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Indicate whether the statement is true or false.
1. In the United States, most faith-based businesses incorporate Christian beliefs into their day-to–day management
practices.
a.
True
b.
False
2. The Planning Tool for Resource Integration, Synchronization and Management (PRISM) program prevents the
National Security Agency (NSA) from collecting information that can help the agency track foreign agents.
a.
True
b.
False
3. Individual incentive systems are most likely to be used in cases where performance can only be assessed subjectively.
a.
True
b.
False
4. Job rotation involves increasing the number of tasks that a worker performs in a particular job.
a.
True
b.
False
5. In the context of HR systems in Muslim societies, sharia does not allow stoning to death as a punishment for fornication
and adultery.
a.
True
b.
False
6. Employee training should emphasize vigilance for Internet scams, as well as simple security measures such as locking
all devices and keeping passwords secret.
a.
True
b.
False
7. In the context of incentive plans, a stock option plan is typically offered to all the employees of a firm rather than just
the executives.
a.
True
b.
False
8. Values based on the Qur’an are the most important part of Muslim human resource management systems.
a.
True
b.
False
9. Performance feedback should focus exclusively on effective performance.
a.
True
b.
False
10. The Planning Tool for Resource Integration, Synchronization and Management (PRISM) program does not allow the
National Security Agency to access information about American citizens under any circumstance.
a.
True
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b.
False
Indicate the answer choice that best completes the statement or answers the question.
11. Which of the following statements is true of firm-level performance?
a.
It determines a firm’s stock price.
b.
There is strong evidence to support the idea that improved individual-level performance translates into
improved firm-level performance.
c.
It is exclusively used to indicate the chances of a firm’s short-term survival.
d.
The most basic level of performance in any firm is that of the firm itself, and this is the level that most people
find easiest to conceptualize.
12. Which of the following is awarded to employees on the basis of the relative value of their contributions to their
organization?
a.
A stock option
b.
Merit pay
c.
Base pay
d.
A sales commission
13. Which of the following is an arrangement in which a group is given responsibility for designing the work system to be
used in performing an interrelated set of jobs?
a.
Groupshift
b.
Groupthink
c.
A home work program
d.
A work team
14. Unlike stock-option plans, stock-purchase plans:
a.
are typically offered to the executives of a firm.
b.
are typically offered to all the employees of a firm.
c.
lack effectiveness as they are useful only so long as the price of the stock is rising.
d.
do not require employees to remain with a company for a specified period of time to be entitled to the stock.
15. The typical form of the employee stock ownership plan (ESOP) involves a company:
a.
offering restricted stock plans to all its employees, with the aim of retaining these employees rather than
rewarding their individual performance.
b.
taking out a loan, which is then used to buy a portion of the company’s stock in the open market, with the
purpose of gradually giving employees a major stake in the ownership of the company.
c.
offering shares of stock to its employees only if they remain with the company for a specified period of time.
d.
providing its employees with an option to buy its stock in the future at a predetermined fixed price.
16. James, an employee at a hospital, has different duties for each day of the week. On Mondays, he reviews and files
patient charts. On Tuesdays and Thursdays, he collects lab specimens from patients. On Wednesdays, he enters lab results
into the computer database. On Fridays, he is in charge of paperwork. This scenario most likely exemplifies a
motivational approach to redesign of work called _____.
a.
onboarding
b.
employee offshoring
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c.
job outsourcing
d.
job rotation
17. In the context of work teams, if work is designed to be done by teams, then _____.
a.
there is less likelihood of shirking
b.
it becomes easy to motivate employees who exert exceptional effort
c.
all rewards must be based on team performance
d.
it becomes easy to reward individuals in true teamwork settings
18. Compensation plans that formally base at least some meaningful portion of compensation on the relative value of an
employee’s contributions to the organization are called _____.
a.
fixed incentive plans
b.
merit-pay plans
c.
stock-option plans
d.
stock-purchase plans
19. Which of the following statements is true of enhancing organizational performance?
a.
