MPO Test 2 (Learnsmart Questions)

True

T/F: Merit pay exists in most organizations.

Lags behind company pay policy.

A compa-ratio less than 1.00 suggests that actual pay ________.

Need for achievement

According to McClelland's acquired needs theory, which need involves the desire to excel, solve problems, and surpass others?

Need for Affiliation

According to McClelland's acquired needs theory, which need involves the desire to maintain social relationships and join groups?

Differences between workers are almost entirely the result of the system they work in rather than the people.

According to W. Edwards Deming, rating individual performance is an unfair practice because

2%

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 _____.

Market Forces

According to some critics, when it comes to pay, EEO regulations obstruct _______.

Recur in the future

According to the law of effect, rewards make responses ______

Ways to measure performance

After a company has decided the kind of performance it expects from employees, it must develop

Job evaluation

An administrative procedure used to measure internal job worth is called ______.

Attribute

An approach to performance management that involves focusing on certain traits or characteristics possessed by individuals that are though to be related to the company's success is known as the ______ approach.

Bring a sufficient return on investment

An organization that effectively competes in the product market is able to sell its goods and services at a quantity price that will

Cause cognitive dissonance in the employee, motivate the employee to correct the situation, and lead to changes in the employee's attitude or behavior.

An unfair social exchange, such as not being paid for overtime worked, is likely to do which of the following?

Pay surveys

Benchmarking against product market and labor market competitors is typically accomplished through the use of

Management

Communication, documentation, and organization maintenance are several of the basic purposes of an organization's performance ______ system.

Market.

Companies with a _____ culture have a strong external focus and value stability and control.

Clan.

Companies with a ______ culture have an internal focus and value flexibility rather than stability and control.

Reliability

Consistency in performance and being free from random error is a measure of

Slogans and acronyms.

Cultural change in an organization can be achieved through changing the firm's _____ because they are easy to recall and perpetuate.

Decrease of white males in the workforce.

EEO compensation issues will likely remain in the spotlight because of the ______.

Objectives and behaviors

Effective performance evaluations systems should measure _____.

A significant organizational cost.

Employee compensation requires scrutiny because it typically ______.

Individual, unit, and organizational.

Employee performance can be measured at the _______ level.

Behavior

Expectancy theory can be used to predict _____ in situations where there is a choice between two or more alternatives.

Management

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

Mission, philosophy, and values

Formal statements in an organization are those about organizational:

Realistic job preview

Giving recruits a realistic idea of what lies ahed by presenting both positive and negative aspects of the job is called:

Key jobs.

In developing a pay structure, pay survey data and job evaluation data are commonly available for

By linking performance to rewards that individual employees value.

How can managers incorporate the principles of expectancy theory?

Performance and outcomes

In Vroom's expectancy theory, instrumentality is the relationship between which two factors?

VP of software engineering.

In a software company that caters to the federal government it would be most appropriate for which of the following positions to be paid at the highest percentile?

Employees should set goals that are linked to organizational goals

In the use of an objectives method for measuring performance,

It has an impact on employees' attitudes and behaviors, it can help align employees' interests with those of the organization, and it influences the kind of employees attracted to the organization.

In which of the following ways does pay affect an organization's strategic goals?

Attract, motivate, and retain.

It is important to pay high performers an amount they believe is equitable in order to ______ them.

Many workers are available relative to the number of jobs available.

Labor market competition reflects how _______.

Variable

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

An hourly rate

Most nonexempt employees are paid ______.

Organizational

Organizational identity, collective commitment, social system stability and sense-making device are the four functions of ________ culture.

Special parking spaces, manner of dress, and awards.

Observable artifacts that can be present in a firm's culture are:

Employees exhibit them

Once behaviors have been defined, the behavioral approach requires managers to assess how well _____.

Reduces the administrative burden of setting separate pay rates for hundreds of jobs.

One advantage of using a pay grade system in planning employee compensation is that it

Adhocracy, clan, and market

One lesson from the competing values framework is that innovation and operational outcomes are linked to characteristics associated with which of the following cultures?

