Ch 9 ca

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

performance

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

poor performers

Droppiece, Inc. is a company that provides more performance-based pay and less base pay than its competitors. Who among the following is most likely to join Droppiece?

Stella, a recent college graduate who loves to take on a challenge

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

Valence

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 wide array of awards

A person with low self-esteem is likely to seek

a large, decentralized organization with little pay for performance

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 motivation triangle includes

culture

The amount of fairness given to employees refers to

distributive justice

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

is employees' beliefs that higher job performance will be rewarded by the organization.

Instrumentality

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

The most obvious sorting factor is

Ability

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

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

In the context of a pay-for-performance plan, which of the following questions is related to equity?

Do employees view the amount of compensation received as fair?

In the context of pay influencing turnovers, which of the following is a result of too little pay?

Feeling of unfair treatment among employees

________ is a variable pay plan where payout depends not on company level performance such as profitability, but rather on performance at some subunit such as a plant or facility

Gain sharing