MGT 3320 Ch. 11
16.Setting a difficult goal and providing a bonus only to those who achieve it can encourage everyone to try harder, even those who don't think they can achieve the stretch goal.
FALSE
1. Employee compensation includes only salary or pay received.
FALSE
10.Motivation is represented by three elements: behavioral choice, intensity, and reinforcement.
FALSE
11.Salary compression, like the "glass ceiling," deals with the situation where newly hired employees earn less than those employed for years.
FALSE
21.A food server in a restaurant may believe that he is able to provide great service (instrumentality), and he may value high tips (expectancy), but if he doesn't believe a certain customer will leave a tip even if his performance is excellent (valence), he will not be motivated to give that customer great service.
FALSE
22.Organizations using differentiation strategies tend to use uniform compensation.
FALSE
24.Many variable compensation practices fail to motivate because the size of the potential reward is too large and therefore fails to influence behavior.
FALSE
27.Research shows that all organizations benefit from paying more than their competitors.
FALSE
28.An organization that adopts a meet-the-market pay strategy seeks to attract and retain employees using compensation as a tool to maintain a superior work force.
FALSE
33.A university professor is likely nonexempt under FLSA given their professional status.
FALSE
34.All employees must be paid at least the current federal hourly minimum wage.
FALSE
35.Employees exempt under the Administrative Exemption of the Fair Labor Standards Act primarily manage a department or supervise two or more employees and are involved in employee hiring and firing.
FALSE
4.Organizations with an internal labor orientation are willing to accept low retention rates because high levels of turnover create advancement and promotion opportunities for current employees.
FALSE
7.A differentiation strategy is associated with uniform transactional compensation.
FALSE
8.Organizations with a uniform transactional compensation strategy are likely to link pay increases with time employed with the organization.
FALSE
12.Employees demonstrate high motivation when they choose to perform critical work tasks with high intensity and persistence.
TRUE
13.A reward that is given without regard to the occurrence of a desired behavior loses the ability to motivate.
TRUE
14.Goals focus attention away from other activities toward desired behaviors.
TRUE
15.If goals are to act as effective motivators, they must be achievable.
TRUE
17.People work on tasks longer when they have specific goals.
TRUE
18.A problem with motivating employees by offering incremental rewards for achieving progressively higher goals is that some employees are satisfied with the small initial rewards and may not put forth maximum effort.
TRUE
19.Justice theory is a psychological perspective that holds that motivation depends on beliefs about fairness.
TRUE
2.Paying people more when they contribute more increases motivation, which in turn leads to high performance.
TRUE
20.People with higher wages tend to see pay as more fair.
TRUE
23.A majority of evidence shows that performance increases when high performers are paid more than low performers.
TRUE
25.Developing employees so they have skills that are unique to the organization is a way to bind employees to the organization without increasing labor costs.
TRUE
26.To offer competitive pay levels, the first thing an organization must do is understand the compensation packages being provided by other organizations.
TRUE
29.Pay level is concerned with how compensation differs among organizations.
TRUE
3.A market-based pay approach seeks to create a wage structure where people are paid fairly in comparison to what they could earn doing a similar job at another company.
TRUE
30.An individual's level of compensation within the range is determined by factors such as performance level and experience.
TRUE
31.Concern associated with job-based pay systems includes inflexibility and resistance to change. As a result employees at the top pay range can only receive more compensation by being promoted.
TRUE
32.Skill-based pay focuses on the skills workers possess. Emphasizing skill development helps build a culture that supports greater employee self-management. Skill based pay has been linked to higher organizational productivity.
TRUE
5.Employees of organizations with an internal labor orientation are less likely to compare their compensation with the compensation they could earn elsewhere.
TRUE
6.An organization pursuing a differentiation strategy will pay some employees much more than others and compensation is used to encourage risk taking.
TRUE
9.Uniform relational compensation provides similar rewards to all employees while building a sense of commitment to the organization and is associated with the Loyal Soldier HR strategy.
