Chapter 7 Motivation: From Concept to Applications

MULTIPLE CHOICE Management by Objectives 1. MBO emphasizes converting overall organizational objectives into: a. capital gains. b. specific objectives for organizational units and individual members. c. operational units. d. terms that the individual worker can understand and accept. b! "asy! p. 1#$%

&.

MBO emphasizes participatively set goals that are: a. tangible. b. verifiable. c. measurable. d. all of the above d! Moderate! p. 1#$% (or the individual employee) MBO provides: a. specific personal performance objectives. b. increased monetary compensation. c. communication between co*workers. d. a means to an end. a! Moderate! p. 1#$% ,ince MBO works in an organization from the -top down. as well as from the -bottom up). if all individuals achieve their goals: a. employees are more likely to be compensated for their efforts. b. their unit/s goals will be attained and the organization/s overall objectives become a reality. c. the individuals are less likely to be recognized for their work. d. the organization/s objectives will suffer. b! Moderate! p. 1#$% 1hich of the following is an e2ample of an MBO objective3 a. 4ecrease payroll costs by 56. b. 7ncrease 8uality significantly. c. 9rocess orders 8uickly. d. 7mprove customer service. a! Moderate! p. 1#$%

'.

+.

0.

5.

:ll of the following are ingredients common to MBO programs e2cept: a. an e2plicit time period. b. participative decision making. c. consistent monetary rewards. d. performance feedback. c! "asy! p. 1#$% ;. (eedback in an MBO program) ideally) is supplemented by: a. weekly meetings. 1+1

b. periodic managerial evaluations. c. monthly progress reports by the employee. d. open book management. b! Moderate! p. 1#$% <. MBO objectives are: a. set unilaterally by the boss. b. set by the boss and assigned to subordinates to be carried out. c. set jointly by superior and subordinate. d. performed by the subordinate and evaluated e2clusively by the superior. c! "asy! p. 1#$%

#. : goal of -do your best:. a. is better than an easy goal. b. is better than a hard goal. c. is inappropriate goal setting. d. enables the employee to perform their best. c) Moderate) p. 1#1% 1$. :ccording to the goal*setting theory) the goals that result in a high level of individual performance are: a. specific hard goals. b. specific easy goals. c. no goals at all. d. general easy goals that give the employee freedom. a! "asy! p. 1#1% One major difference between the goal*setting theory and MBO is that the goal*setting theory: a. demonstrates that assigning goals to subordinates fre8uently works as well as participative goal*setting. b. advocates participative goal*setting. c. re8uires feedback on performance. d. does not use objectives. a! =hallenging! p. 1#1%

11.

1&.

>he only possible disagreement between MBO and goal*setting theory relates to the issue of: a. feedback. b. goals. c. objectives. d. participation. d! =hallenging! p. 1#1%

"mployee ?ecognition 9rograms 1'. 1hich of the following is true about employee recognition programs3 a. >he best ones recognize individual accomplishments only. 1+&

b. >he best ones recognize group accomplishments only. c. >he best ones recognize individual and group accomplishments. d. >he best ones use single sources. c! =hallenging! p. 1#&% 1+. @aura may only make minimum wage) but her supervisor regularly compliments her and she has been chosen employee of the month twice this year. >his is a good e2ample of the power of: a. recognition. b. participation. c. goal setting. d. pay. a! Moderate! p. 1#&%

10.

1hich of the following is not true regarding recognition3 a. ?ewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition. b. ?ecognition can take many forms. c. >o enhance group cohesiveness and motivation) you can celebrate team successes. d. Aood work should only be recognized in private. d! Moderate! p. 1#'% ?esearchers found that employees considered the most powerful workplace motivator to be: a. recognition. b. money. c. opportunity for advancement. d. autonomy. a! Moderate! p. 1#'%

15.

1;.

1hich of the following is a form of recognition3 a. personal congratulations b. a handwritten note c. public notice d. all of the above d! "asy! p. 1#'% >he BBBBB have been especially effective at making suggestion systems work. a. :mericans b. Capanese c. 9ortuguese d. =anadians b! Moderate! p. 1#'%

1<.

1#.

One of the most well*known and widely used recognition devices is: a. bonuses. b. suggestion systems. c. brainstorming. d. company t*shirts. b! Moderate! p. 1#'% 1+'

&$.

>he laws of BBBBB re8uire companies to have elected representatives from their employee groups as members of their board of directors. a. Dew Eealand b. Brazil c. 4enmark d. Areat Britain c! =hallenging! p. 1#'% 1hich of the following countries does not have a law re8uiring companies to have elected representatives from their employee groups as members of their board of directors3 a. Aermany b. :ustria c. Brazil d. ,weden c! =hallenging! p. 1$'%

&1.

&&.

