MGMT - Test 2 Chapter 8
Jack Holmes is a middle-aged, lower-level employee at an automobile service center. Though he is not paid very well, he loves his job. His supervisor speaks to him with respect and he is the favored candidate for mentoring new employees because on the vast experience he holds in the job. Based on this information, which of the following is most likely to be the reason Jack likes his job? A) recognition B) prospects of growth C) salary D) flextime E) job sharing
Answer: A Explanation: A) Intrinsic rewards in the form of employee recognition programs are increasingly being recognized as important in job satisfaction and motivation. Jack's attitude stems from the recognition he receives. Page Ref: 259
Which of the following is the distinct characteristic of participative management programs? A) joint decision making B) representative participation C) performance norms D) establishment of work councils E) autocratic decision making
Answer: A Explanation: A) The distinct characteristic common to all participative management programs is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors. Page Ref: 251
________ are predesigned packages or modules of benefits, each of which meets the needs of a specific group of employees. A) Modular plans B) Employee stock ownership plans C) Profit sharing plans D) Merit-based plans E) Flextime plans
Answer: A Explanation: A) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Modular plans are predesigned packages or modules of benefits, each of which meets the needs of a specific group of employees. Page Ref: 258
Job design is defined as the ________. A) degree to which the job rewards competence B) way the elements in a job are organized C) degree to which the job contributes to profit margins D) degree of decision-making power with the immediate superiors E) way the job is evaluated in terms of its relative worth to other jobs
Answer: B Explanation: B) Job design is defined as the way the elements in a job are organized. Page Ref: 240
Job enrichment is the process of ________. A) periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level B) expansion of jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work C) redistribution of power within the organization through work councils and board representations D) distribution of a significant degree of power between subordinates and supervisors E) evaluation of an employee wherein subordinates, peers, and managers provide comprehensive feedback
Answer: B Explanation: B) Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. Page Ref: 244
Which of the following statements is true regarding a merit-based pay plan? A) It bases pay levels on how many skills employees have or how many jobs they can do. B) It is also called competency-based pay plan. C) Unions typically resist merit-based pay plan. D) It distributes compensation based on an established formula designed around a company's profitability. E) A typical merit-based pay plan provides no base salary and pays the employee only for what he or she produces.
Answer: C Explanation: C) A merit-based pay plan pays for individual performance based on performance appraisal ratings. Unions typically resist merit pay plans. A pure piece-rate pay plan provides no base salary and pays the employee only for what he or she produces. Page Ref: 253, 255
Which of the following statements is true regarding job sharing? A) It expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. B) It is also called cross-training. C) It allows two or more individuals to split a traditional 40-hour-a-week job. D) It involves periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level. E) Job sharing is a method of job enrichment.
Answer: C Explanation: C) Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. Job sharing is not a method of job enrichment, it is an alternative work arrangement. Job rotation involves periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level and it is also called cross-training. Job sharing allows two or more individuals to split a traditional 40-hour-a-week job. Page Ref: 247, 248
Which of the following statements is true regarding job rotation? A) It decreases the flexibility with which an organization can adapt to a change. B) It decreases employee motivation. C) It decreases productivity in the short-run. D) It decreases supervisory workload. E) It decreases the flexibility in scheduling work.
Answer: C Explanation: C) Job rotation increases the flexibility with which an organization can adapt to a change. It reduces boredom and increases motivation. Productivity tends to reduce when a worker moves into a new position and supervisory workload tends to increase because supervisors may have to spend more time answering questions and monitoring the work of recently rotated employees. Page Ref: 244
In which of the following variable-pay programs is the pay level based on how many skills employees have or how many jobs they can do? A) bonuses B) piece-rate pay C) skill-based pay D) gainsharing E) merit-based pay
Answer: C Explanation: C) Skill-based pay is a pay plan that sets pay levels on the basis of how many skills employees have or how many jobs they can do. Page Ref: 256
Which of the following is the major drawback of job sharing from management's perspective? A) increase in supervisory workload B) increased costs for providing supporting infrastructure (such as desk and computer) to two employees instead of one C) difficulty in finding compatible partners D) difficulty in designing the reward structure E) difficulty in coordinating schedules
Answer: C Explanation: C) The major drawback of job sharing from management's perspective is finding compatible pairs of employees who can successfully coordinate the intricacies of one job. Page Ref: 248
A prerequisite condition for job rotation is the ________. A) presence of high level of autonomy among workers B) presence of high need for affiliation among workers C) presence of employees with similar skill sets and requirements D) presence of alternative work arrangements for employees to avail E) presence of employee involvement programs
Answer: C Explanation: C) The periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level is called job rotation. Page Ref: 243
The ________ pay plan has long been popular as a means of compensating production workers by paying a fixed sum for each unit of production completed. A) competency-based B) gainsharing C) piece-rate D) profit sharing E) merit-based
Answer: C Explanation: C) The piece-rate pay plan has long been popular as a means of compensating production workers by paying a fixed sum for each unit of production completed. A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces. Page Ref: 254
Telecommuting is an option that suits professionals like ________. A) trainers B) nurses C) analysts D) receptionists E) sales representatives
Answer: C Explanation: C) Three categories of professionals are most suitable for the option of telecommuting. These are: routine information-handling tasks, mobile activities, and professional and other knowledge-related tasks. Writers, attorneys, analysts, and employees who spend the majority of their time on computers or the telephone are natural candidates. Page Ref: 249
A ________ plan distributes compensation based on some established formula designed around revenue of the company. A) piece-rate B) merit-based C) skill-based D) profit-sharing E) competency-based
Answer: D Explanation: D) A profit-sharing plan distributes compensation based on some established formula designed around a company's profitability. Page Ref: 256
Adam Sears is an assembly line employee with Swenson Motors. Though Adam is popular among his supervisors and colleagues, Adam experiences low morale and lack of motivation. He feels frustrated that his job is restricted to fixing nuts and bolts on the car parts. He fears that he has no chances of advancing in his career as he cannot completely assemble a car. Which of the following is true with regard to Adam? A) Adam's job has high task complexity. B) Adam's job has a high span of control. C) Adam's job has low role definition. D) Adam's job has low task identity. E) Adam's job has high task significance.
