Question 1

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.
A) below-the-market
B) at-the-market
C) pay-for-longevity
D) pay-for-performance

Accepted Answer

Pay-for-longevity would incentivize tellers to stay with the bank for a longer period of time, as they would receive increased compensation with each year of service. This would help reduce turnover and increase the likelihood of customers seeing familiar faces at the bank.

Question 2

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 ______.
A) request a raise
B) worker harder or longer
C) do less work
D) continue to put forth effort

Accepted Answer

According to equity theory, individuals seek to maintain a balance between the effort they put in and the rewards they receive. If they perceive that they are being treated fairly, they are likely to continue putting forth effort. Therefore, Aryn and Mary are likely to continue putting forth effort since they perceive that they are equitably rewarded for their work.

Question 3

Megha is revising her organization's policy around annual raises and wondering whether to reward employees who have been with the company the longest or those who have closed the most sales.She is considering ______.
A) ability to pay
B) types of compensation
C) performance- or longevity-based pay
D) skill- or competency-based pay

Accepted Answer

Megha is considering whether to reward employees based on performance (closing the most sales) or longevity (being with the company the longest). This is a choice between performance-based pay and longevity-based pay. Option A is not relevant to this scenario, and option B is too broad. Option D is not mentioned as a consideration.

Question 4

The result of ______ theory is that our employees will either be motivated by their outcomes,including compensation,or be demotivated by them.
A) instrumentality
B) equity
C) expectancy
D) valence

Accepted Answer

Expectancy theory suggests that employees are motivated by their expectations of the outcomes they will receive from their work, including compensation.

Question 5

According to ______,a comparison with relevant others leads to one of three conclusions: the employee is either underrewarded,overrewarded,or equitably rewarded.
A) equality theory
B) learning theory
C) expectancy theory
D) equity theory

Accepted Answer

The statement refers to the equity theory, which proposes that individuals compare their own input-to-outcome ratios with those of some ‘comparison other’ and then respond to any inequity between the two in order to restore equity. This comparison leads to the conclusion that the employee is either underrewarded, overrewarded, or equitably rewarded.

Question 6

Ling's organization is in a very competitive industry and getting goods to market quickly is vital to the organization's survival.For Ling,adopting a(n)______ organizational philosophy on compensation might be a good idea.
A) at-the-market
B) below-the-market
C) pay-for-longevity
D) pay-for-performance

Accepted Answer

Pay-for-performance philosophy ties compensation to employees' performance, encouraging them to work harder, smarter and reach company objectives faster. This approach is suitable for Ling's organization as speed is critical, and it helps drive productivity and efficient use of time.

Question 7

In expectancy theory,______ refers to the value a person places on the outcome or reward,because not all people value the same reward.
A) rate
B) instrumentality
C) valence
D) equity

Accepted Answer

Valence in expectancy theory refers to the value a person places on the outcome or reward, and it varies from person to person. It is not related to rate, instrumentality, or equity.

Question 8

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 considering ______.
A) ability to pay
B) types of compensation
C) performance- or longevity-based pay
D) skill- or competency-based pay

Accepted Answer

Ability to pay refers to the organization's financial capacity to offer a certain level of pay to its employees. This is crucial in setting the base pay rate for new jobs as it ensures that the organization can afford to pay its employees and stay financially sustainable. Choices B, C, and D refer to different types of compensation schemes that an organization may use in addition to the base pay rate. However, determining the base pay rate is the first step, and this is where the consideration of ability to pay comes into play.

Question 9

Martha was promised a 10% 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 is very close to securing the contract.There is a 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 ______.
A) valence
B) instrumentality
C) expectancy
D) significance

Accepted Answer

Martha lacks expectancy, which in expectancy theory refers to the belief that one's effort will result in attainment of desired performance goals. In this case, Martha does not believe she can win the contract, indicating low expectancy.

Question 10

According to equity theory,people will be ______ if they feel (perceive)that they are not fairly compensated.
A) rated
B) motivated
C) demotivated
D) expectant

Accepted Answer

Equity theory suggests that people compare their ratio of inputs (effort, skills, education) to outcomes (pay, benefits, recognition) with that of others. If they perceive that their ratio is less favorable compared to others, they may experience feelings of inequity, which can lead to demotivation and dissatisfaction. Therefore, if people feel unfairly compensated, they will be demotivated.

Question 11

______ theory proposes that employees are motivated when the ratio of their perceived outcomes to inputs is at least roughly equal to that of other referent individuals.
A) Motivation
B) Referent
C) Expectancy
D) Equity

Accepted Answer

The theory described in the question is Equity Theory, which proposes that employees are motivated when they perceive fairness in the ratio of their inputs (effort, skills, etc.) to outcomes (pay, recognition, etc.) compared to others who are seen as referent individuals. Therefore, the best choice is D) Equity.

