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Essentials of Organizational Behavior, 10e (Robbins/Judge)

Chapter 6 Motivation: From Concepts to Applications

1) Which of the following is not one of the core job dimensions in the JCM model?
A) task significance
B) feedback
C) autonomy
D) status
E) skill variety
Answer: D
Diff: 2 Page Ref: 81
Topic: Motivating by Changing the Nature of the Work Environment

2) According to the JCM, the owner-operator of a garage show performs electrical repairs,
rebuilds engines, does body work, and interacts with customers would score ________.
A) high on task identity
B) high on skill variety
C) low on autonomy
D) low on task significance
E) low on skills variety
Answer: B
Diff: 3 Page Ref: 81
Topic: Motivating by Changing the Nature of the Work Environment

3) In the JCM model, what three core job dimensions 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
Answer: E
Diff: 2 Page Ref: 81
Topic: Motivating by Changing the Nature of the Work Environment

4) According to JCM theory, which of the following results in the maximum internal rewards for
an individual?
A) when they are given tangible rewards
B) when they learn that they personally have performed well on a task that they care about
C) when they initiate a program that enables them to work with a variety of like-minded
colleagues
D) when their training is realized and their expectations are met
E) when they are singled out for praise for successfully completing an arduous task
Answer: B
Diff: 3 Page Ref: 81
Topic: Motivating by Changing the Nature of the Work Environment

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
5) According to the Job Characteristics Model, a telemarketing employee who is provided a list
of calls to make and a standardized script to follow would score
A) high on feedback
B) low on task identity
C) high on autonomy
D) low on autonomy
Answer: D
Diff: 3 Page Ref: 81
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Analytic Skills

6) According to the Job Characteristics Model, the presence of the three psychological states
(knowledge of results, experienced responsibility, and experienced meaningfulness) will
A) increase motivation
B) increase performance
C) decrease absenteeism
D) all of the above
Answer: D
Diff: 3 Page Ref: 82
Topic: Motivating by Changing the Nature of the Work Environment

7) According to the JCM, the links between the job dimensions and the outcomes are moderated
by ________.
A) a high MPS
B) the strength of the individual's growth need
C) a low score on self-esteem
D) experienced meaningfulness of the job
E) autonomy
Answer: B
Diff: 2 Page Ref: 82
Topic: Motivating by Changing the Nature of the Work Environment

8) According to the JCM, which of the following statements is NOT true?


A) The evidence supports the general framework of the theory.
B) Managers can bypass the complex MPS formula and better derive motivating potential by
simply adding the characteristics.
C) The employee's perception of his or her workload compared to others may moderate the link
between the core job dimension and outcomes.
D) If jobs score high on motivating potential, the likelihood of turnover will be reduced.
E) Jobs that are high on motivating potential must be high on both autonomy and task variety.
Answer: E
Diff: 3 Page Ref: 82
Topic: Motivating by Changing the Nature of the Work Environment

2
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
9) What is another term for cross-training?
A) work enrichment
B) job sharing
C) work enlargement
D) job enhancement
E) job rotation
Answer: E
Diff: 1 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

10) What is a main strength of job rotation?


A) It eliminates turnover.
B) It increases motivation.
C) It increases productivity.
D) It decreases training costs
E) It decreases supervisor workload.
Answer: B
Diff: 3 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

11) A trucking company routinely makes all of its office staff work for a week in the warehouse
area; loading trucks, cleaning trucks, and doing other warehouse work which they are capable of.
This program is an example of which of the following?
A) job rotation
B) job enlargement
C) job enrichment
D) job sharing
E) flextime
Answer: A
Diff: 2 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Analytic Skills

12) Which is not cited as a drawback to job rotation?