Answer: D Explanation: D) Adam's job has low task identity. This means that the degree to which the job requires the completion of a whole and identifiable piece of work is low. Page Ref: 240
Which of the following statements is true regarding flexible benefits? A) Flexible benefits are awarded through uniform packages to cover the requirements of a married couple with two children. B) Flexible benefits are in accordance with the belief that employees have identical needs that must be rewarded identically. C) Gainsharing and profit-sharing plans are two major types of flexible benefits. D) Flexible benefits can be altered to meet employee needs based on age, marital status, and number and age of dependents. E) Flexible benefits are given based on an employee's skills, competence, and productivity.
Answer: D Explanation: D) Flexible benefits individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation. Flexible benefits can accommodate differences in employee needs based on age, marital status, spouse's benefit status, and number and age of dependents. Page Ref: 258
According to the job characteristics model, task significance is the degree to which ________. A) a job requires completion of a whole and identifiable piece of work B) a job generates direct and clear information about performance C) a job provides the worker freedom in scheduling work and determining its procedure D) a job bears an impact on the lives or work of other people E) a job requires a variety of different activities
Answer: D Explanation: D) Task significance is the degree to which a job has an impact on the lives or work of other people. Page Ref: 240
Flexible spending plans consist of ________. A) a set of core of essential benefits and a menu-like selection of others from which employees can select B) no base salary and pays the employee only for what he or she produces on the basis of a fixed sum for each unit of production completed C) a fraction of a company's profit margins determined on the basis of an established formula D) pretax dollars up to the dollar amount offered in the plan that an employee sets apart to pay for particular benefits E) modules of benefits, each of which meets the needs of a specific group of employees
Answer: D Explanation: D) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Flexible spending plans allow employees to set aside pretax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as health care and dental premiums. Page Ref: 259
Which of the following variable pay programs is free from dependence on company profits? A) profit-sharing B) job sharing C) bonuses D) employee stock ownership plans E) gainsharing
Answer: E Explanation: E) Gainsharing is a formula-based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money allocated. Gainsharing differs from profit sharing in tying rewards to productivity gains rather than profits, so employees can receive incentive awards even when the organization isn't profitable. Page Ref: 256
To enhance the amount of autonomy employees enjoy, a company must provide its employees with tasks combined into natural work units.
Answer: FALSE Explanation: Expanding jobs vertically is the strategy that is used to enhance autonomy of employees as it gives employees responsibilities and control formerly reserved for management. Page Ref: 244
The job characteristics model describes any job in terms of five core job dimensions and these five dimensions are skill variety, task significance, recognition, reward, and feedback.
Answer: FALSE Explanation: The job characteristics model describes any job in terms of five core job dimensions and these five dimensions are skill variety, task significance, autonomy, task identity, and feedback. Task identity is the degree to which a job requires completion of a whole and identifiable piece of work. Page Ref: 240
Employee recognition programs are highly susceptible to political manipulation by management.
Answer: TRUE Explanation: Employee recognition programs are highly susceptible to political manipulation by management. Page Ref: 261
The term "virtual office" describes working from home on a relatively permanent basis.
Answer: TRUE Explanation: The term "virtual office" describes working from home on a relatively permanent basis. Page Ref: 248
When it comes to motivating employees, financial incentives may be more motivating in the short term, but in the long run it's nonfinancial incentives.
Answer: TRUE Explanation: When it comes to motivating employees, financial incentives may be more motivating in the short term, but in the long run it's nonfinancial incentives. Page Ref: 259
With reference to the job characteristics model, which of the following defines task identity? A) the degree to which a job requires completion of a whole and identifiable piece of work B) the degree to which work activities generate direct and clear information about performance C) the degree to which a job provides the worker freedom in scheduling and procedure D) the degree to which a job has an impact on the lives or work of other people E) the degree to which a job requires a variety of different activities
Answer: A Explanation: A) The job characteristics model ( JCM) describes jobs in terms of five core job dimensions: skill variety, the degree to which a job requires a variety of different activities; task identity, the degree to which a job requires completion of a whole and identifiable piece of work; task significance, the degree to which a job has an impact on the lives or work of other people; autonomy, the degree to which a job provides the worker freedom in scheduling; and feedback, the degree to which carrying out work activities generates direct and clear information about performance. Page Ref: 240
Which of the following is Theory X consistent with? A) the autocratic style of managing people B) the principles of participative management C) the vertical enhancement of jobs to enhance autonomy D) the use of recognition and achievements to motivate employees E) the reduced need of supervision and direction from managers
Answer: A Explanation: A) Theory Y is consistent with participative management and Theory X with the more traditional autocratic style of managing people. Page Ref: 252
Managers at Flavors, a restaurant chain, train their employees such that in the absence of employees, someone trained in the same skills can step in and do the job equally well. Thus, many modules in training are extensive as they provide employees with details of the skill sets required for different jobs. In practice, this lengthy training program does help the company as a well-trained and flexible workforce is at their disposal at all times. The managers at Flavors use ________. A) job rotation B) vertical enhancement C) telecommuting D) job sharing E) flextime
Answer: A Explanation: A) This is an example of job rotation, or the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level . Page Ref: 243, 244
Which of the following statements is true regarding an employee stock ownership plan (ESOP)? A) Under this plan, employees acquire company shares often at below-market prices. B) There exists a strong correlation between ESOPs and employee performance. C) The financial stake in the company is adequate to use ESOPs as an effective means to motivate employees. D) ESOPs are effective because, like bonuses, they reward recent performance. E) ESOPs are also called competency-based pay plans.
