MGMT 365- CH. 8, 10, 12, 13

According to research findings, when an organization changes from a pay strategy that has below average variability to one with above average variability, on average they will experience a ROI increase of approximately:

2%

There are ___ basic purposed of an organization's performance management system.

3

The Family and Medical Leave Act pertains to employers with ___ or more employees within a 75-miles radius.

50

Exit surveys of high-performing employees who are leaving their organization indicate that "better pay" was the reason for ___ of the cases.

70%

_____ is the method used to resolve disputes that often proceeds through the stages of open door policy, peer review, mediation, and arbitration rather than using the legal system.

Alternative Dispute Resolution (ADR)

___ scales are similar to ___ rating scales except that the former involvers the manager rating the frequency that employees exhibited each behavior during the rating period whereas the latter defines behaviors that exemplify levels of performance.

Behavioral observation Behaviorally anchored

Managers should consider which of the following when they are considering ways to improve performance?

Employee's ability Employee's motivation

Defined benefit plans insulate employees from ___.

investment risk

Employees separate from a company for many reasons. When the organization initiates an employee leaving the company, it is referred to as:

involuntary turnover

When an employee leaving their job is initiated by the organization , it is known as ___ ___.

involuntary turnover

____ ____ is defined as the degree to which individuals identify themselves with their jobs.

job involvement

The positive or pleasurable feeling resulting from the perception that one's job fulfills or allows fulfillment of important job values is known as ___ ___.

job satisfaction

When it comes to company size, the ___ the company, the more benefits employees typically receive.

larger

Company pensions are designed to encourage ___.

long-service employees

Customer evaluations serve a strategic goal by integrating _____ strategies with human resource activities and policies. comparative financial administrative marketing economic

marketing

During the _____ stage, a neutral third party from outside the organization hears the case and, via a nonbinding process, tries to help the disputants arrive at a settlement. mediation arbitration open-door policy peer review manager interference

mediation

The stage in Alternative Dispute Resolution that involves a third party from outside of the organization hearing the case and attempting to help the parties arrive at a settlement through a non-binding process is ___.

mediation

A grid combines an employee's performance rating with their position with a pay range so as to determine the size and frequency of pay increases is know as the ___ ___ grid.

merit increase

Relying exclusively on _____ may result in high levels of work motivation but unacceptable levels of individualistic and competitive behavior. gainsharing stock options profit sharing deferred pay merit pay

merit pay

Defining relevant performance dimensions, developing statements that represent good, average and poor performance, and then mixing those statements with statements from other dimensions on the actual rating instrument are the steps involved in creating which of the following?

mixed-standard scales

An employee is perpetually dissatisfied despite organizational interventions. The reason for dissatisfaction is likely to be _____. lack of employer support negative affectivity random affectivity lack of social support low pay

negative affectivity

____ are often used to help to control, direct, or energize employee behavior.

pay plans

Qualified plans must meet so-called nondiscrimination rules so that: owners are encouraged to adopt plans that benefit them exclusively. benefits favor highly compensated employees. top managers adopt self-benefiting plans. important benefits are provided to a narrow spectrum of employees. tax benefits of such plans should not disproportionately aid the wealthy.

tax benefits of such plans should not disproportionately aid the wealthy.

Which of the following is the best predictor of job satisfaction?

the nature of the task itself

Which theory focuses on the link between rewards and behaviors, but emphasizes expected rather than experienced rewards.

Expectancy Theory

What is the Financial Accounting Statement that requires companies to fund benefits provided after retirement on an accrual basis?

FAS 106

Which of the following statements is accurate concerning the relationship between pay strategy and the organization's strategy of concentration or growth?

Growth strategies should be linked with pay strategies that share risk and future success through above market pay levels in the long run

Which of the following scenarios exemplifies eligibility for unemployment benefits? Jacob quit his job voluntarily. Ved is currently unemployed due to a labor dispute. Haseen was wrongfully discharged after two years of work. Mike was discharged for willful misconduct. Ria is not actively seeking out work.

Haseen was wrongfully discharged after two years of work.

Which of the following scenarios would be accurate according to the Law of Effect?

High performance followed by a monetary reward will make future high performance more likely. High performance not followed by a monetary reward will make future high performance less likely.

wrongful discharge suits that are filed due to a civil rights infringement claim a person is discharged is a member of a protected group. WHICH of the following are types of or are protected groups?

Homosexuals whistle-blowers racial minorities

There are a number of criteria that underly job performance measures. Which of the following would not be considered something that would be one of these criteria?

ROI

Which of the following are things that managers will need to do in order to effectively use non financial performance measures?

Use existing databases to identify pre-existing data on key financial performance measures. Act on the conclusions that the model will demonstrate. Develop a model to illustrate how non financial measures are linked to the strategic goals of the firm.

Which of the following is the approach to performance management that is focused on the extent that individuals possess certain qualities or characteristics that are believed to be linked to company success?

attribute approach

Which of the following are typically basic elements that are shared by Employee Assistance Programs?

costs and benefits of the program are analyzed and evaluated. Employees are trained on how to make self-referrals when necessary. Programs are identified in official documents such as employee handbooks.

Which of the following is often the most salient (applicable) frame of reference for job satisfication?

current level of satisfaction

An organization that introduces and utilizes forced distribution rating systems, which results in poor performance being systematically identifies and when necessary, eliminated from the payroll experiences improvement gains in the range of:

40%

What percentage of private sector employees do not presently get paid for sick days?

