Question 1

__________ are positively valued work outcomes that are given to an individual or group by some other person or source in the work setting.

Accepted Answer

Extrinsic rewards are given to an individual or group by some other person or source in the work setting. These rewards may include things like bonuses, promotions, or recognition from a supervisor or manager. They are external to the individual and are often motivated by external factors, such as monetary gain or recognition for performance. Conversely, intrinsic rewards are those that come from within the individual, such as a sense of accomplishment or pride in one's work.

Question 2

Merit pay is an attempt to make pay contingent upon __________.

Accepted Answer

Merit pay is an attempt to make pay contingent upon performance. It is often used as a way to reward employees for their individual contributions to the organization and to motivate them to improve their job performance. Other factors such as tenure, competencies, and skill development may also be considered, but they are not the primary focus of merit pay.

Question 3

Which of the following statements is NOT correct with regard to skill-based pay?

Accepted Answer

Skill-based pay has been growing in popularity and adoption in recent years, with many organizations implementing it as a way to attract and retain skilled employees. Therefore, statement A is not correct.

Question 4

The typical reward systems of organizations emphasize __________.

Accepted Answer

The typical reward systems of organizations emphasize a mix of intrinsic and extrinsic rewards, which can motivate employees based on both internal and external factors. This approach generally leads to the most effective and equitable reward system.

Question 5

Jason works as a social worker at a local hospital. He loves his job and derives great satisfaction from feeling as though he has helped others and made a difference in the community. Jason is motivated by __________ rewards.

Accepted Answer

Jason's motivation comes from within himself, as he finds meaning and purpose in his work and feels a sense of personal fulfillment from helping others. This type of motivation is known as intrinsic motivation.

Question 6

The awarding of cash bonuses is especially common in the __________ of organizations.

Accepted Answer

Cash bonuses are commonly awarded to senior executives as a way to incentivize and reward their performance and contribution to the organization.

Question 7

Although research supports the logic and theoretical benefits of merit pay, it also indicates that __________.

Accepted Answer

The sentence suggests that while merit pay has theoretical benefits, implementing it is not easy. Therefore, option D is the most appropriate as it directly speaks about the difficulty in implementing merit pay plans. The other options are not supported by the given statement.

Question 8

Since stock prices can fall as well as rise, there is a risk associated with respect to __________ and that risk must be considered in respect to the motivational value of such pay systems.

Accepted Answer

ESOPs (Employee Stock Ownership Plans) involve giving employees the option to buy or receive company stock, which directly ties their compensation to the company's stock price performance. This creates a risk for employees since their compensation can decrease if the stock price falls.

Question 9

The research of Lawler generally concludes that __________.

Accepted Answer

Lawler's research concludes that for pay to effectively motivate employees, they must see a clear connection between their job performance and their compensation. This means that employees need to understand and believe that by performing their jobs at a high level, they can achieve higher pay.

Question 10

In an) __________, employees are rewarded by being given company stock or by being allowed to purchase it at a price below market value.

Accepted Answer

An ESOP (Employee Stock Ownership Plan) is a type of employee benefit plan that allows employees to own a portion of the company through stocks or by purchasing them at a reduced price. This type of plan incentivizes employees to work harder and increase the company's performance because as shareholders, they have a vested interest in the company's success.

Question 11

Skill-based pay plans reward people __________.

Accepted Answer

Skill-based pay plans reward people for the specific skills they possess and apply to their work, regardless of their job title or experience. This allows employees to be compensated for their unique contributions to the organization based on the depth and breadth of their skills. Knowledge, education, and job assignment may factor into skill development, but the focus is on the individual's skills themselves.

Question 12

__________ is a system that rewards people for acquiring and developing job-relevant skills.

Accepted Answer

Skill-based pay is a system that rewards people for acquiring and developing job-relevant skills. This pay system is designed to encourage employees to continuously improve their skills and increase their knowledge in order to enhance their job performance and contributions to the organization. The pay increases are based on the level of skills acquired and developed by the employees, rather than seniority or job title.

Question 13

Intrinsic rewards __________.

Accepted Answer

Intrinsic rewards are internal to the individual, such as personal satisfaction or achievement, and do not depend on others for their provision.

Question 14

Which of the following statements does NOT accurately describe what is needed to make a merit pay plan work well?

Accepted Answer

Merit pay should be based on objective and fair measures of performance, not on personal favoritism. Allowing personal favoritism to enter the merit pay process undermines employee trust in the system and can lead to resentment and disengagement.

Question 15

All of the following statements about profit-sharing are true EXCEPT:

Accepted Answer

Profit sharing plans have faced various criticisms, such as being biased towards higher-level employees, lacking transparency, and not actually motivating employees to increase productivity.

Question 16

__________ rewards employees based on the entire organization's performance.

Accepted Answer

A profit-sharing plan rewards employees based on the overall performance of the organization, typically by distributing a portion of the company's profits to employees.

Question 17

Which of the following are considered advantages of skill-based pay?

Accepted Answer

The answer of Which of the following are considered advantages...

Question 18

Bill is an employee at Burgers-Are-Us. He works hard each and every day so that his picture may be displayed in the restaurant lobby and that he might earn the title "Employee-of-the-Month." Bill is motivated by __________ rewards.

Accepted Answer

Bill is motivated by extrinsic rewards, which are external rewards such as bonuses, promotions, or recognition from others. In this case, his motivation to be named "Employee-of-the-Month" and have his picture displayed in the restaurant lobby is an example of extrinsic motivation.

Question 19

All of the following statements about gain sharing are true EXCEPT:

Accepted Answer

Gain sharing plans do not decrease personal responsibility. In fact, they often increase it as employees have a direct stake in the success of the organization and their own contributions to it.

Question 20

__________ is a pay system that links pay and performance by giving the workers the opportunity to share in productivity gains through increased earnings.

Accepted Answer

Gain sharing is a pay system that links pay and performance by giving workers the opportunity to share in productivity gains through increased earnings. It is designed to promote collaboration and teamwork among employees by encouraging them to work together to identify and implement improvements in production processes. Gain sharing can be a powerful motivator for employees and can lead to increased productivity, improved quality, and cost savings for the organization.

Quiz 6: Motivation and Performance