"mployee involvement encompasses such popular ideas as: a. employee ownership. b. workplace democracy. c. empowerment. d. all of the above d! Moderate! p. 1#+%

1hat 7s "mployee 7nvolvement3 &'. : participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization/s success is: a. MBO. b. employee involvement. c. reengineering. d. OB Mod. b! Moderate! p. 1#+% 9articipation: a. is synonymous with employee involvement. b. is a more limited term than employee involvement. c. is the larger framework of which employee involvement is a subset. d. and employee stock ownership plans are synonymous. b! =hallenging! p. 1#0% 1hich of the following is not an e2ample of employee involvement3 a. variable*pay programs b. participative management c. 8uality circles d. employee stock ownership plans a! Moderate! p. 1#0% >he distinct characteristic common to all participative management programs is the use of: 1++

&+.

&0.

&5.

a. joint decision making. b. increased compensation. c. fle2ible benefits. d. all of the above a! Moderate! p. 1#0% &;. 9articipative management: a. is a panacea for poor morale. b. is a panacea for low productivity. c. is not appropriate for every organization. d. does not re8uire trust. c! =hallenging! p. 1#0% 9articipative management is a method of management in which: a. subordinates make corporate decisions and management helps carry out those decisions. b. all upper management participate in the organization/s strategic planning. c. subordinates share a significant degree of decision*making power with their immediate superiors. d. low*level workers meet occasionally with the ="O to discuss problems within their department. c! Moderate! p. 1#0%

&<.

&#.

Management would want to share its BBBBB power with subordinates because it may increase commitment to decisions and can result in better decisions. a. coercive b. referent c. communication d. decision*making d! Moderate! p. 1#0% ?esearch studies conducted on the participation*performance relationship show that the use of participation: a. enhances job satisfaction. b. increases motivation. c. has only a modest influence on employee productivity. d. greatly influences employee attitudes. c! Moderate! p. 1#0%

'$.

'1.

:lmost every country in 1estern "urope has some type of legislation re8uiring companies to practice: a. representative participation. b. MBO. c. OB Mod. d. 8uality circles. a! "asy! p. 1#0% BBBBB has been called -the most widely legislated form of employee involvement around the 1+0

'&.

world.. a. ?epresentative participation b. MBO c. OB Mod d. Fuality circles a! Moderate! p. 1#0% ''. >he goal of representative participation is: a. for workers to own the firms where they work. b. to help workers/ self*esteem. c. to provide greater distinction between workers and management. d. to redistribute power within the organization. d! Moderate! p. 1#0% BBBBB are employees who sit on a company/s board of directors and represent the interests of the firm/s employees. a. Board representatives b. 1orks councils c. Fuality circles d. Gnion representatives a! Moderate! p. 1#5% BBBBB link employees with management. a. Board representatives b. 1orks councils c. Fuality circles d. Gnion representatives b! Moderate! p. 1#5% Overall) the greatest value of representative participation is: a. increased motivation. b. increased satisfaction. c. symbolic. d. all of the above c! Moderate! p. 1#5%

'+.

'0.

'5.

';.

1ork groups of employees and supervisors who meet regularly to discuss their 8uality problems and recommend solutions is a form of participative management called: a. department teams. b. cooperative groups. c. evaluation teams. d. 8uality circles. d! Moderate! p. 1#5% Fuality circles were originally begun in BBBB and e2ported to BBBB in the 1#0$s. 1+5

'<.

a. Capan! "urope b. the G.,.! "urope c. the G.,.! Capan d. Capan! the G.,. c! Moderate! p. 1#5% '#. Fuality circles meet regularly to: a. discuss their 8uality problems. b. investigate causes of the problems. c. recommend solutions. d. all of the above d! Moderate! p. 1#5% One author suggested that the BBB was the management fad of the 1#<$s) but they/ve -become a flop.. a. MBO program b. reengineering program c. ",O9 d. 8uality circle d! Moderate! p. 1#5% : company*established benefit plan in which employees ac8uire stock as part of their benefits is a n%: a. MBO program. b. reengineering program. c. ",O9. d. 8uality circle. c! Moderate! p. 1#;% ?esearch on employee stock ownership programs indicates that they: a. increase employee satisfaction. b. reduce salaries. c. reduce stress. d. increase productivity. a! Moderate! p. 1#;%

+$.

+1.

+&.

+'.

9articipative management is compatible with all of the following e2cept: a. "?A theory. b. >heory H. c. efforts to stimulate the achievement need. d. MBO. b! Moderate! p. 1#<% >heory H is consistent with: a. the autocratic style of managing people. b. participative management. 1+;

++.

c. "?A theory. d. the cognitive evaluation theory. a! =hallenging! p. 1#<% +0. 1hich of the following is true3 a. >heory I aligns with the autocratic management style. b. "mployee involvement programs provide intrinsic motivation. c. >heory I aligns with the autocratic management style. d. "mployee involvement is incompatible with "?A theory. b! Moderate! p. 1#<%

Jariable*9ay 9rograms +5. 1hich of the following are all forms of variable*pay programs3 a. piece*rate) wage incentive plans) gainsharing b. profit*sharing) lump*sum bonuses) e2tended vacations c. wage incentive plans) fle2time) piece*rate d. retirement benefits) e2tended vacations) wage incentive plans a! "asy! p. 1##% One advantage of variable pay plans to management is that they turn BBBBB into BBBBB. a. fi2ed costs! variable costs b. high productivity! low productivity c. slow employees! high performers d. high costs! lower costs a! =hallenging! p. 1##%

+;.