Answer: A Explanation: A) Under the employee stock ownership plan, employees acquire stock often at below-market prices. Research on ESOPs indicates they increase employee satisfaction. But their impact on performance is less clear. ESOPs for top management can reduce unethical behavior. Page Ref: 257
Beyond redesigning the nature of the work itself and involving employees in decisions, another approach to making the work environment more motivating is to alter work arrangements to meet employee needs. Which of the following is designed to give an employee greater control of their schedule? A) flextime B) gainsharing C) job rotation D) job enlargement E) job enrichment
Answer: A Explanation: A) With flextime, employees can schedule their work hours to align with personal demands, reducing tardiness and absences, and they can work when they are most productive. Page Ref: 246, 247
A ________ pay plan pays for individual performance based on performance appraisal ratings. A) piece-rate B) merit-based C) employee stock ownership D) profit sharing E) gainsharing
Answer: B Explanation: B) A merit-based pay plan pays for individual performance based on performance appraisal ratings. Page Ref: 254
For employee stock ownership plans to be effective in improving performance, they must ________. A) be based solely on productivity like gainsharing plans B) be implemented such that employees psychologically experience ownership C) be determined on the basis of performance appraisals and recent performance D) be planned such that they are unaffected by company profitability E) be based on the market compensation philosophy
Answer: B Explanation: B) ESOPs have the potential to increase employee job satisfaction and work motivation, but employees need to psychologically experience ownership. That is, in addition to their financial stake in the company, they need to be kept regularly informed of the status of the business and have the opportunity to influence it in order to significantly improve the organization's performance. Page Ref: 257
________ is a participative process that uses employees' input to increase their commitment to the organization's success. A) Job enrichment B) Employee involvement C) Vertical integration D) Groupshifting E) Job sharing
Answer: B Explanation: B) Employee involvement is a participative process that uses employees' input to increase their commitment to the organization's success. The logic is that if workers are engaged in decisions that affect them and have increased autonomy, they will become more motivated, committed, productive, and satisfied with their jobs. Page Ref: 250
To be effective, an employee involvement program must ________. A) rightsize the company by eliminating obsolete positions B) incorporate the unique demands of different cultures C) mandatorily establish work councils in the company D) eliminate the influence of employees in managerial decision making E) implement autocratic ways of handling its employees
Answer: B Explanation: B) Employee involvement programs differ among countries. Studies have shown how an employee involvement program that was successful in one cultural context backfired among employees of another culture. Thus, to be successful, an employee involvement program must incorporate the unique demands of different cultures. Page Ref: 251
Which of the following statements is true regarding employee recognition? A) Employee recognition is an extrinsic reward. B) Critics argue that employee recognition programs are highly susceptible to political manipulation by management. C) Employee recognition programs are expensive. D) Centralized programs across multiple offices in different countries can hinder the process of employee recognition programs. E) Employee stock option is a more powerful workplace motivator than recognition.
Answer: B Explanation: B) Employee recognition is an intrinsic reward. Employee recognition programs are inexpensive. Some research suggests financial incentives may be more motivating in the short term, but in the long run it's nonfinancial incentives, and according to research, recognition is the most powerful workplace motivator. Critics argue that employee recognition programs are highly susceptible to political manipulation by management. Page Ref: 261
One of the methods of job enrichment is to expand jobs vertically. This method involves modifying the ________ dimension of the job. A) task significance B) autonomy C) feedback D) task identity E) skill variety
Answer: B Explanation: B) Expanding jobs vertically involves gives employees responsibilities and control formerly reserved for management.Thus it modifies the autonomy dimension of the job. Page Ref: 244
An advantage of the ________ plan is that benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole. A) modular B) gainsharing C) skill-based pay D) flexible benefits E) profit-sharing
Answer: B Explanation: B) Gainsharing is a formula-based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money allocated. Because the benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole.
At Dortix, a manufacturing company, at the end of every quarter, the total production of each department is calculated, compared with the predetermined targets, and the rewards for each set of divisional employees is determined this way. Dortix uses a ________ plan to incentivize its employees. A) profit-sharing B) gainsharing C) core-plus D) modular E) bonus
Answer: B Explanation: B) Gainsharing is a formula-based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money allocated. Because the benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole. Page Ref: 256
________ is a formula-based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money allocated. A) Employee stock ownership plan B) Gainsharing C) Profit-sharing D) Piece-rate pay plan E) Merit-based pay plan
Answer: B Explanation: B) Gainsharing is a formula-based group incentive plan. It uses improvements in group productivity from one period to another to determine the total amount of money allocated. It is different from profit-sharing in that it ties rewards to productivity gains rather than profits. Employees in a gainsharing plan can receive incentive awards even when the organization isn't profitable. Page Ref: 256
Which of the following, if true, would strengthen the argument in favor of adopting job rotation? A) The company is currently facing numerous budget constraints. B) The company can enhance productivity of existing employees in various areas for different projects. C) Two front-level managers have resigned in the last quarter as they were not promoted. D) The company has launched a new brand which is cannibalizing one of its existing products. E) The company has recently given employees new responsibilities by combining their routine tasks into natural work units.
