When designing a pay-for-performance plan, effectiveness is dependent on three things: efficiency, equity, and _________ in designing a pay system.
When designing a pay-for-performance plan, effectiveness is dependent on three things: efficiency, equity, and _________ in designing a pay system.
standards
compliance
strategy
structure
1 points
QUESTION 2
Which of the following statements concerning contingent workers, alternative work arrangements, and/or gig workers is not true?
Use of such workers permits easier expansion and contraction of the workforce.
Use of such workers represents less than 5% of all workers.
Use of such workers allows employers to meet rapidly changing economic conditions.
Use of such workers reduces direct workforce costs.
1 points
QUESTION 3
Grabhouse, Incorporated is experiencing an increase in the turnover rates of its top employees. Upon consulting with its managers for the reasons for this increase, Grabhouse finds that employees are uneasy about the current pay mix as it involves too many risky elements. In order to make its pay mix less risky, Grabhouse needs to:
introduce a risk-sharing plan to its pay mix.
increase the merit bonus component of its pay mix.
introduce a profit-sharing plan to its pay mix.
increase the base pay component of its pay mix.
1 points
QUESTION 4
According the self-determination theory, intrinsic motivation (such as enjoyment of performing the work itself) produces the highest-quality motivation.
True
False
1 points
QUESTION 5
Of the following large group incentive plans, which type of plan uses financial measures to gauge performance, as opposed to operating measures to gauge performance?
Improshare plans
Scanlong plans
Gain-sharing plans
Profit-sharing plans
1 points
QUESTION 6
Workload and work variety are both components of a total reward system.
True
False
1 points
QUESTION 7
_________ have indirect pay-performance links and require employees to put up money to exercise grants.
Merit pay plans
Balanced scorecard plans
Stock options plans
Bedeaux plans
1 points
QUESTION 8
The _______ was enacted by the Congress to provide current and former employees and their spouses and dependents with a temporary extension of group health insurance when coverage is lost due to qualifying events.
Family and Medical Leave Act
Social Secruity Act
Health Insurance Portability and Accountability Act
Consolidated Omnibus Budget Reconciliation Act
1 points
QUESTION 9
Various studies have found that only two specific benefits curtailed employee turnover, namely ________ and ________.
profit-sharing plans; life insurance
retirement benefits; paid vacations
vacation days; dental plans
pensions; medical coverage
1 points
QUESTION 10
Allowing nonperformance factors to affect performance scores is known as
straight ranking
affirmative action
criterion contamination
a horn error
1 points
QUESTION 11
When an organization’s performance has frequent highs and lows, but individual performance is fairly stable and performance measures are clear, the most effective compensation mix is to offer
a wide range of rewards and significant incentives.
a large base pay and low incentive pay.
a base pay with low incentives and a variety of rewards.
monetary rewards with large incentives.
1 points
QUESTION 12
The Family Medical Leave Act (1993) mandates a minimum of 20 weeks of leave for all workers at companies that employ less than 10 people.
True
False
1 points
QUESTION 13
Which of the following statements is true regarding rater training?
Training to reduce halo errors and improve accuracy has been most successful.
Rater-error training is more effective than performance-standard or performance-dimension training.
Lectures to raters on how to improve ratings are always ineffective.
Training programs lasting over two hours are less successful than shorter ones.
1 points
QUESTION 14
A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded.
True
False
1 points
QUESTION 15
Which of the following is the best appraisal format in terms of legal defensibility?
Behaviorally Anchored Rating Scales
Management by Objectives
Ranking
An essay format
1 points
QUESTION 16
Goal-setting theory argues that employees’ performance is maximized when performance targets are unchallenging and unspecific.
True
False
1 points
QUESTION 17
A horn error occurs when an employee is
consistently rated lower than deserved.
given a favorable rating on all job duties based on his or her impressive performance in just one job function.
downgraded across all performance dimensions because of poor performance on one dimension.
consistently rated higher than deserved.
1 points
QUESTION 18
Which of the following requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship?
The Maintenance Act (1973)
The Patient Protection and Affordable Care Act (2010)
The Consolidated Omnibus Budget Reconciliation Act (1984)
The Fair Labor Standards Act (1938)
1 points
QUESTION 19
Menthorp, Incorporated wants to design a variable pay plan that fosters teamwork and increases the business knowledge of its employees. In order to ensure maximum motivation. Menthorp wants its variable pay plan to show a clear performance-reward link. Which of the following plans is most suitable for Menthorp?
