OBM PART #8
TRUE OR FALSE Internal equity refers to the worth of the job to the organization.
True
At Dortix, a manufacturing company, at the end of every quarter, the total production of each department is calculated and compared with the predetermined targets; the rewards for each set of divisional employees are determined this way. Dortix uses a ________ plan to incentivize its employees. A) profit sharing B) gainsharing C) core-plus D) modular E) bonus
B) gainsharing
________ 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
A) Modular plans
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.
A) Under this plan, employees acquire company shares, often at below-market prices.
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 of 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
A) recognition
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.
B) Critics argue that employee recognition programs are highly susceptible to political manipulation by management.
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
B) be implemented such that employees psychologically
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 provides only a minimum coverage for routine drugs and vision care. Consequently, the HR manager 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 benefits plans should she choose 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
C) a core-plus plan
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
D) Flexible benefits can be altered to meet employee needs based on age, marital status, and number and age of dependents.
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, the company incentivizes employees 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
D) employee stock ownership plans
Individualized rewards that allow 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
E) flexible benefits plans
TRUE OR FALSE A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces.
True
TRUE OR FALSE A variable-pay program bases a portion of an employee's pay on some individual and/or organizational measure of performance.
True
TRUE OR FALSE 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 healthcare and dental premiums.
True
TRUE OR FALSE Jobs with high autonomy give workers a feeling of personal responsibility for the results.
True
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.
A) Gainsharing focuses on productivity gains rather than profits.
An advantage of the ________ plan is that because 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
B) gainsharing
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.
C) Executives who receive and evaluate client feedback have found a lot of quality concerns with the products dispatched in recent times
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
D) employee recognition
Flexible spending plans consist of ________. A) a core of essential benefits and a menu-like selection of others from which employees can select B) no base salary; the employee is paid 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
D) pretax dollars up to the dollar amount offered in the plan that an employee sets apart to pay for particular benefits
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
E) essential benefits and a menu-like selection of other benefits that an employee can choose from
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
E) gainsharing
TRUE OR FALSE A flexible benefits package is designed for a male with a wife and two children at home.
False
TRUE OR FALSE A profit-sharing plan works by tying rewards to productivity gains as the only criterion.
False
TRUE OR FALSE Job enrichment improves employees' skills by periodically shifting an employee from one task to another with similar skill requirements at the same organizational level.
False
TRUE OR FALSE 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.
False
TRUE OR FALSE Participative management is characterized by the symbolic representation of employees in work councils and board meetings.
False
TRUE OR FALSE 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.
False
TRUE OR FALSE 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.
False
TRUE OR FALSE The major advantage of flextime is that it can be used for all categories of jobs.
False
TRUE OR FALSE To enhance the amount of autonomy employees enjoy, a company must provide its employees with tasks combined into natural work units.
False
TRUE OR FALSE 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.
False
TRUE OR FALSE A flextime arrangement requires all employees to be at their jobs during the common core period.
True
TRUE OR FALSE Employee recognition programs are highly susceptible to political manipulation by management.
True
TRUE OR FALSE Feedback is the degree to which carrying out work activities generates direct and clear information about one's own performance.
True
TRUE OR FALSE The term virtual office describes working from home on a relatively permanent basis.
True
TRUE OR FALSE 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.
True
