Buad309 Chapter 8 Exam Questions

________ is an extrinsic means of motivation.
A) Recognition
B) Autonomy
C) Responsibility
D) Flexibility
E) Salary

salary

Job design is defined as the ________.
A) degree to which the job rewards competence
B) way the elements in a job are organized
C) degree to which the job contributes to profit margins
D) degree of decision-making power with the immediate superiors
E) way the job is evaluated in terms of its relative worth to other jobs

way the elements in a job are organized

With reference to the job characteristics model, which of the following defines skill variety?
A) the degree to which a job requires completion of a whole and identifiable piece of work
B) the degree to which work activities generate direct and clear information about performance
C) the degree to which a job provides the worker freedom in scheduling and procedure
D) the degree to which a job has an impact on the lives or work of other people
E) the degree to which a job requires a variety of different activities tapping different abilities

E) The job characteristics model ( JCM) describes jobs in terms of five core job dimensions: skill variety, the degree to which a job requires a variety of different activities; task identity, the degree to which a job requires completion of a whole and identifiable piece of work; task significance, the degree to which a job has an impact on the lives or work of other people; autonomy, the degree to which a job provides the worker freedom in scheduling; and feedback, the degree to which carrying out work activities generates direct and clear information about performance.

With reference to the job characteristics model, which of the following defines task identity?
A) the degree to which a job requires completion of a whole and identifiable piece of work
B) the degree to which work activities generate direct and clear information about performance
C) the degree to which a job provides the worker freedom in scheduling and procedure
D) the degree to which a job has an impact on the lives or work of other people
E) the degree to which a job requires a variety of different activities

A) The job characteristics model ( JCM) describes jobs in terms of five core job dimensions: skill variety, the degree to which a job requires a variety of different activities; task identity, the degree to which a job requires completion of a whole and identifiable piece of work; task significance, the degree to which a job has an impact on the lives or work of other people; autonomy, the degree to which a job provides the worker freedom in scheduling; and feedback, the degree to which carrying out work activities generates direct and clear information about performance.

Adam Sears is an assembly line employee with Swenson Motors. Though Adam is popular among his supervisors and colleagues, Adam experiences low morale and lack of motivation. He feels frustrated that his job is restricted to fixing nuts and bolts on the car parts. He fears that he has no chances of advancing in his career as he cannot completely assemble a car. Which of the following is true with regard to Adam?
A) Adam’s job has high task complexity.
B) Adam’s job has a high span of control.
C) Adam’s job has low role definition.
D) Adam’s job has low task identity.
E) Adam’s job has high task significance.

D) Adam’s job has low task identity. This means that the degree to which the job requires the completion of a whole and identifiable piece of work is low.

According to the job characteristics model, task significance is the degree to which ________.
A) a job requires completion of a whole and identifiable piece of work
B) a job generates direct and clear information about performance
C) a job provides the worker freedom in scheduling work and determining its procedure
D) a job bears an impact on the lives or work of other people
E) a job requires a variety of different activities

D) Task significance is the degree to which a job has an impact on the lives or work of other people.

Samantha Barnes is an emergency medical technician. Recently, during an emergency call, she was able to resuscitate a man who had a cardiac arrest. Subsequently, she spent some time calming the 12-year-old daughter of the patient and looked after her till the rest of the patient’s family arrived at the hospital. Based on this description, it can be concluded that Samantha’s job is high in ________.
A) task identity
B) feedback
C) extrinsic rewards
D) task significance
E) job rotation

D) Although Samantha’s job has many job characteristics, the description provided best describes task significance. Task significance refers to the degree to which a job has an impact on the lives of other people.

According to the job characteristics model, autonomy is defined as the degree to which ________.
A) a job requires completion of a whole and identifiable piece of work
B) a job generates direct and clear information about performance
C) a job provides the worker freedom, independence, and discretion
D) a job has an impact on the lives or work of other people
E) a job requires a variety of different activities

C) Autonomy is the degree to which a job provides the worker freedom, independence, and discretion in scheduling work and determining the procedures in carrying it out.

According to the job characteristics model, ________ indicates the degree to which carrying out work activities generates direct and clear information about your own performance.
A) task significance
B) autonomy
C) feedback
D) task identity
E) skill variety

feedback

Which of the following series of dimensions of the job characteristics model (JCM) combine to create meaningful work?
A) autonomy, task identity, and feedback
B) skill variety, autonomy, and task significance
C) skill variety, autonomy, and feedback
D) feedback, task identity, and task significance
E) skill variety, task identity, and task significance

E) The first three dimensions in JCM, skill variety, task identity, and task significance, combine to create meaningful work that the incumbent will view as important, valuable, and worthwhile.

The core dimensions of the job characteristics model can be combined into a single predictive index called ________.
A) extrinsic motivation score
B) personal outcome score
C) job diagnostic score
D) motivating potential score
E) potential development score

D) The core dimensions of the job characteristics model can be combined into a single predictive index, called the motivating potential score.

Which of the following statements is true of the job characteristics model?
A) The operation of the model is universal and unaffected by cultural factors.
B) The operation of the model is relatively individualistic in nature.
C) The operation of the model requires employees to have similar skill sets.
D) The operation of the model cannot be quantitatively measured.
E) The operation of the model fulfils only extrinsic motivational needs.