The Rowan plan
A gain-sharing plan
The Merrick plan
A stock ownership plan
1 points
QUESTION 20
The typical employee can recall _______ percent of the benefits he or she receives.
almost 50
less than 15
over 30
40
1 points
QUESTION 21
In the context of cost containment, which of the following best describes the practice of “copay”?
Requiring that employees pay a fixed or percentage amount for coverage
Limiting disability income payments to some maximum percentage of income
Controlling costs through policies such as seeking competitive bids for program delivery
Negotiating the lowest possible fees by providers
1 points
QUESTION 22
_________ allows employees who resign or are laid off through no fault of their own to continue receiving health coverage under their employer’s plan at a cost borne by the employee.
The Fair Labor Standard sAct (1938)
The Maintenance Act (1973)
The Consolidated Omnibus Budget Reconciliation Act (1984)
The Tax reforms of 1982
1 points
QUESTION 23
One of the major strengthes of using peers as raters is that they work more closely with the ratee and probably have an undistorted perspective of typical performance, particulatly in group assignments.
True
False
1 points
QUESTION 24
Merit pay is subject to incentive effects but not subject to sorting effects
True
False
1 points
QUESTION 25
Which of the following companies uses probationary periods as a cost-containment measure?
DLG Corporation, which excludes its new recruits from benefit coverage until they complete a year
Amethyst Corporation, which limits its employees to coverage for only two dentist visits every six months
Kimberly Corporation, which requires employees in the lowest salary quartile to pay for 20 percent of their benefits
Alpha Corporation, which combines the benefits offered for couples who work within the organization
1 points
QUESTION 26
When a company moves from an individual incentive plan to a group incentive plan, the company ismost likely to experience
an increase in instrumentality.
higher turnover among poor performers.
an increase in perceived equity.
higher turnover among high performers.
1 points
QUESTION 27
The U.S. private sector cost of total compensation (including both wages/salaries and benefits) per employee is higher in smaller firms than in larger firms.
True
False
1 points
QUESTION 28
There is some research to support the common assumption that benefits increase employee retention, and two studies found that higher benefits reduced employee mobility.
True
False
1 points
QUESTION 29
According to ___________theory, relative pay is important as employees evaluate the adequacy of their pay via comparisons with other employees.
reinforcement
equity
agency
expectancy
1 points
QUESTION 30
When pay is based on individual performance, turnover tends to be highest among
good performers.
ethnic minorities.
single women with children.
poor performers.
1 points
QUESTION 31
Three major problems with team compensation involve the three Cs, which are
costs, containment, and centrality.
culture, conflict, and coverage.
cycle, classification, and concerns.
complexity, control, and communications.
1 points
QUESTION 32
A halo error is the error that occurs when an employee is downgraded across all performance dimensions exclusively because of poor performance in one dimension.
True
False
1 points
QUESTION 33
Which of the following is a disadvantage of gain-sharing plans?
Employeees are required to put up money to exercise grants.
Pay-performance links are indirect.
Mandatory stock ownership required by gain-sharing plans can increase turnover rates.
Payouts can occur even if a company’s financial performance is poor.
1 points
QUESTION 34
Supervisors tend to weigh negative attributes more heavily than positive attributes.
True
False
1 points
QUESTION 35
Cost pressures related to the increasing diversity of the workforce is one of the reasons why cmopanies offer flexible benefit plans.
True
False
1 points
QUESTION 36
In the context of the performance evaluation process, which of the following ensures that raters are motivated to rate accurately?
Conducting informal discussions with employees about progress on an irregular basis
Focusing on the person rather than the behavior while evaluating performace and providing feedback.
Making sure that managers are graded on how well they utilize and develop human resources
Ensuring that employees do not have to participate in developing performance dimensions.
1 points
QUESTION 37
Which of the following statements is true of merit pay?
Merit programs are commonly designed to pay different amounts depending on the level of performance.
Merit pay is inexpensive even when too many high-performance ratings are awarded.
Merit pay differentials based on performance are usually large enough to motivate performance.
Merit pay decreases fixed compensation costs over time.
1 points
QUESTION 38
A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called a _______ plan.
a no-deductible
a flat dollar benefit
a select choice
a flexible benefit.
