Managing People and Organizations Exam #2

36. What is the role of a manager in providing feedback and evaluations under performance management systems?

The role of a manager in a performance management system includes setting clear performance expectations, providing ongoing feedback to employees, conducting formal performance evaluations, identifying areas for improvement, and aligning employee performance with organizational goals and objectives. Managers play a crucial role in employee development and performance improvement.

14. What is Thorndike's observation?

Thorndike's Law of Effect states that behaviors followed by positive consequences are more likely to be repeated, while behaviors followed by negative consequences are less likely to be repeated. It is a fundamental principle of operant conditioning.

26. What are 3 theories explaining compensation's effect and what do they do?

Three theories explaining compensation effects are the efficiency wage theory (higher pay leads to improved productivity), the agency cost theory (incentive alignment between owners and managers), and the tournament theory (encouraging competition among employees to enhance performance).

Minh is revamping the performance appraisal process at his company and wants to make sure the new performance appraisal can withstand legal scrutiny. Which of the following should Minh do?

o Train raters to use the system correctly. o Use multiple raters. o review performance ratings and allow for employee appeal. ALL OF THE ABOVE.

The ___ technique consists of obtaining performance feedback for a manager from his or her boss, direct reports, peers, and internal and external customers.

360-Degree Feedback.

___ is a process that involves gathering an individual's self-evaluation of performance as well as performance evaluation from that individual's managers and peers.

360-Degree Feedback.

Individual performance is a function of:

Ability, Motivation, and Opportunity.

The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it.

Acceptability.

17. What is agency theory?

Agency theory is a framework that examines the relationship between principals (owners or shareholders) and agents (managers) in an organization. It explores how conflicts of interest and information asymmetry can affect decision-making and performance.

Which of the following is not included in the marketing step of performance management?

All the steps = Reviewing, Monitoring, Providing, Defining.

32. What is an intermittent reward schedule?

An intermittent reward schedule is a reinforcement schedule in operant conditioning where rewards are not provided after every desired behavior but are given sporadically. This schedule can maintain behavior over an extended period, as individuals are uncertain when they will be rewarded.

24. What are the attribute approaches?

Attribute approaches in job evaluation assess jobs based on specific criteria or attributes, such as skill level, responsibility, and effort.

___ performance methods have strong congruence between the techniques and the company's strategy.

Attribute-Based.

Melissa is tasked with ensuring her organization has external pay equity and wants to compare her organization's compensation practices against those of the competition. This is called...

Benchmarking.

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.

Which of the following theories suggest that high employee performance not followed by monetary reward will make future high performance less likely?

E.L. Thorndike's Law of Effect.

Which of the following is a criticism of traditional merit pay programs?

Employees are encouraged to focus on personal gains rather than what is good for the organization.

Which of the following is true about pay?

Employees attach great importance to pay decisions when they evaluate their relationship with the organization.

2. What is Equity Theory?

Equity Theory, developed by J. Stacy Adams, suggests that employees compare their inputs (effort, performance) and outcomes (rewards, recognition) to those of their peers. When they perceive inequity (being over or under-rewarded), it can lead to job dissatisfaction and impact motivation.

The Fair Labor Standards Act (FLSA) of 1938 established that ________ employees are not eligible for overtime pay. These employees include executive, professional, administrative, and outside sales.

Exempt.

___ focuses on the link between rewards and behaviors and emphasizes anticipated rewards.

Expectancy Theory.

___ are the three elements of Expectancy Theory:

Expectancy, Instrumentality, and Valence.

Sergei makes suggestions to his boss about how the department's performance can improve. Although his boss always compliments his ideas, he never acts on them. Sergei then stops making suggestions. This is an example of ________.

Extinction.

31. What are the factors to consider in the production of goods and services?

Factors to consider in the production of goods and services include cost, quality, efficiency, supply chain management, technology, labor, safety, and environmental impact.

Internal equity pay comparison is:

Focused on what employees within the same organization but in (sometimes) different jobs are paid.

