Chapter 9 LS
A direct implication of Maslow's needs hierarchy on compensation is that to be effective incentive pay needs to
be attached to approval of achievement
In jobs that have high fluctuation in the natures of tasks employees are expected to perform, how can companies best motivate employees to be flexible, adjust, and display commitment?
By offering a broad array of rewards
According to reinforcement theory, how should an organization discourage undesirable behavior
By withholding payouts
Situation D
Emphasizing cash rewards and emphasizing base pay with a low incentive compenent
How does sorting effect improve productivity in an organization that uses individual incentives
Employees who do not want to work harder leave and are replaced by better performers
The best pay-for-performance plan is rigid and constant across all divisions in an organization (T/F)
False
Identify the essential features of Maslow's needs hierarchy
Higher order needs motivate people after basic need have been met; Needs operate cyclically as they can never be completely met; Needs are arranged into a hierarchy from basic physiological needs to higher order needs
___ says Employees beliefs that their organization will reward requisite job performance
Instrumentality
Which of the following is a feature of distributive justice that differentiates it from procedural justic
Managers have little control over distributive justice
_____ involves offering what's important to a person in exchange for some desired behavior
Motivation
In the formula Behavior=f(M,A,E). If behavior represents employee behavior what do M, A, E represent?
Motivation, Ability, Environment
According to the agency theory, what motivates and directs employee performance?
Pay
According to Herzberg two-factor theory, which aspect of an organization's compensation package motivates an employee performance?
Rewards
Which of the following theories claims to integrate motivation theories under a wide umbrella?
Self-determination theory
What do unionized workers consider the most important basis for salary increases
Seniority
Factual Facts Inc, is a producer of fact books that manages to exceed its sales targets every year. Employees' performance is rewarded for highly specific criteria, such as number of units produced and quality measured using certain objective standards and these criteria have remained the same for many years. There is little variation in the work of employees at Factual Facts. Which of the situations in the image does Factual Facts come under?
Situation C
What are the factors that contribute to the success of an organization's attempts to change its employees' behavior?
The desired behavior needs to be incorporated into the organization; The people whose behavior needs to be changed should have the necessary training; The right people need to be selected by the organization; Performance needs to be measured by the organization; A compensation system should be set up to reward the desired behavior
A garage began offering the employees incentives for fixing cut brake lines in order to increase the time spent on quality checks, Which of the following is a change in the behavior of its employees that cold be considered a failure of the garage's incentive plan?
The employees begin cutting lines just to repair them
Identify a mistake pay-for-performance plans make that cause them to be inefficient
They focus on quantity at the expense of quality
Job applicants are attracted to an organization with a reputation for compliance with compensation laws (T/F)
True
____ says employees valuation of organization rewards provided for satisfactory job performance
Valency
When is turnover much higher for performers good in a company
When pay is based on group performance
When is turnover much higher for poor performers in a company
When pay is linked to individual performance
How do employers best appeal to scarce talent
With pay for performance contributors
Success sharing incentive is
a generic category of variable pay that is linked to some measure of group performance
Cost-of-living increase is
an increase in salary given to all employees regardless of performance due to change in cost of living
Across the board increase is
an increase in salary given to all employees regardless of performance due to employers assessment of its own salary to pay
Merit pay is
an increase in salary given to an employee as a function of some evaluation of employee performance
Studies have consistently proven that high performers in an organization
are given larger merit increases than average performers
Eligibility
determines how far down an organization the plan will run and which employees will be included
Employees seek transparency of pay practices so they can
give input into expectations for them
One of the criticisms of Alfie Kohn's rejection of incentives is that without incentives,
less-motivated employees will not work hard
_______ is easily communicated in an offer of employment to a candidate because it is perceived as more objective than other characteristics of employment
level of pay
Situation B
offering a wide array of rewards beyond just cash and emphasizing base pay with a low incentive compenent
Situation A
offering a wide array of rewards beyond just cash and including a significant incentive component
Alfie Kohn believes that performance-based incentives are practically wrong because he believes that they reduce
prdocutivity
Applicants with low self-esteem
prefer large, decentralized company with little performance-based pay
Individualist
prefer pay that is based on individual performance ratherthan pay that is based on group performance
The type of fairness that employees are concerned about that involves the fairness of the procedures used to determine the amount of rewards they receive is known as
procedural justice
The approach to motivation that believes that employees have the highest quality motivation when both extrinsic and intrinsic motivators are used is
self-determination theory
In general, group incentives result in
small increases in productivity
According to goal setting theory, performance targets must be communicated in the form of
specific, difficult goals
Agency theory claims that employees prefer
static wages
A negative impact of new pay systems that expect employees to bear a share of risks is that these systems
work against efforts that build employee commitment
Which theory of motivation states that employees are motivated when their perceived inputs are in equilibrium with their perceived outputs?
Equity Theory
Funding
determines whether a program will be supported out of extra returns generated beyond some predetermined standard
Pay-for-performance standards
eligibility; funding
Situation C
emphasizing cash rewards including a significant incentive component
Materialists are
relatively more concerned about pay level than others
Identify an important point that compensation experts often miss
Compensation is not the only reward that influences employee performance
Steps in reinforcing employee behavior in the order in which they occur?
1. Developing a compensation package that attracts good potential employees to the organization 2. Ensuring that skilled and talented employees remain with organization 3. Developing further knowledge and skills of employees 4. Motivating employees to perform their jobs well by using their knowledge and skills to improve organizational performance
How do poorly administered skill based pay plans create cost inefficiencies that lead to plan abandonment?
By permitting employees to obtain certification in a skill than are need
___ says Employees assessment of their ability to complete necessary job tasks
Expectancy
There is substantial evidence that indicates that most employees and managers believe that
salary increases should be tied to job performance
Risk takers
seek more pay based on performance
