Rewarding Performance in Human Resource Management MCQ
Define Traditional-pay programs:
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Employees receive compensation based on a fixed hourly pay rate or annual salary.
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The extent to which pay-for-performance programs motivate employees is known as ______ .
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Incentive effects
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Planning for unanticipated labor costs associated with pay-for-performance programs can be supported through ______.
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Statistical modeling
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Employees who ______ are most likely to be attracted to a pay-for-performance program.
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Have a higher need for achievement
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Research has found that subjective performance measures often exhibit ______.
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Lower interrater reliability
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Employees who receive additional retirement benefits based on how much money their company makes are participating in a(n) ______.
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Profit-sharing program
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Evidence suggests that team rewards are most likely to lead to higher performance when ______.
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The team tasks are complex in nature
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Employees who are paid a percentage of the revenue of each product they sell are receiving ______.
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A sales commission
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Providing ______ for the fulfillment of certain goals can direct employees’ attention to the business objectives considered most critical for company-wide success.
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Financial incentives
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The SMART acronym illustrates best practices for ______.
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Setting goals
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______ theory proposes an explanation for understanding how and why certain objectives lead to higher motivation and performance.
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Goal-setting
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______ theory suggests that the amount of pay influences individuals’ perceptions of valence, such that higher pay is likely to be viewed as more attractive and ultimately more motivating.
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Expectancy
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In terms of motivation, ______ refers to the perceived connection between individuals’ effort and performance.
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Expectancy
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Which theory proposes that if a reward is withheld when an individual displays an undesired behavior, then the individual will be less likely to perform the behavior again in the future?
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Reinforcement theory
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The direction of motivation refers to ______.
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The goals or results on which an individual focuses attention
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Pay-for-performance programs are highly associated with ______.
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Motivation
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_____ aim to reward employees for the results or goals that they achieve.
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Pay-for-performance programs
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The extent to which individuals perceive a reward as being attractive or important is known as
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Valence
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Stock options partial owners of the organization by allowing them to purchase a certain number of stock shares at a fixed price in a given time frame
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True
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Standard-hour plans in which employee pay is based on the _______ .
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completion of a particular task within a predetermined time period
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A type of after-the-fact recognition that is often reserved for exceptional levels of performance on a project or for exceptionally high overall job performance.this type is related to
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Spot awards
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Sorting effects are the associated processes of ________ that occur when employees gravitate toward jobs with reward systems
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All of these
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________ pay-for-performance programs that reward the sale of a product or service as opposed to the production of a product or provision of a service.
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Sales commissions
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Reinforcement theory provides a useful framework for understanding pay as an extrinsic motivator, particularly .
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True
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A pay-for-performance program in which employees share in their organization’s profits is known as ______ .
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Piecework plans
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Piecework plans is an individual-incentive program in which employees are compensated based on their respective production levels
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True
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Pay-for-performance programs Compensation programs that reward employees based on the _____ at work and the results or goals they actually achieve
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Both a & b
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Financial rewards offered in exchange for meeting certain levels of performance or achieving certain goals.This statement related to ______
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Pay for performance
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Motivation is a ________ that propels an individual (or a group of individuals) to enact certain behaviors or to strive for a goal
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psychological force
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Which of the correct statements about Merit pay ?
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Pay distributed to employees and integrated into their base pay as a reward for the ratings and/or feedback they
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Intrinsic motivation is a force that originates inside an individual and compels the individual to action because they perceive the action as innately rewarding.
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True
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The extent to which an individual perceives that achieving higher performance will lead to reward attainment is known as______.
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Instrumentality
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Individual incentives is the distribution of pay in response to the attainment of certain predetermined and objective levels of performance
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True
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Goal-setting theory achievable goals for people will lead to the _______ .
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highest performance
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A type of group pay-for-performance program that rewards a group of employees for collectively achieving certain goals or objectives is known as _____ .
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Gainsharing
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Extrinsic motivation is an external, environmental force that compels an individual to action
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True
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A theory that suggests that if a person sees that their efforts will lead to greater performance is known as
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Expectancy theory
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Expectancy is when an individual perceives that applying effort will lead to ______ .
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higher performance
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Which type of pay-for performance defined contribution plan in which the bulk of contributions are invested in an employer’s stock?
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Employee stock ownership plans
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When the identical (same) rate of incentives are paid to the employees for each Unt of goods produced by them, it is called
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Differential piecework plan
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A form of variable pay distributed as a one-time payout in recognition of performance is known as
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Bonuses
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