48) In which of the following variable-pay programs is the pay level based on how many skills
employees have or how many jobs they can do?
A) bonuses
B) piece-rate pay
C) skill-based pay
D) gainsharing
E) merit-based pay
49) Which of the following statements is true regarding a merit-based pay plan?
A) It bases pay levels on how many skills employees have or how many jobs they can do.
B) It is also called competency-based pay plan.
C) Unions typically resist merit-based pay plan.
D) It distributes compensation based on established formula designed around a company’s
profitability.
E) A typical merit-based pay plan provides no base salary and pays the employee only for what
he or she produces.
50) A skill-based pay plan is also called a ________ pay plan.
A) piece-rate
B) profit sharing
C) merit-based
D) knowledge-based
E) commission-based
51) What is an advantage of bonuses over a merit-based pay plan?
A) Employees don’t view bonuses as a part of their salary.
B) Bonuses improve flexibility of the workforce.
C) Bonuses are paid based on a formula.
D) Bonuses improve performance of the group as a whole.
E) Employees are rewarded for recent performance.
52) A ________ pay plan pays for individual performance based on performance appraisal
ratings.
A) piece-rate
B) merit-based
C) skill-based
D) profit sharing
E) competency-based
53) ________ is a formula-based group incentive plan that uses improvements in group
productivity from one period to another to determine the total amount of money allocated.
A) An employee stock ownership plan
B) Gainsharing
C) Profit sharing
D) A piece-rate pay plan
E) A merit-based pay plan
54) Which of the following statements is true regarding gainsharing?
A) Gainsharing focuses on productivity gains rather than profits.
B) Gainsharing involves paying employees based on the number of new skills acquired by them
in a specific time period.
C) Gainsharing does not distribute profits, only gains in profits.
D) Employees working under gainsharing plans have a greater feeling of psychological
ownership.
E) Gain sharing encourages social loafing.
55) How does gainsharing help the group as a whole?
A) The high performers pressure weaker ones to work harder and improve overall performance.
B) The high performers can help the low performers by taking on their responsibility.
C) The new employees and low performers do not have a part in the overall gains accrued to the
group.
D) The group’s overheads are distributed evenly across the group.
E) The group’s responsibilities are distributed evenly across the group.
56) Research on employee stock ownership plans indicates that they ________.
A) increase employee satisfaction
B) decrease company profits
C) reduce stress experienced by employees
D) decrease productivity of employees
E) increase employee turnover
57) An advantage of the ________ plan is that benefits accrue to groups of workers, high-
performing workers pressure weaker performers to work harder, improving performance for the
group as a whole.
A) merit-based pay
B) gainsharing
C) skill-based pay
D) piece-rate pay
E) profit sharing
58) Which of the following statements is true regarding an employee stock ownership plan
(ESOP)?
A) Under this plan employees acquire stock often at below-market prices.
B) Research on ESOPs indicates that it does not affect employee satisfaction.
C) ESOPs for top management tend to increases unethical behavior.
D) Research on ESOPs indicates that ESOPs drastically improve employee performance.
E) ESOPs are also called competency-based pay plans.
59) Which of the following is an example of an intrinsic reward?
A) bonus
B) profit-sharing plan
C) employee stock option
D) employee recognition
E) gainsharing
60) Laura only makes minimum wage, but she loves her job. Her supervisor regularly
compliments her and she has been chosen employee of the month twice this year. Based on this
information, which of the following is most likely to be the reason Laura likes her job?
A) recognition
B) motivation
C) goal setting
D) empowerment
E) autonomy
61) Which of the following is a form of recognition?
A) personal congratulations
B) job enlargement
C) job sharing
D) flexible benefit packages
E) profit sharing
62) According to research findings, which of the following is more likely to be motivating for
the employees in the long run?
A) commissions
B) merit-based pay
C) recognition
D) bonuses
E) stock options
63) Which of the following statements is true regarding employee recognition?
A) Employee recognition is an extrinsic reward.
B) Critics argue that employee recognition programs are highly susceptible to political
manipulation by management.
C) Employee recognition programs are expensive.
D) Nonfinancial incentives such as recognition are more motivating in the short term but in the
long run financial incentives are more motivating.
E) Employee stock option is a more powerful workplace motivator than recognition.
64) Jason works at home at least 2 days a week on a computer linked to his employer’s office. He
goes to work at odd hours and returns as he pleases. Which of the following terms accurately
represents Jason’s work arrangement?
A) autonomy
B) job sharing
C) flextime
D) telecommuting
E) task identity
65) You notice that members of the janitorial staff are low skilled and are suffering from
overroutinization of their work. They are most likely to be motivated by ________.
A) employee stock options
B) skill-based pay plan
C) job rotation
D) merit-based pay plans
E) gainsharing
66) You are looking at flextime and realize that it will probably work least well for which of the
following jobs?
A) insurance billers
B) custodial workers
C) receptionist
D) equipment maintenance staff
E) IT personnel
67) You should expect to earn more if you ________.
A) volunteer for overtime
B) increase your production
C) cross-train in other jobs
D) become a specialist
E) improve the quality of your work
68) As a manager, you like the plan because it ________.
A) reduces the stress experienced by the employees on the job
B) increases workforce flexibility
C) decreases social loafing
D) decreases payroll costs
E) decreases employee turnover
69) Which of the following may be a disadvantage of introducing this type of pay plan?
A) It increases supervisory work load.
B) It encourages social loafing.
C) It generally decreases the profitability of the organization.
D) It does not address the level of performance.
E) It tends to reduce employee job satisfaction.
70) The job characteristics model describes any job in terms of five core job dimensions and
these five dimensions are skill variety, task significance, autonomy, reward, and feedback.
71) The job characteristics model describes any job in terms of five core job dimensions. Task
significance is one of these five dimensions and it represents the degree to which a job requires
completion of a whole and identifiable piece of work.
72) The job characteristics model describes any job in terms of five core job dimensions.
Feedback is one of these five dimensions and it represents the degree to which carrying out work
activities generates direct and clear information about your own performance.
73) Job enlargement is also called cross-training.
74) Job rotation tends to increase productivity and decrease supervisory workload.