Chap 9

_____ is an individual level form of performance pay.

Merit bonus

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

Instrumentality

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

Maslow's need theory

Droppiece Inc. is a company that provides more performance-based pay and less base pay than its competitors. Who among the following is most likely to join Droppiece?

Stella, a recent college graduate who loves to take on a challenge

Grabhouse Inc. is experiencing an increase in turnover rates of its top employees. Upon consulting with its managers for the reasons for this increase, Grabhouse finds that employees are uneasy with the current pay mix as it involves too many risky elements. In order to make its pay mix less risky, Grabhouse needs to:

increase the base pay component of its pay mix.

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.

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

Agency

Which of the following is NOT true?

Companies are moving back to entitlement-oriented pay to reduce turnover.

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

Expectancy theory

According to research, which of the following is NOT one of the most important factors for employees influencing their pay systems?

Team-based pay

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

Valence

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

A person with low self-esteem is likely to seek _____.

a large, decentralized organization with little performance-based pay

All of the following EXCEPT _____ require periodically re-earning the added pay.

cost-of-living increases

The amount of fairness given to employees refers to _____.

distributive justice

According to the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.

equity

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

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

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