40%

Fundamental characteristics of the _____ approach to performance management include a customer orientation, a prevention approach to errors, and continuous improvement. attribute quality comparative behavioral results

quality

On reason that many organizations use merit pay:

its ability to define and reward broad ranges of performance dimensions

The degree to which individuals identify themselves with their job is known as:

job involvement

Which of the following perspectives of performance included in a balanced scorecard?

learning and growth financial

Passive employee wellness programs ___.

provide little or no outreach to individual employees

Which of the following approaches to performance management involves a preventative approach to errors, continuous improvement and a customer orientation?

quality approach

Recent estimates from 2008 indicate that the average cost to replace a professional or managerial worker is:

$50,000

On average, out of 10,000 employment suits that are filed, how many trials are initially won by the plaintiff?

186

_____ theory suggests that monitoring would be less costly and more effective if performed by employees. Equity Reinforcement Expectancy Efficiency wage Agency

Agency

How does a defined contribution plan differ from a defined benefits plan?

A defined contribution plan presents fewer admin challenges to the employer. A defined contribution plan shifts investment risk from employer to employee. A defined contribution plan does not promise a specific benefit level for employees upon retirement.

Which of the following are among the factors used in determining what type of contract an organization should use?

Ability to pay Job programmability Outcome uncertainty

Which of the following are among the criteria one might use to evaluate a performance management system that were discussed in the text?

Acceptability Reliability Specificity

Which of the following statements concerning performance management is accurate?

An effect performance management system is a process, not an event

Which of the following would be expected in a performance management system that is designed with a strong quality orientation?

An emphasis on cooperation in performance problem solving between managers and employees. Use of multiple sources in the evaluation of person and system factors. Involvement of both internal and external customers to set standards and measure performance.

What are the tax advantages of a qualified retirement plan?

An immediate tax deduction to employers for their contributions to retirement funds. No tax liabilities incurred by employees at the time of the employer tax deduction. Tax-free investment returns on the retirement funds.

Which of the following is the last step in an alternative dispute resolution? Legal support Arbitration Open-door policy Peer review Mediation

Arbitration

The four stages often used in Alternative Dispute Resolution include:

Arbitration Mediation Open Door Policy

According to the model of the overall job dissatisfaction-job withdrawal process, which of the following are potential manifestations of job withdrawal?

Behavioral change. Psychological job withdrawal. Physical job withdrawal.

Which of the following are ways that behavioral observation scales(BOS) differ from behaviorally anchored rating scales (BARS)?

BOS requires managers to check the frequency of exhibited behaviors rather than assessing which behavior best reflects the individuals performance. BOS uses many behaviors that exemplify effective and ineffective performance rather than discarding a large number of behaviors.

Which of the following characteristics concerning pay-for-performance programs may help increase the probability that the program has the intended effects and decrease the probability of unintended consequences and problems?

Balancing of objectives. Careful alignment with human resource strategy. Careful alignment with organizational strategy.

____ ____ contracts generally do not result in a transfer of risk to the agent and as such, do not require a wage differential.

Behavior Based

How are Social Security retirement benefits financed?

By a payroll tax assessed to both the employer and the employees

How can companies assess employee preferences for specific benefits?

By holding employee focus groups. By conducting personal employee interviews. By sending out employee questionnaires.

What is the acronym for government legislation that requires employers to permit employees to extend their health care coverage at group rates for up to 36 months following a "qualifying" event?

COBRA

Which of the following plans combines the advantages of defined benefit plans and defined contribution plans? Protected benefit plans Secure contribution plans Money purchase plans Flexi-benefit plans Cash balance plans

Cash balance plans

What impact does FAS 106 have on companies as it pertains to their financial statements?

Companies must carry those future costs on their current financial statements, which may paint a less-than-rosy financial situation for the company.

Which of the following statements concerning competency models are accurate?

Competency models can help in employee development by identifying specific strengths and development areas. Competency models are useful not only for performance management, but other HR functions such as recruitment, selection, training an development.

What is the first step in diagnosing poor performance?

Consider whether or not the poor performance is critical to completing the job and does it affect business results

____ _____ ____ are programs offered by employers intended to help workers who've drug dependency, alcohol related, or psychological problems.

Employee Assistance Programs

Which of the following is the first step in an effective performance management process? Develop employee goals, behavior, and actions to achieve outcomes Provide consequences for performance results Identify improvements needed Provide support and ongoing performance discussions Define performance outcomes for company division and department

Define performance outcomes for company division and department

Which of the following purposes does the performance management system serve when it seeks to improve an employee's performance? Administrative Developmental Strategic Efficiency Evaluation

Developmental

Which of the following are the central components of an effective discipline program?

Documentation Progressive punitive measures

Which of the following is an input factor to be considered while analyzing poor performance? Do performance standards exist? Does the employee recognize what he or she is supposed to do? Does the employee have the necessary skills and knowledge needed? Are performance consequences given in a timely manner? Has the employee been given information about his or her performance?

Does the employee recognize what he or she is supposed to do?

The "Law of Effect" is attributed to which researcher?

E.L Thorndike

Which of the following aspects of job satisfaction are accurate?

Each employee may have different views of what values are important. Job satisfaction is a function of values. Job satisfaction is largely a function of perception.

Which of the following are among the determinants of interactional justice?

Empathy Explanation

_____ survey research allows the company to monitor trends over time and thus prevent problems in the area of voluntary turnover before they happen. Peer Employee Company Customer Supervisor

Employee

What are some of the advantages of cafeteria-style benefits plans?

