SB Q&A Topic 10

Pay plans are used in part to do which of the following? (Select all that apply.)

-control employee behavior -energize employee behavior -direct employee behavior

When measuring performance, team award plans consider which of the following? (Select all that apply.)

-cost savings -successful completion of product design -meeting deadlines

Which of the following system factors exist beyond workers' control but help determine whether they receive merit pay? (Select all that apply.)

-customers -equipment -co-workers

Employee performance can be measured at the ______ level. (Select all that apply.)

-individual -unit -organizational

Pay programs that recognize employee contributions differ depending on whether payouts are ______. (Select all that apply.)

-part of base pay -a fixed cost -variable

When it comes to evaluating the fairness of distributed rewards, employees tend to focus on which aspects? (Select all that apply.)

-procedural -distributive

Which of the following conditions help gainsharing succeed? (Select all that apply.)

-strong levels of cooperation -management commitment -commitment to continuous improvement

Which of the following make ESOPs attractive to organizations? (Select all that apply.)

-their financing advantages -their tax advantages -the defense they offer against takeovers

Which of the following are design features that potentially help differentiate pay-for-performance programs? (Select all that apply.)

-ways of measuring performance -payment method -frequency of payout

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 return on assets of approximately ______.

2%

In what type of plan are monetary bonuses paid to employees if the ratio of labor costs to the sales value of production is kept below a certain standard?

Scanlon

True or false: Merit pay exists in most organizations.

True

Organizations often worry that merit pay increases may lead to which of the following?

a sense of entitlement

Which of the following focuses on how employee compensation can be used to align the divergent interests and goals of an organizations' various stakeholders?

agency theory

The main influence of compensation is on instrumentality, which can be described as the perceived link between ______.

behaviors and pay

Organizations should choose a pay strategy in the context of how effectively it will further the organization's ______.

business strategy

According to W. Edwards Deming, 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

Which type of plan not only provides stock ownership in the company to its employees but also potential tax and financial advantages to employers?

employee stock ownership

When considering employee compensation, ______ theory is focused on the effects of incentives.

expectancy

Employees notice how some employees get paid differently, and their perceptions of ______ will influence their behaviors.

fairness

When used well, pay plans have a(n) ______.

incentive effect

The strength of the relationship between pay and performance is known as ______.

incentive intensity

Payments are not added into base pay and must be continuously earned in ______ plans.

individual incentive

For the modern corporation, ownership is nearly always separate from ______.

management

Ownership in the company via stock options might be less motivational to employees because they ______.

may not realize any financial gain until they sell the stock

Which of the following does evidence suggest has the highest positive impact on future job performance?

merit bonuses

It is important to pay high performers an amount they believe is equitable in order to ______ them. (Select all that apply.)

motivate attract retain

Under a profit-sharing system, payments are ______.

not part of base salary

In order to make high performance more likely in the future, employers are well advised to ______.

offer a monetary reward for high employee performance

The compensation plan known as ______ involves payments being based on some measure of organizational performance, and the payments do not become part of the base salary.

profit sharing

According to the law of effect, rewards make responses ______.

recur in the future

One way that employees can achieve ownership in the company they work for is via ______.

stock options

Unlike merit pay, individual incentives are rarely based on ______.

subjective ratings (rather, performance is usually measured as a physical output)

Which is considered the most fundamental criticism of the merit pay system?

that it does not actually exist

Who collects the majority of information on an individual's performance in traditional merit pay programs?

the immediate supervisor

Feedback in traditional merit pay programs typically flows in which direction?

unidirectionally, from supervisor to subordinate

Merit pay, or merit bonuses, is a form of ______ pay.

variable

Which of the following increase with increasing incentive intensity? (Check all that apply.)

-Motivation -The chance of unintended consequences

In measuring a team's performance, what potential drawbacks might be encountered? (Check all that apply.)

-Plans that do not recognize individual performance differences may demotivate top performers. -Competition between individual team members may be reduced.

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? (Select all that apply.)

-careful alignment with human resource strategy -careful alignment with organizational strategy -balancing of objectives