May not realize any financial gain until they sell the stock.

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

Reward high performers with merit increases.

Placing jobs in broader bands of classification gives managers the opportunity to _______.

Persistence of behavior or thought, intensity of behavior or thought, and direction of behavior or thought

Select all of the characteristics that are influenced by motivation.

Influences our behavior at work, shared concept, learned over time, and impacts outcomes at multiple levels.

Select all the important characteristics of organizational culture

Leader reactions to crisis, slogans, acronyms, sayings, stories, legends, myths, activities, processes, and outcomes.

Select the mechanisms for changing organizational culture.

Basic underlying assumptions, espoused values, and observable artifacts.

Select the three levels of organizational culture

Employee development and achieving strategic goals

Specificity is relevant to which of the following aspects of performance management?

True

T/F: Currency exchange rates affect the comparison of labor costs between countries.

True

T/F: Formal statements of organizational philosophy can embed culture when used for recruiting.

Results

The _____ approach to performance management involves managing objective measures of outcomes of a job or work group.

Compensable factors

The characteristics of jobs that an organization values and chooses to pay are called

Profit sharing

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.

Values.

The competing _____ framework was first developed by researchers trying to classify different ways to assess organizational effectiveness.

Understand an organization's culture, change an organization's culture, and measure an organization's culture.

The competing values framework helps managers to do which of the following?

Task significance

The extent to which a job affects the lives of others inside or outside of the organization.

Person-organization fit.

The extent to which your personality and values match the climate and culture in an organization is called

Observable.

The first level of organizational culture is _____ artifacts.

Distributive justice

The form of organizational justice that reflects the perceived fairness of how rewards are allocated is:

Procedural justice

The form of organizational justice that reflects the perceived fairness of the process and procedures used to make organizational decisions is:

Anticipatory, encounter, and acquisition.

The three phases in Daniel Feldman's Organizational Socialization model are ______ socialization, _____ and change and ______.

Management

The top-down job design method that creates jobs that are very simplified and repetitive is scientific:

Comparable worth

The undervaluation of women's jobs has been combated through the policy of _______.

Rotation

The job design method that moves employees from one job to another is job

Job enlargement

The job design method that puts more variety into a job by combining specialized tasks of comparable difficulty is:

Scientific management

The kind of management that sets standards established by facts gained from systematic observation, experiment, or reasoning is:

Appraisal systems are rarely modified

The likely reason many managers doubt the effectiveness of performance appraisal systems is that

Does not use actual market rates for key jobs.

The pay setting approach that uses the pay policy line to derive pay rates for both key and nonkey jobs _______.

Quality

The performance management approach that involves a preventative approach to errors, continuous improvement, and a customer orientation is known as a _____ approach.

Anticipatory

The phase of organizational socialization that occurs before an individual actually joins an organization is _____ socialization.

Motivation

The psychological mechanisms that guide the direction, intensity, and persistence of one's behaviors or thoughts are known as

Specificity

The quantifiability of a goal is known as goal

Expectancy

The question "What are the chances of reaching my performance goal?" represents which element of Vroom's expectancy theory?

Valence

The question that asks "How much do I value the outcomes I will receive by achieving my performance goals?" represents which element of Vroom's expectancy theory?

Incentive intensity

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

Clan.

What type of company culture resembles family type organizations where collaborations are encouraged with trust and support among employees?

Process

The theories that focus on explaining the process by which internal and situational factors influence employee motivation are known as ______ theories.

Content and Process

The theories that focus on identifying internal factors that motivate people are ______ theories. The more dynamic theories that focus on explaining how internal and external factors motivate people are _____ theories.

Content

The theories that focus on identifying the factors that motivate employees are known as _____ theories.

Power

The three acquired needs stated in McClelland's theory are the needs for achievement, affiliation and ______.

Managers can process

Though a behavioral observation scale offers managers important insights, it can also require more information than ______.