B) The job characteristics model is relatively individualistic in nature as it considers the relationship between the employee and his or her work. This suggests that job enrichment strategies may not have the same effects in collectivist ic cultures as in individualistic cultures.

Which of the following statements is true regarding job rotation?
A) It decreases the flexibility with which an organization can adapt to a change.
B) It decreases employee motivation.
C) It decreases productivity in the short-run.
D) It decreases supervisory workload.
E) It decreases the flexibility in scheduling work.

C) Job rotation increases the flexibility with which an organization can adapt to a change. It reduces boredom and increases motivation. Productivity tends to reduce when a worker moves into a new position and supervisory workload tends to increase because supervisors may have to spend more time answering questions and monitoring the work of recently rotated employees.

The periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level is defined as ________.
A) job enlargement
B) job analysis
C) job rotation
D) job sharing
E) job enrichment

C) The periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level is called job rotation.

A prerequisite condition for job rotation is the ________.
A) presence of high level of autonomy among workers
B) presence of high need for affiliation among workers
C) presence of employees with similar skill sets and requirements
D) presence of alternative work arrangements for employees to avail
E) presence of employee involvement programs

C) The periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level is called job rotation.

Managers at Flavors, a restaurant chain, train their employees such that in the absence of employees, someone trained in the same skills can step in and do the job equally well. Thus, many modules in training are extensive as they provide employees with details of the skill sets required for different jobs. In practice, this lengthy training program does help the company as a well-trained and flexible workforce is at their disposal at all times. The managers at Flavors use ________.
A) job rotation
B) vertical enhancement
C) telecommuting
D) job sharing
E) flextime

A) This is an example of job rotation, or the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level .

One of the methods of job enrichment is to expand jobs vertically. This method involves modifying the ________ dimension of the job.
A) task significance
B) autonomy
C) feedback
D) task identity
E) skill variety

autonomy -Expanding jobs vertically involves gives employees responsibilities and control formerly reserved for management.Thus it modifies the autonomy dimension of the job.

Job enrichment is the process of ________.
A) periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level
B) expansion of jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work
C) redistribution of power within the organization through work councils and board representations
D) distribution of a significant degree of power between subordinates and supervisors
E) evaluation of an employee wherein subordinates, peers, and managers provide comprehensive feedback

B) Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.

The job characteristics model describes five dimensions of a job. A job can be enriched by modifying one or more of these five dimensions. Which of the following methods of job enrichment involves modifying skill variety and task identity dimensions of a job?
A) combining tasks
B) forming natural work units
C) establishing client relationships
D) expanding jobs vertically
E) opening feedback channels

combining tasks -puts fractionalized tasks back together to form a new and larger module of work. Thus, it involves modifying skill variety and task identity dimensions of a job.

Beyond redesigning the nature of the work itself and involving employees in decisions, another approach to making the work environment more motivating is to alter work arrangements to meet employee needs. Which of the following is designed to give an employee greater control of their schedule?
A) flextime
B) gainsharing
C) job rotation
D) job enlargement
E) job enrichment

flextime -employees can schedule their work hours to align with personal demands, reducing tardiness and absences, and they can work when they are most productive

Employees who use the flextime option have to ________.
A) work from the office for three days of the week
B) work from home on a relatively permanent basis
C) work from the office based on a schedule fixed with the compatible partner they function with
D) work from the office during the common core period and put in the extra hours as per their convenience
E) work from home only two days a week

D)employees can schedule their work hours to align with personal demands, reducing tardiness and absences, and they can work when they are most productive. Employees must work a specific number of hours per week but are free to vary their hours of work within certain limits. All employees have to be at the office for the common core period and flextime employees enjoy flexibility as to when they put in the extra hours.

An arrangement that allows two or more individuals to split a traditional 40-hour-a-week job is called ________.
A) flextime
B) job sharing
C) gainsharing
D) telecommuting
E) job rotation

job sharing -allows two or more individuals to split a traditional 40-hour-a-week job. One might perform the job from 8:00 A.M. to noon and the other from 1:00 P.M. to 5:00 P.M. or the two could work full but alternate days.

Janice and Shane are both senior software analysts. They have worked together on projects for six years and get along very well. Janice is anticipating the arrival of her first child and will not be able to work on a full-time basis in the future. Shane is also contemplating opening his own business as a home media installation consultant and does not want to continue to work full time. They both need some income. Which of the following alternative job structures would be best for Janice and Shane?
A) job enlargement
B) telecommuting
C) job rotation
D) job sharing
E) job enrichment

job sharing -Since Janice and Shane are looking to work for fewer than the normal work hours required, the best option for them would be to participate in job sharing, which allows two or more individuals to split a traditional 40-hour-a-week job. The other structure options are still 40-hour-a-week commitments.

Which of the following statements is true regarding job sharing?
A) It expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.
B) It is also called cross-training.
C) It allows two or more individuals to split a traditional 40-hour-a-week job.
D) It involves periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level.
E) Job sharing is a method of job enrichment.

C) Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. Job sharing is not a method of job enrichment, it is an alternative work arrangement. Job rotation involves periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level and it is also called cross-training. Job sharing allows two or more individuals to split a traditional 40-hour-a-week job.