+<.

>he most widely used variable*pay programs include all of the following e2cept: a. piece*rate wages. b. bonuses. c. gainsharing. d. hourly wages. d! Moderate! p. 1##%

+#.

:n employee who BBBBB is paid according to a piece*rate plan. a. performs community services b. is paid K& for each unit produced c. is paid time and a half for overtime d. is on commission b! Moderate! p. &$$% Organization*wide programs that distribute compensation based on some established formula designed around a company/s profitability are termed: a. profit*sharing plans. b. gainsharing. c. variable pay. 1+<

0$.

d. ",O9s. a! Moderate! p. &$$% 01. BBBBB is an incentive plan where improvements in group productivity determine the total amount of money that is allocated. a. ",O9 b. Aainsharing c. Jariable pay d. ,canlon plan b! Moderate! p. &$$% 1hich of the following is true about organizations with profit*sharing plans3 a. >hey have more predictable salaries. b. ?ecession doesn/t affect pay in these organizations. c. >hey have higher levels of profitability. d. >hey have more grievances. c! Moderate! p. &$$% Jariable pay compensation is probably most compatible with: a. >heory I. b. e2pectancy theory. c. MBO. d. participative management. b! Moderate! p. &$1% 7f rewards are allocated completely on nonperformance factors) such as seniority or job title) then employees are likely to: a. complain to management. b. 8uit their jobs. c. reduce their effort. d. absent themselves from work. c! Moderate! p. 1##%

0&.

0'.

0+.

00.

One advantage of variable*pay programs is that they: a. are easy to administer. b. are a form of fle2ible benefits. c. avoid the fi2ed e2pense of permanent salary increases. d. decrease total employee compensation. c! Moderate! p. 1##%

05.

>he new trend in variable*pay programs is: a. larger incentives. b. including upper management. c. piece*rate plans. d. including nonmanagerial employees. d! =hallenging! p. &$$%

1+#

0;.

Aainsharing/s popularity seems to be narrowly focused among: a. large) unionized manufacturing companies. b. large service organizations. c. small) non*unionized manufacturing companies. d. small) privately*held companies. a! =hallenging! p. &$$% Many reasons are given for not adopting the pay*for*performance concept. Of the following) which is not one of those reasons3 a. 7t is difficult to determine what should constitute performance. b. "mployees/ pay does not have to stay in step with inflation. c. >here is an historical attachment to cost*of*living raises. d. 7t is difficult to determine how to measure performance. b! =hallenging! p. &$1%

0<.

,kill*Based 9ay 9lans 0#. 1hen pay levels are based on how many skills employees have or how many jobs they can do) BBBBB is being used. a. a variable pay plan b. fle2ible pay c. competency*based pay d. gainsharing c! Moderate! p. &$&%

5$.

,kill*based pay: a. is an alternative to job*based pay. b. is called competency*based pay. c. is called knowledge*based pay. d. all of the above d! Moderate! pp. &$&*&$'%

51.

(rom management/s point of view) the appeal of skill*based plans is their: a. fle2ibility. b. low cost. c. motivation. d. ease of administration. a! Moderate! pp.&$&*&$'% 1hich of the following is not a downside of skill*based pay3 a. 9eople can -top out.. b. ,kills can become obsolete. c. :mbitious people can confront minimal advancement opportunities. d. 9eople are paid for ac8uiring skills for which there is no immediate need. c! Moderate! p. &$'% ,kill*based pay plans are compatible with all of the following e2cept: a. "?A theory. 10$

5&.

5'.

b. the achievement need. c. reinforcement theory. d. motivating professionals. d! =hallenging! p. &$'% 5+. 9aying people to e2pand their skill levels is consistent with the BBBBB need. a. affiliation b. achievement c. social d. security b! Moderate! p. &$'% =ompanies that pay employees for learning e2tra skills reported higher: a. operating costs. b. employee performance. c. turnover. d. absenteeism. b! =hallenging! p. &$+%

50.

(le2ible Benefits 55. 7f employees are allowed to pick and choose from among a menu of benefit options) they are said to have: a inconsistent needs. b. benefit menu options. c. fle2ible benefits. d. participative management. c! "asy! p. &$+%

5;.

>he average organization provides fringe benefits worth appro2imately BBBBB percent of an employee/s salary. a. &0 b. '$ c. '0 d. +$ d! =hallenging! p. &$+% Options in the fle2ible benefit programs might include: a. e2tended disability. b. college tuition reimbursement programs. c. e2tended vacation time. d. all of the above d! "asy! p. &$+% 7n the future) we can e2pect the percentage of large and medium*sized companies offering fle2ible benefit plans to increase to reflect: a. the e2panding diversity among employees. 101

5<.