TRUE
47. An employee who wants a career in human resources decides to enroll in a college level Human Resource Management Course. This is an example of which element of motivation? a) Behavioral choice b) Antecedent c) Intensity d) Consequent
a) Behavioral choice
44. Which of the following is NOT true about variable transactional compensation? a) Future rewards such as retirement benefits are likely to be used as a part of compensation b) An organization with variable transactional compensation will likely pay more than other employers c) Variable transactional compensation provides strong monetary incentives for high performers d) New employees are often paid more than current employees
a) Future rewards such as retirement benefits are likely to be used as a part of compensation
69. Juan, a 21-year-old college senior, works for Verizon Wireless selling mobile phones in a store just off campus. Which of the following is NOT true about Juan's compensation? a) Juan is exempt under FLSA because his duties involve sales b) Juan must be paid overtime if he works more than 40 hours in a work week c) Juan and his employer must keep detailed records of hours worked d) Juan's pay can be based on sales, as long as the hours worked are tracked and the minimum amount paid equals what would be paid as the minimum wage
a) Juan is exempt under FLSA because his duties involve sales
57. Variable compensation: a) benefits a great deal from making rewards contingent upon achieving goals b) is appropriate for organizations pursuing a lowest cost strategy c) is appropriate for organizations pursuing a Bargain Laborer HR strategy d) is usually appropriate when employees are not required to take risks
a) benefits a great deal from making rewards contingent upon achieving goals
38. An organization with a Free Agent HR strategy: a) must be concerned with external equity, which concerns the fairness of what the company pays compared to other possible employers b) must be concerned with justice c) must be concerned with internal equity, which concerns the fairness of what the company pays compared to other possible employers d) should have narrow pay bands
a) must be concerned with external equity, which concerns the fairness of what the company pays compared to other possible employers
53. People with higher wages: a) tend to view pay as more fair than those with lower compensation b) tend to view pay as less fair than those with higher compensation c) are working under a uniform transactional compensation system d) are likely working under a uniform relational compensation system
a) tend to view pay as more fair than those with lower compensation
58. Procedural fairness is particularly important when which HR strategy is in place? a) Free Agent HR strategy b) Committed Expert HR strategy c) Bargain Laborer HR strategy d) Loyal Soldier HR strategy
b) Committed Expert HR strategy
49. Which of the following is NOT true about pay-for-performance? a) Compensation should be based on behavior so that better performers receive higher pay b) Employees whose pay is not contingent generally perform better than employees whose pay is contingent c) Linking pay to performance is beneficial when it is part of an overall program of performance assessment, goal setting, and feedback d) Contingent rewards have a positive effect that endures over time
b) Employees whose pay is not contingent generally perform better than employees whose pay is contingent
66. Which of the following is NOT an advantage of point systems? a) Point systems provide a clear method for controlling and administering pay b) Point systems are flexible and easily adaptable for change c) Point systems decrease bias d) Point systems make comparison between different jobs easier
b) Point systems are flexible and easily adaptable for change
41. The employees working part-time at a local McDonald's all perform the same duties and receive the same hourly pay. Which type of compensation strategy is McDonald's using? a) Uniform relational compensation b) Uniform transactional compensation c) Variable transactional compensation d) Variable relational compensation can change to one of others
b) Uniform transactional compensation
46. Motivation consists of these three elements: a) antecedents, contingency, and behavior b) behavior choice, intensity, and persistence c) antecedents, behavior, and consequents d) behavior choice, consequents, and persistence
b) behavior choice, intensity, and persistence
59. Uniform compensation practices: a) are as effective as variable compensation practices for encouraging high levels of performance b) have rewards structured to reduce the emphasis on extreme levels of individual performance c) will encourage employees to compare themselves to external reference groups d) are employed with the Free Agent HR strategy
b) have rewards structured to reduce the emphasis on extreme levels of individual performance
51. According to equity theory: a) motivation concerns people's belief that they can actually achieve the desired level of performance b) people compare the ratio of their inputs and outcomes with the ratios of others c) valence is the belief that a desirable reward will really be given if the appropriate behavior or outcome is produced d) fairness is not a critical factor for motivation
b) people compare the ratio of their inputs and outcomes with the ratios of others
63. Which type of method for determining pay structure assigns a numerical value to each job position? a) A job-based pay system b) A skill-based point system c) A point system d) A point pay system
c) A point system
36. Which of the following is NOT true about employee compensation? a) The positive feelings that come from working at a particular place are sometimes seen as a form of compensation b) Compensation includes insurance c) Compensation consists of only the monetary rewards an employee receives for working d) Compensation includes psychological rewards as well as monetary rewards
c) Compensation consists of only the monetary rewards an employee receives for working
42. Which of the following is NOT true about uniform transactional compensation? a) Uniform transactional compensation is often associated with the Bargain Laborer HR strategy b) Under uniform transactional compensation, pay levels are set at the lowest level that allows the organization to attract enough workers c) Employee perceptions concerning fairness are not an issue because pay is "uniform" d) A company that has uniform transactional compensation is not overly concerned with turnover
c) Employee perceptions concerning fairness are not an issue because pay is "uniform"
56. Which of the following is NOT likely to increase motivation through compensation? a) Linking pay with goals that encourage stretch efforts b) Following principles of procedural fairness, including accurate assessment, lack of bias and provide an opportunity for input c) Ensuring that interests of owners are not disclosed to employees d) Giving higher rewards for those who assume risk
c) Ensuring that interests of owners are not disclosed to employees
65. Which of the following is NOT true of broadbanding? a) Broadbanding results in fewer pay grades b) Broadbanding allows more flexibility in determining an individual's pay c) Under broadbanding more pay grades are available to increase flexibility d) Broadbanding groups more categories of jobs together in each pay band
c) Under broadbanding more pay grades are available to increase flexibility
48. Reinforcement theory holds that behavior is influenced by: a) antecedents and persistence b) behavior choice and antecedents c) antecedents and consequents d) behavior choice and intensity of effort
c) antecedents and consequents
37. Organizations choosing an internal labor orientation: a) hire new employees with the expectation that they will not form a long-term attachment to the organization b) focus on the fairness of what the company is paying compared to what employees could earn working elsewhere c) emphasize providing security and good working conditions more than money d) emphasize pay secrecy more than an organization with an external orientation
c) emphasize providing security and good working conditions more than money
61. A pay strategy that pays employees more than what they can earn with other employers: a) is a exceed-the-market strategy b) is a meet-the-market strategy c) is a lead-the-market strategy d) is a lag-the-market strategy
c) is a lead-the-market strategy
54. According to expectancy theory: a) people compare the ratio of their inputs and outcomes with the ratios for others b) principal and agent relationships impact motivation c) motivation comes from three beliefs: valence, instrumentality, and expectancy d) difficult goals are motivating
c) motivation comes from three beliefs: valence, instrumentality, and expectancy
45. An organization using variable relational compensation: a) strives to have high and low performers treated similarly b) sets pay at the lowest possible level that will still attract enough workers c) provides top performers immediate rewards and also offers long-term incentives such as a retirement program to retain workers d) is likely to have a Loyal Soldier HR strategy
c) provides top performers immediate rewards and also offers long-term incentives such as a retirement program to retain workers
55. Agency theory: a) is a form of expectancy theory b) emphasizes distributive justice c) suggests that employees are willing to share risk with owners and managers if they can also share the potential for a bigger reward. d) suggests that agents and principles usually have the same interests
c) suggests that employees are willing to share risk with owners and managers if they can also share the potential for a bigger reward.