Can bias information recall

Though behaviorally anchored rating scales have advantages, they also have disadvantages, such as that they ______.

Employee stock ownership

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

Comparative

Tran is a manager and must measure the performance of his employees. The method he uses requires him to analyze the performance of each employee against each other. Tran is using the _____ approach.

Not part of base salary

Under a profit sharing system, payments are ______.

Cannot be valued or compared through market surveys

Unlike key jobs, nonkey jobs _______.

Subjective ratings

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

Motivation will be high when all three elements are high

Using Vroom's expectancy theory to predict motivation, it can be said that:

Motivation

Vroom's expectancy theory requires that all three of the elements must be high for _____ to be high.

Reward systems.

What are considered one of the strongest ways to embed organizational culture because they are meaningful and visible?

Rites and rituals.

What are planned and unplanned activities and ceremonies that are used to celebrate important events or achievements called?

Ask for new work assignments, talk with the manager, and change jobs.

What are some recommended approaches for creating change when one's job is low on hygiene or motivating factors?

Inputs, outputs, and the comparison of the ratio of outputs to inputs.

What are the key elements of equity theory?

Great company culture.

What do many CEOs believe is the essence of the best companies?

Negative emotions.

What kinds of emotions tend to travel faster and farther within an organization?

Stock shares that increase when an entire division performs well.

Which kind of reward would be best suited for a clan culture?

Employee surveys and one on one meetings

Which methods should managers use to determine the needs of their employees?

Behavioral observation scale

Which of the following is similar to behaviorally anchored rating scales except that it involves the manager rating the frequency that employees exhibited each behavior during the rating period?

Outside salespeople, professional positions, and executive positions.

Which of the following kinds of occupations are typically exempt from FLSA coverage?

Their tax advantages, the defense they offer against takeovers, and their financing advantages.

Which of the following make ESOP's attractive to organizations?

Labor costs are lower in the US.

Why are European automakers locating production facilities in the US?

They reinforce characteristics of the desired culture.

Why are stories, legends, and myths considered powerful ways to communicate desired values and behaviors in an organization?

To model and empower organizational change through networking

Why do companies such as Experian emphasize collaboration?

PO fit is closely connected to work attitudes and performance.

Why is it important to reflect on your own person-organization fit?

To foster collaboration and innovation.

Why might a company choose an open office layout?

Their output to input ratio to that of relevant others

According to equity theory, people compare

Culture.

According to many CEOs, corporate ________ is the key to making a company one of the best.

Providing employees with a broader perspective of the organization, building employee knowledge and ability to promote from within, and increased worker flexibility for scheduling through cross-training.

Advantages of designing jobs using job rotation include:

Job design

Any set of activities that involve the alteration of specific job activities to improve the quality of employee job experience and motivation is called

Draw better workers to produce higher-quality products than competitors, encourage desired employee behaviors, and retain valued employees.

By paying higher labor costs than its competitors, a company can achieve which of the following?

Acquired needs theory

David McClelland's theory about the drivers of employee behavior is the

By promoting and reinforcing core values and beliefs.

How does organizational socialization embed their cultures in new employees?

Needs

Hunger or thirst are examples of physiological deficiencies that arouse from behavior known as

Interrater reliability

If two individuals give a person's job performance approximately the same evaluation, the performance measure has

Skills and knowledge, education, and personality traits.

In equity theory, inputs can include:

Offer a monetary reward for high employee performance.

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

Resource that provides returns

Organizations compete in the labor market, so they should consider their employees not just as a cost, but also as a

Skill variety

Requires the ability to use several different skills to perform a job

Expectancy

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

An incentive effect

When used well, pay plans have ______.

Identify and develop performance measures for key performance dimensions and identify the company's goals and objectives.

Which of the following are the first two steps in the performance management process?

Effective performance management is a process

Which of the following statements about the process of performance management is true?

Co-workers, equipment, and customers.

Which of the following system factors exist beyond workers' control but help determine whether they receive merit pay?