5#.

b. growing entitlement. c. greater competition for employees. d. greater desire to give employees more. a! =hallenging! p. &$0% ;$. : major drawback of fle2ible benefit programs is: a. the organization/s costs are generally higher. b. employees can purchase fewer total benefits. c. reduced fle2ibility. d. these plans are only available to larger companies. b! Moderate! p. &$0%

,pecial 7ssues in Motivation ;1. 9rofessionals are typically motivated by: a. money. b. time off. c. job challenge. d. promotions. c! =hallenging! p. &$5% 1hich of the following is not true about motivating professionals3 a. >hey are motivated by money. b. >hey are motivated by challenging jobs. c. >hey are loyal to their profession rather than their employer. d. >heir commitment to their profession means they rarely define their workweek in terms of < to 0 and five days a week. a! Moderate! p. &$5% >o motivate professionals) you should do all of the following e2cept: a. provide them with ongoing challenging projects. b. give them autonomy. c. reward them with higher salaries. d. allow them to structure their work in ways that they find productive. c! Moderate! p. &$5%

;&.

;'.

;+.

1hat motivates contingent workers3 a. opportunity for permanent status b. training opportunities c. freedom d. all of the above d! Moderate! pp. &$5*&$;% >he opportunity for training will motivate: a. professionals. b. contingent workers. c. a and b d. none of the above c! Moderate! pp. &$5*&$;% 10&

;0.

;5.

7n order to ma2imize the motivation of a diverse workforce) the key word will be: a. fairness. b. fle2ibility. c. status. d. money. b! Moderate! p. &$;% Motivation of people holding jobs with highly repetitive tasks can be made easier by: a. increasing pay. b. increasing autonomy. c. careful selection. d. ",O9s. c! Moderate! p. &$<% @ow*skilled service workers can best be motivated by: a. more interesting jobs. b. fle2ible scheduling. c. raising pay. d. stock options. c! Moderate! p. &$<%

;;.

;<.

TRUE/FAL E Management By Objectives ;#. 7nstalling a variable*pay program can make goal*setting theory operational. (alse! =hallenging! p. 1#$% <$. 7n MBO) goals are unilaterally set by the employee and communicated to the boss. (alse! "asy! p. 1#$% <1. 7n MBO) goals are established for departments and units rather than for individual employees. (alse! Moderate! p. 1#$% <&. >he four ingredients common to MBO programs are goal specificity) participative decision making) an implicit time period) and performance feedback. (alse! =hallenging! p. 1#$%

<'. MBO seeks to give continuous feedback on progress toward goals. >rue! Moderate! p. 1#$% <+. 7n MBO) goals should be tangible and measurable. >rue! Moderate! p. 1#$% <0. MBO relies on participatively set goals. >rue! "asy! p. 1#$% <5. MBO directly advocates specific goals and feedback. >rue! Moderate! p. 1#1%

10'

<;. MBO would be most effective when the goals are easily reached by the employees. (alse! Moderate! p. 1#1% <<. >here are almost no documented cases where MBO has been implemented but failed to meet management/s e2pectations. (alse! "asy! p. 1#1%

"mployee ?ecognition 9rograms <#. >he best employee recognition programs are those that recognize just individual accomplishments. (alse! =hallenging! p. 1#'% #$. =onsistent with reinforcement theory) rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition. >rue! Moderate! p. 1#'% One of the most e2pensive recognition programs is that which recognizes an employee/s superior performance. (alse! "asy! p. 1#'%

#1.

#&. One of the most well*known and widely used recognition devices is the use of suggestion systems. >rue! Moderate! p. 1#'%

"mployee 7nvolvement 9rograms #'. >he laws of the Gnited ,tates re8uire companies to have elected representatives from their employee groups as members of their board of directors. (alse! Moderate! p. 1#'% "mployee involvement is a participation process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization/s success. >rue! Moderate! p. 1#+%

#+.

#0. "mployee participation and employee involvement are synonymous. (alse! =hallenging! pp. 1#+*1#0% #5. 9articipative management implies joint decision making and e8ual decision*making roles. (alse! Moderate! p. 1#0% #;. 7t is generally agreed among OB scholars that participative management should be treated as an ethical imperative. (alse! =hallenging! p. 1#0% 9articipation typically has only a modest influence on variables such as employee productivity) motivations) and job satisfaction. >rue! "asy! p. 1#0%

#<.

10+

##.

7f one is interested in changing employee attitudes or in improving organizational performance) representative participation would be a good choice. (alse! =hallenging! p. 1#0% >he two most common forms that representative participation takes are works councils and board representatives. >rue! =hallenging! p. 1#5%

1$$.

