Banfield and Kay: An Introduction to Human Resource Management
Type: Multiple Response
Title: Chapter 12 - Question 01
01) Organizations that make mistakes in the way in which they manage rewards are almost certainly going
to experience damaging consequences in the form of: Please select all that apply.
Feedback: Quite simply, employees who are frustrated and dissatisfied with the rewards they receive will
express this through how they behave and perform in their jobs; in ways that are unlikely to be in the
interests of the organization. This dissatisfaction might take the form of low productivity, higher turnover, and
lack of employee engagement. While industrial conflict is often associated with industrial conflict this is likely
to be an indirect consequence.
Page reference: 295
a. Industrial conflict
*b. Low productivity
*c. High turnover
*d. Lack in employee commitment
Type: Essay
Title: Chapter 12 - Question 02
02) Provide examples of how reward management might complement other aspects of managing human
resources.
a. Reward management is not simply about the basic issues of paying people fairly in relation to market
rates, the job they do and how well they perform in the job, but extends to the impact of reward decisions on
recruitment, retention, training, flexibility and performance, in addition to their effect on morale and
commitment. Examples could include using rewards to attract people of the right caliber with the right skills
and experience and retaining these individuals. Other examples might include using training and
development to add value to the organizations competitive edge.
Page reference: 295, 296
Type: True or False
Title: Chapter 12 - Question 03
03) Concepts of fairness in the context of rewards at work are protected by law.
*a. True
Feedback The concept of fairness in relation to rewards often involves employees looking to other
employees, and comparing what they do and what they get paid in relation to these ‘comparator’ employees.
Judgments about what is fair and what is not fair are also found in relation to the rewards experiences of
male and female employees doing the same or similar work, and if differences in pay or benefits exist that
cannot be justified by differences in the value of jobs the aggrieved party might challenging the employer
through an equal pay claim.
Page reference: 295
b. False
Feedback: The concept of fairness in relation to rewards often involves employees looking to other
employees, and comparing what they do and what they get paid in relation to these ‘comparator’ employees.
Judgments about what is fair and what is not fair are also found in relation to the rewards experiences of
male and female employees doing the same or similar work, and if differences in pay or benefits exist that
cannot be justified by differences in the value of jobs the aggrieved party might challenging the employer
through an equal pay claim.
Page reference: 295
Type: True or False
Title: Chapter 12 - Question 04
04) The costs of the pay and of the total reward packages represent, for most organizations, a significant
proportion of their total budget.
*a. True
Feedback: The costs of the pay and of the total reward packages represent, for most organizations, a
significant proportion of their total budget and these costs need to be managed effectively to ensure that
they remain within acceptable limits. Reward specialists not only have to ensure that employees are fairly
and adequately paid (both highly subjective), but must also avoid significant overpayment, in the context of
what the organization can afford to pay to remain competitive and in business.
Page reference: 296
b. False
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
, Banfield and Kay: An Introduction to Human Resource Management
Feedback: The costs of the pay and of the total reward packages represent, for most organizations, a
significant proportion of their total budget and these costs need to be managed effectively to ensure that
they remain within acceptable limits. Reward specialists not only have to ensure that employees are fairly
and adequately paid (both highly subjective), but must also avoid significant overpayment, in the context of
what the organization can afford to pay to remain competitive and in business.
Page reference: 296
Type: Multiple Response
Title: Chapter 05 - Question 05
05) What is meant by rewards according to Thompson is:
Please select all that apply.
Feedback: For too long, rewards have only been equated with pay and this perception needs to be
challenged. As Thompson (2002) argues:
'. . . we need to re-think what is and what is not a reward.'
Rewards can, represent instruments for controlling behaviour; however instrumental conditioning whereby
rewards are used to condition animal behaviour is not so reliable when applied to humans.
Page reference: 297,298
a. Just pay
*b. Pay and fringe benefits
*c. Ways of controlling behaviour
d. Instrumental conditioning
Type: Essay
Title: Chapter 12 – Question 06
06) Outline and discuss the characteristics that rewards must display in order to be effective.
a. Rewards must have the following characteristics in order to be effective:
● It must have a value in itself or because of what it represents i.e. its value is linked to the fulfillment of a
basic human need or one that is socially acquired.
● It must be relevant and important to the individual.
● It must be associated with, or serve, a purpose. A reward is something that can be used to achieve an
outcome that is desired by one party or the other.
● A reward needs to have a behavioural effect on the person receiving the reward, although the actual effect
may not be that which was intended.
● There must be a conscious recognition on the part of the receiver and giver that an act of rewarding has
taken place.
