Question 1

According to Herzberg's motivation theory,good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.

Accepted Answer

Herzberg's Two-Factor Theory states that hygiene factors, such as good working conditions, are necessary to prevent dissatisfaction among employees, but they do not necessarily lead to feelings of motivation and satisfaction. To achieve those, Herzberg believed that the presence of motivators, such as recognition and personal growth opportunities, were necessary.

Question 2

Which of the following was shown by the Harvard Business School to have the greatest impact on employee engagement?

Accepted Answer

B) A study by Harvard Business School researchers concluded that job design is a primary driver of employee engagement. A study by Sibson consulting concluded that job responsibility and feedback from a job were the fifth and seventh most important drivers of employee engagement.A study by Towers Watson concluded that challenging work ranked as the seventh most important driver for attracting employees.

Question 3

Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.

Accepted Answer

Studies suggest that employees don't see a strong connection between pay and performance, and their performance is not particularly influenced by the company's incentive plan. About 83% of companies with such programs say their programs are only somewhat successful or not successful at all.

Question 4

How often do most firms tend to compute financial performance measures used in gainsharing plans?

Accepted Answer

D) Firms tend to pay based on financial performance measures annually and on labor productivity measures quarterly or monthly.

Question 5

What is the most common form of payment in gainsharing plans?

Accepted Answer

D) Cash is the most common form of payment with gainsharing plans,but common stock is occasionally used.

Question 6

Herzberg's Hygiene-Motivator theory is based on Maslow's hierarchy of needs.

Accepted Answer

Frederick Herzberg said the best way to motivate someone is to organize the job so that doing it provides the feedback and challenge that helps satisfy the person's "higher-level" needs for things like accomplishment and recognition.Satisfying "lower level" needs for things like better pay and working conditions just keeps the person from becoming dissatisfied.Herzberg's theory is based on Maslow's hierarchy of needs.

Question 7

According to Vroom's theory,if expectancy,instrumentality,or valence is equal to zero,there will be no employee motivation.

Accepted Answer

In Vroom's theory,motivation is thus a product of three things: Motivation = (E × I × V) ,where E represents expectancy,I instrumentality,and V valence.If E or I or V is zero or inconsequential,there will be no motivation.

Question 8

Research indicates that employee stock ownership plans most likely ________.

Accepted Answer

C) Research suggests that ESOPs do encourage employees to develop a sense of ownership in and commitment to the firm.For the plans to be effective,firms must be responsible for their funds.

Question 9

According to Maslow's theory,a manager will not be able to motivate an employee with challenging tasks if the employee does not make enough money to pay for basic necessities.

Accepted Answer

Maslow's theory has many practical implications.For example,insecure employees won't be as concerned with doing jobs that might be "beneath them"; and,don't try to motivate someone with more challenging work if he or she doesn't earn enough to pay the bills.

Question 10

All of the following are essential in order for incentive plans to be effective EXCEPT ________.

Accepted Answer

A) Effective incentive plans link employee behaviors with incentives,offer attractive rewards,and establish clear standards.Incentives that seem logical may not be contributing to performance,so it is important to gather evidence and analyze the long-term effects of the plan.

Question 11

Top executives at DYS Enterprises are considering the idea of implementing an employee incentive plan.Which of the following suggests that an incentive plan would NOT be appropriate at DYS Enterprises?

Accepted Answer

C) Incentive plans are effective and appropriate when motivation (and not ability) is the problem.They are also appropriate when there is a clear relationship between employee effort and quantity or quality of output,the job is standardized,and delays are few or consistent.

Question 12

Which of the following is the primary benefit of employee stock ownership plans?

Accepted Answer

C) The main reason that ESOPs are popular is that a firm gets a tax deduction equal to the fair market value of the shares it transfers to the trustee and can claim an income tax deduction for dividends paid on ESOP-owned stock.Employees are taxed when they receive a distribution from the trust.,usually at retirement.

Question 13

The work of Edward Deci suggests that managers should primarily rely on extrinsic rewards to motivate employees.

Accepted Answer

Psychologist Edward Deci's work highlights another potential downside to relying too heavily on extrinsic rewards: They may backfire.Deci found that extrinsic rewards could at times actually detract from the person's intrinsic motivation.

Question 14

Hanover Publications has a large sales staff.Over the last two years,the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics.Which of the following most likely explains the reason for these changes at Hanover?

Accepted Answer

C) However,with the recent recession,employers are moving to align the metrics they use to reward their sales people with the firms' strategies.For instance they're factoring in more growth-oriented metrics,and reviewing their sales pay plans more often.

Question 15

In Herzberg's Hygiene-Motivator theory,working conditions are motivator factors,and challenging assignments are hygiene factors.

Accepted Answer

Hygiene factors are factors outside the job itself,such as working conditions,salary,and incentive pay.Motivator factors include challenging tasks,feedback,and recognition.

Question 16

Behavior modification is based on the idea that people will repeat behavior for which they are punished.

Accepted Answer

According to Skinner's theory,behavior that appears to lead to a positive consequence (reward) tends to be repeated,while behavior that appears to lead to a negative consequence (punishment) tends not to be repeated.

Question 17

Employees at GameTime Software participate in a gainsharing plan.Employee bonuses are calculated by dividing payroll expenses by total sales.Game Time Software most likely uses which of the following plans?

Accepted Answer

D) The Scanlon formula divides payroll expenses by total sales (or,sometimes,by total sales plus increases in inventory) .The Rucker plan uses a value-added formula.With the Lincoln incentive system,employees work on a guaranteed piecework basis.

Question 18

Vroom's expectancy theory observes that people will not pursue rewards that they find unattractive or where their chances of success are very low.

Accepted Answer

An important motivational fact is that,in general,people won't pursue rewards they find unattractive,or where the odds of success are very low.Psychologist Victor Vroom's expectancy motivation theory echoes these common sense observations.

Question 19

McDonald Manufacturing contributes cash to a trust established to purchase shares of McDonald stock for employees.Which of the following is most likely offered by McDonald Manufacturing?

Accepted Answer

D) Employee stock ownership plans (ESOPs) are company-wide plans in which the employer contributes shares of its own stock to a trust established to purchase shares of the firm's stock for employees.The firm generally makes these contributions annually in proportion to total employee compensation,with a limit of 15% of compensation.

Question 20

Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard.

Accepted Answer

Frederick Taylor popularized the use of financial incentives in the late 1800s.

Quiz 12: Pay for Performance and Financial Incentives