1$1. 9articipative management has had a profound influence on employee productivity and motivation. (alse! Moderate! p. 1#5% 1$&. Board representatives are employees who sit on a company/s board of directors and represent the interests of the firm/s employees. >rue! Moderate! p. 1#5%

1$'. Fuality circles originated in the Gnited ,tates. >rue! Moderate! p. 1#5% 1$+. Fuality circles have the authority to find problems) assess alternative actions) and implement a solution. (alse! =hallenging! p. 1#5%

1$0. Fuality circles have been a big success in businesses using them. (alse! Moderate! p. 1#5% 1$5. >he lack of planning and top management commitment often contributed to 8uality circle failures. >rue! =hallenging! p. 1#;% 1$;. ",O9s are company*established benefit plans in which employees ac8uire stock as part of their benefits. >rue! Moderate! p. 1#;%

1$<. ?esearch on ",O9s indicates they increase employee satisfaction. >rue! =hallenging! p. 1#;% 1$#. >heory H is consistent with participative management. (alse! "asy! p. 1#<% 11$. >heory H aligns with autocratic management while >heory I aligns with participative management. >rue! Moderate! p. 1#<% "mployee involvement programs could provide employees with intrinsic motivation by increasing opportunities for growth and responsibility. >rue! =hallenging! p. 1#<%

111.

11&. "mployee involvement is compatible with "?A >heory and efforts to achieve the affiliation need. (alse! =hallenging! p. 1#<% 11'. 1hile :merican employees readily accepted employee involvement programs) managers in 7ndia who tried to empower their employees were rated low by those employees and the use of 100

empowerment also negatively affected employee satisfaction. >rue! Moderate! p. 1#<% 11+. 7n recent years) many organizations have dropped their 8uality circles and replaced them with more comprehensive team*based structures. >rue! Moderate! p. 1#<%

Jariable*9ay 9rograms 110. Both piece*rate and gainsharing plans are e2amples of variable*pay compensation. >rue! "asy! p. 1##% 115. Jariable*pay compensation pays people for the time they spend on the job and seniority. (alse! "asy! p. 1##% 11;. 9iece*rate plans) wage incentives) profit sharing) bonuses) and gainsharing are all forms of fle2ible benefits. (alse! Moderate! p. &$$% 11<. 9iece*rate wages have been around for nearly a century. >rue! Moderate! p. &$$% 11#. 9eople who sell peanuts at ball parks) keeping K.;0 for every bag of peanuts they sell) are being paid piece*rate wages. >rue! Moderate! p. &$$%

1&$. Jariable*pay programs turn part of an organization/s fi2ed labor costs into a variable cost. >rue! "asy! p. &$$% 1&1. "mployee compensation will decline if performance declines in variable*pay programs. >rue! Moderate! p. &$$% 1&&. 9iece*rate plans are based on group productivity. (alse! Moderate! p. &$$% 1&'. 9rofit sharing may be paid by direct cash outlay or as stock options. >rue! =hallenging! p. &$1% 1&+. Aainsharing and profit sharing are the same thing. (alse! "asy! p. &$$% 1&0. :n employee in a gainsharing plan can receive incentive awards even if the organization isn/t profitable. >rue! Moderate! p. &$$% ,tudies generally support the fact that organizations with profit sharing plans have higher levels of profitability than those without. >rue! Moderate! p. &$$%

1&5.

105

1&;.

:n :merican Management :ssociation study of companies who used gainsharing found that grievances) absences) and lost*time accidents decreased. >rue! Moderate! p. &$$%

1&<. Jariable pay is probably most compatible with two*factor theory predictions. (alse! Moderate! p. &$1% 1&#. One study of +$$ manufacturing firms found that those companies with wage incentive plans achieved +' to 5+ percent greater productivity than those without such plans. >rue! Moderate! p. &$1%

1'$. >he cost*of*living raise is rapidly replacing the variable*pay concept. (alse! Moderate! p. &$1% 1'1. Aroup and organization*wide incentives reinforce personal goals. (alse! Moderate! p. &$1% 1'&. Aainsharing/s popularity seems to be narrowly focused among large) unionized manufacturing companies. >rue! =hallenging! p. &$1% 9ay for performance means the employees have to share in the risks as well as the rewards of their employer/s business. >rue! Moderate! p. &$1%

1''.

,kill*Based 9ay 9lans 1'+. ,kill*based pay encourages employees to concentrate on one or two highly desirable skills. (alse! Moderate! p. &$&% 1'0. (rom management/s perspective) the greatest appeal of skill*based pay plans is decreased payroll costs. (alse! =hallenging! p. &$&%

1'5. ,kill*based pay plans encourage people to specialize. (alse! Moderate! p. &$&% 1';. >he increased use of skills as a basis for pay seems to work well for corporations facing domestic competition) but is not so effective for firms facing foreign competition. (alse! Moderate! p. &$+%

(le2ible Benefits 1'<. >raditional benefit packages were designed for the typical employee of the 1#0$s! fewer than 1$6 of employees now fit that stereotype) re8uiring an updated look at these benefits. >rue! Moderate! p. &$+% (le2ible spending plans allow employees to set aside up to the dollar amount offered in the plan to pay for particular services. >rue! Moderate! p. &$+% 10;

1'#.