Page reference: 299
Type: Multiple Response
Title: Chapter 12 - Question 07
07) What sort of rewards from those listed below would you typically expect to find in large organisations?
Please select all that apply.
Feedback: Monetary rewards including such items as: Basic pay and Bonuses; Benefits associated with
working for the organization such as pensions, health care etc; intrinsic rewards would include; satisfying
jobs, recognition for work well done and praise. Trade union recognition while many employees might
welcome membership would not be classified as a ‘reward’ but a ‘right’.
Page reference: 300
*a. Monetary rewards
*b. Fringe benefits
*c. Intrinsic rewards
d. Union recognition
Type: Essay
Title: Chapter 12 - Question 08
08) Outline and discuss some of the reasons why rewards in the form of incentives might fail.
a. According to Kohn rewards, in the form of incentives might fail for the following reasons:
● Pay is not a motivator i.e. paying people more will not encourage them to do better or more work over the
long term.
● Rewards punish, i.e. if the rewards that employees expect or hope to receive are withheld or withdrawn.
● Rewards rupture relationships: The pursuit of personal rewards has the effect of reducing cooperation and
fracturing relationships.
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
, Banfield and Kay: An Introduction to Human Resource Management
● Rewards ignore reasons: The use of incentives is often an easier way of trying to address problems of
behaviour and performance than exploring and understanding the underlying causes of the problems.
● Rewards discourage risk taking, because employee behaviour is increasingly focused on trying to achieve
the incentive and not what might be good for the organization.
● Rewards undermine interest in anything other than the extrinsic rewards being offered.
Page reference: 302
Type: Essay
Title: Chapter 12 - Question 09
09) What theories might you draw upon to debate the question: What motivational effect follows from
opening the monthly wage or salary pay slip? Explain why you would use these theories.
a. You might based your answer on the contributions to theory from the works of; F.W. Taylor who first
mooted the idea that pay was related to performance; Herzberg who disputed this idea believing pay to be
a ,hygiene factor, and therefore not a motivator. Instead he believed that psychological factors such as
‘intrinsic’ rewards were more likely to be associated with motivation and performance. Finally you might base
your answer on the work of Kohn who believed that incentive payments do not alter the attitudes that
underlie behaviour.
Page reference: 298-302
Type: Multiple Response
Title: Chapter 12 - Question 10
10) Rewards can be viewed as having differences in status: some of which are:
Please select all that apply.
Feedback: Rewards become rights largely through the process of managers offering employment and
through the prospective employee agreeing to accept the terms and conditions embodied in the contract of
employment. Rewards which are conditional are those which are additional to those prescribed in the
employment contract. While discretionary rewards are those which are neither based neither on contractual
rights nor on meeting specified conditions, but which result from managers and employees deciding to
reward in ways that only make sense in the context of their own particular circumstances and working
environment.
Page reference: 304, 305
*a. Rewards as rights
*b. Rewards as conditional
*c. Rewards as discretionary
d. Performance related pay
Type: Multiple Response
Title: Chapter 12 - Question 11
11) Some of the advantages associated with paying people a monthly salary are:
Please select all that apply.
Feedback: The advantages to the organization of paying employees a salary each month include that the
amount remains fixed, simplifying administration of the payroll; the employee enjoys a regular income and
can arrange his or her own personal finances around this predictable monthly payment.
Page reference: 306
*a. The amount remains fixed
*b. The employee enjoys a regular income
*c. It helps people manage their finances
*d. It simplifies administration of the payroll
Type: Matching
Title: Chapter 12– Question 12
12) Typical hourly payment systems are: Please select all that apply.
Feedback: Most payment systems are based on a flat rate or have a flat rate element to them. A flat rate is
that under which an employee is given a fixed amount for a fixed period of time. Piece rate refers to: that
which an employee is paid for each item of work completed. Group bonus will be paid by measuring the
performance of a group of people and awarding a payment to the group for increased output. The group
either receives an equal portion of the bonus or pro rata payments that reflect different contributions. Rates
for skills, shift premium and overtime premium is paid if employees are required to work at unusual
times of the day, then ‘shift’ pay may be included as a pay item. For example, employees may work only at
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
, Banfield and Kay: An Introduction to Human Resource Management
night, which can attract an additional payment that is typically in the region of 25 to 35 per cent of their
normal rate.
Page reference: 307,308,309
a. Flat rate = Which is paid for each item of work completed
b. Piece rate = Which is paid by measuring the performance of a group of people and rewarding the group
c. Group bonus = which is paid if people are required to work at unusual times of the day
d. Rates for skills or overtime = Whereby employees are given a fixed amount for a fixed period of time
Type: Multiple Response
Title: Chapter 12 - Question 13
13) Performance related pay (PRP) would have the following characteristics:
Please select all that apply.