Answer: B Explanation: B) If the company can enhance productivity of existing employees in various areas for different projects, then this would strengthen the argument for adopting job rotation. The strengths of job rotation are that it reduces boredom, increases motivation, and helps employees better understand how their work contributes to the organization. An indirect benefit is that employees with a wider range of skills give management more flexibility in scheduling work, adapting to changes, and filling vacancies. Since CalTrack needs to increase productivity, job rotation would help the company create a pool of workers who are skilled in different areas that are important for different projects. If the company is currently facing numerous budget constraints, it would weaken the argument of adopting job rotation. The fact that two front-level managers have resigned in the last quarter as they were not promoted does not strengthen the argument in favor of adopting job rotation. The fact that the company has launched a new brand which is cannibalizing one of its existing products does not strengthen the argument of adopting job rotation. If the company has recently given employees new responsibilities by combining their routine tasks into natural work units, then this does not strengthen the argument in favor of adopting job rotation. Page Ref: 244
Woodworth & Baines is a retail chain that has taken up numerous measures to improve employee attitude, motivation, and organizational performance. New training programs, employee engagement initiatives, and an employee welfare council were the three main strategies implemented as part of the employee empowerment program. Norman Kilner was one of twenty employees nominated to the employee welfare council where they were required to interact with the management to promote the interests of the employees. Additionally, the job roles of these twenty employees were vertically enhanced to give them more autonomy in the organization. However, six months into the employee empowerment program, a survey by HR revealed no actual change in employee attitudes. Similarly, a survey conducted by the production manager revealed that work productivity had not increased by any substantial measure either. Which of the following, if true, would best explain this outcome? A) Management strengthened the regulations relating to employee absenteeism in this period. B) Management retained the degree of control they had in the organizational affairs. C) The company moved from a merit-based to a piece-rate pay system in the last quarters. D) The employees performed poorly because of the lack of training and development programs. E) Management implemented a 360-degree feedback system for performance appraisals.
Answer: B Explanation: B) The fact that management retained the degree of control they had in the organizational affair does explain this outcome. The influence of representative participation on working employees seems to be minimal. Works councils are dominated by management and have little impact on employees or the organization. While participation might increase the motivation and satisfaction of employee representatives, there is little evidence this trickles down to the employees they represent. The fact that management strengthened the regulations relating to employee absenteeism in this period does not explain this outcome. The fact that the company moved from a merit-based to a piece-rate pay system in the last quarters does not explain this outcome. The outcome cannot be attributed to the employees lacking training. The fact that management implemented a 360-degree feedback system for performance appraisals does not explain this outcome. Page Ref: 252 LO: 4
Which of the following statements is true of the job characteristics model? A) The operation of the model is universal and unaffected by cultural factors. B) The operation of the model is relatively individualistic in nature. C) The operation of the model requires employees to have similar skill sets. D) The operation of the model cannot be quantitatively measured. E) The operation of the model fulfils only extrinsic motivational needs.
Answer: B Explanation: B) The job characteristics model is relatively individualistic in nature as it considers the relationship between the employee and his or her work. This suggests that job enrichment strategies may not have the same effects in collectivist ic cultures as in individualistic cultures. Page Ref: 242
Which of the following is an example of a piece-rate plan? A) $20 for each hour of work B) $2 for each unit produced C) stock options at cheaper prices D) straight commission plan E) spot bonuses
Answer: B Explanation: B) The piece-rate pay plan is a means of compensating production workers by paying a fixed sum for each unit of production completed. Paying $2 for each unit produced represents a piece-rate pay plan. Page Ref: 254
The two most common forms of representative participation are ________ and board representatives. A) quality circles B) work councils C) employee unions D) task teams E) cross-functional teams
Answer: B Explanation: B) The two most common forms of representative participation are work councils and board representatives. Page Ref: 251
________ bases a portion of an employee's pay on some individual and/or organizational measure of performance. A) Guaranteed pay program B) Variable-pay program C) Flexible benefits program D) Modular plans program E) Base pay program
Answer: B Explanation: B) Variable-pay programs base a portion of an employee's pay on some individual and/or organizational measure of performance. Page Ref: 253
According to the job characteristics model, ________ indicates the degree to which carrying out work activities generates direct and clear information about your own performance. A) task significance B) autonomy C) feedback D) task identity E) skill variety
Answer: C Explanation: C) According to the job characteristics model, feedback indicates the degree to which carrying out work activities generates direct and clear information about your own performance. Page Ref: 241
According to the job characteristics model, autonomy is defined as the degree to which ________. A) a job requires completion of a whole and identifiable piece of work B) a job generates direct and clear information about performance C) a job provides the worker freedom, independence, and discretion D) a job has an impact on the lives or work of other people E) a job requires a variety of different activities
Answer: C Explanation: C) Autonomy is the degree to which a job provides the worker freedom, independence, and discretion in scheduling work and determining the procedures in carrying it out. Page Ref: 240
Internal equity refers to the ________. A) list of the knowledge, skills, and abilities required in a particular job B) arrangement of the elements of different jobs in the organization C) worth of the job to the organization D) organization's pay relative to pay elsewhere in its industry E) framework of tasks, duties, and responsibilities that the job involves
Answer: C Explanation: C) Internal equity refers to the worth of the job to the organization. It is usually established through a technical process called job evaluation. Page Ref: 252
Participative management is a method of management where ________. A) representatives of workers form work councils and these councils must be consulted when management makes decisions about employees B) few representatives of workers sit on a company's board of directors C) subordinates share a significant degree of decision-making power with their immediate superiors D) low-level workers meet occasionally with the CEO to discuss problems within their department E) low-level workers are responsible for making corporate policy decisions
Answer: C Explanation: C) Participative management is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors. Page Ref: 251
Amanda McPherson is a working mother with one child and an ailing parent to look after in addition to her duties as a wife and job responsibilities as a legal consultant. Since Amanda always felt pressed for time, the news that the consultancy she worked for would allow her to work from home two days a week came as a great relief to her. She now feels more motivated to work for the company as the company has taken into account her personal and professional needs. The company has allowed Amanda to use the option of ________. A) gainsharing B) offshoring C) telecommuting D) homeshoring E) work sharing
Answer: C Explanation: C) Telecommuting refers to an alternative work arrangement that enables the employee to work at home at least 2 days a week on a computer linked to the employer's office. Page Ref: 248
An MNC in a developing country is operating amidst severe space constraints, and the infrastructural conditions in the city are bad, causing a lot of lost man-hours. Anticipating rapid growth in the months to come, the company has created a recruitment plan based on its revenue expectations. However, it wants to manage this expansion without undertaking an expensive physical expansion. Which of the following could be a solution for the company? A) profit-sharing B) groupshifting C) telecommuting D) gainsharing E) codetermining
Answer: C Explanation: C) Telecommuting refers to an alternative work arrangement that enables the employee to work at home at least 2 days a week on a computer linked to the employer's office. Page Ref: 248
After the training and development manager at Add Worth, Nicole Hayes, resigned, the CEO has made it a priority that the position be filled soon by someone of equal expertise and experience as Nicole. To locate the right candidate, Jennifer Ray, the HR manager, has been contacting recruitment firms, checking job sites, and pushing for referrals from the employees. However, she has only found candidates with little or no experience in the field who were willing to work full time for the position. At the next meeting with the CEO, Jennifer proposes an alternative strategy; she suggests hiring two experienced candidates who are open to the idea of handling the training needs on a part-time basis as a team. The CEO listens to her proposal but is not too convinced by it. Which of the following, if true, would strengthen Jennifer's proposal to use work sharing for the vacant position? A) Trainers are exempted from the requirement of being at the office throughout the common core period of the workday. B) The employees of the company on the work council have planned to demand the flextime option. C) A good proportion of the company's prized workforce comprises employees from the baby boomer generation who are set to retire in the impending future. D) The headhunting firms that Jennifer contacted are usually helpful in generating a good pool of potential candidates. E) A rival firm recently adopted telecommuting to reduce administrative costs cutting into its bottom line.