Employees can gain greater awareness of what the employer provides for them. A better match can be made between benefits and employee preferences. Individual choices may improve employee attitudes and retention. Employers may achieve overall cost reductions.

Which of the following is an advantage of flexible benefit plans? Estimating benefits costs under such plans is very easy. Employer costs decrease significantly as employees choose customized benefits. Employees gain a greater awareness and appreciation of what the employer provides. The benefits selected are usually favorable to the organization. The cost involved in designing such plans is quite high.

Employees gain a greater awareness and appreciation of what the employer provides.

Which of the following is a likely reason that an employee involvement in the design and implementation of pay policies has been linked higher pay and job satisfaction?

Employees have a better understanding of and greater commitment to the policy

Which of the following are accurate statements concerning effective performance feedback?

Employees should take the time to rate their own performance prior to the feedback session

Pay plans are used in part to do which of the following?

Energize employee behavior Direct employee behavior Control employee behavior

Which of the following is the top strategic purpose of a performance management system?

Establishing a link between employee activity and organizational goals.

Which of the following is a determinant of procedural justice? Ethicality Empathy Explanation Social sensitivity Consideration

Ethicality

Which of the following statements concerning negative affectivity is NOT accurate?

Evidence suggests that employee selection plays little role is raising overall levels of employee satisfaction. Changing jobs can alleviate the long-term impacts of negative affectivity on job dissatisfaction

Which of the following statements are accurate concerning the use of employee survey-feedback?

Exit interviews with departing employees provide valuable information concerning issues related to retention. using a systematic survey approach allows the organization to identify difference between units and benchmark best practices

True or False: Individual incentive plans generally contribute to the development of a cross-trained, flexible, proactive and efficient problem- solving workforce.

False

True or False: The tax treatment of benefits programs is often less favorable for employees than the tax treatment of wages and salaries.

False

Whether or not an employee has been given information concerning his or her performance is related to which type of factor managers should consider when analyzing poor performance?

Feedback

Which of the following statements is NOT accurate concerning dismissing an employee?

Financial losses due to legal defense is about the only issue an employer needs to worry about

Which of the following is a key question that needs to be addressed when designing either managerial or non managerial compensation?

How can agency cost be minimized?

Which of the following are the first two steps in the performance management process (in any order)?

Identify company's goals and objectives Identifying and developing performance measures for key performance dimensions

Performance management is critical for an organization to execute its talent management strategy. To achieve this, the performance management system does which of the following?

Identifying an employee's strengths and weaknesses and linking them with appropriate training and development activities

Which of the following are things that a manager might find to be related to an employee's level of motivation?

If the employee wants to do the job. If the employee feels they are fairly being paid or rewarded.

Which of the following is an important characteristics of modern organizations concerning agency theory?

In most corporations today, stockholders (owners) are not involved in day-to-day operations.

Which statement concerning the use of pay and recognition programs is NOT accurate?

Individual pay programs have little to do with the nature and composition of an organization's workforce

If an employee is not treated with empathy and consideration when bad news is conveyed to him or her, which of the following does he or she perceive to have not received from the organization? Procedural outcome Outcome fairness Perceptual justice Interactional justice Result outcome

Interactional justice

Which of the following is true of a cash balance plan? It is most generous to older employees. It does not permit rolling over of balance into an individual retirement account. It earns interest according to a predetermined rate. It does not guarantee a specific rate of interest. It requires contributions from the employer and the employee.

It earns interest according to a predetermined rate.

Which of the following is a widely used measure of job satisfaction that emphasizes facets of satisfaction such as pay, the work itself, supervisors, co-workers, and promotions?

Job Descriptive Index (JDI)

Which of the following are typical examples of services offered to displaced employees through outplacement counseling programs?

Job interview training. Job search support. Networking opportunities.

Which statement is NOT accurate concerning job rotation?

Job rotation may lead to employee frustration due to the complexity that is added to their jobs.

Which statement is accurate?

an organization that links pay with performance may attract more high performers than organizations that do not.

_____ is the stage of alternative dispute resolution where two people in conflict attempt to arrive at a settlement together, without the involvement of other parties. Peer review Open door policy Arbitration Manager interference Mediation

Open door policy

Which of the following is true of organizations that have adopted a growth business strategy? Low risk sharing Above market benefits level Above market pay level in the short-run Centralized pay decisions Long-term time orientation

Long-term time orientation

Which of the following criteria might be considered by judges adjudicating wrongful discharge suits as creating an implied contact of employment which requires dismissal only for good cause?

Longevity on the job. Favorable past performance reviews Promotions

Which of the following contingencies that may influence whether each pay program fits a situation?

Management style Type of work

Many managers feel that the performance appraisal process is a necessary evil and feel uncomfortable evaluating others. Which of the following often results due to these manager's feeling uncomfortable evaluating others?

Managers tend to rate everyone the same

Which of the following statements concerning the sources of performance information is accurate?

Many companies include self-assessment and managerial assessment of performance to increase the effect of the performance management system

What has been the outcome of increased retiree health care costs and the FAS 106 ruling as it pertains to benefits?

Many companies now require white-collar employees and retirees to pay increased co-payments and deductibles. Many companies recently have eliminated retiree health care benefits all together. Many companies now require white-collar employees and retirees to pay insurance premiums.

Which of the following are potential reasons individual incentives are relatively rare?

Many jobs have no physical output to measure. They may result in employees doing only what they are getting paid for and little or nothing else

Payout is done on a(n) _____ basis in merit pay programs. monthly stock semiannual annual weekly

annual

What are the categories for workers' compensation benefits?

