management exam 2 questions from class

What are the three main purposes of performance appraisals?

1)Developmental 2)Strategic 3)Administrative

An organization that has higher labor costs than its market competitors will have to charge higher average prices for products of a similar quality. This type of market pressure is referred to as...

Product market competition

Under this type of compensation plan, payments to employees are based on a measure of organizational profits and do not become part of the employees' base salary.

Profit sharing

Which motivation theory suggests that high employee performance not followed by a monetary reward will make future high performance less likely?

Reinforcement theory

When it comes to setting goals, the acronym SMART stands for...

Specific Measurable Attainable Relevant Time bound

This job characteristic involves the extent to which the job requires an individual to perform a whole or completely identifiable piece of work.

Task identity

This job characteristic defines the degree to which the job has a substantial impact on the lives of other people, whether those people are in the immediate organization or in the world at large.

Task significance

This type of payment plan is not focused on profitability but on cost-saving measures that employees initiate or participate in. It is focused on sharing productivity gains with employees.

gainsharing

A(n) ______________ is suitable for an organization with a culture that promotes individual competition.

merit pay plan

Strengthening a desired behavior by withdrawing something displeasing is known as __________.

negative reinforcement

The ranking technique that requires certain percentages of employees to be categorized into predetermined categories or groups based on their performance is known as...

Forced distribution

The process of developing, negotiating, and establishing targets that challenge the individual is the central thrust of which theory of motivation?

Goal setting theory

Steve formed a negative impression of his professor when he found out they didn't like dogs. As a consequence, he rates this professor low on all performance criteria at the end of the semester. Which rater error has Steve committed?

Horns error

This type of payment plan is rare because most jobs don't have objective performance measures such as physical output

Individual incentives

The extent to which a performance measure assesses all the relevant - and only the relevant - aspects of job performance is known as...

Validity

Kristie wants friendly and close interpersonal relationships with her colleagues. According to McClelland's acquired needs theory, this is a need for...

affiliation

Which theory suggests that owners and employees are both self-interested, and that compensation systems can be designed to ensure that employees interests are more closely aligned with owners' interests?

Agency theory

What is one disadvantage of using group incentives or team awards?

Answer: Individual competition is replaced by team competition It doesn't recognize differences in individual performance which risks demotivating top performers

This approach to performance management focuses on the extent to which individuals have certain characteristics or traits believed to be desirable for success

Attribute Approach

Maria was explaining to her friend that she enjoys her new job, particularly because she is given a lot of freedom and discretion to schedule and decide on the procedures used to complete the tasks assigned to her. Which job characteristic was Maria talking about?

Autonomy

This approach to performance management attempts to define and measure the specific behaviors an employee must exhibit to be effective in the job

Behavioral Approach

The process of collapsing multiple traditional salary grades into a few wide salary bands is known as...

Broad banding or delayering

This theory holds that people are motivated to behave in ways that produce desired combinations of expected outcomes.

Expectancy Theory

According to Self-Determination Theory, one of the fundamental human needs involves the need to feel qualified, knowledgeable, and capable to complete a task. This is the innate need for...

Competence

Anne is responsible for rating the performance of her two subordinates. Instead of evaluating them separately against some objective criteria, she compares their performance levels to one another and rates them based on this comparison. This is an example of which rater error?

Contrast Error

Good Vibes Inc. recently completed a job evaluation for an entry level administrative position. The pay policy line suggests that this job should pay $30,000/yr. However, Good Vibes found that because other companies were paying $40,000/yr to hire similar employees, they had to offer a higher wage to attract talent. This is an example of?

Labor market competition

This type of job is unique to organizations in that they have content different from jobs in other organizations having the same title. Therefore, they cannot be directly valued or compared through market surveys.

Non-key jobs

The characteristics of jobs that an organization values and chooses to pay for are called...

compensable factors

The administrative procedure used to measure internal job worth is called...

job evaluation

A pay policy line represents the relationship between a job's pay and its...

job evaluation points

The relative pay of jobs in an organization is known as...

job structure

If your company grants you, as part of your compensation package, the right during a specific timeframe to purchase a set number of shares of stock at a specified purchase price, this form of compensation is known as...

stock options