Answer: C Explanation: C) The fact that a good proportion of the company's prized workforce comprises employees of the baby boomer generation, who are set to retire in the near future, does strengthen the implementation of job sharing. Job sharing is useful as it helps utilize the talent of employees who do not wish to work full time like retirees and housewives. If trainers are exempted from the requirement of being at the office throughout the common core period of the workday, that does not favor the adoption of job sharing. The fact that the employees of the company on the work council have planned to demand the flextime option does not favor the adoption of job sharing. The fact that the headhunting firms that Jennifer contacted are usually helpful in generating a good pool of potential candidates, does not mean that Add Worth must adopt job sharing. The fact that a rival firm recently adopted telecommuting to reduce administrative costs cutting into its bottom line does not strengthen the argument that Add Worth must implement job sharing. Page Ref: 248
Exsell is a popular consumer goods company known for hiring the best resources and using the best technology to produce an extensive range of goods. The manufacturing units consider productivity to be the only criterion; targets are upgraded, supervised, and rewarded amply. The groups with the highest productivity in each manufacturing unit owned by Exsell are incentivized using a substantial monthly monetary reward program. Of late, there have been some rumors about the company not doing very well in the market. Many claims of defective quality, declining market share, and employee unrest have been doing the rounds. However, the CEO of Exsell recently held a conference with the organization and the media to share its expansion plans for the coming year. He ended the conference with a discussion of how the profit margin of the company had grown substantially but many employees were left in doubt. Which of the following, if true, would indicate the need for Exsell to replace gainsharing with profit-sharing as a variable pay program for its employees? A) The company used a merit-based pay plan for decades to reward the employees who deserved recognition for good performance. B) The company has opened multiple product categories and is experiencing brand dilution. C) Executives who receive and evaluate client feedback have found a lot of quality concerns with the products dispatched in recent times. D) The economy is showing signs of robust growth after last year's recession and losses. E) The consumer goods industry has traditionally had higher barriers to entry than other industries of similar size and reach.
Answer: C Explanation: C) The fact that executives who receive and evaluate client feedback have found a lot of quality concerns with the products dispatched in recent times does strengthen the argument. The fact that the client feedback reflects major quality concerns indicates that since productivity is the sole criterion for evaluation of performance, employees have attained those targets but compromised on the dimension of quality, resulting in the negative feedback from clients. Moving to a profit-sharing plan would encourage employees to focus on the productivity and quality because the overall profits would determine their incentives and compromising on quality would then be harmful for them. The usage of merit-based pay would have rendered the individual employees highly motivated and competitive and that does not explain the recent drop in performance. The fact that the company is experiencing brand dilution does not indicate the need to adopt profit-sharing. The fact that the economy is showing healthy signs of growth after last year's recession and losses does not strengthen the argument. The economic condition and barriers to entry are not likely to directly impact the company's decision to use profit-sharing plans as incentives. Page Ref: 256
The main drawback of representative participation as an employee involvement measure is that ________. A) it is a time-consuming process B) it is able to exert its impact only in the short run C) it is primarily symbolic in its impact D) it is consistent with the Theory Y view of motivation E) it is likely to require a major change in organizational roles
Answer: C Explanation: C) The influence of representative participation on working employees seems to be minimal. Works councils are dominated by management and have little impact on employees or the organization. While participation might increase the motivation and satisfaction of employee representatives, there is little evidence this trickles down to the employees they represent. The greatest value of representative participation is symbolic. If one is interested in changing employee attitudes or in improving organizational performance, representative participation would be a poor choice. Page Ref: 252
The job characteristic model fails to consider the role ________ plays in employee motivation. A) job design B) meaningfulness C) social support D) growth need E) responsibility
Answer: C Explanation: C) The job characteristics model is relatively individualistic in nature as it considers only the relationship between the employee and his or her work and does not consider social aspects. Policies such as job rotation, worker empowerment, and employee participation have positive effects on productivity, at least partially because they encourage more communication and a positive social environment. Some social characteristics that improve job performance include interdependence, social support, and interactions with other people outside work. Social interactions are strongly related to positive moods and give employees more opportunities to clarify their work role and how well they are performing. Social support gives employees greater opportunities to obtain assistance with their work. Page Ref: 249, 250
The periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level is defined as ________. A) job enlargement B) job analysis C) job rotation D) job sharing E) job enrichment
Answer: C Explanation: C) The periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level is called job rotation. Page Ref: 243
Sally Peterson, who works as an entry-level editor, wants to go for dental reconstruction surgery and sent a query to her HR department asking for a list of preferred hospitals. The HR looked through her healthcare plan which provided only a minimum coverage for routine drugs and vision care. Consequently, the HR manager has recently informed her that if she wishes to carry on with the dental procedure, she will have to pay for it on her own. Which of the following healthcare plans should she avail to meet her needs? A) a basic modular plan B) a standardized benefits package C) a core-plus plan D) a fringe benefits plan E) a 401k plan
Answer: C Explanation: C) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Core-plus plans consist of a core of essential benefits and a menu-like selection of others from which employees can select. Typically, each employee is given benefit credits which allow the purchase of additional benefits that uniquely meet his or her needs. Page Ref: 258, 259
The two major forms of employee involvement are participative management and ________. A) organizational restructuring B) job sharing C) representative participation D) job rotation E) job enlargement
Answer: C Explanation: C) The two major forms of employee involvement are participative management and representative participation. Page Ref: 251