1 points
QUESTION 39
Which fo the following statements is true of a pay-for performance (PFP) plan?
Of the pay components, only base pay and across-the-board increases do not fit the PFP category.
PFP plans are used less heavily in private sector organizations.
If a PFP plan is in use, it is used for all employee groups.
PFP plans signal a movement toward pay as an entitlemen.
1 points
QUESTION 40
Which of the following is true of the Affordable Care Act?
It is aimed at expanding health care coverage through an individual mandate to purchase health insurance and employer mandate to provide qualifitying health insurance coverage.
It helps an employer receive an income tax deduction even though employees may not yet have received any benefits.
It requires a worker to meet the state requirements for wages earned or time worked during an established period of time referred to as a “base period.”
It applies to all employers having 50 or more employees and entitles all eligible employeess to receive unpaid leave up to 12 weeks per year for specified family or medical reasons.
1 points
QUESTION 41
A survey shows that most employers are responding to increased benefit costs by:
laying off employees.
relying on the Patient Protection and Affordable Care Act.
requiring employees to pay higher deductibles and copays.
dropping health care plans.
1 points
QUESTION 42
Employees increasingly are expected to bear a share of the risks that businesses have solely born in the past.
True
False
1 points
QUESTION 43
Which of the following statements is true of leniency error?
It is the error of giving better ratings to individuals who are like the rater in behavior and personality.
It is the error of avoiding extremes in ratings across employees.
It is the error of downgrading an employee across all performance dimensions exclusively because of porr performance on one dimension.
It is the error of consistently rating someone higher than is deserved.
1 points
QUESTION 44
Which of the following is a disadvantage of team incentives?
They are administratively complex to implement.
They maximize distinctions between team members.
They fail to reflect how work is performed.
They are ineffective in stimulating ideas and problem solving.
1 points
QUESTION 45
In the context of evaluation formats, which of the follwing is true of the alternation ranking method?
It selects specific jobs based on certain predefined criteria and leaves out the rest.
It requires raters to evaluate employees on some absolute standard rather than relative to other employees.
It simplifies the ranking process by forcing raters to make ranking judgments about discrete pairs of people.
It recognizes that raters are better at ranking people at extreme ends of a distribution.
1 points
QUESTION 46
Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1000 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario?
Michael is eligible for $1000 per week if he can show that he has been earnestly searching for jobs.
Michael will now only be eligible for 20 percent of his previous income as unemployment benefits.
Michael can continue to avail unemployment benefits for another 26 weeks.
Michael is no longer eligible for unemployment benefits.
1 points
QUESTION 47
A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:
specifying performance levels and due dates.
instructing the team to do their best.
assigning tasks only to the top performers in the team.
punishing free riders who fail to meet standards.
1 points
QUESTION 48
During the performance review of her employees, Sarah gives higher ratings to employees from her hometown, Oklahoma, as she believes that people from Oklahoma are hardworking and trustworthy. Which of the following rating errors is Sarah exhibiting?
Horn error
Clone error
Severity error
Spillover error
1 points
QUESTION 49
Spot cash awards are the least used form of short-term incentives plan.
True
False
1 points
QUESTION 50
In the context of performance appraisals, which of the following statements is true?
All other things being equal, males are rated higher than females.
Raters who have traditional views rate females more accurately than raters who do not have traditional views.
The pattern of performance does not influence ratings when the overall level of performance is controlled.
Race has no effect on layoff decisions and performance ratings.
1 points
QUESTION 51
Surveys show that the most highly valued employee benefit is
paid vacation and holidays.
dental coverage.
medical insurance.
life insurance.
1 points
QUESTION 52
The key to designing a pay-for-performance system rests on standards – specifically: objectives measures, eligibility, and ________.
structure
equity
strategy
funding
1 points
QUESTION 53
Many variable pay plans have some form of profit trigger linked to revenue growth or profit margins.
True
False
1 points
QUESTION 54
The trend in recent variable-pay design is to combine the best of
the Halsey and Rowan plans.
gain-sharing and profit sharing plans.
balanced score card and cash profit-sharing plans.
individual and group incentive plans.
1 points
QUESTION 55
Company X pays for performance. Allan, an employee of the company, is not in favor of this reward system and, therefore, leaves Company X in search of another company with different rules for getting rewards. This is an example of the the:
incentive effect.
sorting effect.
compensation effect.
design effect.