22. What is gainsharing and how does it work?

Gainsharing is an incentive plan where employees receive bonuses or rewards based on cost savings or performance improvements. It works by encouraging employees to suggest and implement efficiency and cost-saving measures.

Delicia is a manager who wants to improve her performance feedback-giving skills. Which of the following would you suggest to Delicia?

Give your employees feedback frequently, encourage employees to participate, and focus on solving problems while minimizing criticism.

5. What is goal-setting theory and how does it work?

Goal-setting theory proposes that setting specific, challenging goals leads to higher performance and motivation. It works by motivating individuals to exert effort and directing their actions toward achieving those goals.

Veronica just accepted a job as a manager at QuizBiz, where bonuses are offered for salespersons who exceed their quotas. She notices that her team members are very competitive with one another, and there is poor team collaboration. Veronica suggests giving team members smaller individual bonuses and implementing team rewards as well to foster team collaboration. This is known as a _____ reward system.

Hybrid.

The initial steps of the performance management cycle involve:

Identifying what the company is trying to accomplish (goals or objectives), creating a set of key performance dimensions, and developing performance measures.

In thinking about expectancy theory, the main influence of compensation is on the perceived link between behaviors and pay, otherwise known as:

Instrumentally.

A performance measure is said to be contaminated when:

It evaluates irrelevant aspects of performance.

Which of the following is true of external equity pay compensation?

It influences employees' decisions regarding whether to stay or move to other organizations.

Which of the following is an administrative procedure used to measure internal job worth using measurable factors?

Job Evaluation.

___ is the appropriate tool for internal equity pay comparisons rather than market pay surveys.

Job Evaluation.

Baylee was hired by Target as a human resource professional. After spending 2 months working in the HR department, she was transferred to the marketing department for 2 months, then to the finance department for 2 months before returning to HR. This is an example of:

Job Rotation.

The ___ is the relative pay of jobs in an organization.

Job Structure.

6. What is job design and what factors are included?

Job design involves structuring jobs to enhance employee performance and satisfaction. Factors include task variety, task significance, autonomy, and feedback.

Velo Inc. wants to increase hourly wages. The company puts together a team of employees of all levels from multiple departments, including HR, marketing, manufacturing, engineering, and finance. The team will meet for 3-5 days consecutively with the sole purpose of coming up with a new hourly wage structure and will disperse once this goal is reached. This is an example of ________.

Kaizen.

27. What are key and non-key jobs?

Key jobs are positions within an organization that are considered critical to the company's success or are highly specialized. They often receive special attention in terms of compensation and career development. Non-key jobs are roles that are more standard or support functions within the organization.

The corporate board of directors has to authority to decide on management issues to vote. This exemplifies what kind of power?

Legitimate Power.

Jason is responsible for conducting the annual performance evaluations for his subordinates. Even though he had observed that some of his subordinates performed poorly throughout the year, he decided to give everyone high-performance ratings regardless of their performance. This is an illustration of ___.

Leniency.

Performance ___ is the means through which managers ensure that employees' activities and outputs are congruent with the organization's goals.

Management.

Who has the most information about your evaluation?

Manager.

25. What are the market challenges in pay decisions?

Market challenges include changes in labor markets, economic conditions, and industry competition that can impact an organization's ability to attract and retain talent with competitive compensation.

___ states that motivation is a function of five basic needs that are met sequentially.

Maslow's Need Hierarchy Theory.

________ states that motivation is a function of five basic needs that are met sequentially. While not strongly supported by research, this theory has practical applications for managers.

Maslow's Need Hierarchy Theory.

Company Z has a pay policy that provides annual pay raises for their employees based on each employee's supervisor's appraisal of his/her performance. This type of pay policy is known as which of the following?

Merit Pay Program.

19. What are the plus and minus of merit pay?

Merit pay can motivate employees based on their performance, but it may also lead to unhealthy competition and neglect of team efforts if not implemented carefully.

Individual incentives reward individual performance, but payments are not rolled into base pay. These incentives have been found to be effective but can be difficult to implement because:

Most jobs have no physical output measure, and some incentive plans reward output over quality or service.

