quiz 2

As per the Fair Labor Standards Act, the current minimum wage stands at _______

7.25

Which of the following is true of how agents may differ from principles?

Agents are more averse to risk

Which of the following must a principal do to reduce agency costs?

Align the agent's interests with the principal's interests.

Which of the following is most likely to provide intrinsic motivation?

An interesting work assignment

Which of the following is true of how the agency theory views monitoring?

Employees understand fellow employees better than managers do

There is only one model of the causes of job satisfaction

False

Which of the following components is a perceived link between behavior and pay

Instrumentality

Which of the following is a drawback of using profit sharing?

It runs the risk of contributing to employee dissatisfaction

A firm that has a manufacturing unit in China considers shifting production to Cambodia. Which of the following would be a possible reason for it to not shift the production base?

Less skilled labor in Cambodia

_____________ are both elements of hedonism

Self-enhancement and openness to change

Which of the following is true about outcome-oriented contracts?

They are typically a major component of executive compensation

Which of the following is part of the benefits offered to employees?

Unemployment compensation

Values represent beliefs that influence behaviors ___________; attitudes relate to behavior _______________.

across all situations; toward specific targets

The components of attitudes include

affective, cognitive, and behavioral

Which of the following is a tool that allows companies to track financial results while monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth?

balanced scoreboard

Which of the following is a procedure in which an organization compares its own practices against those of the competition?

benchmarking

Moaria focuses on community volunteerism, while Anna focuses on getting a promotion at work. ___________ are represented by Maria's and Anna's focuses.

cognitions

Jane hates the idea of child labor. She works for a company that claims that it doesn't employ children. However, news reports accuse the company of employing young children overseas. ____ is the psychological discomfort that Jane is experiencing since she heard this news.

cognitive dissonance

Athen Tech., a software company, changed its pay structure from 3,000 job titles and 12 pay grades to a simpler structure with 1,000 jobs and 5 pay grades. The managers were then asked to chose pay level that were based on the market. This is an example of ___.

delayering

External equity pay comparisons focus on what

employees in other organizations are paid for doing the same general job

Waco Company monitors employees' perceptions of fairness by quarterly surveys and occasional focus groups. Management is following _________ model.

equity

According to _______, a person (p) compares her own ratio of perceived outcomes to perceived inputs to the ratio of a comparison other (o)

equity theory

The Fair Labor Standards Act (FLSA)

established a minimum wage for jobs

According to thr Ajzen model, someone's intention to engage in a particular behavior is necessarialy a strong predictor of that behavior

false

In incentive pay programs, annual pay increases are usually linked to performance appraisal

false

Nonkey jobs are those that are common to many organizations

false

Pay level refers to the relative pay of jobs in an organization

false

The flow of feedback tends to be multi-directional in merit pay programs

false

The two basic dimensions of Schwart's value theory are self-enhancement/self-transcendence and ethical/unethical

false

Turnover is always bad for organizations

false

Which of the following is a compensation progam that would best support an organizational culture of cooperation and problem solving?

gainsharing

Chris, a manager, knows that one of his employees values achievement and power. Chris should assign the employee to a job that includes

high influence over others

Allan works as a typesetter in a publishing company. If the organization uses merit pay programs, Allan's salary is based primarily on information collected from _________.

his immediate supervisor

Mason is highly satisfied with his job. He recieves consistently strong evaluations and volunteers to train new employees. Mason exhibits positive job performance and

organizational citizenship behaviors

Agents prefer a behavior-based contract when ____.

outcome uncertainty is high

According to the agency theory, the principals are the __________.

owners

Under the ___ approach, jobs of similar worth or content are grouped together for pay administration purposes.

pay grade

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

pay level

___________ is the relative pay of different jobs and how much one is paid

pay structure

Lennie loves her job at Vail Corporation. She is even a community ambassador. Lennie exhibits all of the following qualities except

pessimism

Agency costs are likely to raise when ___

principals and agents have different goals

Janice creates adcertising slogans for the advertising firm that employs her. She works with beliefs, perceptions, and informal obligations about what she is entiled to recieve in return for what she provides to the organization. A(n) __________ represents Janice's beliefs

psychological contract

Which of the following pay structures would a company adopt if it wanted a pay structure that rewards employees based on their knowledge and competency

skill based pay approach

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

stock option

Which of the following is true of key jobs

they can be used in pay surveys

According to E.L. Thorndike's Law of Effect, high performance followed by a reward will motivate employees to repeat the performance and make it recur more often in the future

true

Johan believes that saving the earth is our most important responsibility. He will be strongly committed to an employer who issues hybrid cars to all sales people, emphasis recycling, and supports volunteerism to clean up the local river.

true

Pay plans are typically used to energize, direct, or control employee behavior

true

he compa-ratio directly assesses the degree to which actual pay is consistent with the pay

true

Which of the following is not a key workplace attitude that managers should track?

turnover

Kim lives and works in a small town, even though she prefers life in a bigger city. She is quite dissatisfied with her current job and is thinking of leaving the organization. She is worried, however, about her ability to find other employment that pays as well as her current job. Additionally, she is concerned about finding another organization that offers college tuition reimbursement. Based on this information, Kim is experiencing

withdrawal cognitions