Management Exam 3
Examining the factors included in the performance measures at Heavenly Handbags, and determining whether the people using them consider them fair, satisfactory, or adequate, is known as
Acceptability
Which of the following is a factor that is commonly used as a compensable factor?
Amount of job responsibility
The student who believed Professor Young would be more lenient in grading her next semester if she was given a high evaluation this semester was using
Appraisal politics
The ________ is an index of the correspondence between actual and intended pay.
Compa-ratio
Which of the following would be an example of a contrast error?
Comparing professor young's performance to professor ink's performance
Since comparing actual sales figures across different regions is dependent on the territory rather than the actual performance of the sales associate, this measure may be
Contaminated
Online Solutions, a software company, changed its pay structure from 3,400 job titles and 14 pay grades to a simpler structure with 1,000 jobs and 7 pay grades. The managers were then asked to choose pay levels that were based on the market. This is an example of
Delayering
According to ________ high performance followed by a reward will motivate employees to repeat the performance and make it recur more often in the future.
E. L. Thorndike's Law of Effect
The ________ theory describes the conditions when the benefits of higher pay outweigh higher costs.
Efficiency Wage Theory
________ give(s) employees the right to vote their securities if registered on a national exchange.
Employee Stock Ownership Plans
Nurses at the National General Hospital feel the pay they receive is not appropriate given the long hours they work and what workers in other professions make for their investment of time and effort. This situation is best explained by ________ theory.
Equity Theory
________ perception is the perceived link between effort and performance.
Expectancy
________programs offer a means of sharing productivity gains with employees based on group or plant performance.
Gainsharing
Students who evaluated all their professors by giving them high ratings because they liked them were probably influenced by
Halo errors
Students who used the difficulty of exams as a basis for rating all other aspects of Professor Young's performance were probably influenced by
Horns erros
In incentive pay, performance measures are primarily based on
Individual Productivity
According to expectancy theory, motivation is hypothesized to be a function of
Instrumentality
Having multiple raters evaluate the same employee's job performance to ensure consistency is a way to assess which of the following?
Interrater reliability
Which of the following is true of the pay grade approach to developing a pay structure?
It permits greater flexibility in moving employees from job to job.
The ________ is the relative pay of jobs in an organization.
Job Structure
In ________ programs, annual compensation increases are usually linked to performance appraisal ratings.
Merit Pay
To align the interests of the agents with the principal's own interests, one option is to create a behavior-oriented contract that includes
Merit Play
The _______ is the average compensation—including wages, salaries, and bonuses—of jobs in an organization.
Pay Level
When high performance is not followed by a monetary reward, future high performance is less likely according to
Reinforcement Theory
Which of the following trade-offs does a company need to consider with compensation management?
Risk Reward
The fact that white females were giving Professor Young higher ratings means that these individuals could have been influenced by
Similar to me erros
The range to which a performance management system derives employee job performance that is in line with its strategy, goals, and culture is called
Strategic Congruence
Evaluating individuals across multiple time periods would provide Heavenly Handbags information related to
Test-retest Reliability
Which of the following is the definition of compensable factors?
They are the characteristics of jobs that an organization values and chooses to pay for.
Why would an organization use benchmarking?
To compete for talent