MGMT 453 Question and answers
Employee Compensation - ✅✅The process of paying and rewarding people for the contributions they
make to an organization (compensation includes pay and benefits)
Motivation - ✅✅A force that causes people to engage in a particular behavior rather than a less
favorable one
Behavioral choice - ✅✅Whether or not to perform a particular action
Intensity - ✅✅How much effort you put in
Persistence - ✅✅How long you keep working at the behavior
Reinforcement theory - ✅✅Behavior is motivated by rewards and punishment, people will engage in
behaviors they are getting paid for
Goal-setting theory - ✅✅Goals improve performance when they are specific, challenging, and
achievable
Justice theory - ✅✅Motivation depends on beliefs about fairness
Distributive justice - ✅✅Focused on the fairness of outcomes
Procedural justice - ✅✅Concerned with the fairness of procedures used to get outcomes
Expectancy theory - ✅✅Motivation comes from 3 beliefs: expectancy, instrumentality, and valence
Expectancy - ✅✅"Can I achieve this goal?"
, Instrumentality - ✅✅"Will I really receive this reward?"
Valence - ✅✅"Do I value this reward?"
Meet-the-market pay - ✅✅Pay is in the middle of the industry pay range
Lag-the-market pay - ✅✅Average pay level is below the industry average
Lead-the-market pay - ✅✅Average pay is higher than the average in the comparison group
Job-based pay - ✅✅Evaluates pay based on the tasks associated with the job
Skill-based pay - ✅✅Focuses on the difference in skill and ability required to perform the job
Fair Labor Standards Act (FLSA) - ✅✅Federal law that establishes a minimum wage and requirements
for overtime pay and child labor
Compensation package - ✅✅Blend of rewards (money & benefits) employees receive from a
company
At-risk compensation - ✅✅Compensation varies from pay period to pay period
Individual incentive - ✅✅Rewards are based on the personal performance of the employee
Group incentive - ✅✅Reward based on the collective performance of a team or organization
Piece-rate incentive - ✅✅Employees are paid a fixed amount for each piece of output they produce
Commissions - ✅✅Incentive pay calculated as a percentage of sales
Employee Compensation - ✅✅The process of paying and rewarding people for the contributions they
make to an organization (compensation includes pay and benefits)
Motivation - ✅✅A force that causes people to engage in a particular behavior rather than a less
favorable one
Behavioral choice - ✅✅Whether or not to perform a particular action
Intensity - ✅✅How much effort you put in
Persistence - ✅✅How long you keep working at the behavior
Reinforcement theory - ✅✅Behavior is motivated by rewards and punishment, people will engage in
behaviors they are getting paid for
Goal-setting theory - ✅✅Goals improve performance when they are specific, challenging, and
achievable
Justice theory - ✅✅Motivation depends on beliefs about fairness
Distributive justice - ✅✅Focused on the fairness of outcomes
Procedural justice - ✅✅Concerned with the fairness of procedures used to get outcomes
Expectancy theory - ✅✅Motivation comes from 3 beliefs: expectancy, instrumentality, and valence
Expectancy - ✅✅"Can I achieve this goal?"
, Instrumentality - ✅✅"Will I really receive this reward?"
Valence - ✅✅"Do I value this reward?"
Meet-the-market pay - ✅✅Pay is in the middle of the industry pay range
Lag-the-market pay - ✅✅Average pay level is below the industry average
Lead-the-market pay - ✅✅Average pay is higher than the average in the comparison group
Job-based pay - ✅✅Evaluates pay based on the tasks associated with the job
Skill-based pay - ✅✅Focuses on the difference in skill and ability required to perform the job
Fair Labor Standards Act (FLSA) - ✅✅Federal law that establishes a minimum wage and requirements
for overtime pay and child labor
Compensation package - ✅✅Blend of rewards (money & benefits) employees receive from a
company
At-risk compensation - ✅✅Compensation varies from pay period to pay period
Individual incentive - ✅✅Rewards are based on the personal performance of the employee
Group incentive - ✅✅Reward based on the collective performance of a team or organization
Piece-rate incentive - ✅✅Employees are paid a fixed amount for each piece of output they produce
Commissions - ✅✅Incentive pay calculated as a percentage of sales
