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If managers increase employee involvement in the design of an incentive compensation system

If managers increase employee involvement in the design of an incentive compensation system, which of the following will most likely occur?

A) Employees will be more committed to the plan.

B) Managers will spend more time in conflict resolution.

C) Employees' intrinsic drives will be sharply reduced.

D) Managers will be better able to evaluate performance.


22) Which of the following would most likely enhance the perceived fairness of a pay-for-performance system?

A) Employees receiving variable and base pay

B) Employees making final decisions on the system design

C) Managers implementing a process for making appeals

D) Managers strictly limiting the amount of employee input


23) Healthy living incentives most likely benefit employers in all of the following ways EXCEPT by:

A) lowering health insurance premiums.

B) reducing absenteeism.

C) receiving tax breaks.

D) reducing worker stress.


24) Public and nonpublic praise, honorary titles, and expanded job responsibilities are all examples of:

A) financial rewards.

B) lump-sum payments.

C) nonfinancial rewards.

D) employee services.

25) A firm should most likely use merit pay as an element of a(n):

A) team-based compensation plan.

B) plantwide compensation plan.

C) equity-based compensation plan.

D) individual-based compensation plan.


26) Merit pay differs from bonus programs in what way?

A) Merit pay raises the employee's base pay permanently; bonuses do not.

B) Bonuses are nonfinancial rewards; merit pay is a financial reward.

C) Merit pay is disbursed several times a year; bonuses are given on a yearly basis.

D) Bonuses are used much less often than merit pay in individual-based pay plans.


27) A firm is offering a one-time tangible prize to the employee who receives the highest customer service evaluation in a particular month. This company is using a(n) ________ incentive.

A) bonus

B) award

C) promotion

D) merit increase


28) Which of the following best explains why individual-based incentive plans work?

A) Equity theory

B) Maslow's hierarchy

C) Expectancy theory

D) Achievement theory

29) Expectancy theory claims that:

A) people are usually consistent in their performance.

B) people tend to perform activities that will be rewarded.

C) individuals who do not set goals are more intrinsically motivated than those who do set goals.

D) employers that reward employees may not gain any increase in quality or efficiency in productivity.


30) Which of the following is an advantage of individual-based pay-for-performance plans?

A) Quality goals and production goals are accomplished.

B) Rewarded performance is likely to be repeated.

C) Flexibility is enhanced among supervisors.

D) Equity is relatively easy to achieve.

Mar 13 2020 View more View Less

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