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A true statement about rater training programs as part of the performance appraisal process is that___.

A straightforward lecture to ratees about methods to improve the quality of their rating generally is ineffective.

According to reinforcement theory, how should an organization discourage undesirable behavior?

By withholding payouts

Identify a criterion to evaluate performance appraisal formats that concern the amount of feedback about performance that the format offers.

Employee development potential

In both the quoted -price market and the bourse, ___ function as the buyer and___ function as the seller.

Employers; job applicants

What theory of motivation states that employees are motivated when their perceived inputs are in equilibrium with their perceived outputs?

Equity theory

A perception that shape motivation in the expectancy theory that employees assessment of their ability to complete necessary job taks

Expectancy

T/F A pay policy line always specifies a percent above the market line so that an organization can match its competitors

False

T/F Generally, the search for the perfect performance appraisal format to eliminate rating errors and improve accuracy has been successful.

False

provides an opportunity for employers to allow employees to develop a reward package that is less expensive and more satisfying.

Flexible compensation

Is feedback to employees a natural outgrowth of the format, so that employee developmental requirements are identified and attended to readily?

Identifies the question asked as part of the employee development criterion to evaluate performance appraisal formats in an organization

The ___ is the increase returns generated by the employment of one additional person by a firm, while keeping other production factors constant

Marginal revenue production

__ are considered a substitute for merit pay, and employees must earn them every year.

Merit bonuses

___ involves offering what's important to a person in exchange for some desired behavior.

Motivation

How easily can evaluation results be used for managerial decisions concerning wage increase, promotions, terminations, and transfers?

Question asked as part of the administrative criterion to evaluate performance appraisal formats in an organization.

Which of the following theories claims to integrate motivation under a wide umbrella?

Self Determination theory (SDT)

Agent theory claims that employees prefer___.

Static wages

T/F According to research, subordinates prefer to give their feedback to supervisors anonymously

True

Identify an accurate statement about the pay level in a company

a company may have varying pay levels for different job families

Wage components in increasing from least risky to most risky

base pay Across the board increase Cost of living increase Merit pay lump sum bonus individual incentives

analyses for the purpose of designing pay grades and pay ranges are usually done with

base pay data

what are common across various employers, have stable job content, and have sizable number of employees

benchmark jobs

In an organization that uses pure market pricing strategy, the pay structure is completely determined by ____.

competitors pay decisions

Diminishing marginal productivity for each new employee added to a firm arises from the fact that each new employee ______

has access to a progressively smaller portion of other factors of production

While ___ put a floor on the pay level needed to attract sufficient job applicants, ____ put a lid on the highest pay level than an employer can set.

labor market conditions, product market condition

The MBO strategy may be effective for what type of routine tasks?

less

Links a company's benchmark jobs on the horizontal axis with market rates paid by competitors on the vertical axis

market line

In a study conducted to determine the effect of sorting and signaling strategies, it was determined that pay level had more significant for____.

materialists than for the risk-averse

A pay increase guideline that ties pay to performance and position in a pay range is that ______.

pay increases at a reducing rate as employees move through a pay range

Disadvantage of a pay grade

quite challenging to design

According to goal setting theory, performance targets must be communicated in the form of

specific, difficult goals

When will an employer face no increase supply even after raising its pay level?

When competitors quickly meet the employer's higher offer

what is a reason for differing pay rates in the labor market and is difficult to document due to the inability to accurately measure and control the factors that go into net advantage calculation?

compensating differentials

T/F Top performers usually give the most subjective evaluation of peers during a performance appraisal process

false

The higher the pay level of an organization relative to what its competitors pay, the

greater the costs to provide comparable products or services

an argument in favor of using merit pay states that merit pay

has a significant impact on performance

A pure market pricing strategy carried to the extreme ignores __ entirely.

internal alignment

Evidence has consistently proven that large organizations tend to ____ then do small organizations

pay higher wages

pay level

refers to the mean of the array of rates an employer pays

A perception that shape motivation in the expectancy theory they employees valuation of organization rewards provided for satisfactory job performance

valency

What approach determines pay structure almost entirely on external market rates?