Performance appraisal and performance management interventions have been proven to improve firm-level
performance drastically.
b.
The most basic level of performance is at the team level.
c.
Performance in any organization exists at multiple levels.
d.
There is strong evidence to support the idea that improving individual-level performance will directly lead to
improvements in firm-level performance.
20. Mechateron Inc., a product manufacturing company, pays its employees $1 for every 10 fiberglass pipes they weld. In
this scenario, which of the following performance-based reward systems is Mechateron Inc. most likely using?
a.
A fixed incentive system
b.
A piece-rate system
c.
Profit sharing
d.
Gainsharing
21. Which of the following is a critical component of a behavior-modification plan?
a.
Providing employees with easy and unspecific goals
b.
Making sure that desirable conduct is never punished and that undesirable conduct is never rewarded
c.
Making sure that behavior is never reinforced using the continuous schedule of reinforcement
d.
Ensuring that punishment is not used to eliminate undesirable behavior
22. Which of the following is the most basic form of incentive compensation?
a.
Merit pay
b.
A sales commission
c.
Profit sharing
d.
A stock-option plan
23. In the context of cybersecurity, which of the following statements is true of Planning Tool for Resource Integration,
Synchronization and Management (PRISM)?
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a.
It can intentionally access information about American citizens.
b.
It can access information about American citizens when information is collected incidentally as part of a
sweep of information about a foreign operative.
c.
It helps the secretary of homeland security facilitate national efforts to protect sensitive information from
cyberthreats.
d.
It is a tool used to ensure good cyberhygiene in terms of computer-usage policies.
24. Home work programs include arrangements that are often referred to as _____.
a.
housing industries
b.
chartered businesses
c.
cottage industries
d.
regulatory businesses
25. Which of the following is an alternative to job specialization that takes into account the work system and employee
preferences?
a.
The job enlargement approach
b.
Job shadowing
c.
The job characteristics approach
d.
Employee outsourcing
26. Heter and Co., a multinational firm, invited groups of employees to suggest strategies for reducing cost. The firm
implemented one of the strategies suggested by a group and made huge gains. If the firm uses the Scanlon plan to
distribute the gains, the firm is most likely to:
a.
distribute the majority of the total gain to its executives.
b.
distribute about one-third of the total cost savings among its employees.
c.
distribute the cost savings to the entire organization.
d.
distribute the total gain equally and exclusively among all the members of the group that came up with the
strategy.
27. Which of the following is an advantage of faith-based businesses?
a.
They tend to provide reasonable compensation and benefits packages for their employees.
b.
They have high sales because they are open 7 days a week.
c.
They offer benefit packages that extend coverage to the same-sex partners of their employees.
d.
They tend to be publicly owned and have high business growth.
28. The employees of Starknoah Inc. are required to work 40 hours per week and, typically, 5 days a week. However, the
employees have the flexibility to choose their starting and ending times for work each day. The only constraint in this
arrangement is that all the employees are required to be at work from 11 a.m. to 3 p.m. In this scenario, which of the
following alternative work arrangements is Starknoah Inc. using?
a.
Telecommuting
b.
Freelancing
c.
Flexible work hour plans
d.
Part-time work plans
29. In almost every organization offering flexible work hour plans, the time of the day during which every employee must
be at work is called _____.
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a.
down time
b.
core time
c.
flextime
d.
overtime
30. Which of the following is an alternative work site arrangement in which employees may do almost all of their work at
home and may receive assignments electronically?
a.
A flexible work hour plan
b.
Flextime
c.
A compressed workweek
d.
Telecommuting
31. The arrangements in which an employee works the required number of hours, typically 40, but does so in fewer than 5
days are called _____.
a.
flexible work hour plans
b.
part-time work programs
c.
freelancing work programs
d.
compressed workweeks
32. A job with high skill variety, task identity, task significance, autonomy, and feedback most likely leads to high _____.
a.
turnover
b.
motivation
c.
ethnocentrism
d.
xenophobia
33. Identify a true statement about faith-based businesses.
a.
