Question 1

Halle plans to pay her workers the lowest hourly rate of pay generally allowed under the Fair Labor Standards Act.In other words,Halle will pay her workers _________.

Accepted Answer

The Fair Labor Standards Act sets a minimum hourly wage that employers must pay their employees; this is commonly referred to as the minimum wage. Therefore, Halle's plan to pay her workers the lowest hourly rate of pay generally allowed under the Fair Labor Standards Act means that she will pay her employees the minimum wage.

Question 2

Kyle is exhausted from working overtime to get his projects done.His manager asked another employee to help Kyle with his work so that Kyle can work regular hours with no overtime.According to learning theory,this is __________.

Accepted Answer

This is an example of negative reinforcement, which is when a behavior is strengthened by the removal or avoidance of an unpleasant stimulus. In this case, Kyle's manager is removing the unpleasant stimulus of overtime by providing additional help, which strengthens the behavior of completing work within regular hours.

Question 3

Casey's compensation includes health and dental insurance.These parts of her compensation is considered ________.

Accepted Answer

Health and dental insurance are considered benefits, which are non-wage compensations that employers offer to attract and retain employees.

Question 4

In setting the base pay rate for new jobs at her organization,Alexis is doing an assessment of how much she can afford to pay.She is working on the ________ portion of her organizational philosophy on compensation.

Accepted Answer

Alexis is assessing her organization's ability to pay, which is a consideration in setting the base pay rate for new jobs. The other options listed are other components of an organizational philosophy on compensation, but they are not specifically being addressed in this scenario.

Question 5

Conner has received steady pay increases over the years for his solid sales performance.This year,the organization merged with another organization and money has become tight.Conner doubts there's any money available for raises.Therefore,he has not been motivated to work as hard.According to expectancy theory,Conner is unmotivated because _________ is lacking.

Accepted Answer

According to expectancy theory, motivation is determined by three factors: expectancy (the belief that effort will lead to performance), instrumentality (the belief that performance will lead to outcomes), and valence (the value an individual places on the outcomes). In this scenario, Conner's belief in the instrumentality of his performance (that it will lead to a raise) has been weakened by the organization's financial situation, leading to a decrease in motivation. Valence and expectancy are not addressed in the scenario.

Question 6

Martha was promised a 10 percent raise if she wins a contract with the city government.Martha could use the money to pay off some debts.However,she happens to know that another company already has informally won the contract.There is a very slim chance that she could win the contract away from the other organization,but she does not believe she can do it.According to expectancy theory,Martha is unmotivated to try to win the contract because she lacks __________.

Accepted Answer

Expectancy is the belief that one's effort will result in attainment of desired performance goals. Martha lacks the belief (expectancy) that she can win the contract, which is why she is unmotivated according to expectancy theory.

Question 7

Colton's salary is $40,000 per year.This part of his compensation is considered ________.

Accepted Answer

Base pay refers to the fixed salary that an employee receives, usually paid on a regular basis (e.g. monthly, bi-weekly). In this case, Colton's salary of $40,000 per year is a base pay. Wage and salary add-ons are additional payments or bonuses given to employees beyond their base pay. Incentive pay refers to a performance-based pay system, where employees are rewarded for achieving certain goals or targets. Benefits are non-wage compensations, such as health insurance, retirement plans, and paid time off.

Question 8

Jacob's manager asks him to organize a blood drive for the organization.The manager tells Jacob that if he accepts the assignment,he will be awarded Employee of the Month.Jacob has organized blood drives in the past and knows how much work is involved.He does not doubt that his manager can deliver on the promise of the award.However,Jacob has always thought that the award was silly.According to expectancy theory,Jacob is unmotivated to accept the assignment because _________ is lacking.

Accepted Answer

Valence is lacking because Jacob does not value the reward (Employee of the Month) being offered for completing the assignment.

Question 9

Mimi is redesigning the compensation mix at her organization to include more family-friendly benefits such as child and elder care.Mimi is working on the ________ portion of her organizational philosophy on compensation.

Accepted Answer

The types of compensation refer to the benefits and rewards that employees receive beyond their regular pay. This includes family-friendly benefits such as child and elder care, which Mimi is working on redesigning. The other options listed (ability to pay, wage compression, and skill or competency-based pay) are also components of an organizational philosophy on compensation but do not specifically address the inclusion of family-friendly benefits.

Question 10

Morgan is working on the compensation package for bank tellers.Bank customers like to see the same faces in the bank when they come in to talk about their money.Therefore,Morgan needs to find a way to reduce turnover among the tellers.Adopting a(n) _________ organizational philosophy on compensation might be a good idea.