,pecial 7ssues in Motivation 1+$. 9rofessionals are largely motivated by the e2trinsic) rather than the intrinsic) rewards of their jobs. (alse! Moderate! p. &$5% 1+1. >he loyalty of professionals is more often to their profession than to their employer. >rue! Moderate! p. &$5% 1+&. 9romotions typically motivate professionals. (alse! Moderate! p. &$5% 1+'. >he terms -temporary workers. and -contingent employees. are synonymous. >rue! Moderate! p. &$5% 1++. 9ermanent status is a motivating force for most temporary workers. >rue! Moderate! p. &$;% 1+0. >urnover rates of &$$ percent are not uncommon for fast food restaurants like Mc4onald/s. >rue! =hallenging! p. &$<% 1+5. Because people vary in their tolerance for ambiguity) careful selection of individuals who are asked to do highly repetitive tasks can cut down on turnover. >rue! Moderate! p. &$<%

1+;. Ligh pay will usually lead to highly motivated workers in low*skilled) highly repetitious jobs. (alse! Moderate! p. &$<% CE!ARIO"#A E$ %UE TIO! :pplication of Management by Objectives Iou have just been hired by =omputers*?*Gs to institute a management by objectives program. >he sales people have asked you to e2plain the program to them and to help them understand how it will affect them. 1+<. Iou want to make sure that they understand the ingredients common to MBO programs. 1hich of the following is not one of those ingredients3 a. Aoals should be general enough to allow creativity. b. 4ecision making will be participative. c. >ime periods will be e2plicit. d. (eedback will be given on each employee/s performance. a! Moderate! pp. 1#$*1#1% 1hich of the following is an e2ample of an MBO objective3 a. >elephone orders should be processed promptly. b. :ll customers should be treated well. c. =omputer sales should be increased by si2 percent. d. "mployees should reduce absenteeism. c! =hallenging! pp. 1#$*1#1% 10<

1+#.

10$.

>he objectives for each individual will be set: a. unilaterally by the supervisor. b. by the employee. c. by a committee of peers. d. by the employee and his superior. d! Moderate! pp. 1#$*1#1%

:pplication of "mployee ?ecognition 9rograms Iou have read about the merits of employee recognition programs. 1hile you have no significant budget) you are willing to implement a program in your department.

101.

=onsistent with reinforcement theory) the recognition: a. must immediately follow the behavior to encourage repetition. b. must be e2pensive. c. must come at some time during the same year as the behavior. d. none of the above a! Moderate! pp. 1#&*1#'% 1hich of the following might be the most successful3 a. suggestions programs b. handwritten notes c. bonuses d. pla8ues a! Moderate! pp. 1#&*1#'%

10&.

:pplication of "mployee 7nvolvement 9rograms Iour supervisor has heard that employee involvement is important and you have been instructed to research various methods of employee involvement. Iou are supposed to help assist in the analysis of the probable effects of each of the programs being considered. 10'. 7f participative management is used) you would predict that: a. it would be time consuming. b. commitment to decisions would increase. c. it will provide intrinsic rewards for employees. d. all of the above d! "asy! pp. 1#0*1#;% Iou have decided to let employees select a small group to represent them and work with management. >his is termed: a. representative participation. b. an ",O9. c. 8uality circles. d. participative management. 10#

10+.

a! Moderate! pp. 1#0*1#;% 100. : group of employees will meet regularly to discuss problems and recommend action. >his group is a n%: a. ",O9. b. works council. c. MBO cluster. d. 8uality circle. d! Moderate! pp. 1#0*1#;%

:pplication of ,kill*Based 9ay 9lans :malgamated 7ndustries manufactures parts for furniture. Management has decided to change the method of payment to a skill*based plan. Iou are interested in increasing your current compensation and see this as an opportunity. 105. Iou should e2pect to earn more if you: a. volunteer for overtime. b. increase your production. c. cross train in other jobs. d. become a specialist. c! Moderate! pp. &$&*&$'% 10;. >he appeal from management/s perspective is: a. protection of territory. b. fle2ibility. c. elimination of workers. d. decreased payroll costs. b! =hallenging! pp. &$&*&$'%

10<.

1hich of the following is a disadvantage of skill*based pay plans3 a. "mployees are less motivated. b. "mployees are more specialized. c. "mployees tend not to work as hard as before. d. "mployers may pay for skills that they aren/t using. d! Moderate! pp. &$&*&$'%

:pplication of (le2ible Benefits Iour workforce is diverse in terms of their needs for benefits. Cim is married with two children and his wife is at home full time. Canet is single and supports her widowed mother. Bob is married and his wife has a high*paying job. Iou decide that you want to devise a benefits program which is tailored to their individual needs. 10#. >he best choice available is probably: a. traditional benefit programs. b. a fle2ible benefit program. c. letting them purchase their own benefits. d. an ",O9. b! "asy! pp. &$+*&$0%

15$

15$.