) Daichi Inc. is a Japanese software development firm known for its high quality products. Recently, the company held its annual conference and awarded all those employees who were in the top five percent with substantial monetary rewards. Their performance was evaluated on the basis of target achievement, client feedback, and quality ratings. Employees whose performance had not changed drastically were given a minor raise and those who faired badly received no incentives. Many employees blamed the company of creating differences among employees because they felt that it would harm the company in the long run, but Daichi Inc. truly believes that to retain and motivate its best performers, a large incentive is a good step. Daichi Inc. is using a(n) ________ here. A) piece-rate plan B) employee stock ownership plan C) modular plan D) merit-based plan E) flexible benefits plan
Answer: D Explanation: D) A merit-based pay plan pays for individual performance based on performance appraisal ratings. Daichi Inc. rewarded these employees on the basis of meritorious performance. Page Ref: 254
Samantha Barnes is an emergency medical technician. Recently, during an emergency call, she was able to resuscitate a man who had a cardiac arrest. Subsequently, she spent some time calming the 12-year-old daughter of the patient and looked after her till the rest of the patient's family arrived at the hospital. Based on this description, it can be concluded that Samantha's job is high in ________. A) task identity B) feedback C) extrinsic rewards D) task significance E) job rotation
Answer: D Explanation: D) Although Samantha's job has many job characteristics, the description provided best describes task significance. Task significance refers to the degree to which a job has an impact on the lives of other people. Page Ref: 240
Which of the following is an example of an intrinsic reward? A) bonus B) profit-sharing plan C) employee stock option D) employee recognition E) gainsharing
Answer: D Explanation: D) Important work rewards can be both intrinsic and extrinsic. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems. Page Ref: 259
Janice and Shane are both senior software analysts. They have worked together on projects for six years and get along very well. Janice is anticipating the arrival of her first child and will not be able to work on a full-time basis in the future. Shane is also contemplating opening his own business as a home media installation consultant and does not want to continue to work full time. They both need some income. Which of the following alternative job structures would be best for Janice and Shane? A) job enlargement B) telecommuting C) job rotation D) job sharing E) job enrichment
Answer: D Explanation: D) Since Janice and Shane are looking to work for fewer than the normal work hours required, the best option for them would be to participate in job sharing, which allows two or more individuals to split a traditional 40-hour-a-week job. The other structure options are still 40-hour-a-week commitments. Page Ref: 247, 248
Which of the following factors represents the influence of social aspects of the work environment on motivation? A) task identity B) autonomy C) feedback D) interdependence E) skill variety
Answer: D Explanation: D) Some social characteristics that improve job performance include interdependence, social support, and interactions with other people outside work. Social interactions are strongly related to positive moods and give employees more opportunities to clarify their work role and how well they are performing. Social support gives employees greater opportunities to obtain assistance with their work. Page Ref: 250
The option of working at home at least 2 days a week on a computer linked to the employer's office is termed as ________. A) work sharing B) social loafing C) offshoring D) telecommuting E) homeshoring
Answer: D Explanation: D) Telecommuting refers to an alternative work arrangement that enables the employee to work at home at least 2 days a week on a computer linked to the employer's office. Page Ref: 248
The external competitiveness of an organization's pay relative to elsewhere in the industry is measured by its ________. A) external benefit B) external rotation C) external costs D) external equity E) external liability
Answer: D Explanation: D) The external competitiveness of an organization's pay relative to pay elsewhere in its industry is defined as external equity. Page Ref: 252
At Esco Retail, all employees are constantly driven to work hard. The company places maximum emphasis on stocking high quality goods and providing high quality service to retain the edge they have in the retail industry. To promote organizational commitment further, employees are incentivized by enabling them to purchase company shares at below-market prices as a part of their benefits. This mode of providing incentives represents the use of ________. A) flexible benefits plans B) merit-based plans C) modular plans D) employee stock ownership plans E) core-plus plans
Answer: D Explanation: D) Under the employee stock ownership plan, employees acquire stock often at below-market prices. Research on ESOPs indicates they increase employee satisfaction. But their impact on performance is less clear. ESOPs for top management can reduce unethical behavior. Page Ref: 257
Employees who use the flextime option have to ________. A) work from the office for three days of the week B) work from home on a relatively permanent basis C) work from the office based on a schedule fixed with the compatible partner they function with D) work from the office during the common core period and put in the extra hours as per their convenience E) work from home only two days a week
Answer: D Explanation: D) With flextime, employees can schedule their work hours to align with personal demands, reducing tardiness and absences, and they can work when they are most productive. Employees must work a specific number of hours per week but are free to vary their hours of work within certain limits. All employees have to be at the office for the common core period and flextime employees enjoy flexibility as to when they put in the extra hours. Page Ref: 246, 247
CalTrack Services has been facing employee-related issues like decreased productivity, low morale, and poor organizational commitment in recent times. At a meeting to discuss strategies to address these issues of immediate concern, Joe McEnroe, the production manager, proposed that the roles of employees working on key projects be enhanced to increase autonomy. He felt that this would enhance productivity, motivation, and accountability. Taking a cue from McEnroe, Paul Wilbur suggested job rotation as a solution to the problem they were facing. Paul felt that a change of job roles would make the employees keener to learn and perform. He emphasized that job rotation would help management create a larger skill base to choose from, depending on the needs of specific projects. 17) Which of the following, if true, would weaken the argument of adopting job rotation? A) The employees of the company have similar skill sets which are suited to transfer of learning. B) The company has been conducting professional training programs to keep all employees up-to-date with the developments in the field. C) AmWeb, one of the major rival firms, witnessed a substantial rise in profits following its cross-training program for employees. D) The research evidence favoring job rotation has rarely used samples from the service industry. E) The company is now entering its busiest business season with multiple project deadlines.
