MBA 704 CHAPTER 4 QUESTIONS
ANSWERS 100% CORRECT
rewards, money - ANSWER-Organizations provide ___ to their personnel in order to try
to motivate their performance and encourage loyalty and retention.
Ex. money (salary, bonus, incentive pay), recognition, benefits
___ is the most dominant reward system in today's organizations.
achievement and recognition, status and respect, freedom and control, power -
ANSWER-Money is associated with the 4 important symbolic attributes for which
humans strive;
1.
2.
3.
4.
Stock - ANSWER-Another form of individual pay is the ___ option plan. This plan is
typically used with senior level managers and gives them the opportunity to buy
company's * in the future at a predetermined fixed price.
- The basic idea behind the plan is that if the executives are successful in their efforts to
increase organizational performance, the value of the company's * will rise.
ethical - ANSWER-Potential limitations
Although bonuses and stock options remain popular forms of individual pay, there are
potential problems yet to overcome.
1.) excesses and _____ breakdowns
2.) hard to measure
3.) encourage a narrow range of behavior
4.) does not add the qualifier, pay for performance with integrity
group, gainsharing - ANSWER-___ incentive pay plan
-most common forms is _______ which are designed to share with the group or team
the net gains from productivity improvements such as reduced product damage,
customer complaints, accidents, or shipping errors.
-Everyone works to reduce cost and increase productivity, the organization will become
more efficient and have more money to reward its personnel
, gainsharing, profit sharing, employee stock ownership - ANSWER-Types of Group
Incentive plans:
______ Plan
-Determine the cost associated with producing the current output.
Another common group incentive plan is ____.
_____ Plan
-Although these plans can take a number of different forms, typically some portion of the
company's profits is paid into a pool, and this is then distributed to all employees,
sometimes immediately and others yearly. Some put in escrow and hold until
retirement.
____ Plan
-employees gain a major stake in the ownership of the firm. This involves the company
taking out a loan to buy a portion of its own stock in the open market. Over time, profits
are then used to pay off this loan.
Shortcomings of group plans:
1. Often distribute rewards equally, even though everyone in the group may not be
contributing to the same degree.
2. Rewards may be realized decades
3.) if group rewards are distributed regularly, such as quarterly or annually, employees
may regard the payments as part of their base salary and come to expect every year.
- ANSWER-New Pay Techniques:
Group/Team = gain-sharing, profit sharing, employee stock-ownership plan, stock
option plans
money - ANSWER-___ provides a rich basis for studying behavior at work because it
offers explanations for why people act as they do.
agency theory - ANSWER-An important perspective on money as a reward if provided
by ___, a widely recognized finance and economics approach to understanding
behavior by individuals and groups both inside and outside the corporation
-Draws it name from the fact that people who are in control of large corporations are
seldom the owners; rather, in almost every case, they are agents who are responsible
for representing the interests of the owner.s
interests, goals - ANSWER-Agency theory is concerned with the diverse __ and ___
that are held by a corporation's stakeholders and the methods by which the enterprise's
reward system is used to align these
ANSWERS 100% CORRECT
rewards, money - ANSWER-Organizations provide ___ to their personnel in order to try
to motivate their performance and encourage loyalty and retention.
Ex. money (salary, bonus, incentive pay), recognition, benefits
___ is the most dominant reward system in today's organizations.
achievement and recognition, status and respect, freedom and control, power -
ANSWER-Money is associated with the 4 important symbolic attributes for which
humans strive;
1.
2.
3.
4.
Stock - ANSWER-Another form of individual pay is the ___ option plan. This plan is
typically used with senior level managers and gives them the opportunity to buy
company's * in the future at a predetermined fixed price.
- The basic idea behind the plan is that if the executives are successful in their efforts to
increase organizational performance, the value of the company's * will rise.
ethical - ANSWER-Potential limitations
Although bonuses and stock options remain popular forms of individual pay, there are
potential problems yet to overcome.
1.) excesses and _____ breakdowns
2.) hard to measure
3.) encourage a narrow range of behavior
4.) does not add the qualifier, pay for performance with integrity
group, gainsharing - ANSWER-___ incentive pay plan
-most common forms is _______ which are designed to share with the group or team
the net gains from productivity improvements such as reduced product damage,
customer complaints, accidents, or shipping errors.
-Everyone works to reduce cost and increase productivity, the organization will become
more efficient and have more money to reward its personnel
, gainsharing, profit sharing, employee stock ownership - ANSWER-Types of Group
Incentive plans:
______ Plan
-Determine the cost associated with producing the current output.
Another common group incentive plan is ____.
_____ Plan
-Although these plans can take a number of different forms, typically some portion of the
company's profits is paid into a pool, and this is then distributed to all employees,
sometimes immediately and others yearly. Some put in escrow and hold until
retirement.
____ Plan
-employees gain a major stake in the ownership of the firm. This involves the company
taking out a loan to buy a portion of its own stock in the open market. Over time, profits
are then used to pay off this loan.
Shortcomings of group plans:
1. Often distribute rewards equally, even though everyone in the group may not be
contributing to the same degree.
2. Rewards may be realized decades
3.) if group rewards are distributed regularly, such as quarterly or annually, employees
may regard the payments as part of their base salary and come to expect every year.
- ANSWER-New Pay Techniques:
Group/Team = gain-sharing, profit sharing, employee stock-ownership plan, stock
option plans
money - ANSWER-___ provides a rich basis for studying behavior at work because it
offers explanations for why people act as they do.
agency theory - ANSWER-An important perspective on money as a reward if provided
by ___, a widely recognized finance and economics approach to understanding
behavior by individuals and groups both inside and outside the corporation
-Draws it name from the fact that people who are in control of large corporations are
seldom the owners; rather, in almost every case, they are agents who are responsible
for representing the interests of the owner.s
interests, goals - ANSWER-Agency theory is concerned with the diverse __ and ___
that are held by a corporation's stakeholders and the methods by which the enterprise's
reward system is used to align these
