Chapter 9

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according to research, which of the following is on the most important factors for employees influencing their pay systems

-changes in cost of living -pay at market rate -seniority

which of the following is true

-more companies are using pay based upon individual group and organizational performance -workers with higher security needs may accept lower pay for higher wage security -workers may need higher pay to stay and perform in an at-risk company

which of the following are what require periodically re-earning the added pay

-success-sharing -merit bonuses -profit-sharing bonus

there is evidence that every 10 percent increase in the bonus paid to employees by a firm yields a _____ percent increase in ROA to the firm

1.5

most experts agree that employees do not begin to consider changing their behaviors unless payouts are at least ____ percent higher

20

compensation should reinforce all but which of the following behaviors

Doesn't try to keep turnover to nearly 0

__________ theory states that success-sharing plans will be motivating, whereas at-risk plans will be demotivating

Herzberg's two-factor

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

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

equity

when salary increases are based on inputs, or performance, companies are following:

equity theory

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

expectancy

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 pay is based on individual performance, turnover tends to be highest among _____

poor performers

which of the following focuses on increasing the frequency of desired behaviors and decreasing the frequency of undesired behaviors through environmental consequences

reinforcement theory

the ability triangle includes __________

selection, recruitment, training

In ___________ theory, incentive pay is motivating if it helps an employee gain a sense of achievement, recognition or approval

Maslow's

When developing a flexible compensation system, which theory or theories would be the most useful

Maslow's and herzberg's theories

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

when an organization's performance has frequent highs and lows, but individual performance is fairly stable, and performance measures are clear, the most effective compensation mix is to offer __________

a large base pay and low-incentive pay

a person with low self-esteem is likely to seek _________

a large, decentralized organization with little performance-based pay (a person wants to hide)

which of the following best supports a culture of flexibility and innovation

a strong commitment to job security

when employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer __________

a variety of rewards with significant incentive pay

the corporate performance of Yellow Corp. is fairly stable. However, it is difficult to measure individual performance. In this case, the most effective compensation mix is to offer ___________

a wide range of rewards beyond just money

the most obvious sorting factor is _____

ability

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

agency

a key factor in increasing trust in top management is ____

an acceptable appraisal system

which of the following is an example of the sorting effect in action

an employee leaving a high-paying job for one that provides more work-life balance

compensation should reinforce all which of the following behaviors

attracting and hiring good employees encouraging skill development motivating high job performance

which among the following components of a reward system is a dimension of empowerment

control

all of the following EXCEPT ___________ require periodically re-earning the added pay

cost-of-living increases

the motivation triangle includes ___________

culture, compensation, performance management

according to expectancy theory, the valence of an outcome is the:

degree to which an outcome is desired

the amount of fairness given to employees refers to _____

distributive justice

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

instrumentality

A(n) __________ requires annually "re-earning" the added pay

lump-sum bonus

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

maslow's need

____________ is an individual level form of performance pay

merit bonus

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

the key to designing a pay-for-performance system rests on standards. Specifically, managers need to be concerned about the:

objectives, measures, eligibility, and funding

available evidence indicates managers believe the most important factor for pay increases is _____

performance

according to research, which of the following is NOT on the most important factors for employees influencing their pay systems

team-based pay

according to expectancy theory, the instrumentality is

the perceived probability that a specified level of behavior will receive a specific level of reward

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

valence


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