Medical care death benefits rehabilitative services disability income

Which of the following are among the steps involved in creating mixed-standard scales?

Mix statements that represent good, average and poor performance with statements from other dimensions. Define relevant performance measures. Develop statements that represent good, average and poor performance for each dimension.

Which of the following are factors that likely contribute to the low motivational effects of profits sharing plans?

Most lower level employees do not see a strong connection between their actions and their compensation under these plans. Most plans provide compensation on a deferred basis.

___ ___ is the degree to which an employee identifies with their organization which results in their willingness to put forth effort on the organization's behalf.

Organizational Commitment

Which of the following statements is NOT accurate concerning pay and benefits being a source of job satisfaction?

Pay is seen an an indicator of status generally only within the organization

Which of the following are design features that potentially help differentiate pay-for-performance programs?

Payment Method Ways of measuring performance.

Which of the following is characteristic of profit-sharing programs? Organizations feel the need to rely on layoffs during tough times. Payments do not become part of base pay in such programs. Employees' self-interest is encouraged when using such plans. Owners are encouraged to think like employees. Labor costs automatically increase during difficult economic times.

Payments do not become part of base pay in such programs.

In an alternative dispute resolution program, at what stage does a panel composed of representatives from the organization that are at the same level of those people in the dispute hear the case and attempt to help the parties arrive at a settlement? Open-door policy Manager interference Arbitration Peer review Mediation

Peer review

_____ refers to the process of providing employees information regarding their performance effectiveness. Performance assessment Performance appraisal Performance feedback Job enrichment Job enlargement

Performance feedback

Which of the following differences allow us to differentiate between individual incentives and merit pay?

Performance in individual incentive plans is measured as physical output rather than subjective ratings. Payments in individual incentive plans are not rolled into base pay.

Which of the following are attributes generally specifically associated with a competency?

Personal Characterisitics Knowledge

What are the basic types of medical expenses typically covered by company health plans?

Physicians; visits Hospital expenses Surgical expenses

What should be a key factor in designing an employee benefits package?

Preferences of the current workforce

Where can employers obtain competitive information about other employers' benefit packages?

Private business consultants. US Chamber of Commerce. Bureau of Labor Statistics

Which of the following is a form of compensation that has its payout based on the group or plant-level performance rather than organization-level performance?

gainsharing

_____ is a compensation plan in which payments are based on a measure of organization performance and do not become part of the employees' base salary. Gainsharing Merit pay Team awards Profit sharing Skill-based pay

Profit sharing

Which of the following is a defined contribution pension plan? Cash balance plan Profit sharing plan Cafeteria-style plan State-sponsored retirement plan Flexi-benefit plan

Profit sharing plan

Which of the following are compensation-based programs designed to recognize employee contributions?

Profit-sharing ownership skill-based

Which of the following are potential solutions to a poorly performing employee a manager might consider if the employee understands the expected level of performance, has been given sufficient feedback and understand the consequences but lacks the skills and knowledge necessary to meet the performance standards?

Provide training to the employee. Fire the employee. Transfer the employee to a job that the person's skills fits better with.

A ___ ___ can be used for performance management and involve creating a description of the competencies associated with an entire occupation, organization, job family or a specific job

competency model

Most employee benefits fall into one of the following categories:

Retirement Private group insurance social insurance family-friendly policies

Jones is an employee with low ability and low motivation. As his boss, Rick tried to help Jones improve his skills through training and counselling. Despite this, Jones's performance continues to be low. Which of the following is an appropriate action that Rick should consider with respect to Jones? Rich should restructure the job design. Rick should link rewards to outcomes. Rick should use higher rewards to motivate Jones. Rick should withhold pay increases. Rick should continue counselling.

Rick should withhold pay increases.

Which of the following is an example of an upward feedback? Managers evaluating other managers' behavior or skills Peers evaluating each other's behavior or skills Subordinates evaluating their manager's behavior or skills Manager evaluating the performance of a new recruit Employees evaluating themselves

Subordinates evaluating their manager's behavior or skills

the determinant of interactional justice that involves listening to the person's concerns is ____

consideration

Which of the following are among the primary sources of performance information?

Self Subordinates Customers

Which of the following is one of the reasons for the growth of benefits as part of total compensation? Employers provide more value by spending more on salary than on benefits. Benefits programs were affected when price controls were lifted. Tax treatment of benefits programs is favorable for employees. Benefits were traditionally covered by wage controls. The impact of regulation on benefits is less than that on direct compensation.

Tax treatment of benefits programs is favorable for employees.

Which of the following is a determinant of interactional justice? Consistency Ethicality Bias suppression Correctability Social sensitivity

Social sensitivity

A performance measure that does a good job of telling employees what is expected of them and how to meet those expectations is said to have a high level of:

Specificity

_____ is the extent to which a performance measure tells employees what is expected of them and how they can meet these expectations. Strategic congruence Specificity Validity Acceptability Reliability

Specificity

Which of the following stages in a typical progressive discipline program should be carried out prior to terminating an employee? Unofficial verbal warning Threat of suspension Temporary suspension Official written warning Right to go to arbitration

Temporary suspension

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), in which of the following cases is the employer exempted from extending health insurance coverage at group rates for up to 36 months? Layoff Wrongful discharge Termination due to gross misconduct Reduction in hours that leads to the loss of health insurance Death

Termination due to gross misconduct

Which factors should companies consider when trying to control the cost of employee benefits?