Feedback: Performance-related pay uses financial incentives to link an individual’s pay to their
performance. Rather than simply awarding a bonus payment, performance-related pay usually refers to the
system used to calculate the pay rise awarded to an individual, which is linked to a measure of his or her
performance over a given time period. The pay award reflects the extent to which the measures are met. A
key requirement in the employment of PRP is therefore, the ability to measure accurately and consistently
what performance is defined as.
Page reference: 310
*a. Uses financial incentives to reward behaviour
*b. Is based on ability to measure accurately
c. Is subjective and based on managers estimates
*d. A system which calculates pay awarded to each individual
Type: Essay
Title: Chapter 12 – Question 14
14) Discuss the advantages and disadvantages of both analytical and non analytical methods of job
evaluation and explain in what circumstances each might be used.
a. Non analytical methods are the simplest methods of determining the relative worth of a job involve
considering the overall job content and making a judgement about the role. ‘Job ranking’ involves deciding
the order of jobs, from the highest worth to the lowest. While this simple technique is subjective and carries
the danger of ranking based on known pay levels, it may be attractive to a smaller organization. Analytical
methods constitute a more objective means of determining the worth of a job and usually involve a points
based system, whereby the job is considered against a predetermined set of criteria and is scored against
each of the criteria. The organization can either devise its own system though this would be costly or there
are a number of reputable ‘off the shelve packages in use.
Page reference: 312
Type: Multiple Response
Title: Chapter 12 - Question 15
15) In what circumstances might an organisation consider moving from one payment system to another?
Please select all that apply.
Feedback: There are a number of reasons why it might be necessary to change. Perhaps the organization
has been subjected to equal value claims or grievances from employees who feel that they are underpaid.
There may also be a perception that the productivity or effectiveness of the workforce might be improved by
changing the pay system. Alternatively, it might simply be the case that, due to changes in market rates over
time, the pay scheme is now out of date.
Page reference: 313
*a. If the organisation has experienced an equal value claim
*b. If the organisations has experienced grievances from employees over pay
c. When there is an under supply of labour
d. When it is perceived that the productivity or effectiveness of the workforce might be improved
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
Type: Multiple Response
Title: Chapter 12 - Question 01
01) Organizations that make mistakes in the way in which they manage rewards are almost certainly going
to experience damaging consequences in the form of: Please select all that apply.
Feedback: Quite simply, employees who are frustrated and dissatisfied with the rewards they receive will
express this through how they behave and perform in their jobs; in ways that are unlikely to be in the
interests of the organization. This dissatisfaction might take the form of low productivity, higher turnover, and
lack of employee engagement. While industrial conflict is often associated with industrial conflict this is likely
to be an indirect consequence.
Page reference: 295
a. Industrial conflict
*b. Low productivity
*c. High turnover
*d. Lack in employee commitment
Type: Essay
Title: Chapter 12 - Question 02
02) Provide examples of how reward management might complement other aspects of managing human
resources.
a. Reward management is not simply about the basic issues of paying people fairly in relation to market
rates, the job they do and how well they perform in the job, but extends to the impact of reward decisions on
recruitment, retention, training, flexibility and performance, in addition to their effect on morale and
commitment. Examples could include using rewards to attract people of the right caliber with the right skills
and experience and retaining these individuals. Other examples might include using training and
development to add value to the organizations competitive edge.
Page reference: 295, 296
Type: True or False
Title: Chapter 12 - Question 03
03) Concepts of fairness in the context of rewards at work are protected by law.
*a. True
Feedback The concept of fairness in relation to rewards often involves employees looking to other
employees, and comparing what they do and what they get paid in relation to these ‘comparator’ employees.
Judgments about what is fair and what is not fair are also found in relation to the rewards experiences of
male and female employees doing the same or similar work, and if differences in pay or benefits exist that
cannot be justified by differences in the value of jobs the aggrieved party might challenging the employer
through an equal pay claim.
Page reference: 295
b. False
Feedback: The concept of fairness in relation to rewards often involves employees looking to other
employees, and comparing what they do and what they get paid in relation to these ‘comparator’ employees.
Judgments about what is fair and what is not fair are also found in relation to the rewards experiences of
male and female employees doing the same or similar work, and if differences in pay or benefits exist that
cannot be justified by differences in the value of jobs the aggrieved party might challenging the employer
through an equal pay claim.
Page reference: 295
Type: True or False
Title: Chapter 12 - Question 04
04) The costs of the pay and of the total reward packages represent, for most organizations, a significant
proportion of their total budget.