They tend to be publicly owned.
b.
They offer benefit packages that extend coverage to same-sex partners of their employees.
c.
They provide meagre compensation to their employees.
d.
They tend to be closed on Sunday.
34. In the context of performance-based rewards, the most general form of a merit-pay plan is to:
a.
contribute some portion of the company’s profits to a profit-sharing pool.
b.
share the cost savings from productivity improvements with employees.
c.
provide annual salary increases to employees based on the relative value of their contributions to their
organization.
d.
reward the individual performance of employees on a real-time basis rather than by increasing their base salary
at the end of a fiscal year.
35. Which of the following is a group-based incentive system?
a.
A knowledge-based pay plan
b.
A skill-based pay plan
c.
A stock-purchase plan
d.
A piece-rate incentive plan
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36. Which of the following statements is true of Muslim HRM systems?
a.
They are based on the Qur’an and therefore allow favoritism and nepotism in all aspects of decision-making.
b.
They are completely different from HR systems in Western companies in terms of the employee values they
promote.
c.
They consider employee layoffs and downsizing as the first resort to maintaining business survival.
d.
They give importance to maintaining due process when dealing with employee grievances.
37. Which of the following is a difference between gainsharing and profit-sharing incentive systems?
a.
Gainsharing is a group incentive system, whereas profit sharing is an individual incentive system.
b.
Gainsharing involves distributing savings among all the employees in a company, whereas profit sharing
involves distributing savings among the members of a specific team.
c.
Gainsharing involves sharing cost savings from productivity improvements with employees, whereas profit
sharing involves distributing a portion of a company’s gains to all employees.
d.
Gainsharing is independent of a team’s performance, whereas profit sharing is specific to the contributions of a
work group.
38. Which of the following is a difference between the job characteristics approach and job specialization?
a.
Job specialization considers task identity and task significance as core dimensions of job design, whereas the
job characteristics approach does not.
b.
The job characteristics approach takes into account the work system and employee preferences, whereas job
specialization does not.
c.
The job characteristics approach has been proven to increase turnover, whereas job specialization has been
proven to decrease turnover.
d.
Job specialization has been proven to increase work quality, whereas the job characteristics approach has been
proven to decrease work quality.
39. Which of the following was developed to increase the total number of tasks workers perform based on the assumption
that doing the same basic task over and over is the primary cause of worker dissatisfaction?
a.
Job enlargement
b.
Job rotation
c.
Job shadowing
d.
Employee offshoring
40. Who among the following managers is most likely to be effective at providing performance feedback?
a.
Meena, who focuses exclusively on the negative aspects of the performance of her subordinates
b.
Daniel, who focuses on providing developmental feedback targeted at his subordinates’ behavior
c.
Emily, who focuses exclusively on the effective performance of her employees
d.
Farhan, who focuses on each employee’s character rather than on the employee’s work quality
41. Under which of the following plans does an organization pay an employee a certain amount of money for every unit
he or she produces?
a.
A piece-rate incentive plan
b.
The merit-pay plan
c.
The Scanlon plan
d.
A gainsharing plan
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42. In the context of the job characteristics approach, feedback is the:
a.
degree to which a worker is selected for the same job repeatedly.
b.
perceived importance of a task.
c.
extent to which a worker knows how well a job is being performed.
d.
extent to which a worker does a complete or identifiable portion of a total job.
43. Which of the following statements is true of the stock-purchase plans offered by a company?
a.
It is offered only to the senior managers and the top executives of the company.
b.
It is used more as a performance incentive than as a retention tool.
c.
It is an individual incentive system.
d.
It is applicable to employees only if they remain with the company for a specified period of time.
44. In the context of evaluating performance-enhancement programs, which of the following is an explicit financial
indicator?
a.
Return on investment
b.
General labor cost
c.
Turnover rate
d.