The amount of discretion an employer has to spend in a certain benefits category. The company;\'s experience ratings in unemployment rates and workers comp claims. The larger the cost of a benefit category, the greater the opportunity for savings. The growth trajectory of a benefit category may result in higher company costs in the future.

Which of the following approaches to performance management usually has a low reliability outcome that can be improved by specific definitions of attributes? The quality approach The comparative approach The attribute approach The behavioral approach The results approach

The attribute approach

Which of the following approaches to performance management has high specificity and high validity results, and minimizes contamination and deficiency? The behavioral approach The quality approach The attribute approach The comparative approach The results approach

The behavioral approach

The factors that determine the size and frequency of pay increases on the merit increase grid are:

The individuals performance rating. The individual's coma-ratio.

Which of the following are accurate statements concerning sources of job dissatisfaction?

They are levers which can raise job satisfication. They may result in changes in employee withdrawal behaviors.

What are some of the characteristics of employee wellness programs?

They attempt to manage health care costs by decreasing employee needs for services. They promote positive health influences. They are aimed at specific health care risks.

Which of the following are potential reasons that employees may react negatively to profit sharing plans not paying out during business downturns?

They may not feel it is their fault the company is not doing well is they have contributed to perform well in their job. The amount of at-risk pay may be a large portion of the overall compensation plan for an employee earning relatively low levels of pay.

Which of the following are reasons people may be satisfied with their supervisor and co-workers?

They may provide support to help the worker achieve their own goals. They may share values attitudes and philosophies.

Which of the following statements is NOT accurate concerning behavior-based contracts?

They require some aspect of compensation to be tied to outcomes in order to create some motivation. They result in a great deal of risk being transferred to the agent.

Which of the following are conditions or guidelines that should be followed concerning the administration of punitive measures?

They should be taken in steps of increasing magnitude. They should only be take after clearly being documented

Which of the following describes whether those individuals who use a performance measure consider it to be adequate or satisfactory?

acceptability

____ is best described as how well a performance measure is seen as satisfactory or adequate by those who use it.

acceptability

In agency theory, when a person is expected to act on behalf of another, that first person is known as the:

agent

The approach to compensation described by Norton and Kaplan as being a way to not only track financial results, but "simultaneously monitor progress in building capabilities and acquiring the intangible assets" necessary for growth in the future is know as the ___ ___

balanced scorecard

When choosing a contracting scheme that helps align the interest of the agent and principle, these contracts may be classified as either ___ -oriented or _____-oriented

behavior outcome

Payments are made as _____ in gain sharing. changes in net income changes in base pay equity changes bonuses nonmonetary incentives

bonuses

To control benefit costs, employers may ___.

change staffing practices

Gainsharing plans lay strong emphasis on taking advantage of _____ to improve the production process. company profits technology financial resources employee know-how management expertise

employee know-how

Which of the following forms of The attribute approach to performance management involves listing traits with some type of associated rating scale that the manager uses to signify how much of that treat the individual has?

graphic rating scale

When an employee is not performing well, an example of a developmental purpose of ___ ___ would be to attempt to improve their performance by providing feedback that will help identify the employee's deficiencies and the causes of them.

performance management

Which of the following may serve as sources of job dissatisfaction?

personal disposition unsafe working conditions tasks and roles

A manager's role in an effective performance feedback process is to: ensure that all feedback is collected and provided to the subordinate once a year. discourage employee participation during feedback sessions to avoid conflicting ideas. focus the feedback on the employees rather than their behavior. avoid employee self-assessments as they are typically grossly inflated. recognize effective employee performance and not only performance problems.

recognize effective employee performance and not only performance problems.

How consistent and free from random error a performance measure is can be best described as the measure's ____.

reliability

The consistency of a performance measure if known as that measure's:

reliability

As part of the Employee Retirement Income Security Act (ERISA), a summary plan description (SPD) is a(n) _____. resource allocation system reporting requirement budgeting requirement information gathering system strategy planning system

reporting requirement

The ___ approach to performance management involves managing objective measures of outcomes of a job or work group.

results

Which of the following approaches to performance management is focused on managing objective, measurable outcomes of a job or work group?

results approach

Which of the following factors that are used to determine which type of contract an organization should use can be directly linked with a personal characteristic of the agent?

risk aversion

True or false: When employee contributions completely fund short-term or long-term disability coverage, no federal tax is paid on the money paid out to the employee

true

A ___ ___ suit will generally attempt that discharge from employment was either in violation of an implied contract of covenant, or that is violated some public policy. They can also be filed as a civil rights infringement.

wrongful discharge

In the US, the amount of sick leave given to employees is often based on ___.

years of service

Recent survey evidence indicates that companies on average may spend upwards of ____ of payroll costs to cover the costs of absent or tardy workers.

15%

Which of the following statements about employee turnover is true? Turnover initiated by employees whom the company would prefer to keep is referred to as involuntary turnover. A wrongful discharge suit cannot be filed as a civil rights infringement if the person discharged is a member of a protected group. A wrongful discharge suit typically attempts to establish that the discharge either violated an implied contract or covenant or violated public policy. Turnover initiated by the organization is also known as voluntary turnover. Voluntary turnover is the last step in progressive discipline.

A wrongful discharge suit typically attempts to establish that the discharge either violated an implied contract or covenant or violated public policy.

Which of the following statements regarding the progression of withdrawal theory is not accurate?