Equity sensitivity

Which term describes the idea that not all individuals prefer an equal ratio of outputs to incomes?

90

A company may pay a training wage to an employee under the age of 20 for up to _______ days.

Pay policy line

A mathematical expression that describes the relationship between a job's pay and its job evaluation points is called the ______.

Specificity

A performance measure that does a good job of telling employees what is expected of them and how to meet those expectations is said to have a high level of

Feedback

An employee receives direct and clear information about the effectiveness of their job performance.

Needs we acquire as we live our lives.

David McClelland's theory states that employee behavior is driven by:

Explicitly.

Espoused values represent aspirations that are _______ communicated to employees.

Desired combinations of expected outcomes

Expectancy theory states that people are motivated to behave in ways that produce

A stock plan.

In addition to salary, what is a major component of a typical CEO compensation package?

Behavioral

Managers who attempt to define which behaviors employees have to exhibit in order to effectively complete their job are using the _____ approach to performance management.

True

T/F: Mixed standard scales were developed as trait oriented scales.

Scientific Management

The method of job design that draws from observation, experiments, and reasoning is

Jobs and associated responsibilities

The most widely used metric for defining pay structures is by _____.

Organizational socialization.

The process by which a person learns the values, norms, and required behaviors which permit him to participate as a member of the organization is called

Location of office furniture, distance between buildings, and physical spacing between people.

Which of the following can be used to send a message about organizational culture using physical space?

High equity sensitivity

Which term describes someone who cares more about what they put into a group project than the rewards they receive from participating in the project?

Low sense of accomplishment, poor mental health, and high levels of dissatisfaction.

Which of the following are problems that often arise with jobs based on Taylor's scientific management methods?

An organization must weigh its objectives and select the most appropriate strategy.

Which of the following statements about resolving conflicts between market pay surveys and job evaluation is true?

Abraham Maslow

Who formulated the theory that motivation is a function of five basic needs: physiological, safety, love, esteem, and self-actualization.

Onboarding

Programs that help employees to integrate, assimilate, and transition to new jobs are called

Cognitive Dissonance

What motivates corrective action in equity theory?

Culture, tone, performance.

Which of the following aspects of an organization do executives typically influence substantially?

There is no one best approach to measuring performance.

Which of the following statements about approaches to measuring performance is true?

Fairness

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

Task identity

Requires the completion of a whole or identifiable piece of work.

Commitment to the objectives from top management results in high productivity and use of objectives usually increases productivity.

Research on the use of objectives to measure performance has revealed which of the following?

Pay attention and learn.

Research suggests that the emotions exhibited by leaders cause employees to

Rewards, status symbols, promotions, role modeling, teaching, coaching, formal statements, and design of physical workspace.

Select the mechanisms for changing organizational culture.

Systems and procedures, work flow and organizational structure, rites and rituals, and organizational goals.

Select the mechanisms for changing organizational culture.

Graphic rating scales

The attribute approach to performance management is most frequently done with ______.

Valid

When a performance measure assesses all relevant aspects of performance, and only the relevant aspects of performance, that measure test is considered

Mixed-standard

Defining relevant performance dimensions, developing statements that represent good, average, and poor performance, and then mixing those statements with statements from other dimensions on the actual rating instrument are the steps involved in creating _____ scales.

Acceptability

Donaldo just went through his performance evaluation. His manager gave him timely and complete feedback about areas needing improvement and training available to help him. Donaldo disagreed with his manager's assessment and decided not to make any changes to his work performance. Donaldo's reaction fits with which criterion of performance measure?

Encounter

During the _____ phase of the three phase socialization process, employees come to learn what the organization is really like.

Allow them to participate in important work decisions

One way managers can improve employee perceptions of procedural justice is to:

Stock options

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

Job characteristics model

Promoting high intrinsic motivation by designing jobs with the five core job characteristics is the goal of which approach to job design?

Subjectivity

The results approach assumes that ______ can be eliminated from the process of measuring the results of a work group.