Answer: E Explanation: E) Job rotation is the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level. With the busiest business season coming up, time is at a premium for this company, and job rotation, though beneficial in the long run, will result in wastage of time for all employees involved; it will also cause a drop in the immediate productivity. If the employees of the company have similar skill sets which are suited to transfer of learning, then this would strengthen the argument in favor of adopting job rotation. The fact that the company has been conducting professional training programs to keep all employees up-to-date with the developments in the field does not weaken the argument of adopting job rotation. The fact that AmWeb, one of the major rival firms, witnessed a substantial rise in profits following its cross-training program for employees does not strengthen or weaken the argument of adopting job rotation for CalTrack. The fact that research evidence favoring job rotation has rarely used samples from the service industry does not strengthen or weaken the argument of adopting job rotation. Page Ref: 244
Which of the following alternative work arrangements enables the organization to draw on the talents of more than one individual in a given job? A) telecommuting B) flextime C) gainsharing D) profit-sharing E) job sharing
Answer: E Explanation: E) Job sharing allows an organization to draw on the talents of more than one individual in a given job. It is an opportunity to get two heads but pay for only one. Page Ref: 248
Representative participation is characterized by ________. A) joint decision making by employees and management B) democratic leadership behaviors C) open and honest two-way communication D) a significant positive impact on employee morale and performance E) compliance with the legal need to redistribute power within organizations
Answer: E Explanation: E) Representative participation is a widely legislated form of employee involvement aimed at redistributing power within an organization and putting labor on a more equal footing with the interests of management and stockholders. This is done by letting workers be represented by a small group of employees who actually participate. Page Ref: 251
________ is an extrinsic means of motivation. A) Recognition B) Autonomy C) Responsibility D) Flexibility E) Salary
Answer: E Explanation: E) Salary or pay is one central means of motivation; it is a form of extrinsic motivation. Page Ref: 240
Which of the following series of dimensions of the job characteristics model (JCM) combine to create meaningful work? A) autonomy, task identity, and feedback B) skill variety, autonomy, and task significance C) skill variety, autonomy, and feedback D) feedback, task identity, and task significance E) skill variety, task identity, and task significance
Answer: E Explanation: E) The first three dimensions in JCM, skill variety, task identity, and task significance, combine to create meaningful work that the incumbent will view as important, valuable, and worthwhile. Page Ref: 241
What is an advantage of bonuses over merit-based pay plan? A) Employees don't view bonuses as a part of their salary. B) Bonuses improve flexibility of the workforce. C) Bonuses are paid based on a formula. D) Bonuses improve performance of the group as a whole. E) Employees are rewarded for recent performance.
Answer: E Explanation: E) The incentive effects of performance bonuses are generally higher than those of merit pay because, rather than paying for performance years ago (that was rolled into base pay), bonuses reward recent performance. Page Ref: 255
With reference to the job characteristics model, which of the following defines skill variety? A) the degree to which a job requires completion of a whole and identifiable piece of work B) the degree to which work activities generate direct and clear information about performance C) the degree to which a job provides the worker freedom in scheduling and procedure D) the degree to which a job has an impact on the lives or work of other people E) the degree to which a job requires a variety of different activities tapping different abilities
Answer: E Explanation: E) The job characteristics model ( JCM) describes jobs in terms of five core job dimensions: skill variety, the degree to which a job requires a variety of different activities; task identity, the degree to which a job requires completion of a whole and identifiable piece of work; task significance, the degree to which a job has an impact on the lives or work of other people; autonomy, the degree to which a job provides the worker freedom in scheduling; and feedback, the degree to which carrying out work activities generates direct and clear information about performance. Page Ref: 240
For management, the major downside of telecommuting is ________. A) decreased productivity B) increased turnover C) reduced morale D) difficulty in scheduling work E) less direct supervision of employees
Answer: E Explanation: E) The potential pluses of telecommuting for management include a larger labor pool from which to select, higher productivity, less turnover, improved morale, and reduced office space costs. The major downside for management is less direct supervision of employees. Page Ref: 249
Core-plus plans consist of ________. A) predesigned packages of benefits that an employee must accept as a whole B) monetary benefits which are linked to one's performance appraisals C) fractions of a company's profit margins determined on the basis of an established formula D) pretax dollars up to the dollar amount offered in the plan that an employee sets apart to pay for particular benefits E) essential benefits and a menu-like selection of other benefits that an employee can choose from
Answer: E Explanation: E) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Core-plus plans consist of a core of essential benefits and a menu-like selection of others from which employees can select. Typically, each employee is given benefit credits which allow the purchase of additional benefits that uniquely meet his or her needs. Page Ref: 258, 259
A profit-sharing plan works by tying rewards to productivity gains as the only criterion.
