Chapter 9

according to research, which of the following is NOT on the most important factors for employees influencing their pay systems

(are) changes in cost of living pay at market rate seniority (not) team-based pay

all of the following EXCEPT what require periodically re-earning the added pay

(do) success-sharing merit bonuses profit-sharing bonus (not) cost-of-living increases

there is evidence that every 10 percent increase in the bonus paid to employees by a firm yields a _____ percent increase in ROA to the firm

1.5

most experts agree that employees do not begin to consider changing their behaviors unless payouts are at least ____ percent higher

20

What theory contends that success-sharing will be motivating but at-risk plans will be de-motivating

Herzberg's two factor theory

which of the following is NOT true

(true) more companies are using pay based upon individual group and organizational performance workers with higher security needs may accept lower pay for higher wage security workers may need higher pay to stay and perform in an at-risk company

What theory, incentive pay is motivating if it helps an employee gain a sense of achievement, recognition or approval

Maslow's Theory

When developing a flexible compensation system, which theory or theories would be the most useful

Maslow's theory and herzberg's theory

compensation should reinforce all but which of the following behaviors

Should reinforce... attracting and hiring good employees encouraging skill development motivating high job performance

the motivation triangle includes

culture compensation performance management

when a company moves from an individual incentive plan to a group incentive plan, the company is most likely to experience _____

higher turnover among high performers

which of the following focuses on increasing the frequency of desired behaviors and decreasing the frequency of undesired behaviors through environmental consequences

reinforcement theory

the ability triangle includes

selection recruitment training

Company X pays for performance. Allan an employee of the company, is not in favor of this reward system, and therefore, leaves Company X in search of another company with different rules for getting rewards. This is an example of the:

sorting effect

Company X pays for performance. Allan, an employee of the company, is not in favor of this reward system and, therefore, leaves Company X in search of another company with different rules for getting rewards. This is an example of the

sorting effect

according to expectancy theory, the instrumentality is

the perceived probability that a specified level of behavior will receive a specific level of reward

what is the value employees attach to the organization rewards offered for satisfactory job performance

valence

what theory states that success-sharing plans will be motivating, whereas at-risk plans will be demotivating

Herzberg's two-factor theory

when an organization's performance has regular and large swings and individual performance is unclear and hard to measure, the most effective compensation mix is to offer

a base pay with low incentives and a variety of rewards

when an organization's performance has frequent highs and lows, but individual performance is fairly stable, and performance measures are clear, the most effective compensation mix is to offer

a large base pay and low-incentive pay

a person with low self-esteem is likely to seek ____

a large, decentralized organization with little performance-based pay

a person with low self-esteem is likely to seek what

a large, decentralized organization with little performance-based pay *basically, person wants to be able to hide

which of the following best supports a culture of flexibility and innovation

a strong commitment to job security

when employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer

a variety of rewards with significant incentive pay

the corporate performance of Yellow Corp. is fairly stable. However, it is difficult to measure individual performance. In this case, the most effective compensation mix is to offer

a wide range of rewards beyond just money

the most obvious sorting factor is _____

ability

what theory argues that performance-based pay is the optimal compensation choice for complex jobs, where monitoring employee performance is difficult

agency

What theory argues that performance-based pay is best for complex jobs where monitoring employee performance is difficult

agency theory

a key factor in increasing trust in top management is ____

an acceptable appraisal system

which of the following is an example of the sorting effect in action

an employee leaving a high-paying job for one that provides more work-life balance *idea behind the sorting effect is the effect that pay can have on the composition of the workforce *different types of pay can cause different types of people to apply and stay with a corporation

which among the following components of a reward system is a dimension of empowerment

control

according to expectancy theory, the valence of an outcome is the:

degree to which an outcome is desired

the amount of fairness given to employees refers to _____

distributive justice

what theory is relative pay is important as employees evaluate their pay-effort balance in comparison to other employees

equity theory

when salary increases are based on inputs, or performance, companies are following:

equity theory

what theory contends that we choose to do things that we believe are most likely to lead to desired rewards

expectancy theory

which of the following theories states that people choose the behavior that leads to the greatest reward

expectancy theory

when moving from an individual to a group incentive plan, you would expect

high turnover among high performers

what is employees' beliefs that requisite job performance will be rewarded by the organization

instrumentality

what requires annually "re-earning" the added pay

lump-sum bonus

when identifying, what is important to employees, which theory would be most useful

maslow's need theory

what is an individual level form of performance pay

merit bonus

when employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer

monetary rewards with large incentives

when employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer ____

monetary rewards with large incentives

the key to designing a pay-for-performance system rests on standards. Specifically, managers need to be concerned about the:

objectives measures eligibility funding

available evidence indicates managers believe the most important factor for pay increases is _____

performance

when pay is based on individual performance, turnover tends to be highest among _____

poor performers