Question 12

According to ______ theory,people compare their inputs,financial rewards,and intangible outcomes to those of relevant others.
A) referent
B) valence
C) equity
D) expectancy

Accepted Answer

The equity theory proposes that people compare their inputs (efforts, skills, experience), financial rewards, and intangible outcomes (such as status or recognition) to those of others who are relevant to them (such as colleagues or peers). This comparison enables individuals to evaluate whether they are receiving fair treatment in terms of the outcomes they receive for the efforts they put in. If they perceive an imbalance in the comparison, they are likely to feel distress and will attempt to restore equity by adjusting their inputs, outcomes, or both. Thus, the equity theory helps explain how people make judgments about the fairness and justice of the rewards they receive in relation to others.

Question 13

Vladimir's organization gives raises for completing certain tasks,not just showing up and being loyal to the firm.Vladimir's organization pays more for ______.
A) performance
B) competence
C) compression
D) structure

Accepted Answer

Vladimir's organization rewards employees based on their performance and completion of certain tasks, indicating that they prioritize and pay more for individual performance rather than simply loyalty or basic competence.

Question 14

An organization must complete an assessment of estimated ______ from business operations and determine what percentage of revenues can or should realistically go toward compensation costs.
A) equity
B) costs
C) revenues
D) growth

Accepted Answer

The organization must assess estimated revenues from business operations and then determine what percentage of those revenues can realistically go toward compensation costs.

Question 15

Organizations must decide if they are going to have a ______ philosophy or a longevity philosophy.
A) evaluation
B) assessment
C) performance
D) seniority

Accepted Answer

The answer of Organizations must decide if they are going...

Question 16

Mimi is redesigning the compensation mix at her organization to include more family-friendly benefits such as child and elder care.Mimi is considering ______.
A) ability to pay
B) types of compensation
C) wage compression
D) skill- or competency-based pay

Accepted Answer

Redesigning the compensation mix to include family-friendly benefits such as child and elder care is related to types of compensation. Ability to pay refers to the organization's financial capacity to pay its employees, wage compression refers to the narrowing of the pay gap between different levels of employees, and skill- or competency-based pay refers to basing pay on the level of skills or knowledge an employee possesses.

Question 17

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.
A) valence
B) instrumentality
C) expectancy
D) significance

Accepted Answer

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

Question 18

Yashar 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.Yashar doubts there's any money available for raises.Therefore,he has not been motivated to work as hard.According to expectancy theory,Yashar is unmotivated because ______ is lacking.
A) valence
B) instrumentality
C) expectancy
D) significance

Accepted Answer

According to expectancy theory, motivation is comprised of three components: expectancy, instrumentality, and valence. Yashar's belief that there is no money available for raises suggests that he lacks instrumentality - the belief that increased effort will lead to better performance or outcomes. Therefore, Yashar may feel unmotivated because he doubts his increased effort would result in a raise, even if his performance is exceptional.

Question 19

In expectancy theory,______ is based on the individual employee's perception of fairness.
A) valence
B) expectancy
C) instrumentality
D) equity

Accepted Answer

The answer of In expectancy theory,______ is based on the...

Question 20

According to equity theory,a ______ other could be a coworker or a group of employees from the same or different organizations.
A) referring
B) relevant
C) motivating
D) valent

Accepted Answer

Equity theory states that individuals compare their own inputs (such as effort, contributions, and skills) and outcomes (such as pay, recognition, and rewards) to those of a relevant other, who could be a coworker or a group of employees from the same or different organizations. The comparison with a relevant other is crucial in determining whether individuals perceive their own outcomes as fair and just. Therefore, the choice B) relevant is the best option. A) referring, C) motivating, and D) valent are not relevant to equity theory.

Quiz 11: Compensation Management

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 ______.

Megha is revising her organization's policy around annual raises and wondering whether to reward employees who have been with the company the longest or those who have closed the most sales.She is considering ______.

The result of ______ theory is that our employees will either be motivated by their outcomes,including compensation,or be demotivated by them.

According to ______,a comparison with relevant others leads to one of three conclusions: the employee is either underrewarded,overrewarded,or equitably rewarded.

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

In expectancy theory,______ refers to the value a person places on the outcome or reward,because not all people value the same reward.

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 considering ______.

According to equity theory,people will be ______ if they feel (perceive) that they are not fairly compensated.

______ theory proposes that employees are motivated when the ratio of their perceived outcomes to inputs is at least roughly equal to that of other referent individuals.

According to ______ theory,people compare their inputs,financial rewards,and intangible outcomes to those of relevant others.

Vladimir's organization gives raises for completing certain tasks,not just showing up and being loyal to the firm.Vladimir's organization pays more for ______.

An organization must complete an assessment of estimated ______ from business operations and determine what percentage of revenues can or should realistically go toward compensation costs.

Organizations must decide if they are going to have a ______ philosophy or a longevity philosophy.

Mimi is redesigning the compensation mix at her organization to include more family-friendly benefits such as child and elder care.Mimi is considering ______.

In expectancy theory,______ is based on the individual employee's perception of fairness.

According to equity theory,a ______ other could be a coworker or a group of employees from the same or different organizations.