MGMT 500 FINAL EXAM QUESTIONS AND FULLY
CORRECT ANSWERS
FALSE - ANSWER There is little evidence to show that pay plans linking pay
to performance result in gains in organizational performance.
FALSE - ANSWER Agency theory argues that employees prefer risky pay
since rewards can be greater than a salary.
Maslow's - ANSWER In ______________ theory, incentive pay is motivating
if it helps an employee gain a sense of achievement, recognition or approval.
FALSE - ANSWER An individual incentive pay system is associated with high
turnover of high performers.
an acceptable appraisal system - ANSWER A key factor in increasing trust in
top management is ____________.
FALSE - ANSWER Both success and risk sharing plans are organizational as
opposed to group-level plans.
FALSE - ANSWER Managers have more control over distributive justice than
procedural justice.
TRUE - ANSWER A number of studies show that companies with profit
sharing have higher performance than companies without profit sharing.
performance management - ANSWER The "oil" that lubricates the
compensation engine is ______________
organization development - ANSWER The ability triangle includes all but
____________.
, TRUE - ANSWER A growing number of companies are interested in variable
pay because it helps employees adapt to new technologies and work processes.
Bedeaux - ANSWER A _______ plan divides a task into simple actions and
determines the time an average worker takes to complete each action.
FALSE - ANSWER Unions prefer individual to group incentive pay plans
since members can earn more money.
FALSE - ANSWER The Rowan plan uses a standard that is purposefully set
high requiring high performance levels.
Merrick - ANSWER An incentive system with three piecework rates is the
____________ plan.
productivity and customer satisfaction - ANSWER The two most commonly
used team incentive performance standards are ________________.
the team's perception of reward fairness - ANSWER A team works on a project
with specific performance level goals and time deadlines, but weather problems
cause the team to miss the deadline. What is the key factor affecting how the
team feels about their incentive?
labor inputs, productivity measures - ANSWER In gain sharing plan formulas,
______________ is(are) the numerator and ____________ the denominator.
gain sharing - ANSWER The variable pay plan with the highest instrumentality
is ______________.
Stock options - ANSWER _______________ has the disadvantage that
employees may be required to spend money to obtain the incentive.
TRUE - ANSWER 360-degree feedback is used primarily with managers and
other high-level employees.
doing a good job was not recognized - ANSWER A survey of 2, 600
employees found the most common frustration regarding performance appraisal
was _______________.
CORRECT ANSWERS
FALSE - ANSWER There is little evidence to show that pay plans linking pay
to performance result in gains in organizational performance.
FALSE - ANSWER Agency theory argues that employees prefer risky pay
since rewards can be greater than a salary.
Maslow's - ANSWER In ______________ theory, incentive pay is motivating
if it helps an employee gain a sense of achievement, recognition or approval.
FALSE - ANSWER An individual incentive pay system is associated with high
turnover of high performers.
an acceptable appraisal system - ANSWER A key factor in increasing trust in
top management is ____________.
FALSE - ANSWER Both success and risk sharing plans are organizational as
opposed to group-level plans.
FALSE - ANSWER Managers have more control over distributive justice than
procedural justice.
TRUE - ANSWER A number of studies show that companies with profit
sharing have higher performance than companies without profit sharing.
performance management - ANSWER The "oil" that lubricates the
compensation engine is ______________
organization development - ANSWER The ability triangle includes all but
____________.
, TRUE - ANSWER A growing number of companies are interested in variable
pay because it helps employees adapt to new technologies and work processes.
Bedeaux - ANSWER A _______ plan divides a task into simple actions and
determines the time an average worker takes to complete each action.
FALSE - ANSWER Unions prefer individual to group incentive pay plans
since members can earn more money.
FALSE - ANSWER The Rowan plan uses a standard that is purposefully set
high requiring high performance levels.
Merrick - ANSWER An incentive system with three piecework rates is the
____________ plan.
productivity and customer satisfaction - ANSWER The two most commonly
used team incentive performance standards are ________________.
the team's perception of reward fairness - ANSWER A team works on a project
with specific performance level goals and time deadlines, but weather problems
cause the team to miss the deadline. What is the key factor affecting how the
team feels about their incentive?
labor inputs, productivity measures - ANSWER In gain sharing plan formulas,
______________ is(are) the numerator and ____________ the denominator.
gain sharing - ANSWER The variable pay plan with the highest instrumentality
is ______________.
Stock options - ANSWER _______________ has the disadvantage that
employees may be required to spend money to obtain the incentive.
TRUE - ANSWER 360-degree feedback is used primarily with managers and
other high-level employees.
doing a good job was not recognized - ANSWER A survey of 2, 600
employees found the most common frustration regarding performance appraisal
was _______________.
