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