Chapter 9 LS

Identify an accurate statement about the goal-setting theory's approach to performance-based pay.

Performance-based pay should be contingent upon the completion of major performance goals.

Identify the essential features of Maslow's needs hierarchy. (Check all that apply.)

- Needs are arranged from basic needs to higher-order needs. - Higher-order needs become motivating after basic needs have been fulfilled.

Which of the following guidelines helps ensure the success of an organization's attempt to change its employees' behavior? (Check all that apply.)

-The organization should design its work and culture to provide the opportunity to leverage employees' motivation and ability. -The organization should provide necessary training to people whose behavior needs to be changed. -The organization should select the right people.

Which theory of motivation states that employees are motivated when the ratio of their perceived inputs and outputs is equal to their perceived inputs and outputs of a comparison person? Multiple choice question.

equity theory

Wondrous Facts Inc. is a publisher of fact books that manages to exceed its sales targets every year. It rewards its employees' performance based on highly specific objective criteria, such as the quality of work and the number of units produced. These performance measures have remained the same for many years. There is little fluctuation in the nature of work and the employee performance expectations are consistent. In this scenario, the most appropriate compensation strategy for Wondrous Facts is rewarding its employees with _____.

monetary benefits that have a large-incentive portion

Match the letters in the image (in the left column) with the stages in the cascading link between organization strategy and employee behavior they represent (in the right column).

A - Corporate Goals B - SBU Goals C - Department/Team Goals D - Employee Team Results E - Individual Goal

According to agency theory, what motivates and directs employee performance?

pay

In the formula Behavior = f (A, M, O), if Behavior represents employee behavior, what do A, M, and O represent? Multiple choice question.

Ability, motivation, and opportunity

Agency theory claims that employees _____.

are risk-averse

Wondrous Facts Inc. is a publisher of fact books that manages to exceed its sales targets every year. It rewards its employees' performance based on highly specific objective criteria, such as the quality of work and the number of units produced. These performance measures have remained the same for many years. There is little fluctuation in the nature of work and the employee performance expectations are consistent. In this scenario, the most appropriate compensation strategy for Wondrous Facts is rewarding its employees with

monetary benefits that have a large-incentive portion

What does reinforcement theory recommend for reinforcing performance?

Performance must be directly followed by performance-based payments.

According to goal-setting theory, which type of goals generate the most employee effort?

Specific and challenging performance goals

It is appropriate to use a compensation strategy that emphasizes base pay with a low-incentive component in organizations that _____.

have highly variable annual performance

If an organization fails to _____, it becomes difficult to implement revised training programs or create compensation packages to reward new skills immediately.

identify changing skill requirements

How does organization development help an organization with inefficient processes?

It frees up motivated employees to utilize their skills.

is based on the idea that only the individual employee knows what package of rewards would best suit personal needs; it allows tradeoffs between pay and benefits.

flexible compensation

According to reinforcement theory, an organization should discourage an employee's undesirable behavior by _____.

withholding the employee's payouts

In the context of the implications of motivation theories for pay and pay for performance, which of the following can be inferred from expectancy theory? (Check all that apply.)

- Employees' responsibilities and job tasks should be clearly defined. - There must be a clear and perceivably strong link between pay and performance.

What significance does pay level have in the application of Herzberg's two-factor theory to designing compensation to motivate employees?

It must satisfy an employee's hygiene needs before the employee can be motivated.

In the context of the implications of motivation theories for pay and pay for performance, Maslow's needs hierarchy suggests that to be effective, incentive pay needs to _____.

be attached to approval or achievement

One of the best methods an organization can adopt to successfully change employees' behavior is to develop a compensation system that rewards desired behavior.

true

In the context of the relationship between performance measurement and compensation strategy, match the organizations (in the left column) with the most appropriate compensation strategies (in the right column).

An organization with low variability in performance across time and unstable and unclear performance measures matches Choice, Offering a wide array of rewards beyond just money and including a significant incentive component Offering a wide array of rewards beyond just money and including a significant incentive component An organization with widely variable performance across time and unstable and unclear performance measures matches Choice, Offering a wide array of rewards beyond just money and emphasizing base pay with a low-incentive component Offering a wide array of rewards beyond just money and emphasizing base pay with a low-incentive component An organization with low variability in performance across time and stable and clear performance measures matches Choice, Emphasizing monetary rewards and including a significant incentive component Emphasizing monetary rewards and including a significant incentive component An organization with widely variable performance across time and stable and clear performance measures matches Choice, Emphasizing monetary rewards and emphasizing base pay with a low-incentive component Emphasizing monetary rewards and emphasizing base pay with a low-incentive component

According to Herzberg's two-factor theory, _____ are factors related to basic living needs that prevent behaviors in their absence, whereas _____ are factors that motivate performance.

hygiene factors; satisfiers

In general, employers desire for employees to perform in ways that result in _____.

improved organizational performance

involves offering what's important to a person in exchange for some desired behavior.

motivation

In jobs that are characterized by high fluctuation in the nature of tasks employees are expected to perform, how can companies best motivate employees to be flexible, adjust, and display commitment? Multiple choice question.

By offering a broad array of rewards

Refer to the given image and match the letters of the alphabet (in the left column) with the corresponding factors that influence employee behavior (in the right column).

A - Ability to perform B - Motivation to perform C - Opportunity to perform