According to the theory, satisfied employees may begin to enact behaviors that eventually lead to dissatisfaction and eventual withdrawal from work

What are the requirements for workers to be eligible to receive unemployment benefits?

Actively seeking work. Have not been terminated for cause. Prior attachment to the workforce. Availability for work.

_____ _____ is a theory that is focused primarily on the way compensation plans may or may not be used to align the goals and interests of employees with those of other organizational stakeholders.

Agency theory

Which of the following are techniques that would rely on the behavioral approach to performance management?

Behavioral observation scales competency models behaviorally anchored rating scales

Which of the following statements concerning employee wellness programs is NOT accurate?

Employee wellness programs take a positive approach

Which of the following would be recommendations managers should consider in order to provide effective performance feedback?

Focus on behavioral or performance issues, not the person. Have employees rate their own performance prior to the feedback session. Create the right context for the discussion

Which of the following differentiate between gainsharing and profit sharing plans?

Gainsharing plans use group or plant-level performance rather than organizational-level performance. Payouts in gainsharing plans are not deferred and are paid out more frequently.

Which strategies can employers use to control the costs of employee benefits?

Increase employee hours without incurring overtime charges. Classify workers as independent contractors. Change status of employees from nonexempt to exempt.

What is the legal minimum of paid days off required for employees of US companies?

No minimum

Which of the following is true about mobility across employers? Penalties for mobility may require modification when more mobility is necessary. The pension system's incentives should not be modified regardless of the mobility. Reduced mobility reinforces the trend toward defined contribution plans. Increased mobility will bring down portability across employees. Ease of transfer of funds will reduce with increased mobility.

Penalties for mobility may require modification when more mobility is necessary.

The government agency that guarantees to pay employees a basic retirement benefit should financial difficulties force their employer to terminate or reduce pension benefits is the ____ ____ ___ Corporation

Pension Benefit Guaranty

Which of the following are reasons that support the use of employee survey research as a prominent part of any human resource strategy?

Provides a means of empirically assessing changes in policy or personal on worker attitudes. Allows for monitoring of trends over time.

Which of the following is/are steps involved in a ProMES?

Staff defining indicators of the product. Staff establishes contingencies between the amount of indicators and level of evaluation associated with that amount.

Which of the following is NOT something managers should need to do to effectively use non financial measures?

Stick with the original model and not change measures included in the model

Which of the following rater errors occurs when a rater gives low ratings to all employees regardless of their performance? Central tendency Horns Halo Strictness Contrast

Strictness

What factors have contributed to the tremendous growth of employee benefits?

The favorable tax treatment for some employee benefits. Government legislation has made certain employee benefits mandatory. Wage and price controls instituted decades ago forced employers to think of new ways to attract potential workers.

In a defined contribution plan, which factors affect the amount of income that will be available to an employee upon retirement?

The historical rate of return for different types of investments selected in the plan. Diversifying types if investments in the plan to counteract financial volatility. The employee age at which investments are made to the plan.

Which of the following is a possible factor for the rise of agency costs? Principals and agents have similar goals. Principles and agents are the same. Principles are involved in day-to-day operations of the company. The stockholders are unaware of the degree to which the agents are pursuing the principal's goals. There is information symmetry between the agent and the principal.

The stockholders are unaware of the degree to which the agents are pursuing the principal's goals.

Which of the following are potential conditions under which appraisal politics might take place?

There are competing goals. There is a direct linkage between performance appraisal and highly desirable rewards. Raters are accountable in some way to the person being rated

How is the unemployment insurance program financed?

Through federal and state taxes on employers

Which of the following is a major objective of the unemployment insurance program? To help unemployed workers find new jobs To help those currently working to shift jobs to other fields To offset lost income during voluntary unemployment To help employers find the right talent to reach their business goals To make up for lost income during a labor dispute

To help unemployed workers find new jobs

Which of the following would illustrate a development purpose of performance management?

To improve the performance of poor performing employees

Why does the government offer two types of vesting schedules for employers and their pension plans?

To prevent companies from terminating employees before they are fully vested in the pension plan.

True or false: Organizations that use profit sharing plans may not have to rely on layoffs as much to reduce costs during economic downturns.

True

Which country spends more on health care than any other country in the world?

United States

_____ is the extent to which a performance measure assesses all the relevant aspects of performance. Validity Reliability Acceptability Strategic congruence Specificity

Validity

A ___ ___ ___ ___ not only provide stock ownership in the company to its employees, but also potential tax and financial advantages to employers.

employee stock ownership plan

Which of the following is a plan that provides employees the benefit of owning stock in their firm as well as tax and other financial benefits to employers?

employee stock ownership plans(ESOPs)

Which of the following types of purposes for a performance management system would involve salary administration, recognition of individual performance, retention and termination decisions?

administrative

When managers look over a list of employees, decides who is best and crosses their name off the list then decides who is the worst employee and crosses their name off the list and then continues to repeat that process, this is known as ___ ranking.

alternation

Which of the following are factors that encourage self and peer monitoring to prevent the issues related to the agency relationship created when employees participate in pay policy decision making.

an environment that fosters trust and cooperation. Monetary incentives.