8. What is motivation and its factors (intrinsic, extrinsic, etc.)?

Motivation is the driving force that initiates, directs, and sustains behavior. It can be influenced by intrinsic factors (personal interest, fulfillment) and extrinsic factors (rewards, recognition) that encourage or discourage action.

The levels of organizational culture are:

Observable Artifacts, Espoused Values, and Basic Underlying Assumptions.

The three fundamental layers of organizational culture are:

Observable Artifacts, Espoused Values, and Basic Underlying Assumptions.

21. What is the Basic Operant Conditioning Theory, how does it work, and what are its parts?

Operant Conditioning Theory is based on the principles of reinforcement and punishment. It works by modifying behavior through the manipulation of consequences. Its key parts include the antecedent (stimulus that triggers behavior), behavior itself, and the consequence (reward or punishment).

___ behavior that is learned when one acts on the environment to produce desired consequences:

Operant.

4. What is organizational socialization?

Organizational socialization is the process of introducing new employees to the company's culture, values, practices, and norms. It helps them adapt to their new work environment and become integrated into the organization.

Which of the following statements about organizational culture is true?

Organizations tend to have one dominant type of culture.

The ___ is the average compensation - including wages, salaries, and bonuses - of jobs in an organization.

Pay Level.

15. What are consequences of pay decisions?

Pay decisions can have various consequences, including affecting employee morale, retention, and performance. Fair and competitive pay can lead to motivated and satisfied employees, while inadequate compensation may lead to dissatisfaction and turnover.

34. What are pay rate ranges, levels, etc.?

Pay rate ranges are the minimum and maximum salary or wage levels set for specific job positions within an organization. Pay levels refer to different tiers or levels of pay within the company, often based on factors like job complexity and experience.

11. What do you consider with pay surveys?

Pay surveys involve researching and comparing compensation rates in the job market to ensure competitive and fair pay for employees. It considers factors such as job role, industry, location, and experience.

The two basic types of goals are:

Performance & Learning.

10. What is the Purpose of Performance Management Systems and what does it consist of?

Performance Management Systems aim to improve employee performance and align it with organizational goals. Components may include setting expectations, monitoring progress, providing feedback, and making decisions about rewards and development.

13. What are personal incentives and how do they work?

Personal incentives are rewards or benefits tailored to an individual's preferences and needs. They work by motivating individuals based on their specific desires, such as promotions, flexible work hours, or professional development opportunities.

16. What are perspectives of performance?

Perspectives of performance evaluation include trait-based perspectives (evaluating an employee's innate qualities), behavior-based perspectives (evaluating observable behaviors), and results-based perspectives (evaluating outcomes and achievements).

Trevor and Debra were both going up for promotion. Neither Trevor nor Debra met their sales goals in the last several quarters. Debra receives the promotion, while Trevor does not. Trevor did not really expect to get the promotion based on his performance, but he still perceived the decision process to be unfair since Debra had not performed better than him. What type of fairness is this?

Procedural.

To minimize payroll perceptual error, a manager should do what?

Record examples of positive and negative performance throughout the year.

What does validity refer to in a performance management system?

Refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance or assessing all relevant dimensions of performance.

Kristie wants friendly and close interpersonal relationships with her colleagues. According to McClelland's acquired needs theory, this is a need for:

Relatedness.

33. What is reliability?

Reliability, in the context of HR and psychology, refers to the consistency and accuracy of a measurement or assessment tool. It is important in employee evaluations and assessments to ensure that results are stable and dependable.

The _____ approach assumes that subjectivity can be eliminated from the measurement process and that outcomes are the closest indicator of one's contribution to organizational effectiveness.

Results.

In Maslow's needs hierarchy theory, providing a work environment where employees aren't worried about physical or psychological harm fulfills what level of need?

Safety.

___ theory focuses on needs that drive intrinsic motivation, which is longer lasting and has a more positive impact on task performance than extrinsic motivation.

Self-Determination.

Mahbuba is a manager at Zillow and realizes that her direct report, Christine, has low intrinsic motivation. After talking with Christine, Mahbuba learns that Christine feels like she doesn't experience any responsibility for the outcomes of the work she performs. Based on the job characteristics model, how can Mahbuba help improve Christine's intrinsic motivation?