Which of the following alternative work arrangements enables the organization to draw on the talents of more than one individual in a given job?
A) telecommuting
B) flextime
C) gainsharing
D) profit-sharing
E) job sharing

job sharing -allows an organization to draw on the talents of more than one individual in a given job. It is an opportunity to get two heads but pay for only one.

Which of the following is the major drawback of job sharing from management’s perspective?
A) increase in supervisory workload
B) increased costs for providing supporting infrastructure (such as desk and computer) to two employees instead of one
C) difficulty in finding compatible partners
D) difficulty in designing the reward structure
E) difficulty in coordinating schedules

C) The major drawback of job sharing from management’s perspective is finding compatible pairs of employees who can successfully coordinate the intricacies of one job.

The option of working at home at least 2 days a week on a computer linked to the employer’s office is termed as ________.
A) work sharing
B) social loafing
C) offshoring
D) telecommuting

Telecommuting -refers to an alternative work arrangement that enables the employee to work at home at least 2 days a week on a computer linked to the employer’s office.

Amanda McPherson is a working mother with one child and an ailing parent to look after in addition to her duties as a wife and job responsibilities as a legal consultant. Since Amanda always felt pressed for time, the news that the consultancy she worked for would allow her to work from home two days a week came as a great relief to her. She now feels more motivated to work for the company as the company has taken into account her personal and professional needs. The company has allowed Amanda to use the option of ________.
A) gainsharing
B) offshoring
C) telecommuting
D) homeshoring
E) work sharing

Telecommuting -refers to an alternative work arrangement that enables the employee to work at home at least 2 days a week on a computer linked to the employer’s office.

An MNC in a developing country is operating amidst severe space constraints, and the infrastructural conditions in the city are bad, causing a lot of lost man-hours. Anticipating rapid growth in the months to come, the company has created a recruitment plan based on its revenue expectations. However, it wants to manage this expansion without undertaking an expensive physical expansion. Which of the following could be a solution for the company?
A) profit-sharing
B) groupshifting
C) telecommuting
D) gainsharing
E) codetermining

telecommuting -refers to an alternative work arrangement that enables the employee to work at home at least 2 days a week on a computer linked to the employer’s office.

For management, the major downside of telecommuting is ________.
A) decreased productivity
B) increased turnover
C) reduced morale
D) difficulty in scheduling work
E) less direct supervision of employees

E) The potential pluses of telecommuting for management include a larger labor pool from which to select, higher productivity, less turnover, improved morale, and reduced office space costs. The major downside for management is less direct supervision of employees.

Telecommuting is an option that suits professionals like ________.
A) trainers
B) nurses
C) analysts
D) receptionists
E) sales representatives

C) Three categories of professionals are most suitable for the option of telecommuting. These are: routine information-handling tasks, mobile activities, and professional and other knowledge-related tasks. Writers, attorneys, analysts, and employees who spend the majority of their time on computers or the telephone are natural candidates.

Which of the following factors represents the influence of social aspects of the work environment on motivation?
A) task identity
B) autonomy
C) feedback
D) interdependence
E) skill variety

D) Some social characteristics that improve job performance include interdependence, social support, and interactions with other people outside work. Social interactions are strongly related to positive moods and give employees more opportunities to clarify their work role and how well they are performing. Social support gives employees greater opportunities to obtain assistance with their work.

The job characteristic model fails to consider the role ________ plays in employee motivation.
A) job design
B) meaningfulness
C) social support
D) growth need
E) responsibility

social support -The job characteristics model is relatively individualistic in nature as it considers only the relationship between the employee and his or her work and does not consider social aspects. Policies such as job rotation, worker empowerment, and employee participation have positive effects on productivity, at least partially because they encourage more communication and a positive social environment. Some social characteristics that improve job performance include interdependence, social support, and interactions with other people outside work. Social interactions are strongly related to positive moods and give employees more opportunities to clarify their work role and how well they are performing. Social support gives employees greater opportunities to obtain assistance with their work.

________ is a participative process that uses employees’ input to increase their commitment to the organization’s success.
A) Job enrichment
B) Employee involvement
C) Vertical integration
D) Groupshifting
E) Job sharing

employee involvement -The logic is that if workers are engaged in decisions that affect them and have increased autonomy, they will become more motivated, committed, productive, and satisfied with their jobs.

To be effective, an employee involvement program must ________.
A) rightsize the company by eliminating obsolete positions
B) incorporate the unique demands of different cultures
C) mandatorily establish work councils in the company
D) eliminate the influence of employees in managerial decision making
E) implement autocratic ways of handling its employees

B) Employee involvement programs differ among countries. Studies have shown how an employee involvement program that was successful in one cultural context backfired among employees of another culture. Thus, to be successful, an employee involvement program must incorporate the unique demands of different cultures.

Which of the following is the distinct characteristic of participative management programs?
A) joint decision making
B) representative participation
C) performance norms
D) establishment of work councils
E) autocratic decision making

A) The distinct characteristic common to all participative management programs is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors.

Participative management is a method of management where ________.
A) representatives of workers form work councils and these councils must be consulted when management makes decisions about employees
B) few representatives of workers sit on a company’s board of directors
C) subordinates share a significant degree of decision-making power with their immediate superiors
D) low-level workers meet occasionally with the CEO to discuss problems within their department
E) low-level workers are responsible for making corporate policy decisions

C) Participative management is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors.