*a. True
Feedback: The costs of the pay and of the total reward packages represent, for most organizations, a
significant proportion of their total budget and these costs need to be managed effectively to ensure that
they remain within acceptable limits. Reward specialists not only have to ensure that employees are fairly
and adequately paid (both highly subjective), but must also avoid significant overpayment, in the context of
what the organization can afford to pay to remain competitive and in business.
Page reference: 296
b. False
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
, Banfield and Kay: An Introduction to Human Resource Management
Feedback: The costs of the pay and of the total reward packages represent, for most organizations, a
significant proportion of their total budget and these costs need to be managed effectively to ensure that
they remain within acceptable limits. Reward specialists not only have to ensure that employees are fairly
and adequately paid (both highly subjective), but must also avoid significant overpayment, in the context of
what the organization can afford to pay to remain competitive and in business.
Page reference: 296
Type: Multiple Response
Title: Chapter 05 - Question 05
05) What is meant by rewards according to Thompson is:
Please select all that apply.
Feedback: For too long, rewards have only been equated with pay and this perception needs to be
challenged. As Thompson (2002) argues:
'. . . we need to re-think what is and what is not a reward.'
Rewards can, represent instruments for controlling behaviour; however instrumental conditioning whereby
rewards are used to condition animal behaviour is not so reliable when applied to humans.
Page reference: 297,298
a. Just pay
*b. Pay and fringe benefits
*c. Ways of controlling behaviour
d. Instrumental conditioning
Type: Essay
Title: Chapter 12 – Question 06
06) Outline and discuss the characteristics that rewards must display in order to be effective.
a. Rewards must have the following characteristics in order to be effective:
● It must have a value in itself or because of what it represents i.e. its value is linked to the fulfillment of a
basic human need or one that is socially acquired.
● It must be relevant and important to the individual.
● It must be associated with, or serve, a purpose. A reward is something that can be used to achieve an
outcome that is desired by one party or the other.
● A reward needs to have a behavioural effect on the person receiving the reward, although the actual effect
may not be that which was intended.
● There must be a conscious recognition on the part of the receiver and giver that an act of rewarding has
taken place.
Page reference: 299
Type: Multiple Response
Title: Chapter 12 - Question 07
07) What sort of rewards from those listed below would you typically expect to find in large organisations?
Please select all that apply.
Feedback: Monetary rewards including such items as: Basic pay and Bonuses; Benefits associated with
working for the organization such as pensions, health care etc; intrinsic rewards would include; satisfying
jobs, recognition for work well done and praise. Trade union recognition while many employees might
welcome membership would not be classified as a ‘reward’ but a ‘right’.
Page reference: 300
*a. Monetary rewards
*b. Fringe benefits
*c. Intrinsic rewards
d. Union recognition
Type: Essay
Title: Chapter 12 - Question 08
08) Outline and discuss some of the reasons why rewards in the form of incentives might fail.
a. According to Kohn rewards, in the form of incentives might fail for the following reasons:
● Pay is not a motivator i.e. paying people more will not encourage them to do better or more work over the
long term.
● Rewards punish, i.e. if the rewards that employees expect or hope to receive are withheld or withdrawn.
● Rewards rupture relationships: The pursuit of personal rewards has the effect of reducing cooperation and
fracturing relationships.
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
, Banfield and Kay: An Introduction to Human Resource Management
● Rewards ignore reasons: The use of incentives is often an easier way of trying to address problems of
behaviour and performance than exploring and understanding the underlying causes of the problems.
● Rewards discourage risk taking, because employee behaviour is increasingly focused on trying to achieve
the incentive and not what might be good for the organization.
● Rewards undermine interest in anything other than the extrinsic rewards being offered.
Page reference: 302
Type: Essay
Title: Chapter 12 - Question 09
09) What theories might you draw upon to debate the question: What motivational effect follows from
opening the monthly wage or salary pay slip? Explain why you would use these theories.
a. You might based your answer on the contributions to theory from the works of; F.W. Taylor who first
mooted the idea that pay was related to performance; Herzberg who disputed this idea believing pay to be
a ,hygiene factor, and therefore not a motivator. Instead he believed that psychological factors such as
‘intrinsic’ rewards were more likely to be associated with motivation and performance. Finally you might base
your answer on the work of Kohn who believed that incentive payments do not alter the attitudes that
underlie behaviour.
Page reference: 298-302
Type: Multiple Response
Title: Chapter 12 - Question 10
10) Rewards can be viewed as having differences in status: some of which are:
Please select all that apply.