Accident rate
45. The management of Jeremynt Inc., a public relations firm, gives each of its teams the responsibility of increasing their
productivity through measures developed by the team members and approved by the respective team managers. The
company then measures the team-level productivity, and the cost savings resulting from the improvements in productivity
are split among its employees. In this scenario, Jeremynt Inc. is most likely using a group incentive system called _____.
a.
profit sharing
b.
a fixed incentive plan
c.
a sales commission
d.
gainsharing
46. Which of the following is a team- and group-based incentive system that is designed to split the cost savings from
productivity improvements with employees?
a.
Gainsharing
b.
Profit sharing
c.
A fixed incentive system
d.
A sales commission
47. Which of the following statements is true of stock-based incentive programs?
a.
They are more typically used with hourly employees rather than with executive employees.
b.
They result in a line-of-sight problem among employees.
c.
They are individual incentive programs.
d.
They have special problems because employees’ incentives are tied to the price of their organization’s stock.
48. Identify a true statement about compressed workweeks.
a.
They require employees to work at least 5 days a week.
b.
They exempt employees from working the required number of hours a week.
c.
They may affect some social aspects of a job.
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d.
They are related to decreased accidents in all settings.
49. Identify a true statement about performance feedback.
a.
It should be provided annually rather than on a daily or weekly basis.
b.
It should follow a nondevelopmental approach.
c.
It should involve one-way communication, with the manager as the initiator.
d.
It should focus on both effective and ineffective performance.
50. Romero Inc. manufactures paper products. One set of workers at Romero Inc. has the full-time job of sorting scrap as
it enters the manufacturing facility. The quality of sorting is regularly monitored by checking the quality of the paper
products, and necessary instructions are given to the scrap sorters. The scrap sorters are also provided with information
regarding the quality of their work. In the context of the core dimensions of the job characteristics approach, Romero Inc.
stresses on _____.
a.
skill variety
b.
task identity
c.
autonomy
d.
feedback
51. In the context of evaluating performance-enhancement programs, which of the following is a human resource
indicator?
a.
Stock price
b.
Return on investment
c.
General labor cost
d.
Market share
52. Goal theory suggests that:
a.
goals should be qualifiable rather than quantifiable.
b.
impossible goals are the most effective in motivating employees.
c.
employees are most motivated by vague and undefined goals.
d.
employees will exert the greatest effort when they have specific, difficult goals to work toward.
53. Which of the following arrangements allows organizations to use the services of individuals who may not be able to
work at a given site?
a.
A compressed workweek
b.
Telecommuting
c.
Job shadowing
d.
A flexible work hour plan
54. Rodrigo, the owner of a hardware store, pays incentives to the members of his sales team based on their ability to sell
products to industrial buyers. Each salesperson receives 20 percent of the amount earned from his or her total sales. In this
scenario, which of the following incentive systems is Rodrigo most likely using to reward his employees?
a.
Gainsharing
b.
Profit sharing
c.
A piece-rate reward plan
d.
A sales commission
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55. Which of the following statements is true of the productivity measurement and evaluation system (ProMES)?
a.
It is based on a model of motivation similar to expectancy theory.
b.
It is exclusively aimed at improving individual-level productivity.
c.
It relies on intrinsic rewards, such as job satisfaction, employee contentment, and a sense of meaningfulness,
to motivate employees.
d.
It posits that the relationship between performance and attaining outcomes is irrelevant in productivity
measurement and evaluation.
56. Identify a true statement about the productivity measurement and evaluation system (ProMES).
a.
It incorporates ideas from goal setting to feedback and includes incentives for improvement.
b.
It posits that the relationship between performance and attaining outcomes is irrelevant in productivity
measurement and evaluation.
c.
It focuses exclusively on individual-level performance.
d.
It relies on intrinsic rewards to motivate employees.
57. Which of the following statements is true of skill- and knowledge-based pay systems?
a.
They reward employees for increased performance.
b.
They reward employees for increasing their capacity to perform well in the future.
c.
They are based on an organization’s present needs.
d.
