Ch. 9 and 10

Available evidence indicates that managers believe the most important factor for pay increases is

Performance

Which of the following are an example of a long-term incentive plan?

Performance plans

________ have indirect pay-performance links and require employees to put up money to exercise grants.

Stock options plans

________ is the value employees attach to the organization rewards received for job performance.

Valence

If you had repair work done on your car, the shop most likely used ________ to pay the mechanic.

a standard hour plan

The most obvious sorting factor is

ability

The motivation triangle includes

culture

The amount of fairness given to employees refers to

distributive justice

The trend in recent variable-pay design is to combine the best of

gain-sharing and profit-sharing plans.

In gain-sharing plan formulas,

labor inputs are in the numerator and productivity outcomes are in the denominator.

________ requires division of a task into simple actions and determination of the time required by an average skilled worker to complete each action.

A Bedeaux plan

________ is a nonpermanent (variable) payment (bonus or lump sum) form of variable pay granted to employee as function of some (typically primarily subjective) assessment of individual employee performance.

Merit Bonus

An incentive system with three piecework rates is the

Merrick plan.

Horizon Inc. wants its employees to focus on organizational as well as individual goals. It also wants to motivate its employees to contribute toward increasing the company's shareholder value. It has implemented a variable pay plan that links incentive payouts to the company's financial targets. Horizon believes that this plan would help it clearly communicate its priorities to its employees. However, the downside of this plan is that the employees receive reduced payouts if the company's financial targets are not fulfilled. Which of the following variable pay plans is Horizon most likely using?

A balanced scorecard plan

Which of the following is an individual incentive plan?

A straight piecework system

According to the ________ theory of motivation, employees prefer certain or fixed income flows, such as wage or salary, to variable income flows, such as performance-based pay.

Agency

________ theory argues that pay should be based on outcomes if monitoring of behaviors is difficult or costly and if risk due to variability in outcomes is not large.

Agency

According to ________ theory, relative pay is important as employees evaluate the adequacy of their pay via comparisons with other employees.

Equity

Which of the following theories states that people choose the behavior that leads to the most satisfactory exchange?

Expectancy Theory