WGU D351 v2 All topics study guide-
Questions & Answers 100% Solved
Why are conventional rating forms extensively used by organizations? Correct Ans-
Conventional forms are used extensively because they are relatively easy to develop and permit
quantitative results that allow comparisons across employees and departments. Because the rater
has complete control in the use of the forms, conventional forms are subject to errors including
leniency, strictness, central tendency, and halo effect.
What are three factors that affect the validity and reliability of an organization's performance
appraisal process? Correct Ans-rater errors, incomplete or inaccurate information, and poor
communication
Which of the three types of validity (empirical, content, and construct) is legally defensible if
challenged in court? Correct Ans-empirical validity
What is a learning organization? Correct Ans-A culture that supports organizational learning
is one where members recognize the importance of learning at all levels, where learning is a
continuous process that runs parallel to work, where there is a focus on creativity and innovation,
and where the organization rewards individual and group learning and development
Why is being a learning organization beneficial? Correct Ans-Research suggests that the most
functional cultures, the ones most associated with long-term growth and survival, are ones that
emphasize and value learning and adaptation.
,List and describe the two types of compensation. Correct Ans-direct compensation and
indirect compensation
What are three examples of direct compensation? Correct Ans-wage, salary, performanced
based pay
What are three examples of indirect compensation? Correct Ans-employee services, benefits,
trainings and/or any other indirect form of compensation or benefit.
Define the term "job evaluation." Correct Ans-defined as the process of comparing jobs by
the use of formal and systemic procedures to determine their relative worth within the
organization
Variable compensation links an employees pay to what? Correct Ans-organizational
performance
What are three examples of variable pay? Correct Ans-profit sharing, bonuses, stock options
Define fixed pay. Correct Ans-Base pay that is not determined by performance
What are the two most common forms of fixed pay? Correct Ans-hourly wage or yearly
salary
, What are incentive pay plans? Correct Ans-a specific type of performance-based pay system
which is used to encourage specific actions and motivate employees
Describe the term "piecework." Correct Ans-Most common incentive plan, employees are
guaranteed a standard pay rate for each unit of output, also called a piece rate.
Describe the term "sales incentive (commission)." Correct Ans-a commission from the sales
that someone may make.
Describe the term "stock options." Correct Ans-an opportunity for a manager to buy an
organization's stock at a later date, but at a price established when the option is granted
Describe the term "cash plans." Correct Ans-provide for payment of profit shares at regular
intervals, typically monthly or yearly.
Describe the term "gainsharing (or bonus based on achievement)." Correct Ans-payment of
profit shares at regular intervals, typically monthly or yearly. The percentage of profits
distributed ranges from 8 to 75 percent (Profit sharing)
Describe the term "wage-dividend plan." Correct Ans-a special type of cash plan, set the
percentage of profits paid to employees according to the amount of dividends paid to
stockholders.
Questions & Answers 100% Solved
Why are conventional rating forms extensively used by organizations? Correct Ans-
Conventional forms are used extensively because they are relatively easy to develop and permit
quantitative results that allow comparisons across employees and departments. Because the rater
has complete control in the use of the forms, conventional forms are subject to errors including
leniency, strictness, central tendency, and halo effect.
What are three factors that affect the validity and reliability of an organization's performance
appraisal process? Correct Ans-rater errors, incomplete or inaccurate information, and poor
communication
Which of the three types of validity (empirical, content, and construct) is legally defensible if
challenged in court? Correct Ans-empirical validity
What is a learning organization? Correct Ans-A culture that supports organizational learning
is one where members recognize the importance of learning at all levels, where learning is a
continuous process that runs parallel to work, where there is a focus on creativity and innovation,
and where the organization rewards individual and group learning and development
Why is being a learning organization beneficial? Correct Ans-Research suggests that the most
functional cultures, the ones most associated with long-term growth and survival, are ones that
emphasize and value learning and adaptation.
,List and describe the two types of compensation. Correct Ans-direct compensation and
indirect compensation
What are three examples of direct compensation? Correct Ans-wage, salary, performanced
based pay
What are three examples of indirect compensation? Correct Ans-employee services, benefits,
trainings and/or any other indirect form of compensation or benefit.
Define the term "job evaluation." Correct Ans-defined as the process of comparing jobs by
the use of formal and systemic procedures to determine their relative worth within the
organization
Variable compensation links an employees pay to what? Correct Ans-organizational
performance
What are three examples of variable pay? Correct Ans-profit sharing, bonuses, stock options
Define fixed pay. Correct Ans-Base pay that is not determined by performance
What are the two most common forms of fixed pay? Correct Ans-hourly wage or yearly
salary
, What are incentive pay plans? Correct Ans-a specific type of performance-based pay system
which is used to encourage specific actions and motivate employees
Describe the term "piecework." Correct Ans-Most common incentive plan, employees are
guaranteed a standard pay rate for each unit of output, also called a piece rate.
Describe the term "sales incentive (commission)." Correct Ans-a commission from the sales
that someone may make.
Describe the term "stock options." Correct Ans-an opportunity for a manager to buy an
organization's stock at a later date, but at a price established when the option is granted
Describe the term "cash plans." Correct Ans-provide for payment of profit shares at regular
intervals, typically monthly or yearly.
Describe the term "gainsharing (or bonus based on achievement)." Correct Ans-payment of
profit shares at regular intervals, typically monthly or yearly. The percentage of profits
distributed ranges from 8 to 75 percent (Profit sharing)
Describe the term "wage-dividend plan." Correct Ans-a special type of cash plan, set the
percentage of profits paid to employees according to the amount of dividends paid to
stockholders.