Culture.

The set of implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments is called organizational ________.

Resistance to change and visibility.

The three levels of organizational culture differ in which of the following ways?

Gainsharing plans use group or plant level performance rather than organization level performance and payouts in gainsharing plans are not deferred and are paid out more frequently.

Which of the following differentiate between gainsharing and profit sharing plans?

Agency theory

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

The possibility of undesirable outcomes, the chance of unintended consequences, and motivation.

Which of the following increase with increasing incentive intensity?

Divisions or departments, occupational groups, and products and technologies

Which of the following often determine the development of subcultures?

How does my ratio of outputs to inputs compare with those fo relevant others?

Which of the following paraphrases comparisons as used in equity theory?

A growing bureaucracy, decreased lateral job movement, and top down decision making is reinforced.

Which of the following problems can result from a job based pay structure?

Shortages and surpluses influence pay levels.

Which of the following statements about labor market competition is true?

Gainsharing

Which type of program considers group or plant performance to determine incentive payouts, unlike profit sharing plans that use organizational level indicators.

Market.

The competing values framework teaches us that companies with a _____ culture tend to have more positive organizational outcomes.

Try to incorporate job crafting or I-deals.

What should individuals do if their current job is unfulfilling but they do not want to change jobs?

Discrete

When a graphic rating scale provides rankings at a number of different points, it is known as a _____ scale.

Simple ranking

When a manager ranks the employees within his or her department from the best to the worst performers, it is called ______.

Deficient

When a performance measure does not measure all aspects of performance, it is considered

Voice

When employees are able to offer challenging, but constructive opinions to managers, their perception of procedural justice is improved because they have a

Alternation

When managers look over a list of employees, decide who is best and cross that name off the list, decide who is the worst employee and cross that name off the list, and then repeat the process, this is known as _____ ranking.

Evaluate their pay relative to other employees.

When thinking about the consequences of pay decisions, managers should keep in mind that employees often _____.

Developing behavioral anchors associated with different levels of performance

When using behaviorally anchored rating scales, organizations seek to define performance dimensions by ______.

Task significance

Which core job characteristic measures the extent to which the job affects the lives of other people within or outside the organization?

They are focused externally and value stability and they are driven by results and achieving goals.

Which of the following are characteristics of companies with a market culture?

Sets a minimum wage for jobs, provides for a training wage, and calls for time and a half pay for hours exceeding 40 hours a week.

Which of the following are provisions of the Fair Labor Standards Act (FLSA) as they relate to employee pay?

Strategic, developmental, and administrative

Which of the following are purposes of an organization's performance management system?

An individual's performance rating and an individual's compa-ratio.

Which of the following factors determine the size and frequency of pay increases on the merit increase grid?

Key jobs are known as benchmark jobs, key jobs have relatively stable content, and key jobs are common to many organizations.

Which of the following statements describe key jobs?

Evaluating whether individuals possess certain desired traits and defining a set of desired traits.

Which of the following steps are part of the attribute approach?

An emphasis on cooperation in performance problem solving between managers and employees, use of multiple sources in the evaluation of person and system factors, and involvement of both internal and external customers to set standards and measure performance.

Which of the following would be expected in a performance management system that is designed with a strong quality orientation?

Introduces a greater degree of internal consistency.

With the pay setting approach that uses the pay policy line to derive pay rates for both key and nonkey jobs, the pay of all the jobs is linked directly to the number of job evaluation points, which ______.

Employees will easily remember and repeat them.

Specialized language such as slogans and acronyms are useful for culture change because

Change and acquisition

The _____ and _____ phase of the organizational socialization process requires employees to master important tasks and roles to adjust their work group's values and norms.

Believe the performance management system is fair

The acceptability of a performance measure is determined, in part, by the extent to which the employees

Market surveys

The approach that places the greatest emphasis on external comparisons is achieved by basing pay on

Delayering

The concept of reducing the number of job levels within an organization in order to gain flexibility in job assignments is called ______.

