MAN 4330 KANG EXAM 1 QUESTIONS AND
ACCURATE ANSWERS
Compensation - ANSWER monetary and non-monetary rewards employees receive in
exchange for work they do for organization
Monetary Rewards - ANSWER Rewards given to the employees of the organization in the
form of money
Ex. base, pay, commissions, merit pay, bonuses, profit sharing, etc...
Non-monetary Rewards - ANSWER Rewards that do not involve money
Ex. healthcare, life insurance, vacation, promotion, status, job security, etc...
Performance = - ANSWER ability x motivation x opportunity
Employee Ability - ANSWER The sorting effect
Employee Motivation - ANSWER The incentive effect
Sorting Effect - ANSWER The effect that pay can have on the composition of the
workforce
Incentive Effect - ANSWER The degree to which pay influences individual and aggregate
motivation
What do Compensation policies do? - ANSWER Work through incentive and sorting
effect to either achieve or not achieve company objectives
Efficiency Approach - ANSWER Focuses on maximizing employee productivity by
specializing and simplifying jobs so that employees make fewer mistakes and maintain a
high level of performance according to preset job procedures
Motivational Approach - ANSWER Focuses on making jobs more interesting, challenging
and complex to encourage employees to want to work as effectively and efficiently as
they can
Key Goal of Efficiency Approaches - ANSWER Maximize efficiency, emphasizes
standardization/routinization of production processes
Job Specialization - ANSWER The process by which division of labor occurs as different
workers gain expertise in tasks
Job Simplification - ANSWER Removing decision-making authority from the employee
and placing it with a supervisor
, Scientific Management - ANSWER Division of labor, standardization of production
process, time and motion study
Advantages of the Efficient Approach - ANSWER Able to carry out tasks efficiently
Reduces amount of time that employees might spend thinking
Minimal errors
Lower the number and level of competencies required of new hires
Opens up a wider pool of job candidates, and jobs can be staffed more quickly
Employee training can be more focused
Labor costs are low
Disadvantages of Efficiency Approach - ANSWER Lack complexity and variety and can
lead to boredom, fatigue, and diminished job satisfaction
High turnover
Results of Hawthorne Studies - ANSWER Employees were more productive because:
They were selected
Being treated as special
Having a sympathetic supervisor
End thoughts:
Employees are human beings
Should incorporate psychological influences
Motivational Approaches to Job Design - ANSWER Maximize an employee's drive to
work as hard as possible
When jobs involve more of these five dimensions:
Skill variety
Task identity
Task significane
Autonomy
ACCURATE ANSWERS
Compensation - ANSWER monetary and non-monetary rewards employees receive in
exchange for work they do for organization
Monetary Rewards - ANSWER Rewards given to the employees of the organization in the
form of money
Ex. base, pay, commissions, merit pay, bonuses, profit sharing, etc...
Non-monetary Rewards - ANSWER Rewards that do not involve money
Ex. healthcare, life insurance, vacation, promotion, status, job security, etc...
Performance = - ANSWER ability x motivation x opportunity
Employee Ability - ANSWER The sorting effect
Employee Motivation - ANSWER The incentive effect
Sorting Effect - ANSWER The effect that pay can have on the composition of the
workforce
Incentive Effect - ANSWER The degree to which pay influences individual and aggregate
motivation
What do Compensation policies do? - ANSWER Work through incentive and sorting
effect to either achieve or not achieve company objectives
Efficiency Approach - ANSWER Focuses on maximizing employee productivity by
specializing and simplifying jobs so that employees make fewer mistakes and maintain a
high level of performance according to preset job procedures
Motivational Approach - ANSWER Focuses on making jobs more interesting, challenging
and complex to encourage employees to want to work as effectively and efficiently as
they can
Key Goal of Efficiency Approaches - ANSWER Maximize efficiency, emphasizes
standardization/routinization of production processes
Job Specialization - ANSWER The process by which division of labor occurs as different
workers gain expertise in tasks
Job Simplification - ANSWER Removing decision-making authority from the employee
and placing it with a supervisor
, Scientific Management - ANSWER Division of labor, standardization of production
process, time and motion study
Advantages of the Efficient Approach - ANSWER Able to carry out tasks efficiently
Reduces amount of time that employees might spend thinking
Minimal errors
Lower the number and level of competencies required of new hires
Opens up a wider pool of job candidates, and jobs can be staffed more quickly
Employee training can be more focused
Labor costs are low
Disadvantages of Efficiency Approach - ANSWER Lack complexity and variety and can
lead to boredom, fatigue, and diminished job satisfaction
High turnover
Results of Hawthorne Studies - ANSWER Employees were more productive because:
They were selected
Being treated as special
Having a sympathetic supervisor
End thoughts:
Employees are human beings
Should incorporate psychological influences
Motivational Approaches to Job Design - ANSWER Maximize an employee's drive to
work as hard as possible
When jobs involve more of these five dimensions:
Skill variety
Task identity
Task significane
Autonomy