>he major drawback from the employee/s standpoint will probably be: a. reduced fle2ibility. b. loss of benefits. c. costs of individual benefits may go up) so fewer total benefits can be purchased. d. fewer benefits to choose from. c! "asy! pp. &$+*&$0% Iou should e2pect that the fle2ible benefits program will be all of the following e2cept: a. less e2pensive. b. consistent with e2pectancy theory. c. more responsive to individual needs. d. motivational. a! Moderate! pp. &$+*&$0%

151.

:pplication of ,pecial 7ssues in Motivation :llied Lealth 9rofessionals employs many individuals and has discovered that not all of their employees are motivated by the same things. >hey have decided to develop different plans for the different segments of their workforce. >he segments that they have decided to concentrate on are health care professionals) contingent or temporary workers) and nighttime janitorial staff. 15&. >he physicians on your staff will probably be motivated by: a. ongoing opportunities for education and training. b. autonomy. c. recognition. d. all of the above d! Moderate! pp. &$5*&$<% =ontingency workers will probably be motivated by: a. opportunities for training. b. getting a permanent position. c. freedom to choose to remain temporary or to get a permanent position. d. all of the above d! =hallenging! pp. &$5*&$<% >he nighttime janitorial staff are generally low skilled and would probably be motivated by: a. traditional approaches for motivation. b. fle2ible work schedules. c. hiring teenagers and retirees. d. nontraditional approaches to create a close and family*like work environment. d! Moderate! pp. &$5*&$<% HORT $I CU IO! %UE TIO!

15'.

15+.

150. 1hat are the four ingredients common to MBO programs3 9ages 1#$*1#1% >he four ingredients common to MBO programs are goal specificity) participative decision making) an e2plicit time period) and performance feedback. >he objectives in MBO should be concise statements of e2pected accomplishments. >he objectives in MBO are not unilaterally set 151

by the boss and then assigned to employees. MBO replaces imposed goals with participatively determined goals. "ach objective has a specific time period in which it is to be completed. >he final ingredient is feedback on performance. MBO seeks to give continuous feedback on progress toward goals. 155. Low can an employer link employee recognition programs with reinforcement theory3 9age 1#'% =onsistent with reinforcement theory) rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition. ,ince most organizations are under severe cost pressures) recognition programs are particularly attractive. 15;. 1hat is participative management3 Aive some e2amples of its use in organizations. 9age 1#0% :ll participative management programs use joint decision making. ,ubordinates share a significant degree of decision*making power with their immediate superiors. 1estern "urope uses representative participation. Fuality circles and employee stock ownership plans have also become more popular in the G.,. 15<. 1hy would management want to share its decision*making power with subordinates3 9age 1#0% :s jobs have become more comple2) managers often don/t know everything their employees do. >hus) participation allows those who know the most to contribute. >he result can be better decisions. >he interdependence in tasks that employees often do today also re8uires consultation with people in other departments and work units. >his increases the need for teams) committees) and group meetings to resolve issues that affect them jointly. 9articipation additionally increases commitment to decisions. 9eople are less likely to undermine a decision at the time of its implementation if they shared in making that decision. (inally) participation provides intrinsic rewards for employees. 7t can make their jobs more interesting and meaningful. 15#. 1hat is a 8uality circle3 9age 1#5% : 8uality circle is a work group of eight to ten employees and supervisors who have a shared area of responsibility. >hey meet regularly to discuss their 8uality problems) investigate causes of the problems) recommend solutions) and take corrective actions. 9art of the 8uality circle concept includes teaching participating employees group communication skills) various 8uality strategies) and measurement and problem analysis techni8ues. 1;$. 1hat are skill*based pay plans3 9ages &$&*&$'% ,kill*based pay is an alternative to job*based pay. ?ather than having an individual/s job title define his or her pay category) skill*based pay sets pay levels on the basis of how many skills employees have or how many jobs they can do. 7t is also called competency*based or knowledge* based pay.

15&

1;1. Low are fle2ible benefits linked with e2pectancy theory3 9age &$0% Aiving all employees the same benefits assumes all employees have the same needs. Iet this assumption is false. >hus) fle2ible benefits turn the benefits/ e2penditure into a motivator. =onsistent with e2pectancy theory/s thesis that organizational rewards should be linked to each individual employee/s goals) fle2ible benefits individualize rewards by allowing each employee to choose the compensation package that best satisfies his or her current needs. >he fact that fle2ible benefits can turn the traditional homogeneous benefit program into a motivator was demonstrated at one company when <$ percent of the organization/s employees changed their fi2ed benefit packages when a fle2ible plan was put into effect. 1;&. 1hat motivates professionals3 9age &$5% 9rofessionals have a strong and long*term commitment to their field of e2pertise. >heir loyalty is more often to their profession than to their employer. >o keep current in their field) they need to regularly update their knowledge) and their commitment to their profession means they rarely define their workweek in terms of < to 0 and five days a week. Money and promotions typically are low on their priority list. Cob challenge tends to be ranked high. >heir chief reward in their job is the work itself. 9rofessionals also value support. >hey want others to think what they/re working on is important. :nd professionals place a high level of importance on having skill* development opportunities. 9rovide them with ongoing challenging projects. Aive them autonomy to follow their interests and allow them to structure their work in ways that they find productive. ?eward them with educational opportunities that allow them to keep current in their field. :lso reward them with recognition and ask 8uestions and engage in other actions that demonstrate to them you/re sincerely interested in what they are doing. ME$IUM LE!&TH $I CU IO! %UE TIO!

1;'. 4iscuss Management by Objectives. 1hat are the characteristics of MBO goals3 9ages 1#$*1#1% Management by Objectives emphasizes participatively set goals that are tangible) verifiable) and measurable. >he four ingredients common to MBO programs are goal specificity) participative decision making) an e2plicit time period) and performance feedback. >he objectives in MBO should be concise statements of e2pected accomplishments. >he objectives in MBO are not unilaterally set by the boss and then assigned to employees. MBO replaces imposed goals with participatively determined goals. "ach objective has a specific time period in which it is to be completed. >he final ingredient is feedback on performance. MBO seeks to give continuous feedback on progress toward goals. 1;+. 1hat is employee involvement3 Aive three e2amples. 9ages 1#+*1#;% "mployee 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. >he 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. "2amples of 15'

employee involvement include participative management) representative participation) 8uality circles) and employee stock ownership plans. 9articipative management programs use joint decision making. ,ubordinates actually share a significant degree of decision*making power with their immediate superiors. ?epresentative participation refers to worker representation by a small group of employees who actually participate on the board. >he goal is to redistribute power within an organization) putting labor on a more e8ual footing with the interests of management and stockholders. : 8uality circle is a group of eight to ten employees and supervisors who have a shared area of responsibility. >hey meet regularly to discuss their 8uality problems) investigate causes of the problems) recommend solutions) and take corrective action. "mployee stock ownership plans ",O9s% are company*established benefit plans in which employees ac8uire stock as part of their benefits. 1;0. 4iscuss fle2ible benefit programs. 1hat are the advantages and disadvantages to both employees and employers3 9ages &$+*&$0% (le2ible benefit programs allow employees to pick benefits that most meet their needs. >he idea is to allow each employee to choose a benefit package that is individually tailored to his or her own need and situation. 7t replaces the traditional -one*benefit*plan*for*all. programs that dominated organizations for more than 0$ years. (or employees) fle2ibility is attractive because they can tailor their benefits and levels of coverage to their own needs. >he major drawback) from the employee/s standpoint) is that the costs of optional benefits often go up) so fewer total benefits can be purchased. (rom the organization/s standpoint) the good news is that fle2ible benefits often produce savings. Many organizations use the introduction of fle2ible benefits to raise deductibles and premiums. Moreover) once in place) costly increases in things like health insurance premiums often have to be substantially absorbed by the employee. >he bad news for the organization is that these plans are more cumbersome for management to oversee and administering the programs is often e2pensive. COMPREHE! I'E E 1;5. A(

@ist and describe different variable*pay programs. Be sure to include piece*rate plans) profit* sharing plans) and gainsharing. 9ages 1##*&$1% 9iece*rate plans) wage incentives) profit sharing) bonuses) and gainsharing are all forms of variable*pay programs. 7n piece*rate pay plans) workers are paid a fi2ed sum for each unit of production completed. 1hen an employee gets no base salary and is paid only for what he or she produces) this is a pure piece*rate plan. Bonuses can be paid e2clusively to e2ecutives or to all employees. Many companies now routinely reward production employees with bonuses in the thousands of dollars when company profits improve. 9rofit*sharing plans are organization wide programs that distribute compensation based on some established formula designed around a company/s profitably. Aainsharing is a formula*based group incentive plan. 7mprovements 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 e2ternal factors. "mployees in a gainshairing plan can receive incentive awards even when the organization isn/t profitable.

1;;.

Low might a manager motivate professional workers) contingent workers) low*skilled service workers) and people doing highly repetitive tasks3 9ages &$5*&$<% 15+

9rofessionals have a strong and long*term commitment to their field of e2pertise. >heir loyalty is more often to their profession than to their employer. >o keep current in their field) they need to regularly update their knowledge) and their commitment to their profession means they rarely define their workweek in terms of < to 0 and five days a week. Money and promotions typically are low on their priority list. Cob challenge tends to be ranked high. >heir chief reward in their job is the work itself. 9rofessionals also value support. >hey want others to think what they/re working on is important. :nd professionals place a high level of importance on having skill* development opportunities. >he following should be considered in motivating professionals: 9rovide them with ongoing challenging projects. Aive them autonomy to follow their interests and allow them to structure their work in ways that they find productive. ?eward them with educational opportunities that allow them to keep current in their field. ?eward them with recognition. :sk 8uestions and engage in other actions that demonstrate to them you/re sincerely interested in what they are doing.

150