Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance quizlet?

Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________. A) social loafing B) systematic soldiering C) work shifting D) group logrolling

Which of the following terms refers to financial rewards paid to workers whose production exceeds some predetermined standard? A) indirect financial payments B) merit payments C) hardship allowances D) financial incentives

A management approach based on improving work methods through observation and analysis is known as ________. A) strategic management B) scientific management C) management by objectives D) performance management

Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction? A) Frederick Taylor B) Abraham Maslow C) Frederick Herzberg D) David McClelland

According to Herzberg's Hygiene-Motivator theory, which of the following factors will most likely satisfy employees' higher-level needs? A) base salary B) achievement C) incentive pay D) co-worker relationships

Which of the following found that extrinsic rewards could detract from an employee's intrinsic motivation? A) Frederick Taylor B) Frederick Herzberg C) David McClelland D) Edward Deci

According to Victor Vroom, expectancy could also be referred to as the ________. A) probability that effort will lead to success B) relationship between performance and reward C) perceived value a person attaches to a reward D) employer's strategy for motivating employees

a) probability that effort will lead to success 

The perceived relationship between successful performance and obtaining the reward is referred to by Vroom as ________. A) instrumentality B) valence C) expectancy D) optimism

In Vroom's theory of motivation, motivation is equal to E * I * V, where E represents ________. A) existence B) expectancy C) esteem D) energy

In Vroom's theory of motivation, motivation is equal to E * I * V, where I represents ________. A) intrinsic needs B) internalization C) instrumentality D) incentives

In Vroom's theory of motivation, which of the following terms refers to the perceived value a person attaches to a reward? A) valence B) instrumentality C) expectancy D) variable pay

According to Vroom's theory, when managers design incentive plans they should do all of the following EXCEPT ________. A) focus on behavior modification methods B) make incentive plans easy to understand C) provide training and support to employees D) boost the confidence level of employees

a) focus on behavior modification methods

Behavior modification is based upon the principles of rewards and punishments advanced by ________. A) Frederick Taylor B) Frederick Herzberg C) B.F. Skinner D) Edward Deci

Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance? A) behavior modification B) personal development C) instrumentality D) internal motivation

Which of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability? A) piecework B) variable pay C) pay-for-performance D) merit pay

Under the Fair Labor Standards Act, which of the following would NOT be included in overtime pay computations? A) bonus for new hires B) Christmas bonus C) efficiency bonus D) union contract bonus

What type of pay plan is being used when workers are paid a sum for each unit they produce? A) competency-based pay B) job-based pay C) piecework D) bonus

Which term refers to an incentive plan in which a person is paid a sum for each item he/she makes or sells, with a strict proportionality between results & rewards? A) variable pay B) straight piecework C) standard hour plan

In which of the following do workers receive a basic hourly rate plus a premium equal to the percent by which their performance exceeds the standard? A) variable pay B) straight piecework C) standard hour plan D) standard piecework

All of the following are disadvantages associated with piecework plans EXCEPT that workers _______. A) resist attempts to modify production standards B) focus on production quantity instead of quality C) view the plans as unfair and complicated D) dislike new technology or processes

c) view the plans as unfair and complicated 

Which of the following is the primary advantage of piecework plans? A) powerful incentive to workers B) workers earn efficiency bonuses C) firms save on overtime wages D) entices independent contractors

a) powerful incentive to workers

Which of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance? A) competency-based pay B) variable pay C) merit pay D) base pay

Studies indicate that in order for merit pay to be most effective, it should be linked to ________. A) company profits B) annual base salary C) employee overtime D) employee performance

Which of the following is the most commonly used reward for motivating employees? A) individual travel B) recognition programs C) training programs D) variable pay

Craig is a line manager. All of the following are methods that Craig should most likely implement to motivate his subordinates EXCEPT ________. A) recognizing an employee's contribution B) encouraging workers to earn overtime pay C) gaining agreement on goals with employees D) using positive reinforcement on a daily basis

b) encouraging workers to earn overtime pay

Enterprise incentive management systems enable firms to ________. A) compare corporate incentive programs B) accurately calculate sales commissions C) efficiently administer employee incentive programs D) create a matrix of merit awards and incentive options

c) efficiently administer employee incentive programs 

A straight salary is most appropriate when a salesperson's primary duties involve ________. A) finding new clients B) meeting sales quotas C) pushing hard-to-sell items D) fostering relationships with customers