67. Skill-based pay a) usually results in lower total payroll b) usually results in lower training costs c) usually results in a better-trained workforce d) improves organizational commitment, but has not been shown to improve productivity
c) usually results in a better-trained workforce
40. An organization that is pursuing a cost strategy: a) uses compensation to encourage risk taking b) has substantial difference between the pay of high performers and low performers c) will tend to have little difference in pay between high and low performers d) is not concerned with internal equity
c) will tend to have little difference in pay between high and low performers
39. Which of the following is NOT characteristic of an organization with a differentiation strategy? a) Compensation is used to encourage risk taking b) Success depends on outstanding contributions from a few individuals c) There is substantial difference between the pay of high performers and low performers d) Compensation is used to develop feelings of inclusion and support from the organization
d) Compensation is used to develop feelings of inclusion and support from the organization
60. Which of the following is NOT true about pay surveys? a) A problem with pay surveys is choosing the appropriate comparison group b) It is difficult to obtain salary information from employers that is specific to particular jobs c) A good pay survey must have current up to date data d) For most organizations, national pay surveys are the most useful for determining pay levels
d) For most organizations, national pay surveys are the most useful for determining pay levels
50. Which of the following is NOT true about goal-setting theory? a) Goals get people energized and excited about accomplishing something worthwhile b) People work on tasks longer when they have specific goals c) Goals encourage the discovery and use of knowledge d) If goals are to act as effective motivators, they must be difficult to achieve and nearly impossible to reach
d) If goals are to act as effective motivators, they must be difficult to achieve and nearly impossible to reach
70. Kim is non-exempt under the Fair Labor Standards Act (FLSA). Because a colleague calls in sick, she works a double shift on Monday of 12 hours and a double shift on Tuesday of 12 hours. Her total work hours for the week are 40. Therefore, a) Kim is entitled to 8 hours of additional pay at double her wage rate b) Kim is not entitled to overtime since she is non-exempt under FLSA c) Kim is entitled to 8 hours of additional pay at an overtime rate of 1.5 times her normal wage rate d) Kim is not entitled to any overtime pay because her hours in the work week do not exceed 40 hours
d) Kim is not entitled to any overtime pay because her hours in the work week do not exceed 40 hours
68. Which HR Strategy most benefits from skill based pay linked to specific training? a) Free Agent HR Strategy b) Committed Expert HR strategy c) Bargain Laborer HR strategy d) Loyal Soldier HR strategy
d) Loyal Soldier HR strategy
62. Organizations that adopt a lead-the-market compensation strategy: a) are more likely to use uniform transactional compensation b) are likely to have an internal labor strategy c) are likely to have a Bargain Laborer HR strategy because increased salary costs are offset by productivity gains d) are likely to have pay that is on the average higher than most organizations
d) are likely to have pay that is on the average higher than most organizations
43. Organizations with a uniform relational compensation strategy: a) are likely to differentiate compensation for high and low performers b) use a Bargain Laborer HR strategy c) are likely to have highly flexible compensation practices d) are likely to use benefits such as health insurance and retirement benefits as a part of compensation
d) are likely to use benefits such as health insurance and retirement benefits as a part of compensation
52. All of the following are ways an employee who perceives inequity may behave EXCEPT: a) engage in cyberloafing b) seek other employment c) take more time for lunch and breaks d) pursue formal education to earn an MBA
d) pursue formal education to earn an MBA
64. Skill-based pay: a) uses a point system to assign a numerical value to each job position b) uses broadbanding to reduce the number of pay categories so that each pay grade contains a large set of different jobs c) can be inflexible and resistant to change d) tends to have higher costs but skill based pay has been linked to higher organizational productivity
d) tends to have higher costs but skill based pay has been linked to higher organizational productivity