The two major forms of employee involvement are participative management and ________.
A) organizational restructuring
B) job sharing
C) representative participation
D) job rotation
E) job enlargement

C) The two major forms of employee involvement are participative management and representative participation.

Representative participation is characterized by ________.
A) joint decision making by employees and management
B) democratic leadership behaviors
C) open and honest two-way communication
D) a significant positive impact on employee morale and performance
E) compliance with the legal need to redistribute power within organizations

E) Representative participation is a widely legislated form of employee involvement aimed at redistributing power within an organization and putting labor on a more equal footing with the interests of management and stockholders. This is done by letting workers be represented by a small group of employees who actually participate.

The two most common forms of representative participation are ________ and board representatives.
A) quality circles
B) work councils
C) employee unions
D) task teams
E) cross-functional teams

B) The two most common forms of representative participation are work councils and board representatives.

The main drawback of representative participation as an employee involvement measure is that ________.
A) it is a time-consuming process
B) it is able to exert its impact only in the short run
C) it is primarily symbolic in its impact
D) it is consistent with the Theory Y view of motivation
E) it is likely to require a major change in organizational roles

C) The influence of representative participation on working employees seems to be minimal. Works councils are dominated by management and have little impact on employees or the organization. While participation might increase the motivation and satisfaction of employee representatives, there is little evidence this trickles down to the employees they represent. The greatest value of representative participation is symbolic. If one is interested in changing employee attitudes or in improving organizational performance, representative participation would be a poor choice.

Which of the following is Theory X consistent with?
A) the autocratic style of managing people
B) the principles of participative management
C) the vertical enhancement of jobs to enhance autonomy
D) the use of recognition and achievements to motivate employees
E) the reduced need of supervision and direction from managers

A) Theory Y is consistent with participative management and Theory X with the more traditional autocratic style of managing people.

Internal equity refers to the ________.
A) list of the knowledge, skills, and abilities required in a particular job
B) arrangement of the elements of different jobs in the organization
C) worth of the job to the organization
D) organization’s pay relative to pay elsewhere in its industry
E) framework of tasks, duties, and responsibilities that the job involves

C) Internal equity refers to the worth of the job to the organization. It is usually established through a technical process called job evaluation.

The external competitiveness of an organization’s pay relative to elsewhere in the industry is measured by its ________.
A) external benefit
B) external rotation
C) external costs
D) external equity
E) external liability

D) The external competitiveness of an organization’s pay relative to pay elsewhere in its industry is defined as external equity.

________ bases a portion of an employee’s pay on some individual and/or organizational measure of performance.
A) Guaranteed pay program
B) Variable-pay program
C) Flexible benefits program
D) Modular plans program
E) Base pay program

variable-pay program

The ________ pay plan has long been popular as a means of compensating production workers by paying a fixed sum for each unit of production completed.
A) competency-based
B) gainsharing
C) piece-rate
D) profit sharing
E) merit-based

C) The piece-rate pay plan has long been popular as a means of compensating production workers by paying a fixed sum for each unit of production completed. A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces.

Which of the following is an example of a piece-rate plan?
A) $20 for each hour of work
B) $2 for each unit produced
C) stock options at cheaper prices
D) straight commission plan
E) spot bonuses

B) The piece-rate pay plan is a means of compensating production workers by paying a fixed sum for each unit of production completed. Paying $2 for each unit produced represents a piece-rate pay plan.

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 an 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.

C) A merit-based pay plan pays for individual performance based on performance appraisal ratings. Unions typically resist merit pay plans. A pure piece-rate pay plan provides no base salary and pays the employee only for what he or she produces.

A ________ pay plan pays for individual performance based on performance appraisal ratings.
A) piece-rate
B) merit-based
C) employee stock ownership
D) profit sharing
E) gainsharing

merit-based

Daichi Inc. is a Japanese software development firm known for its high quality products. Recently, the company held its annual conference and awarded all those employees who were in the top five percent with substantial monetary rewards. Their performance was evaluated on the basis of target achievement, client feedback, and quality ratings. Employees whose performance had not changed drastically were given a minor raise and those who faired badly received no incentives. Many employees blamed the company of creating differences among employees because they felt that it would harm the company in the long run, but Daichi Inc. truly believes that to retain and motivate its best performers, a large incentive is a good step. Daichi Inc. is using a(n) ________ here.
A) piece-rate plan
B) employee stock ownership plan
C) modular plan
D) merit-based plan
E) flexible benefits plan

D) A merit-based pay plan pays for individual performance based on performance appraisal ratings. Daichi Inc. rewarded these employees on the basis of meritorious performance.

Which of the following represents a pay plan that rewards employees for recent performance rather than historical performance?
A) bonus
B) flexible benefits
C) modular plans
D) cafeteria plans
E) base salary

A) Bonuses are used in a pay plan that rewards employees for recent performance rather than historical performance.

What is an advantage of bonuses over 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.

E) The incentive effects of performance bonuses are generally higher than those of merit pay because, rather than paying for performance years ago (that was rolled into base pay), bonuses reward recent performance.

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

C) Skill-based pay -is a pay plan that sets pay levels on the basis of how many skills employees have or how many jobs they can do.