Similar-to-me.

Maria is paid based on her knowledge, experience, education, and specialized training. She recently received her SHRM-CP (an HR certification), which gave her a bump in pay, and next month, she is attending a leadership seminar for which she will also receive a pay increase. Which type of pay system is this?

Skill-Based Pay.

1. How are slogans and mottos used in companies?

Slogans and mottos are used in companies to convey a memorable and concise message that reflects the company's brand, values, and identity. They help in marketing, branding, and creating a consistent image.

One of the major findings of goal-setting research is that the best goals are those that are:

Specific and Measurable.

A _______ plan gives executives the opportunity to buy the company's shares at a previously fixed price.

Stock Option.

The performance management system at Proton Corporation has been carefully designed to assess all the relevant dimensions of performance for jobs in the company. Based on this, it can be said that this performance management system possesses:

Strategic Congruence.

Which of the following appraisal sources is the best for evaluating leadership effectiveness?

Subordinates.

Company XYZ has several new positions they want to fill internally. the company evaluates individual performances and wants to develop a ranking of individuals to identify the best performers. Which of the following approaches is the company using?

The Comparative Approach.

28. What is profit sharing and how does it work?

The Fair Labor Standards Act (FLSA) is a U.S. federal law that establishes minimum wage, overtime pay, child labor, and record-keeping requirements for employees. It aims to protect workers' rights and ensure fair labor practices.

23. What are the parts of pay-setting structure?

The parts of a pay-setting structure may include pay grades (grouping jobs with similar values), salary ranges (minimum and maximum pay for each grade), and job evaluation methods.

Interactional justice is the perceived fairness of what?

The quality of interpersonal treatment received or Fairness of how people are treated.

The three key elements of Equity Theory are outputs, inputs, and:

Comparison of the ratio of outputs to inputs.

The two general categories of motivational theory are:

Content and Process.

3. What are the theories associated with Content theory?

Content theories of motivation, including Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory, focus on identifying specific factors that drive human motivation.

35. What is corporate level diversification?

Corporate level diversification is a strategy in which a company expands its business operations into various industries or markets beyond its core business. This diversification can be related (e.g., entering a related industry) or unrelated (e.g., entering an entirely different industry).

Jennifer, the HR manager, is giving a performance review to Melissa. She tells Melissa that she needs to improve her teamwork skills and compassion for others. Jennifer provides Melissa with a couple of upcoming training webinars that focus on these skills. This represents the ______ purpose of performance appraisal.

Developmental.

30. What is the law of effect?

The Law of Effect, formulated by Edward Thorndike, states that behaviors followed by positive consequences are more likely to be repeated, while behaviors followed by negative consequences are less likely to be repeated. It is a fundamental principle of operant conditioning.

Compensable factors are employees' job characteristics that:

The company is willing to pay for it.

Both internal and external factors influence the pay mix or the compensation package. Which of the following is an example of an external factor that influences the compensation package?

The current unemployment rate is very high, so organizations currently hiring can make offers below the market rate.

20. What are the main types of reinforcement and how do they work?

The main types of reinforcement are positive reinforcement (rewarding desired behavior), negative reinforcement (removing aversive stimuli to encourage behavior), punishment (introducing aversive consequences for undesirable behavior), and extinction (withholding reinforcement to decrease behavior).

7. What are values and norms in an organization?

Values are core beliefs and principles that guide an organization's behavior, while norms are unwritten rules or standards of behavior within the organization. Together, they shape the organization's culture.

9. What are the elements of Vroom's theory?

Vroom's Expectancy Theory includes three key elements: expectancy (belief that effort leads to performance), instrumentality (belief that performance leads to rewards), and valence (the value an individual places on the rewards).

In McClelland's acquired needs theory:

We learn needs as we live our lives.

18. Are there problems with job-based pay structures?

Yes, problems with job-based pay structures may include a lack of flexibility to reward individual performance, potential for overcompensation in some roles, and difficulty in adapting to changing job responsibilities.