Chapter 3: Concept Quiz
A manager uses the following form in evaluating her employees: #3 The employee is expected to complete the task in a timely fashion. 1 2 3 4 5 Never Almost Never Sometimes Fairly Often Very Often What type of performance appraisal method is the manager using? A. BARS B. Paired comparisons C. Trait system D. BOS E. MBO
A. BARS
Which of the following is NOT one of the nine most common problems associated with merit pay programs? A. An employee not feeling that the merit pay is significant enough. B. A supervisor's improper choice of performance standards. C. A poor personal relationship between a supervisor and an employee. D. A supervisor's unwillingness to participate in a merit pay program. E. The failure of a supervisor to properly differentiate performers.
D. A supervisor's unwillingness to participate in a merit pay program.
Maria and Sonya have been employed for three years at an accounting firm. In the last quarter, both received the same merit raise, although Maria has been a star performer and has not missed any deadlines, while Sonya has missed deadlines on multiple occasions. On which aspect of the pay-for-performance link should the supervisor focus in this scenario so that this situation does not occur in the future? A. Differentiate among performers. B. Establish performance targets. C. Empower both Maria and Sonya. D. Communicate the way the merit pay was determined. E. Conduct a job analysis.
A. Differentiate among performers.
Generally, supervisors give merit raises based on a subjective assessment of the employee's performance. It is therefore essential that ________. A. supervisors conduct accurate performance appraisals for merit pay to be effective B. supervisors become friendly with their employees C. employees not put much effort into obtaining merit pay D. employees get a commitment from the supervisor before extending any effort for merit pay E. supervisors do not give a high level of merit pay
A. supervisors conduct accurate performance appraisals for merit pay to be effective
Cesar has worked as a junior clerk for XYZ Company for three months, starting at $10 per hour. In the next five to seven years, if Cesar continues to perform well and acquires new skills, he can more than likely expect ________. A. a cost-of-living increase with no increase in seniority pay B. an increase in seniority pay and a promotion C. an increase in longevity pay but not seniority pay D. an increase in longevity and seniority pay simultaneously, but not a promotion E. an increase in seniority pay but not longevity pay
B. an increase in seniority pay and a promotion
Which statement is correct? A. Administration of merit pay programs depends solely on the skills of the supervisor, not necessarily on the design and implementation of merit pay programs. B. The frequency with which employees are provided feedback on their performance is not very critical. C. Accurate and effective performance appraisals are key for effective merit pay programs. D. When employees get continual and ongoing feedback, they learn to dread performance appraisals. E. Supervisors are generally very objective when awarding merit pay.
C. Accurate and effective performance appraisals are key for effective merit pay programs.
Empowering employees to conduct self-appraisals is a strategy to strengthen the pay-for-performance link. What is the key advantage of this strategy? A. It reduces cost. B. It increases morale among the sales force. C. It leads to self-corrective responses to supervisory feedback. D. It reduces job-related stress for many employees. E. It partially relieves the supervisor of the appraisal task.
C. It leads to self-corrective responses to supervisory feedback.
Which would be an example of an employee receiving merit pay in an appropriate and typical manner? A. The employer adjusts the worker's base pay to account for inflation and then reviews the worker's number of years of service to determine the worker's appropriate pay. B. The employer reviews the number of units of production for all employees and bases pay ranges on each worker's production rate. C. The employer adjusts the worker's base pay to account for inflation and then awards the worker an additional 2.5% increase based on a positive subjective evaluation. D. The employer adjusts the worker's base pay to account for inflation and then awards the worker an additional 2.5% increase based on a positive objective evaluation. E. The employer reduces the worker's base pay by 5% and then conducts an extensive subjective review of the worker's performance before deciding on an appropriate pay raise.
C. The employer adjusts the worker's base pay to account for inflation and then awards the worker an additional 2.5% increase based on a positive subjective evaluation.
