Question 1

According to Herzberg's theory,a manager would be able to motivate an employee with challenging tasks.

Accepted Answer

Herzberg's theory states that the best way to motivate someone is to organize the job so that doing it provides the challenge and recognition needed to help satisfy "higher-level" needs for things like accomplishment and recognition.

Question 2

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 3

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 4

Employees at GameTime Software participate in a gainsharing plan.Employee bonuses are calculated by dividing payroll expenses by total sales.GameTime 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).

Question 5

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 6

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 7

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 8

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 9

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.

Question 10

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 salespeople with the firms' strategies.For instance they're factoring in more growth-oriented metrics,and reviewing their sales pay plans more often.

Question 11

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 12

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 13

Herzberg's Hygiene-Motivator theory is based on a needs theory.

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 a theory of needs.

Question 14

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

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.

Question 15

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 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

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 18

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 19

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 20

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.

Quiz 12: Pay for Performance and Financial Incentives