and is paid $50.These workers are being paid according to a(n) ________ pay plan.

When a portion of employees' pay is based on a measure of performance, it is called ________.

Pay is one of the most important and effective motivators of performance.

Financial incentives and pay-for-performance have no effect on turnover.

Research on financial incentives and pay-for-performance plans have found that they

Wage incentive plans have become one of the most common forms of motivation in Canadian organizations.

Financial incentives and pay-for-performance plans have been found to increase performance and lower ________.

What is variable pay?