Extrinsic motivation is dependent on rewards (for example pay and benefits) that are under the control of ____.

an external source

According to a merit increase grid, one of the factors that determines the size and frequency of pay increases is _____. the attrition rate in a company the recruitment ratio an individual's compa-ratio a company's stock price a company's annual output

an individual's compa-ratio

When an evaluator purposefully distorts a rating in order to achieve some company or personal goal that rater is engaging in ___ ____.

appraisal politics

In comparison to EAP's which are reactive to employees who have developed various problems, ___ ____ ___ are proactive and preemptive in trying to prevent health-related issues before they develop.

employee wellness programs

An approach to performance management that involves focusing on certain traits or characteristics possessed by individuals that are thought to be related to the company's success is known as the ___ approach.

attribute

What is the term for benefits packages that permit employees to choose the types and amounts of benefits they want for themselves?

cafeteria-style plans

Organizations that represent large groups of employees: cannot reduce the cost per person in terms of fixed costs. find it difficult to pool insurance risks. have less bargaining power in dealing with insurance carriers. cannot spread fixed costs over more employees. can purchase insurance at a lower rate because of economies of scale.

can purchase insurance at a lower rate because of economies of scale.

In which type of retirement plan does an employee's account earn a predefined interest rate?

cash balance plan

To maximize their return on a benefits package, companies must ___.

communicate benefits information effectively to all employees

The _____ approach to performance management requires the rater to equate an individual's performance with that of others. comparative results quality attribute behavioral

comparative

A ___ is best defined as the various sets of skills, knowledge, abilities, and personal characteristics associated with the successful performance of a job.

competency

Providing a comprehensive benefits plan for employees___

determines whether the employees stay with the company. Has a significant impact on when current employees retire. Influences whether potential employees come to work for a company

A behaviorally anchored rating scale is designed to specifically define performance dimensions by:

developing behavioral anchors associated with different levels of performance

According to W. Edwards Deming, TQM movement leader, rating individual performance is an unfair practice because:

differences between workers are almost entirely the result of the system they work in rather than the people

In terms of sick leave, the replacement rate is the ratio of: disability payments to normal salary. disability payments to total leave. sick leave to disability payments. normal salary to total leave. sick leave to total leave.

disability payments to normal salary.

Under amendments to the Age Discrimination in Employment Act, it is illegal for employers to ___.

discriminate against workers over age 40 in provision of pay or benefits

In a ___ suit, the plaintiff will often allege they were unjustly discriminated against by the performance measurement system due to their age, gender or race

discrimination

In a cash balance retirement plan, all contributions come from the ___.

employer

generally in the absence of a specified employment contract the employer or the employee can sever the relationship for "good cause" , "no cause" or "bad cause". This practice is commonly referred to as the ____-_____-____ doctrine.

employment-at-will

The determinant of procedural justice that is described as being consistent with prevailing moral standards as they pertain to issues such as deception or invasion of privacy is known as

ethicality

One trend in designing a company's health care plan is to shift costs to the employees through the use of ___.

exclusions maximum benefits deductibles coinsurance

A program that permits pretax employee contributions to be used to pay for uncovered health care expenses is called a ___ ___ account

flexible spending

Ranking employees by assigning certain percentages of them to predetermined categories (such as best workers, worst workers, and categories in between) known as ___ ___

forced distribution

A ___ ___ ___ is the standard point that is used to compare other points and provides meaning.

frame of reference

A ____ plan is a compensation plan that is based on group or plant performance, and proceeds of which do not become part of the employee's base salary.

gainsharing

A ____ program considers group or plant performance to determine incentive payouts, whereas ____ plans use organization-level indicators.

gainsharing;profit sharing

The attribute approach to performance management is most frequently done by using which of the following?

graphic rating scales

In a Social Security retirement plan, the earnings test: decreases a person's incentive to retire. has a greater impact on the incentive to work full time. decreases the opportunity to receive full benefits. has a greater impact on the incentive to work part time. decreases the incentive to work part time.

has a greater impact on the incentive to work part time.

Which employee benefit gives employers the best opportunity for cost containment?

health care benefits

Which rater error involves that rater giving the employee overall low ratings on performance due to an overall negative impression of the employee?

horns

Which of the following are among the types of rater errors?

horns strictness

Employers who do not meet employee expectations regarding benefits run the risk of violating the ___.

implicit contract between employer and employee

Which of the following programs designed to recognize employee contributions works best with a controlling management style?

incentive pay

Representativeness as a determinant of procedural justice ensures that the procedure is: applied by a person who has no vested interest in it. consistent with prevailing moral standards. inclusive of the concerns of all stakeholders. consistent with other procedures over a period of time. based on information that is verified to be true.

inclusive of the concerns of all stakeholders.

A key drawback to outcome oriented contracts is that they tend to ___ the agent's risk.

increase

In an outcome-oriented contract, when profits are high, compensation:

increases

In ___ ___ plans, payments are not added into base pay and must be continuously earned.

individual incentive

One potential factor causing agency costs is that principles may not have perfect information concerning the degree to which an agent is actually pursuing and achieving the goals of the agent. This is known as ____ ____.

information asymmetry

A concept of justice that is focused on the interpersonal nature of the way outcomes are implemented is known as:

interactional justice

The form of justice perceptions known as ___ ___ is the only form of justice perceptions that involve perceptions of how people interact and how that effects how outcomes were implemented.

interactional justice

Which of the following perspectives of performance found on a balanced scorecard focuses on processes that influence customer satisfication?

internal or operations perspective

What is a defined benefit plan?

it guarantees a specified retirement benefit level to employees based on their age and years of service.

According to agency theory, the goal of owners is to encourage the agents to act in the best interests of the owners. This means: more emphasis on behavior-oriented contracts. less emphasis on profit sharing. less emphasis on noncontingent pay. less emphasis on stock performance. more emphasis on base pay.

less emphasis on noncontingent pay.

