Question 1

Profit-sharing plans and gainsharing plans are types of

Accepted Answer

Both profit-sharing plans and gainsharing plans are types of group incentive plans, where rewards are based on the overall performance of the group or organization. Profit-sharing plans distribute a portion of the profits to employees, while gainsharing plans distribute rewards based on improvements in productivity or cost savings.

Question 2

What do organizations do to maintain the secrecy of individual salaries yet provide enough information on salary to motivate employees?

Accepted Answer

Publishing pay ranges can give employees an idea of what they can expect to earn and what they need to do to earn more, without disclosing individual salaries. This can help motivate employees while still maintaining privacy.

Question 3

People such as independent contractors, seamstresses, farm workers, and so on, are often paid by

Accepted Answer

These types of workers are often paid by the piecework system, meaning they receive payment based on the number of pieces they produce or complete. This is common in industries such as manufacturing, agriculture, and textiles.

Question 4

Which of the following methods is often used to pay independent contractors, that is, people who are self-employed and perform work for an organization?

Accepted Answer

Independent contractors are often paid based on the amount of work they do, rather than a set salary or hourly wage. The piecework system involves paying workers a set amount for each item they produce, which is a common way to pay independent contractors. Group incentive plans, payments-for-suggestions plans, and production bonus systems are more typically used for employees who are part of the company's regular workforce.

Question 5

Arax Group of Companies (AGC) has a group incentive plan for its employees. Under this plan, the company sets aside a portion of its profits and divides it among employees. Which of the following plans has the company adopted?

Accepted Answer

The company has adopted a profit-sharing plan, as it sets aside a portion of its profits and distributes it among employees as an incentive. A gainsharing plan involves sharing cost savings rather than profits, an employee stock ownership plan involves employees owning a portion of the company through stocks, and a defined-benefit pension plan involves providing retirement benefits based on a set formula.

Question 6

According to William Ouchi, which of the following statements is true about Theory Z managers?

Accepted Answer

According to William Ouchi's Theory Z, managers give employees great freedom in carrying out their duties, which is a notable difference from Theory X, which assumes that employees are untrustworthy and require constant supervision.

Question 7

A financial incentive plan that rewards a team of workers for meeting or exceeding an objective is called a

Accepted Answer

A group incentive plan rewards a team of workers for meeting or exceeding an objective, while piecework systems reward individual workers based on their output, payments-for-suggestions plans reward individuals for providing ideas for improvement, and commission plans pay individuals a percentage of sales generated.

Question 8

Identify the correct statement about the wage and salary information of private (nongovernment) workers.

Accepted Answer

Private wage and salary information is typically confidential between the employee and employer, and employees do not have access to one another's earnings.

Question 9

An increasing number of companies are adopting a ________, under which a company encourages employees to participate in making suggestions and decisions about improving the way the company or work group operates.

Accepted Answer

A gainsharing program is a type of employee involvement program where employees are encouraged to participate in making suggestions and decisions about improving the way the company or work group operates. The aim of this program is to motivate employees to work together to achieve common goals and to share in the rewards of their efforts. The program usually involves a sharing of the financial gains resulting from productivity improvements between the company and the employees.

Question 10

Who among the following is most likely to work solely for intrinsic rewards?

Accepted Answer

A retired accountant with a pension is most likely to work solely for intrinsic rewards because they already have a source of income from their pension and may pursue work or activities that they find personally fulfilling or enjoyable, rather than for financial necessity.

Question 11

Which of the following is a true statement about financial incentives?

Accepted Answer

Financial incentives can be given for acquiring additional skills, such as bonuses for completing training programs or earning certifications. Option A is not always true as financial incentives can also be given for meeting objectives. Option C is not always true as financial incentives may also be determined by HR or company policies. Option D is incorrect as intrinsic rewards are non-financial rewards such as recognition or sense of accomplishment, not financial incentives.

Question 12

The structure of a pay plan

Accepted Answer

The structure of a pay plan influences the degree to which employees are motivated to perform well. A well-designed pay plan should provide incentives that encourage employees to work harder and achieve better results. This, in turn, can lead to higher levels of motivation and productivity. The Pygmalion effect, which refers to the phenomenon of people living up (or down) to the expectations of others, can also impact motivation, but it is not directly related to the structure of a pay plan. Supervisors may play a role in the implementation and management of a pay plan, but the plan itself does not decide their specific roles.

Question 13

Which of the following is a true statement about the wage and salary information of government workers?

Accepted Answer

Government employee earnings are public information and can be accessed through various means such as Freedom of Information Act requests or online databases.

Question 14

Which financial incentive pay plan involves companies paying employees for offering ideas on how to cut costs or improve quality?

Accepted Answer

Payments for suggestions involve employees being paid for offering ideas on how to improve quality or cut costs.

Question 15

If money is to work as a motivator, it should

Accepted Answer

Money can work as a motivator for employees if they see it as achievable. If the amount of money offered is too high or unrealistic, it may not serve as a motivator as employees may not see it as attainable or relevant to their work. Therefore, when using money as a motivator, it is important to ensure that it is seen as achievable by employees.

Question 16

Payments for meeting or exceeding objectives are known as ________.

Accepted Answer

Financial incentives are payments or rewards given to employees for achieving or exceeding specific objectives or targets. These incentives are used to motivate employees to work harder, be more productive, and achieve better results. Financial incentives can include bonuses, commission, profit sharing, and stock options.

Question 17

The piecework system

Accepted Answer

The piecework system pays people according to how much they produce.

Question 18

According to Douglas McGregor, Theory X managers assume that

Accepted Answer

Theory X managers assume that people are inherently lazy and need to be coerced, controlled, or threatened with punishment to work hard. They also believe that people's primary need is for security, rather than self-fulfillment, creativity, or autonomy. Therefore, option D is the most appropriate choice.

Question 19

Which of the following is a disadvantage of a production bonus system?

Accepted Answer

A production bonus system may incentivize employees to focus solely on completing tasks quickly rather than focusing on quality. This can lead to lower-quality work and may not ultimately benefit the company in the long run.

Question 20

Employees in a production department may receive a basic wage or salary plus a bonus that consists of a payment for each unit produced. This is called a

Accepted Answer

The answer of Employees in a production department may receive...

Quiz 11: Motivating Employees