A ________ plan distributes compensation based on some established formula designed around revenue of the company.
A) piece-rate
B) merit-based
C) skill-based
D) profit-sharing
E) competency-based

D) A profit-sharing plan distributes compensation based on some established formula designed around a company’s profitability.

________ 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) Employee stock ownership plan
B) Gainsharing
C) Profit-sharing
D) Piece-rate pay plan
E) Merit-based pay plan

gainsharing -It is different from profit-sharing in that it ties rewards to productivity gains rather than profits. Employees in a gainsharing plan can receive incentive awards even when the organization isn’t profitable.

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.

A) Gainsharing 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. Because the benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole.

At Dortix, a manufacturing company, at the end of every quarter, the total production of each department is calculated, compared with the predetermined targets, and the rewards for each set of divisional employees is determined this way. Dortix uses a ________ plan to incentivize its employees.
A) profit-sharing
B) gainsharing
C) core-plus
D) modular
E) bonus

B) Gainsharing 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. Because the benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole.

Which of the following variable pay programs is free from dependence on company profits?
A) profit-sharing
B) job sharing
C) bonuses
D) employee stock ownership plans
E) gainsharing

gainsharing

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) modular
B) gainsharing
C) skill-based pay
D) flexible benefits
E) profit-sharing

gainsharing

At Esco Retail, all employees are constantly driven to work hard. The company places maximum emphasis on stocking high quality goods and providing high quality service to retain the edge they have in the retail industry. To promote organizational commitment further, employees are incentivized by enabling them to purchase company shares at below-market prices as a part of their benefits. This mode of providing incentives represents the use of ________.
A) flexible benefits plans
B) merit-based plans
C) modular plans
D) employee stock ownership plans
E) core-plus plans

D) Under the employee stock ownership plan, employees acquire stock often at below-market prices. Research on ESOPs indicates they increase employee satisfaction. But their impact on performance is less clear. ESOPs for top management can reduce unethical behavior

Which of the following statements is true regarding an employee stock ownership plan (ESOP)?
A) Under this plan, employees acquire company shares often at below-market prices.
B) There exists a strong correlation between ESOPs and employee performance.
C) The financial stake in the company is adequate to use ESOPs as an effective means to motivate employees.
D) ESOPs are effective because, like bonuses, they reward recent performance.
E) ESOPs are also called competency-based pay plans.

A) Under the employee stock ownership plan, employees acquire stock often at below-market prices. Research on ESOPs indicates they increase employee satisfaction. But their impact on performance is less clear. ESOPs for top management can reduce unethical behavior

For employee stock ownership plans to be effective in improving performance, they must ________.
A) be based solely on productivity like gainsharing plans
B) be implemented such that employees psychologically experience ownership
C) be determined on the basis of performance appraisals and recent performance
D) be planned such that they are unaffected by company profitability
E) be based on the market compensation philosophy

B) ESOPs have the potential to increase employee job satisfaction and work motivation, but employees need to psychologically experience ownership. That is, in addition to their financial stake in the company, they need to be kept regularly informed of the status of the business and have the opportunity to influence it in order to significantly improve the organization’s performance.

Individualized rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation are called ________.
A) variable pay programs
B) standardized benefits packages
C) employee recognition programs
D) employee involvement programs
E) flexible benefits plans

flexible benefits plans -individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation. Flexible benefits can accommodate differences in employee needs based on age, marital status, spouse’s benefit status, and number and age of dependents.

Which of the following statements is true regarding flexible benefits?
A) Flexible benefits are awarded through uniform packages to cover the requirements of a married couple with two children.
B) Flexible benefits are in accordance with the belief that employees have identical needs that must be rewarded identically.
C) Gainsharing and profit-sharing plans are two major types of flexible benefits.
D) Flexible benefits can be altered to meet employee needs based on age, marital status, and number and age of dependents.
E) Flexible benefits are given based on an employee’s skills, competence, and productivity.

D) Flexible benefits individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation. Flexible benefits can accommodate differences in employee needs based on age, marital status, spouse’s benefit status, and number and age of dependents.

________ are predesigned packages or modules of benefits, each of which meets the needs of a specific group of employees.
A) Modular plans
B) Employee stock ownership plans
C) Profit sharing plans
D) Merit-based plans

A) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Modular plans are predesigned packages or modules of benefits, each of which meets the needs of a specific group of employees

Core-plus plans consist of ________.
A) predesigned packages of benefits that an employee must accept as a whole
B) monetary benefits which are linked to one’s performance appraisals
C) fractions of a company’s profit margins determined on the basis of an established formula
D) pretax dollars up to the dollar amount offered in the plan that an employee sets apart to pay for particular benefits
E) essential benefits and a menu-like selection of other benefits that an employee can choose from

E) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Core-plus plans consist of a core of essential benefits and a menu-like selection of others from which employees can select. Typically, each employee is given benefit credits which allow the purchase of additional benefits that uniquely meet his or her needs.

Sally Peterson, who works as an entry-level editor, wants to go for dental reconstruction surgery and sent a query to her HR department asking for a list of preferred hospitals. The HR looked through her healthcare plan which provided only a minimum coverage for routine drugs and vision care. Consequently, the HR manager has recently informed her that if she wishes to carry on with the dental procedure, she will have to pay for it on her own. Which of the following healthcare plans should she avail to meet her needs?
A) a basic modular plan
B) a standardized benefits package
C) a core-plus plan
D) a fringe benefits plan
E) a 401k plan

C) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Core-plus plans consist of a core of essential benefits and a menu-like selection of others from which employees can select. Typically, each employee is given benefit credits which allow the purchase of additional benefits that uniquely meet his or her needs.