When a frustrated employee engages in whistle-blowing, it typically involves: joining in the unethical activities of the organization. remaining silent about the organization's activities. reporting unethical activities to supervisors and relying on them to address the issues. avoiding reporting the organizations activities to outsiders. making a grievance public by taking it to the government.

making a grievance public by taking it to the government.

Which of the following are organizational areas that could potentially be impacted by pay-for-performance programs?

organizational culture attracting employees costs

While ____ justice is focused primarily on the ends, ___ and ___ justice both are focused primarily on the means.

outcome procedural and interactional

An individual who makes judgment concerning their outcomes compared to the outcomes of some referent other is determining____

outcome fairness

The judgement a person makes concerning their outcomes compared to those received by others they identify (known as referent others) is known as ___ ___.

outcome fairness

___ ____ refers to programs offered by employers that counsel displaced employees in managing their transition from one job to another.

outplacement counseling

Equity changes are the payment method most suitable for _____ programs. incentive pay ownership merit pay gainsharing profit sharing

ownership

Comparing every employee with every other employee in their work group and assigning a score of "1" each time that employee is considered to be the better performer, subsequently adding up the points and assigning that number as the employee's performance score is called___ ___.

paired comparison

Which comparison method of measuring performance involved comparing an employee with all of the other employees in their work group?

paired comparison

Gainsharing involves the use of _____ performance measures. functional-level competitor-level individual-level plant-level organization-level

plant-level

Evidence indicates that there is a strong ___ relationship between task complexity and job satisfaction.

positive

One of the major objectives of the unemployment insurance program is to: preserve investments in worker skills during short-term layoffs. help employers find the right talent to help attain their business goals. make up for lost income during a labor dispute. offset lost income during voluntary unemployment. help those currently working to find new jobs in other fields.

preserve investments in worker skills during short-term layoffs.

The individual in agency theory who seeks to direct the behavior of another person is known as the ____

principal

A concept of justice that is focused on how the outcomes that were received were determined is known as:

procedural justice

The compensation plan known as ____ ___ involves payments being based on some measure of organizational performance such as profits. These payments do not become part of these base salary.

profit sharing

____ is a compensation plan providing compensation that is tied to firm performance and does not become part of the employee's base salary

profit sharing

Of the following pay programs, the weakest link between employees' performance and earnings is found in _____ plans. profit-sharing merit pay individual incentive skill-based group incentive

profit-sharing

___ is a theory that contends that dissatisfied employees begin to exhibit a set of behaviors in succession to avoid the work situation.

progression of withdrawal

The degree to which people are motivated to help others is known as:

prosocial motivation

When people are energized in their work not just for their own benefit, but because it helps other people, it is known as ____ ____.

prosocial motivation

___ ranking is when a manager ranks the employees within their department from the best to the worst performers.

simple

Unemployment insurance is mandated by the ___ ___ Act.

social security

A ____ ____ is an employee ownership plan that provides employees with the opportunity to buy company stock at previously established prices.

stock option

____ provide employees the opportunity to purchase stock in they company at previously established prices.

stock options

Which of the following are the types of purposes of an organization's performance management system?

strategic developmental administrative

Job performance management systems that bring out job performance that is in line with the strategies, goals and culture of the organization is said to have ___ ___.

strategic congruence

The extent that job performance that is congruent with the culture, goals, and strategies of the company is elicited by the performance management system is known as:

strategic congruence

An employer's costs for workers' compensation insurance is based on which of the following factors?

the state in which the employer operates. The employer's occupation and the level of risk associated with the occupation. The employer's experience rating with work-related injuries or death.

Federal income taxation of disability benefits depends on____

the way the disability policy is funded

Individual incentive plans are relatively rare because: most companies rely on individual productivity as a performance measure. they are often inconsistent with the goals of proactive problem solving. they encourage acquiring multiple skills as opposed to specialization. they lack clear performance-reward connection. they rely on company stock returns as a performance measure.

they are often inconsistent with the goals of proactive problem solving.

Why have some companies set up voluntary employee benefit association trusts?

to move retire health care obligations off their financial statements

When a former employee files a ___ ___ suit, they are basically claiming they were fired for a reason other than that which is being claimed by the employer.

unjust dismissal

Performance measures are said to have ___ when they measure all relevant and only the relevant aspects of some type of performance.

validity

When a performance measure assesses all relevant aspects of performance and only the relevant aspects of performance, that measure if said to have

validity

The government's guarantee to employees that when they become participants in a pension plan and work a specified number of years, they earn a right to a pension upon retirement is referred to as ___ ____.

vesting rights

When a wrongful discharge suit attempts to establish that an employer acted unfairly by terminating an employee, it is trying to establish that the termination is a(n) _____. instance of reverse discrimination infringement of civil rights violation of public policy violation of an implied covenant case of discrimination

violation of an implied covenant

John is terminated from employment by Volin Inc. when he refuses to be a part of an unethical transaction. Consequently, John can charge Volin Inc. with a wrongful discharge lawsuit on the grounds of _____. employment-at-will doctrine reverse discrimination violation of public policy discrimination civil infringements

violation of public policy

Employees separate from a company for many reasons. when the employee makes the decision to leave the company, it is referred to as:

voluntary turnover

Employees who are often dissatisfied with some aspect of their work life but are unable to initiate internal changes often resort to ___, which makes their grievances public because they have gone to either the media or the government

whistle-blowing

When an employee makes their grievances with the company a public matter by going to either the government or the media, it is known as ____-____

whistle-blowing