Answer: FALSE Explanation: A profit-sharing plan distributes compensation based on some established formula designed around a company's profitability. Gainsharing differs from profit sharing in tying rewards to productivity gains rather than profits. Page Ref: 256
When the profits of Emm Corp rose steadily over two quarters three years back, the employees of the company were given the offer of purchasing the company's shares at subsidized rates. Many of the employees who bought the shares have become extremely rich after the phenomenal growth Emm Corp has had in the following years. This is an example of a bonus.
Answer: FALSE Explanation: An employee stock ownership plan (ESOP) is a company-established benefit plan in which employees acquire stock, often at below-market prices, as part of their benefits. Page Ref: 257
A flexible benefits package is designed for a male with a wife and two children at home.
Answer: FALSE Explanation: Flexible benefits individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation. These plans replace the "one-benefit-plan-fits-all" programs designed for a male with a wife and two children at home that dominated organizations for decades. Page Ref: 258
The major advantage of flextime is that it can be used for all categories of jobs.
Answer: FALSE Explanation: Flextime's major drawback is that it's not applicable to every job or every worker. It works well with clerical tasks for which an employee's interaction with people outside his or her department is limited. It is not a viable option for receptionists, sales personnel in retail stores, or people whose service jobs require them to be at their workstations at predetermined times. Page Ref: 247
Task identity is defined as the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent.
Answer: FALSE Explanation: Skill variety is the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent. Page Ref: 240
John Dunker is one of the best firefighters in his squad and he recently received an award for his outstanding performance. From this information, it may be concluded that John's job has low task significance.
Answer: FALSE Explanation: Task significance is the degree to which a job affects the lives or work of other people. Being an outstanding firefighter, John is likely to have saved the lives of many which would be a sign of high task significance. Page Ref: 240
A variable-pay program bases a portion of an employee's pay on some individual and/or organizational measure of performance.
Answer: TRUE Explanation: A variable-pay program bases a portion of an employee's pay on some individual and/or organizational measure of performance. Page Ref: 253
Jobs with high autonomy give incumbents a feeling of personal responsibility for the results.
Answer: TRUE Explanation: Autonomy is the degree to which a job provides the worker freedom, independence, and discretion in scheduling work and determining the procedures in carrying it out. Jobs with high autonomy give incumbents a feeling of personal responsibility for the results. Page Ref: 240, 241
) Feedback is the degree to which carrying out work activities generates direct and clear information about one's own performance.
Answer: TRUE Explanation: Feedback is the degree to which carrying out work activities generates direct and clear information about your own performance. Page Ref: 241
Flexible spending plans allow employees to set aside pretax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as health care and dental premiums.
Answer: TRUE Explanation: Flexible spending plans allow employees to set aside pretax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as health care and dental premiums. Page Ref: 259
) Internal equity refers to the worth of the job to the organization
Answer: TRUE Explanation: Internal equity refers to the worth of the job to the organization. It is usually established through a technical process called job evaluation. Page Ref: 251
Which of the following represents a pay plan that rewards employees for recent performance rather than historical performance? A) bonus B) flexible benefits C) modular plans D) cafeteria plans E) base salary
Answer: A Explanation: A) Bonuses are used in a pay plan that rewards employees for recent performance rather than historical performance. Page Ref: 255
The job characteristics model describes five dimensions of a job. A job can be enriched by modifying one or more of these five dimensions. Which of the following methods of job enrichment involves modifying skill variety and task identity dimensions of a job? A) combining tasks B) forming natural work units C) establishing client relationships D) expanding jobs vertically E) opening feedback channels
Answer: A Explanation: A) Combining tasks puts fractionalized tasks back together to form a new and larger module of work. Thus, it involves modifying skill variety and task identity dimensions of a job. Page Ref: 244
An arrangement that allows two or more individuals to split a traditional 40-hour-a-week job is called ________. A) flextime B) job sharing C) gainsharing D) telecommuting E) job rotation
Answer: B Explanation: B) Job sharing allows two or more individuals to split a traditional 40-hour-a-week job. One might perform the job from 8:00 A.M. to noon and the other from 1:00 P.M. to 5:00 P.M. or the two could work full but alternate days. Page Ref: 247, 248
The core dimensions of the job characteristics model can be combined into a single predictive index called ________. A) extrinsic motivation score B) personal outcome score C) job diagnostic score D) motivating potential score E) potential development score
Answer: D Explanation: D) The core dimensions of the job characteristics model can be combined into a single predictive index, called the motivating potential score. Page Ref: 242
Job enrichment improves employees' skills by periodically shifting an employee from one task to another with similar skill requirements at the same organizational level.
Answer: FALSE Explanation: Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. Job rotation is the the periodic shifting of an employee from one task to another. Page Ref: 243, 244
) Participative management is characterized by the symbolic representation of employees in work councils and board meetings.
Answer: FALSE Explanation: Participative management programs are characterized by joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors. Page Ref: 251
A flextime arrangement requires all employees to be at their jobs during the common core period.
Answer: TRUE Explanation: A flextime arrangement requires all employees to be at their jobs during the common core period, but they may accumulate their other 2 hours before, after, or before and after that. Page Ref: 246
A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces.
Answer: TRUE Explanation: A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces. Page Ref: 254
) Which of the following statements is true regarding gainsharing? A) Gainsharing focuses on productivity gains rather than profits. B) Gainsharing involves paying employees based on the number of new skills acquired by them in a specific time period. C) Gainsharing does not distribute profits, only gains in profits. D) Employees working under gainsharing plans have a greater feeling of psychological ownership. E) Gain sharing encourages social loafing.
Answer: A Explanation: A) Gainsharing is a formula-based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money allocated. Because the benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole. Page Ref: 256
Individualized rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation are called ________. A) variable pay programs B) standardized benefits packages C) employee recognition programs D) employee involvement programs E) flexible benefits plans
Answer: E Explanation: E) Flexible benefits individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation. Flexible benefits can accommodate differences in employee needs based on age, marital status, spouse's benefit status, and number and age of dependents. Page Ref: 258