They are traditional group incentive systems that focus on short-term goals.
58. Maria, a senior accountant in an insurance company, has a 2-year-old son who needs her frequent attention. In order to
spend more time with him, she takes her office work home with her and completes it on her personal computer. She only
returns to office for important meetings or to collect more work. In this scenario, which of the following alternative work
arrangements is Maria using?
a.
A compressed workweek
b.
A flexible work hour plan
c.
An electronic cottage
d.
A self-directed work team
59. Which of the following statements is true of performance-based rewards?
a.
The most general form of a merit-pay plan is to reward the individual performance of employees on a real-
time basis.
b.
Performance appraisal has the most meaning to employees if it is subsequently connected with a reward such
as a salary increase.
c.
Incentive compensation systems are among the most recent forms of performance-based rewards.
d.
Incentive compensation systems work best in situations that involve ambiguous performance indicators.
60. In the context of alternative work schedules, which of the following are plans in which employees usually must work
40 hours per week and, typically, 5 days a week in the office but in which they have control over the starting and ending
times for work on each day?
a.
Flexible work hour plans
b.
Compressed workweeks
c.
Home work programs
d.
Part-time work plans
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61. What is the productivity measurement and evaluation system (ProMES)?
62. Explain the significance of performance feedback in performance management.
63. Explain the concept of alternative work sites.
64. Explain privacy and cybersecurity in the 21st century.
65. Briefly explain the HR systems in Muslim countries.
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52. d
53. b
54. d
55. a
56. a
57. b
58. c
59. b
60. a
61. Answers will vary. The ProMES incorporates ideas from goal setting to feedback, and it includes incentives for
improvement. More important, it includes a method for tying performance at the individual and group levels to
organizational productivity. Specifically, team members work with outside experts to literally map the relationship
between a given outcome and productivity. The other important part of the ProMES process involves the various
“connections” among the components. The procedure is based on a model of motivation that is similar to the expectancy
model. Thus, these connections are concerned with the relationship between effort and performance and between
performance and attaining outcomes, as well as the link between obtaining outcomes and satisfying needs. The model and
the technique are also based on the assumption that individuals and groups have a pool of resources (and effort) that they
can assign to different activities, and the technique is designed to help them understand which activities they should focus
on to increase firm productivity. The system has been widely adopted (especially in Europe) and has been quite
successful, and it is one of the few performance-enhancement techniques that focuses on performance above the level of
the individual. See 14-4: Performance Management and Feedback
62. Answers will vary. Performance feedback plays an important role in both behavior modification and goal setting, and
it is also seen as a useful tool in its own right for performance management. But many managers do a poor job in this area,
in part because they do not understand how to provide feedback properly and in part because they do not enjoy it. Almost
by definition, performance appraisal in many organizations tends to focus on negatives; as a result, managers may have a
tendency to avoid giving feedback because they know an employee who hears negative feedback may be angry, hurt,
discouraged, or argumentative. But clearly, if employees are not told about their shortcomings, they have no reason to try
to improve and have no guidance concerning how to improve. Therefore, it is critical that a rater provide feedback, so he
or she must understand how it might be done more effectively. See 14-4: Performance Management and Feedback
63. Answers will vary. In addition to employees working on alternative schedules, employees performing their work at a
location other than the place of business, most likely at home, is a growing trend. Home work and telecommuting are two
popular variations on this theme. Home work programs include arrangements that are often referred to as cottage
industries. In the earliest days of the Industrial Revolution, before many factories were built, employees would take parts
back home to their cottages, manufacture them, and then return them to a central point where they could be assembled.
Similar types of cottage industries still exist for the manufacturing of small and not very complex items. It is more
common, however, to operate in what can be called an electronic cottage. Employees take office work home with them
and complete it on home computers. They can then return to the office to collect more work. Telecommuting is simply the
logical extension of the electronic cottage. Under this arrangement, employees may do almost all of their work at home
and may even receive assignments electronically. This arrangement provides employees with the ultimate in flexibility
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