Market pricing

A way in which raters store information about retee?

Raters store information in forms of traits.

Which of the following ratings is done by someone who has the most complete knowledge about are retee's performance as part of the performance appraisal process?

Self- rating

begins with the traditional alternatives of lead, meet, or lag; it then adds a second part which is to offer employees choices within limits in the pay mix.

Shared choice

Is it time-consuming for supervisors to utilize an evaluation form in rating their employees? This question asked as part of _____ criterion to evaluate performance appraisal formats in an organizations.

cost

one of the advantage of broad banding is that it

eases mergers and acquisitions

In managerial jobs, larger pay ranges reflect ____

greater scope for performance variation and individual discretions

judgment-based evaluation procedures, such as standard rating scales have what time of task?

highly uncertain

Broad banding leaves an organization vulnerable to charges of

inconsistency and favoritism

Disadvantage of individual incentive plans

it is hard to find objective individual measures

Is the increase in output generated by the employment of one additional person, while keeping other production factors constant

marginal product of labor

An employer cannot alter most factors of production, such as technology, capital, or human resources, in the short term. Thus, it can only alter its level of production if it alters the level of human Resources. In these conditions, a single employer's labor demands coincide with the _____

marginal product of labor.

According to the theory of human Capital, improving productive skills by making investment in training will raise one's

marginal profit

for determine the pay level of non benchmark jobs, ____ are useful

market pay lines

the point at which the labor demand and the labor supply line cross is called the

market rate

technology-intensive industries to ____ then labor intensive industries

pay higher

A band in broad banding encompasses many positions of varying values, so ___ is not used.

range midpoint

unlike broad-banding approaches, grades-and-ranges approaches have guilds in the form of ___

range minimums, range maximums, and range midpoints.

pay mix

refers to the different types of payments that constitute total compensation

is a return (profit) received from activities that are in excess of the minimum pay level needed to attract people to those activities

rent

what are the steps involved in broad banding?

set the numbers of bands and price the bands with reference to market rates

According to supporter of broad banding, the principle benefit of this technique is

the cross fertilization of ideas within an organization

a lag pay-level policy combined with the promise of increased future returns

will boost employee commitment and encourage teamwork which may turn improve productivity

the level of demand that _____ is that level at which the marginal revenue of the last hire in the company equals the pay for the employee

maximizes profit for a company

an organization has an employee with performance rating that are consistently high. According to the salary increase matrix of the organization the pay of the employee should be?

above the pay range midpoint

In general, employers desire for employees to perform in ways that result in

improved organizaitonal performance

after the result of a pay survey have been interpreted and market line constructed, two components of the total pay structure of an organization merge. These components are?

internal alignment and external competitiveness

one of the methods used to translate pay policy determined through a pay survey into practice is to

specify a percent below or above the market line that an organization intends to match

T/F Analyses for designing pay grades and pay ranges focus on the basic value of work in consideration rather than the performance levels of employees

true

T/F There is no research to show how much of a pay grade differential is required to induce employee to seek promotion into a higher grade

true

T/F about the accuracy of rating as part of the performance appraisal process: It is a function of the lag between performance and subsequent rating

true

Understand that the work environment and system influence part of job performance more than employee behaviors AND Recognize strategies to understand and measure job performance better

How to improve the performance appraisal process in an organization

according to Herzberg's two factor theory, ____ are factors to basic living needs that prevent behavior in their absence, whereas ______ are factors that motivate performance.

Hygiene factors; satisfiers

Employers in extremely competitive markets find it more difficult than other employers to ___

increase prices without loss of reveneus

Under 360-feedback what are the five points of views that assess employee performance

Supervisor, Peer, Self, Customer, Subordinate

A perception that shape motivation in the expectancy theory the employees beliefs that their organization will reward requisite job performance

instrumentality

when economist describe pay as "non compensatory" they mean to say that job seekers have a(n) _______ below which they will not take up a job, regardless of the attractiveness of other job attributes.

reservation wage level