Flexible spending plans consist of ________.
A) a set of core of essential benefits and a menu-like selection of others from which employees can select
B) no base salary and pays the employee only for what he or she produces on the basis of a fixed sum for each unit of production completed
C) a fraction of a company’s profit margins determined on the basis of an established formula
D) pretax dollars up to the dollar amount offered in the plan that an employee sets apart to pay for particular benefits
E) modules of benefits, each of which meets the needs of a specific group of employees

D) The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Flexible spending plans allow employees to set aside pretax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as health care and dental

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

D) Important work rewards can be both intrinsic and extrinsic. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems.

Jack Holmes is a middle-aged, lower-level employee at an automobile service center. Though he is not paid very well, he loves his job. His supervisor speaks to him with respect and he is the favored candidate for mentoring new employees because on the vast experience he holds in the job. Based on this information, which of the following is most likely to be the reason Jack likes his job?
A) recognition
B) prospects of growth
C) salary
D) flextime
E) job sharing

recognition -Intrinsic rewards in the form of employee recognition programs are increasingly being recognized as important in job satisfaction and motivation. Jack’s attitude stems from the recognition he receives.

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) Centralized programs across multiple offices in different countries can hinder the process of employee recognition programs.
E) Employee stock option is a more powerful workplace motivator than recognition.

B) Employee recognition is an intrinsic reward. Employee recognition programs are inexpensive. Some research suggests financial incentives may be more motivating in the short term, but in the long run it’s nonfinancial incentives, and according to research, recognition is the most powerful workplace motivator. Critics argue that employee recognition programs are highly susceptible to political manipulation by management.

The job characteristics model describes any job in terms of five core job dimensions and these five dimensions are skill variety, task significance, recognition, reward, and feedback.

False – The job characteristics model describes any job in terms of five core job dimensions and these five dimensions are skill variety, task significance, autonomy, task identity, and feedback. Task identity is the degree to which a job requires completion of a whole and identifiable piece of work.

Task identity is defined as the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent.

False -Skill variety is the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent.

John Dunker is one of the best firefighters in his squad and he recently received an award for his outstanding performance

False -Task significance is the degree to which a job affects the lives or work of other people. Being an outstanding firefighter, John is likely to have saved the lives of many which would be a sign of high task significance.

Feedback is the degree to which carrying out work activities generates direct and clear information about one’s own performance.

True

Jobs with high autonomy give incumbents a feeling of personal responsibility for the results.

True

Job enrichment improves employees’ skills by periodically shifting an employee from one task to another with similar skill requirements at the same organizational level.

False -Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. Job rotation is the the periodic shifting of an employee from one task to another.

To enhance the amount of autonomy employees enjoy, a company must provide its employees with tasks combined into natural work units.

False -Expanding jobs vertically is the strategy that is used to enhance autonomy of employees as it gives employees responsibilities and control formerly reserved for management.

A flextime arrangement requires all employees to be at their jobs during the common core period.

True

The major advantage of flextime is that it can be used for all categories of jobs.

False -Flextime’s major drawback is that it’s not applicable to every job or every worker. It works well with clerical tasks for which an employee’s interaction with people outside his or her department is limited. It is not a viable option for receptionists, sales personnel in retail stores, or people whose service jobs require them to be at their workstations at predetermined times.

The term "virtual office" describes working from home on a relatively permanent basis.

True

Participative management is characterized by the symbolic representation of employees in work councils and board meetings.

False -Participative management programs are characterized by joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors.

Internal equity refers to the worth of the job to the organization.

True

A variable-pay program bases a portion of an employee’s pay on some individual and/or organizational measure of performance.

True

A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces.

True

A profit-sharing plan works by tying rewards to productivity gains as the only criterion.

False -A profit-sharing plan distributes compensation based on some established formula designed around a company’s profitability. Gainsharing differs from profit sharing in tying rewards to productivity gains rather than profits.

When the profits of Emm Corp rose steadily over two quarters three years back, the employees of the company were given the offer of purchasing the company’s shares at subsidized rates. Many of the employees who bought the shares have become extremely rich after the phenomenal growth Emm Corp has had in the following years. This is an example of a bonus.

False -An employee stock ownership plan (ESOP) is a company-established benefit plan in which employees acquire stock, often at below-market prices, as part of their benefits.

A flexible benefits package is designed for a male with a wife and two children at home.

False -Flexible benefits individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs and situation. These plans replace the "one-benefit-plan-fits-all" programs designed for a male with a wife and two children at home that dominated organizations for decades.

Flexible spending plans allow employees to set aside pretax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as health care and dental premiums.

True

When it comes to motivating employees, financial incentives may be more motivating in the short term, but in the long run it’s nonfinancial incentives.

True

Employee recognition programs are highly susceptible to political manipulation by management.

True

What are the various dimensions of the job characteristics model?