Using a straight salary to compensate salespeople is most likely ineffective because it ________. A) discourages sales flexibility B) lacks connection to performance C) makes it hard to switch territories D) depends on annual corporate profits

b) lacks connection to performance

All of the following are disadvantages of straight commission plans EXCEPT ________. A) salespeople avoid pushing hard-to-sell items B) salespeople fail to service small accounts C) payments are complicated to calculate D) significant variations in pay exist

c) payments are complicated to calculate 

Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople? A) provides a guaranteed minimum salary B) all freedom of work activities C) completely links to performance D) offers simple administration

a) provides a guaranteed minimum salary 

Which of the following terms refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future? A) at-risk variable plan B) multiplier method C) stock option D) gainsharing plan

With which of the following can an executive NOT profit until the stock makes significant gains? A) indexed options B) phantom stock C) restricted stock D) premium priced options

d) premium priced options 

With a ________, an executive receives units instead of shares of company stock. In the future, the executive receives cash equal to the appreciation of the units owned. A) nonqualified stock option B) premium priced option C) phantom stock plan D) restricted stock plan

Which term refers to payments companies make in connection with a change in ownership or control of a company? A) pension B) golden parachute C) retirement bonus D) stock option

All of the following are advantages of team incentive plans EXCEPT that ________. A) jealousy is reduced B) wage equity is guaranteed C) team planning is reinforced D) problem solving is encouraged

b) wage equity is guaranteed 

Employees participate in a profit-sharing plan. DataMax distributes 15% of its profits as profit shares to employees at regular intervals. Which is most likely used? A) current profit-sharing B) deferred profit-sharing plan C) employee stock ownership plan

a) current profit-sharing

Tanner's employer puts a predetermined portion of profits into a trust account for his retirement. Which is most likely the type of plan used by his employer? A) deferred profit-sharing plan B) Jefferson incentive system C) gainsharing plan

a) deferred profit-sharing plan

Which profit-sharing plan provides tax advantages for employees by postponing income taxes, often until the employee retires? A) cash plan B) Lincoln incentive system C) deferred profit-sharing plan D) employee stock ownership plan

c) deferred profit-sharing plan

The Scanlon plan includes all of the following features EXCEPT ________. A) identity B) competence C) a philosophy of cooperation D) a focus on individual achievement

d) a focus on individual achievement 

Which incentive plan is based on a philosophy that managers and employees must cooperate together? A) cash plan B) Scanlon plan C) deferred profit-sharing plan D) employee stock ownership plan

Which of the following best explains identity in regards to the Scanlon plan? A) philosophy of cooperation among employees B) clear articulation of the company mission C) high level of competence from all employees D) corporate-wide benefits and savings

b) clear articulation of the company mission 

Competence in the Scanlon plan refers to a focus on ________. A) cooperation B) corporate vision C) employee abilities D) significant improvements

The Scanlon plan is an early version of a ________ plan, an incentive plan that engages employees in a common effort to achieve productivity objectives. A) performance achievement B) golden parachute C) gainsharing D) variable pay

Which of the following is NOT a type of gainsharing plan? A) Improshare B) Lincoln C) Rucker D) Roth

Tyler Oil offers a profit-sharing plan to its employees. Each year, they distribute total annual profits less taxes among employees based on merit rating. Which is most likely used? A) Lincoln incentive system B) deferred profit-sharing plan C) employee stock ownership plan

a) Lincoln incentive system

When hired, Shane agreed to forego 6% of his normal pay if he didn't meet his goals in return for a 12% bonus if he exceeded his goals. In which plan does Shane likely participate? A) earnings-at-risk pay plan B) variable risk sharing plan C) at-risk gainsharing plan

a) earnings-at-risk pay plan

Elaine has been assigned the task of implementing a gainsharing plan. What does Elaine most likely need to do first? A) choose specific performance measures B) decide how often to pay bonuses C) establish general plan objectives D) develop an involvement system

c) establish general plan objectives

Jack is implementing a gainsharing plan for his firm. He's already determined the objectives will be to lower labor costs. What is the next step? A) choose specific performance measures B) decide on a funding formula C) select the form of payment D) decide how often to pay bonuses

a) choose specific performance measures 

When developing the involvement system for a gainsharing plan, which of the following is NOT a commonly used element? A) update meetings B) employee mediations C) suggestion systems D) problem-solving teams