Feedback: Rewards become rights largely through the process of managers offering employment and
through the prospective employee agreeing to accept the terms and conditions embodied in the contract of
employment. Rewards which are conditional are those which are additional to those prescribed in the
employment contract. While discretionary rewards are those which are neither based neither on contractual
rights nor on meeting specified conditions, but which result from managers and employees deciding to
reward in ways that only make sense in the context of their own particular circumstances and working
environment.
Page reference: 304, 305
*a. Rewards as rights
*b. Rewards as conditional
*c. Rewards as discretionary
d. Performance related pay
Type: Multiple Response
Title: Chapter 12 - Question 11
11) Some of the advantages associated with paying people a monthly salary are:
Please select all that apply.
Feedback: The advantages to the organization of paying employees a salary each month include that the
amount remains fixed, simplifying administration of the payroll; the employee enjoys a regular income and
can arrange his or her own personal finances around this predictable monthly payment.
Page reference: 306
*a. The amount remains fixed
*b. The employee enjoys a regular income
*c. It helps people manage their finances
*d. It simplifies administration of the payroll
Type: Matching
Title: Chapter 12– Question 12
12) Typical hourly payment systems are: Please select all that apply.
Feedback: Most payment systems are based on a flat rate or have a flat rate element to them. A flat rate is
that under which an employee is given a fixed amount for a fixed period of time. Piece rate refers to: that
which an employee is paid for each item of work completed. Group bonus will be paid by measuring the
performance of a group of people and awarding a payment to the group for increased output. The group
either receives an equal portion of the bonus or pro rata payments that reflect different contributions. Rates
for skills, shift premium and overtime premium is paid if employees are required to work at unusual
times of the day, then ‘shift’ pay may be included as a pay item. For example, employees may work only at
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
, Banfield and Kay: An Introduction to Human Resource Management
night, which can attract an additional payment that is typically in the region of 25 to 35 per cent of their
normal rate.
Page reference: 307,308,309
a. Flat rate = Which is paid for each item of work completed
b. Piece rate = Which is paid by measuring the performance of a group of people and rewarding the group
c. Group bonus = which is paid if people are required to work at unusual times of the day
d. Rates for skills or overtime = Whereby employees are given a fixed amount for a fixed period of time
Type: Multiple Response
Title: Chapter 12 - Question 13
13) Performance related pay (PRP) would have the following characteristics:
Please select all that apply.
Feedback: Performance-related pay uses financial incentives to link an individual’s pay to their
performance. Rather than simply awarding a bonus payment, performance-related pay usually refers to the
system used to calculate the pay rise awarded to an individual, which is linked to a measure of his or her
performance over a given time period. The pay award reflects the extent to which the measures are met. A
key requirement in the employment of PRP is therefore, the ability to measure accurately and consistently
what performance is defined as.
Page reference: 310
*a. Uses financial incentives to reward behaviour
*b. Is based on ability to measure accurately
c. Is subjective and based on managers estimates
*d. A system which calculates pay awarded to each individual
Type: Essay
Title: Chapter 12 – Question 14
14) Discuss the advantages and disadvantages of both analytical and non analytical methods of job
evaluation and explain in what circumstances each might be used.
a. Non analytical methods are the simplest methods of determining the relative worth of a job involve
considering the overall job content and making a judgement about the role. ‘Job ranking’ involves deciding
the order of jobs, from the highest worth to the lowest. While this simple technique is subjective and carries
the danger of ranking based on known pay levels, it may be attractive to a smaller organization. Analytical
methods constitute a more objective means of determining the worth of a job and usually involve a points
based system, whereby the job is considered against a predetermined set of criteria and is scored against
each of the criteria. The organization can either devise its own system though this would be costly or there
are a number of reputable ‘off the shelve packages in use.
Page reference: 312
Type: Multiple Response
Title: Chapter 12 - Question 15
15) In what circumstances might an organisation consider moving from one payment system to another?
Please select all that apply.
Feedback: There are a number of reasons why it might be necessary to change. Perhaps the organization
has been subjected to equal value claims or grievances from employees who feel that they are underpaid.
There may also be a perception that the productivity or effectiveness of the workforce might be improved by
changing the pay system. Alternatively, it might simply be the case that, due to changes in market rates over
time, the pay scheme is now out of date.
Page reference: 313
*a. If the organisation has experienced an equal value claim
*b. If the organisations has experienced grievances from employees over pay
c. When there is an under supply of labour
d. When it is perceived that the productivity or effectiveness of the workforce might be improved
OXFORD Higher Education
© Oxford University Press, 2008. All rights reserved.