J. Richard Hackman and Greg Oldham developed the job characteristics model (JCM) which proposes that we can describe any job in terms of five core job dimensions. These are explained below. (a) Skill variety is the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent. (b) Task identity is the degree to which a job requires completion of a whole and identifiable piece of work. (c) Task significance is the degree to which a job affects the lives or work of other people. (d) Autonomy is the degree to which a job provides the worker freedom, independence, and discretion in scheduling work and determining the procedures in carrying it out. (e) Feedback is the degree to which carrying out work activities generates direct and clear information about your own performance.

Andrew is a software tester. He runs through the same types of programs day after day looking for bugs and reporting them. He is taking night classes on programming. Often, he knows the best solution to many of the bugs, but he is still learning to code. Describe two job characteristics that Andrew is striving to improve, and explain two ways that Andrew’s manager can redesign his current job to help him reach his goals.

Andrew is striving to have greater task identity, which is the degree to which a job requires completion of a whole and identifiable piece of work. He would like to not only look for the programming bugs, but be able to fix them. He is also looking for skill variety, or the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent. It is clear that he is bored with only the testing aspect of his job. Andrew’s boss needs to redesign his job to include aspects of job enrichment, which refers to the vertical expansion of jobs. Job enrichment increases the degree to which the worker controls the planning, execution, and evaluation of his or her work. One way to enrich Andrew’s job would be to put him in contact with his internal clients, the programmers. They could establish a set of bug recommendations that Andrew could fix, where he could begin to learn the types of code required. His boss should also open the feedback channels so that the programmers can tell Andrew when he is making proper adjustments and using his new skills adequately.

What is job enrichment? Describe various methods of job enrichment based on the job characteristics model .

Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work. Various methods of job enrichment that are based on the job characteristics model are given below. 1. Combining tasks: It puts fractionalized tasks back together to form a new and larger module of work. 2. Forming natural work units: It makes an employee’s tasks create an identifiable and meaningful whole. 3. Establishing client relationships: It increases the direct relationships between workers and their clients (clients can be internal as well as outside the organization). 4. Expanding jobs vertically: It gives employees responsibilities and control formerly reserved for management. 5. Opening feedback channels: It lets employees know how well they are doing and whether their performance is improving, deteriorating, or remaining constant.

Compare and contrast the job characteristics model and mutual assistance programs in terms of how they lend meaning to an employee’s role.

The first three dimensions of the job characteristics model — skill variety, task identity, and task significance — combine to create meaningful work the incumbent will view as important, valuable, and worthwhile. To be high on motivating potential, jobs must be high on at least one of the three factors that lead to experienced meaningfulness and high on both autonomy and feedback. By emphasizing the relationship between the employee and his or her work, this model represents a relatively individualistic manner of enhancing the meaningful nature of work. On the other hand, we have mutual assistance programs which represent a fairly social method for improving the meaningfulness of work. Employees who can help each other directly through their work come to see themselves, and the organizations for which they work, in more positive, pro-social terms. This, in turn, can increase employee affective commitment.

Discuss the advantages and disadvantages of flextime.

Telecommuting refers to working at home at least 2 days a week on a computer linked to the employer’s office. This strategy suits three categories of jobs: routine information-handling tasks, mobile activities, and professional and other knowledge-related tasks. The advantages of telecommuting include a larger labor pool from which to select, higher productivity, less turnover, improved morale, and reduced office-space costs. A positive relationship exists between telecommuting and supervisor performance ratings. The major drawback for management is less direct supervision of employees. In today’s team-focused workplace, telecommuting may make it more difficult to coordinate teamwork and can reduce knowledge transfer in organizations.

Discuss the relationship between social and physical work context and employee satisfaction.

The job characteristics model shows most employees are more motivated and satisfied when their intrinsic work tasks are engaging. However, having the most interesting workplace characteristics in the world may not always lead to satisfaction if you feel isolated from your co-workers. Having good social relationships can make even the most boring and onerous tasks more fulfilling. Research demonstrates that social aspects and work context are as important as other job design features. The physical work context is also likely to affect employee satisfaction. Work that is hot, loud, and dangerous is less satisfying than work conducted in climate-controlled, relatively quiet, and safe environments. This is probably why most people would rather work in a coffee shop than a metalworking foundry. Physical demands make people physically uncomfortable, which is likely to show up in lower levels of job satisfaction.

What is employee involvement and why is it important. What are the two major forms of employee involvement?

Employee involvement is defined as a participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success. The underlying logic is that by involving workers in those decisions that affect them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive, and more satisfied with their jobs.The two major forms of employee involvement are: a) Participative management. Participative management programs use joint decision making. Subordinates actually share a significant degree of decision-making power with their immediate superiors. b) Representative participation. Representative participation refers to worker representation by a small group of employees who actually participate on the board. The goal is to redistribute power within an organization, putting labor on a more equal footing with the interests of management and stockholders.

Explain how participative management can enhance skill variety, task identity, and autonomy as described in the Job Characteristics Model (JCM).

Skill variety, the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent, can be enhanced by participative management because it helps the employees view their tasks from a different perspective. It helps them understand why the management requires high productivity and efficiency from them. By learning to think differently, the employees learn different skills at the mental and relational levels. Task identity, the degree to which a job requires completion of a whole and identifiable piece of work, can be enhanced by participative management by allowing employees to make decisions on the spot without management approval. For example, the woman at the Wegman’s bakery that convinced management to let her include a traditional family recipe in the product line will feel a much stronger sense of task identity. Autonomy, which is the freedom in determining work procedures and carrying them out, is enhanced by participative management because the employee is able to participate in the decision-making process. Having a voice in the process increases the sense of autonomy and control.