1 points
QUESTION 56
Evidence suggests that talented people are motivated to join organizations with strong links between performance and pay.
True
False
1 points
QUESTION 57
Vesting refers to the length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan.
True
False
1 points
QUESTION 58
A 401(k) is an example of a defined benefeit plan.
True
False
1 points
QUESTION 59
All employee benefits provided by employers are taxable.
True
False
1 points
QUESTION 60
Which legislation established 401(k) programs?
COBRA
Employee Retirement Income Security Act
Tax reforms
Maintenance Act
1 points
QUESTION 61
Which of the following theories states that people choose the behavior that leads to the most satisfactory exchange?
Expectancy theory
Maslow’s need hierarchy
Herzberg’s two-factor theory
Goal-setting theory
1 points
QUESTION 62
According to the _______theory of motivation, employees prefer certain or fixed income flows, such as wage or salary, to variable income flows, such as performance-based pay.
reinforcement
expectancy
equity
agency
1 points
QUESTION 63
In the long run, merit bonsues cost employers less than merit pay.
True
False
1 points
QUESTION 64
If a benefit forecast suggests future cost containment may be difficult, the benefit should:
be offered on a noncontributory basis.
be offered to employees only on a cost-sharing basis.
be completely paid for by employees.
not be used.
1 points
QUESTION 65
A possible avenue to improve employer return on investment in benefits is to provide employees with greater choice in the benefits they receive.
True
False
1 points
QUESTION 66
Among peer raters, the most objective evaluations are given by:
workers who are friends of the ratees.
low-performing workers.
high-performing workers.
workers who are not close friends with ratees.
1 points
QUESTION 67
Which of the following is an open-ended performance appraisal format that involves the use of descriptors ranging from comparisons with other employees to adjectives, behaviors, and goal accomplishment?
Ranking
Management by Objectives
An essay format
Behaviorally Anchored Rating Scales
1 points
QUESTION 68
A group performance-based pay plan is superior to an individual plan when production methods and labor mix must change to meet changing pressures.
True
False
1 points
QUESTION 69
Droppiece, Incorporated is a company that provides more performance-based pay and less base pay than its competitors. Who among the following is most likely to join Droppiece?
Sara, a senior citizen who wants a job only to keep herself busy
George, a recently married man who wants a stable income
Stella, a recent college graduate who loves to take on a challenge
Mark, a musician who wants to supplement his income
1 points
QUESTION 70
Maxwell Construction Corporation employs a lot of uneducated laborers. The company wants to introduce a variable pay plan that is easy to understand and does not cost much toadminister. Which of the following variable pay plans is Maxwell most likely to introduce?
A cash profit-sharing plan
A blanced scorecard plan
A stock ownership plan
A gain-sharing plan
1 points
QUESTION 71
For the same level of performance, employees low in a pay range receive higher percentage increases than employees higher in the range.
True
False
1 points
QUESTION 72
Every unemployed worker’s unemployment benefits are “charged” against the firm or firms most recently employing that currently unemployed worker.
True
False
1 points
QUESTION 73
Group incentive pay increases the turnover of better performers, while individual incentive increases the turnover of poorer performers.
True
False
1 points
QUESTION 74
Which of the following is an objective of the unemployment insurance program?
To cover injuries and diseases that arise out of the course of employment
To offset lost income during voluntary unemployment
To help employed workers plan for retirement
To provide an incentive for employers to stabilize employment
1 points
QUESTION 75
When implementing a gain-sharing plan, employee and union participation may lead to success due to the resulting_______.
increased line of sight
historical standards
ease of administration
perceived fairness of the formula
1 points
QUESTION 76
An important implication of reinforcement theory is that the timing of payouts to employees is very important.
True
False
1 points
QUESTION 77
Which of the following statements is true of individual spot awards?
They are given to employees for exceptional performance as an add-on bonus.
They are given to all employees as a one time cost-of-living adjustment.
They are more expensive than merit pay increases.
They are an example of long-term incentives.
1 points
QUESTION 78
The Employee Retirement Income Security Act (1974) requires employers to mandatorily offer some form of pension.
True
False
1 points
QUESTION 79
Which of the following is true of merit bonuses?
They are viewed as less of an entitlement than merit pay.