The error that occurs when a rater generalizes an employee's good or bad behavior on one aspect of the job to all aspects of the job is known as ________. A. contrast error B. similar-to-me effect C. halo effect D. error of central tendency E. first impression effect
C. halo effect
Renata works for a private employer that does not follow the seniority pay system, but Koren, her friend, works for the federal government, which awards seniority pay. Koren has an advantage over Renata because ________. A. he can expect much larger pay raises B. he knows that he will get seniority pay as well as a cost-of-living adjustment C. he knows that he will be treated fairly because seniority pay is an objective standard D. he is male and will always receive better raises than Renata E. the federal government is known for taking care of its employees
C. he knows that he will be treated fairly because seniority pay is an objective standard
Zac was disappointed when he saw a negligible increase in his paycheck after he was awarded merit pay. Zac's disappointment can be attributed to _____. A. his supervisor's biased ratings of employee's job performance B. undesirable competition among workers C. little motivational value of merit pay D. lack of open communication between management and employees E. mounting costs associated with merit pay
C. little motivational value of merit pay
Before merit pay can be awarded, it is important that companies first ________. A. consider whether the person was employed in a for-profit or not-for-profit company in the past B. ignore the amount of available funds for merit pay C. make permanent adjustments to base pay for inflation D. make the employee realize that any pay increase is temporary E. consider the amount of time spent on the job by an employee
C. make permanent adjustments to base pay for inflation
In a merit pay program, there must be explicit ________ that specify the procedures or outcome against which employees' job performance can be clearly evaluated. A. job qualifications B. job descriptions C. performance standards D. specifications E. outcome assessments
C. performance standards
Dee Ann and her supervisor Andy both attend the same church and share similar points of view on many issues. It is possible for Andy to commit which type of error when judging Dee Ann's performance? A. First-impression effect bias error B. Contrast error C. Similar-to-me bias error D. Positive or negative halo effect bias error E. Error of central tendency
C. Similar-to-me bias error
The motivational benefit of merit pay can be perceived differently by employees and employers. Of the following factors of merit pay, which one is perceived differently by employers and employees? A. Value of competition B. Job description C. Need for merit pay D. Amount of merit pay increase E. Value of other employees
D. Amount of merit pay increase
In order to establish an internally consistent compensation system, which of the following is absolutely necessary? A. Linking performance appraisals to business goals B. Establishing an appraisal system C. Establishing subjective performance measures D. Conducting job analyses E. Communicating about merit pay
D. Conducting job analyses
Performance targets establish effective appraisals, which strengthen the pay-for-performance link. What is the best way to establish performance targets? A. The supervisor should set the standard as the supervisor sees fit. B. Ask the employees to set targets for themselves. C. Find out how other companies set performance targets. D. Refer to the performance standards listed within job descriptions. E. Set performance targets based on prior performance appraisal.
D. Refer to the performance standards listed within job descriptions.
A software company is launching its new product line. The performance standards of the salespeople responsible for promoting the software should be judged based on ________. A. their job descriptions B. communicating clearly to them about merit increases C. how they self-appraise themselves D. linking their performance to the company's business strategy or goals E. making sure that effective appraisals are in place
D. linking their performance to the company's business strategy or goals
Marco likes to note several positive and negative behaviors and their outcomes when it comes to documenting performance appraisals of his employees. Marco is more than likely using ________. A. a forced distribution appraisal B. a trait system C. BARS D. the critical incident technique E. a comparison system
D. the critical incident technique
When an employee receives a minimum pay increase that is perceived as a significant change, it is known as ________. A. least-acceptable B. most-available C. regressive D. just-meaningful E. progressive
D. just-meaningful
Which of the following is NOT a reason why seniority pay is expected to disappear in the future? A. Skill deficits of current workers B. Rapid technological advancements C. Increased global competition D. Skill deficits of new employees E. Employee belief that workers become more valuable over time
E. Employee belief that workers become more valuable over time
Mary's employer rewards employees with periodic additions to base pay according to employees' length of service in performing their jobs. What type of pay system is the organization utilizing? A. Comparison pay B. Merit pay C. Pay-for-performance D. Just-meaningful pay E. Longevity pay
E. Longevity pay
Which type of performance appraisal method relies on many sources for information (employees, supervisors, coworkers, etc.)? A. BARS B. Comparison C. Trait D. Forced distribution E. 360-degree
E. 360-degree
There are 15 classifications in the General Schedule for government employees. These classifications are based on ________. A. age, seniority, and merit B. knowledge and expertise C. education and technical skills D. supervisory experience and length of service E. skill, education, and experience levels
E. skill, education, and experience levels