Efficiency wage.

The concept that wages affect worker productivity is called the _____ theory.

Range

The distance between the maximum and minimum pay within a pay grade is known as the _____ spread.

Behaviors and pay

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

Benchmarking

The process by which an organization compares its own practices against those of the competition is called _____.

A failure to interpret and implement safety measures.

What is a key risk of neglecting to integrate subcultures within high-risk industries?

Job satisfaction and long-term success

When workers take an assignment in a foreign country, they often experience different socialization activities than other newcomers. This affects which of the following for those expatriates?

A shifting labor market, inequity in compensation based on gender and race, and changing demographics of the workforce.

Which factors can influence a company's ability to adhere to the Equal Employment Opportunity (EEO) pay regulations?

Legends about important events, stories about key people, and myths about company history.

Which forms of language help reinforce characteristics of a desired culture?

Deliberate role modeling, training, teaching, and coaching.

Which mechanism for culture change most closely corresponds with Experian's emphasis on building culture organically through the use of informal networks?

It helps retain top talent, it generates increased job satisfaction, it attracts skilled workers, and it encourages increased productivity.

Which of the following are advantages of paying employee wages above the market average?

How financial results are achieved, financial results, and non-financial measures.

Which of the following are suitable considerations for using a balanced scorecard to structure employee compensation?

Pay equity

Another term for comparable worth is

Careful alignment with organizational strategy, balancing of objectives, and careful alignment with human resource strategy.

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?

People need the ability and resources to achieve the goal, successful goal achievement reinforces employee satisfaction and leads to setting higher goals, and goals that are specific and difficult lead to higher performance.

Which of the following statements are consistent with Locke and Latham's findings about goal setting?

Ways of measuring performance, payment method, and frequency of payout.

Which of the following are design features that potentially help differentiate pay for performance programs?

Forced distribution, paired comparison, and ranking

Which of the following are examples of comparative approaches?

Acceptability, specificity, and reliability.

Which of the following are important criteria for evaluating a performance management system?

Physiological needs and esteem needs

Which of the following are included in Maslow's hierarchy theory?

Using market survey data, pay grades, and the pay policy line.

Which of the following are pay setting approaches that vary in the relative importance they give to external and internal comparisons?

Socialization tactics can reinforce ethical behaviors, new hires are positively affected by formalized socialization procedures, and different techniques are appropriate for different people at different times.

Practical guidelines derived from socialization research include which of the following?

Vertical

Job enrichment is the job design method that uses _____ loading to improve motivation.

Content and Process theories

The general categories of motivation theories include:

How people strive for fairness in social exchanges and how people strive for fairness in give and take relationships.

What does equity theory explain?

False

T/F: Market forces provide the most inefficient means of pricing and allocating people to jobs.

Strategic congruence

Job performance management systems that bring out job performance that is in line with the strategies, goals, and culture of the organization is said to have _____.

Moves employees from one specialized job to another

Job rotation is the top-down approach that:

Employees enjoy a beer on-site at the office, salespersons ring a large gong when they make a deal, and employees avoid certain unlucky foods in the break room.

Of the following, which best represent rites and rituals?

Effectiveness.

One of the conclusions of the competing values framework is that organizational culture is related to measures of organizational _____.

Production

One of the most important factors that influences the price of a good or service is the cost of _____ which includes labor costs.

Hire those with strong person-organization fit.

One way to perpetuate a firm's culture is to:

Business strategy

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

Energize employee behavior, control employee behavior, and direct employee behavior.

Pay plans are used in part to do which of the following?

Part of base pay, variable, and a fixed cost.

Pay programs that recognize employee contributions differ depending on whether payouts are ______.

Outputs

Pay, promotions, challenging assignments, participation in decision making are all considered ______ in Adam's equity theory.

Individual incentive

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

Compa-ratio.

An index that measures the correspondence between actual pay and a company's intended pay policy is called the _______.

Autonomy

An individual experiences freedom, discretion, and independence in doing the job.