Michigan State University

HB 307

Chapter 12 Quiz

MULTIPLE CHOICE QUESTIONS

1)Which of the following is a true statement about Herzberg’s Hygiene-Motivator theory?

1. Highly motivated workers rely equally on lower-level and higher-level needs
2. Managers can create a self-motivated workforce by providing feedback and recognition
3. Providing employees with feedback and challenge satisfies their lower-level needs
4. Assigning workers to teams can eliminate job-associated stress and frustration

2. Which of the following found that extrinsic rewards could detract from an employee’s intrinsic motivation?

1. Frederick Taylor
2. David McClelland
3. Edward Deci
4. Frederick Herzberg

3. According to Victor Vroom, expectancy could also be referred to as the                      

1. Perceived value a person attaches to a reward
2. Probability that effort will lead to success
3. Employer’s strategy for motivating employees
4. Relationship between performance and reward

4. The perceived relationship between successful performance and obtaining the reward is referred to by Vroom as                                 

1. Instrumentality
2. Optimism

3. Valence
4. Expectancy

5. Under the Fair LAbor Standards Act, which of the following would NOT be included in overtime pay computations?

1. Efficiency bonus
2. Union contract bonus
3. Bonus for new hires
4. Christmas bonus

6. Which of the following terms refers to an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards?

1. Variable pay
2. Straight hourly pay
3. Straight piecework
4. Standard hour plan

7. All of the following are disadvantages associated with piecework plans EXCEPT that workers

1. View the plans as unfair and complicated
2. Dislike new technology or processes
3. Focus on production quantity instead of quality
4. Resist attempts to modify production standards

8. How does merit pay differ from a bonus?

1. A bonus becomes part of an employee’s base pay, but merit pay does not
2. A bonus is linked to individual performance, while merit pay is linked to profits
3. Merit pay is linked to individual performance, while a bonus is linked to profits
4. Merit pay becomes part of an employee’s base pay, but a bonus does not.

9. Which of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance?

1. Competency-based pay
2. Merit pay
3. Base pay
4. Variable pay

10. Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?

1. Offers simple administration
2. All freedom of work activities
3. Completely links to performance
4. Provides a guaranteed minimum salary

11. 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?

1. Gainsharing plan

2. At-risk variable plan
3. Stock option
4. Multiplier method

12. Which of the following is not an advantage of team incentive plans? Assume every team member’s incentive payment is identical.

1. Problem solving is encouraged
2. Team planning is reinforced
3. Wage equity (individual equity) is guaranteed
4. Jealousy is reduced

13. The Scanlon plan includes all of the following features EXCEPT                       

1. A philosophy of cooperation
2. A focus on individual achievement
3. Identity
4. Competence

14. Which of the following best explains identity in regards to the Scanlon plan?

1. High level of competence from all employees
2. Clear articulation of the company mission
3. Corporate-wide benefits and savings
4. Philosophy of cooperation among employees

15. The Scanlon plan is an early version of a                      plan, an incentive plan that engages employees in a common effort to achieve productivity objectives

1. Golden parachute
2. Gainsharing
3. Performance achievement
4. Variable pay

16. When hired by Delmar Designs, 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 type of plan does Shane most likely participate?

1. Employee at-risk plan
2. Earnings-at-risk pay plan
3. At-risk gainsharing plan
4. Variable risk sharing plan

17. Elaine, the HR manager at western Enterprises, has been assigned the task of implementing a gainsharing plan. What does Elaine most likely need to do first?

1. Decide how often to pay bonuses
2. Establish general plan objectives
3. Develop an involvement system
4. Choose specific performance measures

18. What is the most common form of payment in gainsharing plans?

1. Promotions