List and describe different variable-pay programs.

a) Piece-rate plans. In piece-rate pay plans, workers are paid a fixed sum for each unit of production completed. When an employee gets no base salary and is paid only for what he or she produces, this is a pure piece-rate plan. b) Merit-based pay. Merit-based pay plans also pay for individual performance. However, unlike piece-rate plans, which is pay based on objective output, merit-based pay plans are based on performance appraisal ratings. c) Profit-sharing. Profit-sharing plans are organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability. d) Bonuses. Bonuses can be paid exclusively to executives or to all employees. Many companies now routinely reward production employees with bonuses in thousands of dollars when company profits improve. e) Skill-Based Pay. Skill-based pay (also called competency-based or knowledge-based pay) sets pay levels on the basis of how many skills employees have or how many jobs they can do. f) ESOPs. Employee stock ownership plans (ESOPs) are company-established benefit plans in which employees acquire stock, often at below-market prices, as part of their benefits. g) Gainsharing. Gainsharing is a formula-based group incentive plan. Improvements in group productivity determine the total amount of money that is to be allocated. By focusing on productivity gains rather than profits, gainsharing rewards specific behaviors that are less influenced by external factors. Employees in a gainsharing plan can receive incentive awards even when the organization isn’t profitable.

How would you relate skill variety, job rotation, and skill-based pay?

These represent three ways in which the organization can promote development of relevant skills among its employees. Skill variety refers to the degree to which a job requires a variety of different activities tapping different abilities and skills. This primarily involves the relationship between the employee and his job and is an individualistic method of enhancing intrinsic motivation. Job rotation involves the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level. The strengths of job rotation are that it reduces boredom, increases motivation, and helps employees better understand how their work contributes to the organization. An indirect benefit is that employees with a wider range of skills give management more flexibility in scheduling work, adapting to changes, and filling vacancies. Skill-based pay is an alternative to job-based pay that bases pay levels on how many skills employees have or how many jobs they can do. For employers, the lure of skill-based pay plans is increased flexibility of the workforce: staffing is easier when employee skills are interchangeable. Skill-based pay also facilitates communication across the organization because people gain a better understanding of each other’s jobs. However, people can earn all the skills the program calls for them to learn and then become frustrated when the challenges, learning, growth, and continual pay raises come to an end.

Differentiate between bonuses and gainsharing plans.

Bonuses represent a pay plan that rewards employees for recent performance rather than historical performance. An annual bonus is a significant component of total compensation for many jobs and many companies routinely reward production employees with bonuses in the thousands of dollars when profits improve. However, when times are bad, firms cut bonuses to reduce compensation costs. Thus, using bonuses as a variable pay program makes employees’ pay more vulnerable to cuts and this is even more problematic when bonuses are a large percentage of total pay. Gainsharing 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. Gainsharing ties rewards to productivity gains rather than profits, so employees can receive incentive awards even when the organization isn’t profitable. Unlike bonuses, gainsharing incentives do not vary with changes in company profits.

List and describe the various flexible benefits plans.

The three most popular types of benefits plans are modular plans, core-plus options, and flexible spending accounts. Modular plans are predesigned packages or modules of benefits, each of which meets the needs of a specific group of employees. A module designed for single employees with no dependents might include only essential benefits. Another, designed for single parents, might have additional life insurance, disability insurance, and expanded health coverage. Core-plus plans consist of a core of essential benefits and a menu-like selection of others from which employees can select. Typically, each employee is given "benefits credits" which allow the purchase of additional benefits that uniquely meet his or her needs. Flexible spending plans allow employees to set aside pretax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as health care and dental premiums.

Compare and contrast the benefits of intrinsic rewards, such as recognition, and extrinsic rewards, such as pay, as forms of motivation.

Organizations are increasingly recognizing that both intrinsic and extrinsic rewards are important. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems. Intrinsic rewards range from a spontaneous and private thank-you to widely publicized formal programs in which specific types of behavior are encouraged and the procedures for attaining recognition are clearly identified. Pay, an extrinsic reward, is not the primary factor driving job satisfaction, however, it does motivate people, and companies often underestimate its importance in keeping top talent. No matter how much recognition a top performer gets, he will be tempted to leave if the pay scale is much lower than the market and another offer arrives. Variable pay structures, such as bonuses, are often the best production motivators. When pay is tied to performance, the employee’s earnings also recognize contribution rather than being a form of entitlement. Over time, low performers’ pay stagnates, while high performers enjoy pay increases commensurate with their contributions. An obvious advantage of intrinsic rewards like recognition programs is that they are inexpensive since praise is free. However, they are highly susceptible to political manipulation by management. When applied to jobs for which performance factors are relatively objective, such as sales, recognition programs are likely to be perceived by employees as fair. However, in most jobs, the criteria for good performance aren’t self evident, which allows managers to manipulate the system and recognize their favorites. Abuse can undermine the value of recognition programs and demoralize employees. Research suggests financial incentives may be more motivating in the short term, but in the long run intrinsic incentives will retain good employees if the extrinsic incentives are competitive.