What is the most common form of payment in gainsharing plans? A) common stock B) preferred stock C) promotions D) cash

How often do most firms tend to compute financial performance measures used in gainsharing plans? A) weekly B) monthly C) quarterly D) annually

Employees participate in a gainsharing plan. Bonuses are calculated by dividing payroll expenses by total sales. They most likely use which plan? A) Lincoln B) Rucker C) Improshare D) Scanlon

McDonald Manufacturing contributes cash to a trust established to purchase shares of McDonald stock for employees. Which is likely offered? A) cash plans B) Lincoln incentive systems C) deferred profit-sharing plans D) employee stock ownership plans

d) employee stock ownership plans 

Research indicates that employee stock ownership plans ____. A) encourage employees to retire too early B) place firms at greater risk for employee lawsuits C) increase employee commitment and motivation

c) increase employee commitment and motivation 

Top execs are considering implementing an employee incentive plan. Which suggests that that would NOT be appropriate? A) The job is standardized. B) Employees are unskilled but motivated. C) A link exists between employee effort and output.

b) employees are unskilled but motivated 

All of the following are essential in order for incentive plans to be effective EXCEPT ________. A) incentives appear to be logical B) incentives are linked to behaviors C) rewards are attractive to employees D) standards are clear and complete

a) incentives appear to be logical 

Which of the following was shown by the Harvard Business School to have the greatest impact on employee engagement? A) feedback B) job design C) responsibility D) challenging work

True/False. Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard.

True/False. Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.

True/False. According to Herzberg's theory, a manager would be able to motivate an employee with challenging tasks.

True/False. In Herzberg's Hygiene-Motivator theory, working conditions are motivator factors, and challenging assignments are hygiene factors.

True/False. Herzberg's Hygiene-Motivator theory is based on a needs theory.

True/False. According to Herzberg's motivation theory, good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.

True/False. The work of Edward Deci suggests that managers should primarily rely on extrinsic rewards to motivate employees.

True/False. Vroom's expectancy theory observes that people will not pursue rewards that they find unattractive or where their chances of success are very low.

True/False. According to Vroom's theory, if expectancy, instrumentality, or valence is equal to zero, there will be no employee motivation.

True/False. Behavior modification is based on the idea that people will repeat behavior for which they are punished.

True/False. Behavior modification principles can be useful to managers who seek to change employee behavior through rewards or punishments linked to performance.

True/False. If an employee earns an incentive in the form of a prize or cash award, the value of the award is not included when calculating the employee's overtime pay.

True/False. The complicated nature of piecework makes it an unpopular individual incentive plan among employers.

True/False. The standard hour plan is like the piece rate plan except instead of getting a rate per piece, the employee gets a premium equal to the percent by which his or her performance exceeds the standard.

True/False. With a standard hour plan, employers do not need to recalculate piece rates when changes are made to the hourly pay rate.

True/False. Employers are shifting away from piecework in many industries due to the incentive plan's poor reputation.

True/False. All merit raises become part of an employee's base salary.

True/False. According to the FLSA, merit pay can only be given to exempt, nonmanagement employees at a company.

True/False. Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

True/False. Straight commission plans are attractive to high-performing salespeople.

True/False. Annual bonus plans are long-term incentives, and stock options are short-term incentives.

True/False. Cash, stock, stock options, stock appreciation rights, and phantom stock are known as "golden handcuffs" because they are long-term incentives for executives.

True/False. Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals.

True/False. Studies suggest that team incentive plans enhance productivity because the work load is equally distributed among team members, which fosters cooperation.

True/False. The Scanlon plan is a type of gainsharing plan.

True/False. Common stock is the most common payment form used in gainsharing plans.

True/False. Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm, which is why the programs are decreasing in popularity.

True/False. In order for a firm to have an effective incentive plan, there should be a clear relationship between employee effort and quantity or quality of output.

True/False. An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

True/False. Dual-career ladders are effective tools for managing the professional pay of working mothers who desire a work-life balance.

Which of the following terms refers to financial rewards paid to workers whose production exceeds some predetermined standard?

Which of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability *?

Which of the following pays an employee based on the skills he or she has developed rather than the duties listed for his or her job?

Which term refers to any plan that ties pay to productivity or profitability?