Question 1

Operationally, the key to designing a pay-for-performance plan rests in setting performance standards.

Accepted Answer

A) True 
 B)False

Question 2

is a ranking process that involves ranking the best employee, then the worst employee, then the next best and worst, and so on.

Accepted Answer

A) Paired comparison ranking 
B) Behaviourally anchored rating scale 
C) Alternation ranking 
D) Management by objectives 
E) Performance outcome scale 
A) Paired comparison ranking 
B) Behaviourally anchored rating scale 
C) Alternation ranking 
D) Management by objectives 
E) Performance outcome scale

Question 3

theory of motivation states that people cognitively evaluate potential behaviours in relation to rewards offered in exchange.

Accepted Answer

A) Two-factor 
B) Equity 
C) Expectancy 
D) Reinforcement 
E) Agency 
A) Two-factor 
B) Equity 
C) Expectancy 
D) Reinforcement 
E) Agency

Question 4

According to the reinforcement theory of motivation, rewards do not affect performance.

Accepted Answer

A) True 
 B)False

Question 5

An appraiser giving favourable ratings to all job duties based on impressive performance in just one job function is committing a error.

Accepted Answer

A) recency 
B) leniency 
C) spillover 
D) halo 
E) first impression 
A) recency 
B) leniency 
C) spillover 
D) halo 
E) first impression

Question 6

Which of the following theories focuses more on content and less on the nature of the exchange?

Accepted Answer

A) agency theory 
B) Maslow's Hierarchy of Needs theory 
C) reinforcement theory 
D) expectancy theory 
E) equity theory 
A) agency theory 
B) Maslow's Hierarchy of Needs theory 
C) reinforcement theory 
D) expectancy theory 
E) equity theory

Question 7

Employee turnover is much higher for poor performers when pay is based on:

Accepted Answer

A) company performance 
B) departmental performance 
C) individual performance 
D) project performance 
E) team performance 
A) company performance 
B) departmental performance 
C) individual performance 
D) project performance 
E) team performance

Question 8

According to Herzberg's Two-Factor theory, factors prevent behaviours in their absence, but cannot motivate performance in their presence.

Accepted Answer

A) instrumentality 
B) expectancy 
C) valence 
D) satisfaction 
E) hygiene 
A) instrumentality 
B) expectancy 
C) valence 
D) satisfaction 
E) hygiene

Question 9

Discuss the two types of motivation theories.

Accepted Answer

One set of theories (expectanc

Question 10

Raters should notice only performance-related factors when they observe employee behaviour.

Accepted Answer

A) True 
 B)False

Question 11

Identify 7 items that a successful appraisal process should provide.

Accepted Answer

A successful appraisal process should pr

Question 12

theory of motivation states that employees and management/owners both will act opportunistically to obtain the most favourable exchange possible.

Accepted Answer

A) Two-factor 
B) Reinforcement 
C) Agency 
D) Equity 
E) Expectancy 
A) Two-factor 
B) Reinforcement 
C) Agency 
D) Equity 
E) Expectancy

Question 13

Distributive justice refers to perceived fairness of pay or other work outcomes received.

Accepted Answer

A) True 
 B)False

Question 14

According to Maslow's Hierarchy of Needs theory, higher-order needs motivate even if lower-order needs are not met.

Accepted Answer

A) True 
 B)False

Question 15

What are the different strategies to better understand and measure job performance?

Accepted Answer

Efforts to improve the performance ratin

Question 16

What is a pay-for-performance plan?

Accepted Answer

A pay-for-performance plan is

Question 17

Which of the following wage components is most risky to the employee?

Accepted Answer

A) a-the-board increase 
B) profit-sharing 
C) lump-sum bonus 
D) merit pay 
E) g-sharing 
A) a-the-board increase 
B) profit-sharing 
C) lump-sum bonus 
D) merit pay 
E) g-sharing

Question 18

What is the effectiveness of reward systems dependent on?

Accepted Answer

The effectiveness of reward sy

Question 19

Which of the following is true of a performance appraisal method where peers act as raters?

Accepted Answer

A) Leniency errors in this method are absent. 
B) In situations where teamwork is promoted, this method is ideal. 
C) An accurate perspective of typical performance can be obtained by this method. 
D) This is the most reliable of all methods 
E) Scope for group tensions is absent in this method. 
A) Leniency errors in this method are absent. 
B) In situations where teamwork is promoted, this method is ideal. 
C) An accurate perspective of typical performance can be obtained by this method. 
D) This is the most reliable of all methods 
E) Scope for group tensions is absent in this method.

Question 20

What is merit pay's level of risk to an employee?

Accepted Answer

There are two types of risk faced by emp

Operationally, the key to designing a pay-for-performance plan rests in setting performance standards.

is a ranking process that involves ranking the best employee, then the worst employee, then the next best and worst, and so on.

theory of motivation states that people cognitively evaluate potential behaviours in relation to rewards offered in exchange.

According to the reinforcement theory of motivation, rewards do not affect performance.

An appraiser giving favourable ratings to all job duties based on impressive performance in just one job function is committing a error.

Which of the following theories focuses more on content and less on the nature of the exchange?

Employee turnover is much higher for poor performers when pay is based on:

According to Herzberg's Two-Factor theory, factors prevent behaviours in their absence, but cannot motivate performance in their presence.

Discuss the two types of motivation theories.

Raters should notice only performance-related factors when they observe employee behaviour.

Identify 7 items that a successful appraisal process should provide.

theory of motivation states that employees and management/owners both will act opportunistically to obtain the most favourable exchange possible.

Distributive justice refers to perceived fairness of pay or other work outcomes received.

According to Maslow's Hierarchy of Needs theory, higher-order needs motivate even if lower-order needs are not met.

What are the different strategies to better understand and measure job performance?

What is a pay-for-performance plan?

Which of the following wage components is most risky to the employee?

What is the effectiveness of reward systems dependent on?

Which of the following is true of a performance appraisal method where peers act as raters?

What is merit pay's level of risk to an employee?

The Pay Model

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 10: Pay for Performance: Performance Appraisal and Plan Design

Operationally, the key to designing a pay-for-performance plan rests in setting performance standards.

is a ranking process that involves ranking the best employee, then the worst employee, then the next best and worst, and so on.

theory of motivation states that people cognitively evaluate potential behaviours in relation to rewards offered in exchange.

According to the reinforcement theory of motivation, rewards do not affect performance.

An appraiser giving favourable ratings to all job duties based on impressive performance in just one job function is committing a error.

Which of the following theories focuses more on content and less on the nature of the exchange?

Employee turnover is much higher for poor performers when pay is based on:

According to Herzberg's Two-Factor theory, factors prevent behaviours in their absence, but cannot motivate performance in their presence.

Discuss the two types of motivation theories.

Raters should notice only performance-related factors when they observe employee behaviour.

Identify 7 items that a successful appraisal process should provide.

theory of motivation states that employees and management/owners both will act opportunistically to obtain the most favourable exchange possible.

Distributive justice refers to perceived fairness of pay or other work outcomes received.

According to Maslow's Hierarchy of Needs theory, higher-order needs motivate even if lower-order needs are not met.

What are the different strategies to better understand and measure job performance?

What is a pay-for-performance plan?

Which of the following wage components is most risky to the employee?

What is the effectiveness of reward systems dependent on?

Which of the following is true of a performance appraisal method where peers act as raters?

What is merit pay's level of risk to an employee?

The Pay Model

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay-For-Performance Plans

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters