Question 1

Profit-sharing programs differ from skill-based pay programs in that the former share company profits with employees,while the latter are based on the number and level of job-related skills that an employee has learned.

Accepted Answer

Profit-sharing programs distribute a portion of the company profits to employees, whereas skill-based pay systems tie employees' pay rates to the number and level of job-related abilities they possess.

Question 2

The ability of rewards to motivate individuals or a team to high performance depends on four factors,which included timeliness,performance contingency,equity,and effort.

Accepted Answer

The answer of The ability of rewards to motivate individuals...

Question 3

The majority of the largest U.S.organizations use skill-based pay for some proportion of their blue-collar workers.

Accepted Answer

The answer of The majority of the largest U.S.organizations use...

Question 4

Skill-based pay compensates employees for the specific jobs they are performing in the organization.

Accepted Answer

Skill-based pay rewards employees for the range, depth, and types of skills and knowledge they are capable of using within the organization, rather than the specific job they are currently performing.

Question 5

More than 16 percent of the Fortune 1000 companies use skill-based pay programs to motivate employees.

Accepted Answer

According to a survey conducted by WorldatWork, more than 16 percent of the Fortune 1000 companies use skill-based pay programs to motivate employees.

Question 6

One of the way to reduce failure in a profit-sharing program is to track performance right away,and stop the program if it does not work in the first year.

Accepted Answer

Stopping a profit-sharing program in the first year may not necessarily be the best solution as it takes time for the program to show its impact on employees' performance and motivation. It is important to monitor the program's performance over a longer period of time and make necessary adjustments to ensure its success. Simply ending the program after one year may not address the underlying issues that led to its failure.

Question 7

The advantage of informal reward programs is that they are easy to implement and cost effective.

Accepted Answer

Informal reward programs can involve simple gestures such as verbal recognition or a small token of appreciation, which are easy to implement and don't require a lot of resources. Therefore, they can be cost-effective for organizations.

Question 8

Visible rewards,such as job titles and premium parking spaces,send signals to employees that rewards are available,timely,and based on performance.

Accepted Answer

Visible rewards serve as a tangible and timely indication to employees that rewards are available and based on their performance. It motivates them to work harder and strive for better results.

Question 9

More than one-third of the companies that use profit sharing do not track the results of such programs.

Accepted Answer

According to a survey by WorldatWork, 36% of companies that use profit sharing do not track the results of such programs.

Question 10

Extrinsic rewards tend to last longer than intrinsic ones.

Accepted Answer

This statement is actually the opposite of what research has shown. Intrinsic rewards, such as personal satisfaction and enjoyment of a task, tend to have longer lasting effects on motivation and behavior compared to extrinsic rewards, such as money or gifts. Extrinsic rewards may provide temporary boosts in motivation, but can often lead to a decrease in intrinsic motivation over time.

Question 11

According to the Change Competency: Nucor's Profit-Sharing Program,Nucor's profit-sharing plan is also based on employees' ability to keep the mills running and discover new ways to improve the quality and amount of steel produced.

Accepted Answer

The article states that Nucor's profit-sharing plan is based on employees' ability to keep the mills running and discover new ways to improve the quality and amount of steel produced.

Question 12

Skill-based pay programs are based on the number and level of job-related skills that an employee has learned.

Accepted Answer

Skill-based pay programs are designed to compensate employees based on the number and level of job-related skills they have mastered. These programs are intended to encourage learning and development by rewarding employees for expanding their skill sets, which can improve overall job performance and productivity.

Question 13

According to the Change Competency: Nucor's Profit-Sharing Program,The average Nucor steelworker earns more than $70,000 per year,but only one-third of that amount is guaranteed.

Accepted Answer

Nucor's unique profit-sharing program means that a significant portion of a steelworker's income is variable, based on the company's profitability, leading to higher potential earnings but with only a base salary guaranteed.

Question 14

Skill-based pay programs are limited by the "topping out" effect.

Accepted Answer

Topping out effect occurs when skilled employees reach the maximum level of pay for their job duties, resulting in limited opportunities for further wage increases. This limits the effectiveness of skill-based pay programs since there is a ceiling to how much an employee can earn.

Question 15

Profit-sharing programs are useful because individuals and teams have an important role in overall organizational performance.

Accepted Answer

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Question 16

One of the way to reduce failure in a profit-sharing program is to set clear goals for the program.

Accepted Answer

Setting clear goals for the profit-sharing program helps in establishing a clear understanding among the employees and management about what is expected to achieve through the program. It also enables measuring progress and success of the program, which in turn, reduces the failure chances.

Question 17

At Blanchard Training and Development in San Diego,California,leaders have established the Eagle Award to recognize legendary service to customers-one of the organization's goal.This is a skill based pay program.

Accepted Answer

The Eagle Award described is a form of recognition program, not a skill-based pay program. Skill-based pay programs compensate employees for the range, depth, and types of skills and knowledge they are capable of applying to their work, rather than for the specific job they are currently performing.

Question 18

Profit-sharing programs are seldom used in Japan.

Accepted Answer

Profit-sharing programs are actually quite common in Japan, especially in larger companies. They are viewed as a way to provide incentives for employees and promote a collective sense of responsibility for the success of the company.

Question 19

Profit-sharing programs are very popular in Japan.

Accepted Answer

Profit-sharing programs are indeed very popular in Japan, with many companies implementing such programs as a way to motivate and reward employees for their contribution to the company's success. Profit-sharing schemes typically involve distributing a portion of the company's profits to employees in the form of bonuses or other incentives, based on factors such as performance, tenure, and position within the company leadership hierarchy. These programs are viewed as a key component of the Japanese approach to management, which emphasizes teamwork, cooperation, and a focus on long-term success rather than short-term gains.

Question 20

Four popular reward systems that organizations use to motivate employees are: gain-sharing programs,profit-sharing programs,skill-based pay,and flexible benefits.

Accepted Answer

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Quiz 7: Motivation: Goal Setting and Reward Programs