Accepted Answer

Paying employees for longevity, or their length of service, can be an effective way to reduce turnover. By rewarding employees for staying with the company, they may be more inclined to stay long-term. This also aligns with the bank's desire to have familiar faces for their customers. Options A and D would not likely support reducing turnover, and option B is not specifically tied to reducing turnover.

Question 11

Krista's organization uses a differentiation strategy.To encourage worker to bring knowledge,skills,and abilities to the job that can allow them to analyze problems and come up with creative solutions,Krista might adopt a(n)________ organizational philosophy on compensation.

Accepted Answer

Competency-based pay is a type of pay philosophy that links an employee's pay to their knowledge, skills, and abilities. This aligns with Krista's desire to encourage workers to bring such attributes to the job, making it the best choice. A above-the-market pay philosophy might be used to attract top talent, while an at-the-market pay philosophy is focused on paying employees the average market rate. Pay secrecy is not related to encouraging problem-solving skills.

Question 12

If Brittany reaches her sales goals for this quarter,she will receive a $2,000 bonus.This part of her compensation is considered ________.

Accepted Answer

The bonus is considered incentive pay, as it is based on Brittany reaching her sales goals and encourages her to work towards achieving those goals. Base pay refers to an employee's standard salary or hourly wage, while benefits refer to non-wage forms of compensation such as healthcare or retirement savings. Wage and salary add-ons typically refer to additional compensation for factors such as experience or education level.

Question 13

Aryn and Mary started at the organization on the same day.Both are hard workers and perceive that they are equitably rewarded for their efforts.According to equity theory,it is likely that both will ________.

Accepted Answer

According to equity theory, individuals strive for fairness in their work environment which means that they would perceive their rewards to be in proportion to their efforts. Since both Aryn and Mary perceive that they are equitably rewarded for their efforts, it is likely that they will continue to put forth effort, rather than request a raise, work harder or longer, or do less work.

Question 14

Mallory would like to attract better workers and enhance her organization's employment brand.Adopting a(n) ________ organizational philosophy on compensation could help her achieve her goals.

Accepted Answer

Adopting an above-the-market organizational philosophy on compensation can attract better workers as they will be offered salaries higher than the industry standard, and it can enhance the organization's employment brand, as it portrays the organization as valuing and investing in their employees. The other options, such as at-the-market, pay for longevity, or pay secrecy, may not necessarily attract better workers or enhance the employment brand.

Question 15

Julianna is paid $60,000 a year as a computer programmer.She gets paid regardless of how many hours she works.Julianna's pay is considered _________.

Accepted Answer

A salary is a fixed amount of pay that is given to an employee regardless of the number of hours worked. Benefits are typically additional forms of compensation, such as health insurance or retirement plans. Wages are hourly pay, and incentives are bonuses or rewards for meeting certain performance goals.

Question 16

Andrew earns $12 per hour during regular shifts.However,when he has to work the night shift,his pay goes up to $14 per hour.This part of his compensation is considered ________.

Accepted Answer

The increase in pay for working night shifts is considered a wage and salary add-on because it is an additional amount on top of his regular earnings for working under specific conditions (night shifts).

Question 17

Jackson is paid $11 an hour as a cafeteria attendant.Jackson's pay is considered _________.

Accepted Answer

Wages are the payment received by an employee for work done on an hourly or daily basis. Jackson is paid $11 an hour, hence his pay is considered wages. Benefits are non-wage compensations like health insurance, retirement plans, etc. Salary is a fixed amount paid to an employee on an annual or monthly basis. Incentives are additional payments or rewards given to motivate employees to improve their performance.

Question 18

Alexis did not meet her deadline.As a result,she was demoted back to her previous position.According to learning theory,this is __________.

Accepted Answer

According to learning theory, punishment is the use of aversive consequences to decrease the frequency of a behavior. In this case, Alexis's demotion can be seen as an aversive consequence as it is likely to decrease the frequency of her not meeting deadlines in the future. Therefore, Alexis's demotion is an example of punishment.

Question 19

Katrina's organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers.Adopting a(n) ________ organizational philosophy on compensation could allow her to hire plenty of workers.

Accepted Answer

Adopting a below-the-market organizational philosophy on compensation allows for hiring at lower wages which is suitable for low-skilled jobs in industries with high unemployment rates and easy availability of replacement workers.

Question 20

Courtney's organization is in a very competitive industry and getting goods to market quickly is vital to the organization's survival.For Courtney,adopting a(n) _________ organizational philosophy on compensation might be a good idea.

Accepted Answer

Pay for performance would incentivize employees to work harder and faster in order to increase their compensation. This would align with the organization's need to get goods to market quickly and stay competitive. Choice A (at-the-market) and choice D (wage compression) may not necessarily drive employee performance, while choice B (below-the-market) could lead to employee dissatisfaction and turnover.

Quiz 11: Compensation Management