Employees receive merit bonuses that build into base pay.
They are more expensive than merit pay in the long run.
Cost-conscious firms avoid using merit bonuses.
1 points
QUESTION 80
When a job involves very routine, mechanistic tasks, the most appropriate appraisal format is:
standard rating scales.
alternation ranking.
Management by Objectives.
Behaviorally Anchored Rating Scales
1 points
QUESTION 81
Which of the following motivational theories states that performance-based payments work best when they closely follow performance?
Equity theory
Reinforcement theory
Agency theory
Expectancy theory
1 points
QUESTION 82
Tim loves his job where he is paid very well for his individual performance. He is dismayed when the company announces a plan to transition to a group performance pay system. Tim is already planning to switch companies to one that pays only on his individual performance. Tim is most likely _______.
materialistic
risk-averse
an individualist
a risk taker
1 points
QUESTION 83
In the context of subordinates as raters, which of the following statements is true?
Upward feedback tends to be more reliable than those from other sources.
If their identity is hidden, subordinates give artificially inflated ratings of their supervisors.
Subordinates prefer to reveal their identify while giving their feedback to managers.
Upward feedback has been historically viewed as countercultural.
1 points
QUESTION 84
The _________ theory of motivation states that employee motivation is the product of instrumentality and valence.
equity
agency
reinforcement
expectancy
1 points
QUESTION 85
The _______ is designed to lessen an employer’s ability to deny coverage to an employee for a preexisting condition.
Contract with America Advancement Act
Health Insurance Portability and Accountability Act
Family and Medical Leave Act
Consolidated Omnibus Budget Reconciliation Act
1 points
QUESTION 86
In 2021, the total Social Security Tax on earnings is 7.65 percent, which is paid by both employees and employers for a total of 15.3 percent.
True
False
1 points
QUESTION 87
Which of the following is an example of the sorting effect in action?
An employee leaving a high-paying job for one that provides more work/life balance
The provision of cost-of-living increases by a company
An employee choosing fewer incentives in his flexible compensation plan
The provision of across the board pay increases by a company
1 points
QUESTION 88
Which of the following benefits is NOT mandated by either the state or federal government?
Social security
Worker’s compensation
Work/life balance
Unemployment insurance
1 points
QUESTION 89
Which of the following is an individual incentive plan?
A stock ownership lan
A gain-sharing plan
A balance scorecard system
A straight piecework system
1 points
QUESTION 90
Which of the following are an example of a long-term incentive plan?
Bedeaux plans
Performance plans
Merit bonuses
Spot awards
1 points
QUESTION 91
Trumbrella Corporation is a pharmaceutical company. One of its employees reports that he has suffered an on-the-job injury caused by the slippery factory floor that resulted in sever edamage to his backbone. When Trumbrella initiates its claims processing, it should first:
determine whether the accident actually happened.
contact the insurance companies to enquire about the possibility of a joint payment.
determine if the employee is eligible for any benefit.
calculate the payment required to be paid to the employee.
1 points
QUESTION 92
In the majority of states, unemployment insurance is financed exclusively by:
federal, state, and employee contributions.
the philanthropy of coworkers.
employers that pay federal and state unemployment insurance
joint contributions by employee unions.
1 points
QUESTION 93
Management by Objectives requires more paperwork than other rating methods and incrases both performance pressure and stress.
True
False
1 points
QUESTION 94
_________ is a variable pay plan where payout depends not on company level performance such as profitability, but rather on performance at some subunit such as a plant or facility.
Merit bonus
Gain sharing
Individual incentive
Profit sharing
1 points
QUESTION 95
Evidence suggests that skill-based pay may not increase productivity.
True
False
1 points
QUESTION 96
An individual retirement account is a tax-favored retirement savings plan that individuals can establish themselves.
True
False
1 points
QUESTION 97
The most obvious sorting factor is
experience.
ability.
seniority.
educational qualifcation.
1 points
QUESTION 98
Under a defined contribution plan, whether an employee will be able to afford to retire depends on decisions made by the employee.
True
False
1 points
QUESTION 99
Most employers prefer defined contribution pension plans to defined benefit plans.
True
False
1 points
QUESTION 100
The most common form of outcome-based appraisal is
Behaviorally Anchored Rating Scales.
Management by Objectives.
the essay method.
the performance standards review.
1 points
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