A) Training costs are increased.
B) Productivity is reduced.
C) Disruption is created.
D) Jobs are eliminated.
E) Supervisors spend more time answering questions.
Answer: D
Diff: 3 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
13) When the ticket agent at Singapore Airlines takes on the duties of a baggage handler, he is
engaged in ________.
A) job enlargement
B) job rotation
C) vertical loading
D) participative management
E) involvement
Answer: B
Diff: 2 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

14) A company redesigns the jobs of the workers in accounts receivables, so that instead of
simply billing customers, they will also be responsible for following up on non-payment, liaising
between customers and the departments billing them, and other related tasks. What term would
best be used to describe these changes?
A) job rotation
B) job enlargement
C) job enrichment
D) job sharing
E) flextime
Answer: B
Diff: 2 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Analytic Skills

15) Which approach to putting the JCM into practice is usually met with less than enthusiastic
results by employees?
A) job enlargement
B) job rotation
C) vertical loading
D) participative management
E) involvement
Answer: A
Diff: 3 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

16) How do most employees react to job enlargement efforts?


A) unqualified approval
B) somewhat enthusiastically
C) with a lack of enthusiasm
D) with mixed emotions
E) with very little reaction.
Answer: C
Diff: 1 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
17) Job enrichment increases the degree to which the worker controls the ________.
A) planning, execution and evaluation of his or her work
B) planning, execution and evaluation of company plans
C) horizontal integration of his or her tasks
D) feedback that a worker receives from his or her supervisor and peers
E) evaluation of his or her peers
Answer: A
Diff: 3 Page Ref: 84
Topic: Motivating by Changing the Nature of the Work Environment

18) Which one of the following is not one of the guidelines for enriching jobs?
A) ensure employees perform one small part of a task
B) establish client relationships
C) open feedback channels
D) combine tasks
E) expand jobs vertically
Answer: A
Diff: 3 Page Ref: Exh 6-2
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Analytic Skills

19) The vertical expansion of jobs is seen in ________.


A) job rotation
B) job enlargement
C) job enrichment
D) job sharing
E) flextime
Answer: C
Diff: 2 Page Ref: 84
Topic: Motivating by Changing the Nature of the Work Environment

20) A firm introduces job enrichment in order to motivate its employees. Evidence would suggest
that which of the following is the most likely result of this change?
A) reduced absenteeism and turnover costs
B) lower fixed costs
C) a drop in quality
D) a decrease in productivity
E) an increase in productivity
Answer: A
Diff: 3 Page Ref: 84
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Reflective Thinking Skills

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
21) 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. Which of the following is designed to give an employee greater control of their
work schedule?
A) flextime
B) job sharing
C) job rotation
D) telecommuting
E) job enrichment
Answer: A
Diff: 2 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Reflective Thinking Skills

22) Which of the following has not been shown to be a benefit of flextime?
A) reduced absenteeism
B) improved productivity
C) increased meaningfulness
D) increased satisfaction
E) improved promptness
Answer: C
Diff: 2 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment

23) Allied General Hospital employs many individuals and has decided to try to increase
motivation through job redesign and flexible scheduling. You have been hired as a consultant to
help them design and implement the programs You are looking at flextime and realize that it will
probably work least well for which of the following jobs?
A) insurance billing clerks
B) custodial workers
C) floor nurses
D) equipment maintenance staff
E) IT personnel
Answer: C
Diff: 3 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Reflective Thinking Skills

6
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
24) Allied General Hospital employs many individuals and has decided to try to increase
motivation through job redesign and flexible scheduling. You have been hired as a consultant to
help them design and implement the programs. Members of the nighttime janitorial staff are
generally low skilled and would probably be motivated by ________.
A) job enrichment
B) flexible work schedules
C) job enlargement
D) all of the above
E) none of the above
Answer: D
Diff: 2 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Reflective Thinking Skills

25) What is flextime's major drawback?


A) Not all employees have computers.
B) Not everyone wants to work part-time.
C) It is not applicable to every job.
D) Tardiness increases.
E) It is hard to find compatible employees.
Answer: C
Diff: 2 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment

26) The work arrangement that allows two or more individuals to split a traditional 40-hour-a
week job is ________.
A) flextime
B) core hours
C) telecommuting
D) job sharing
E) employee involvement
Answer: D
Diff: 2 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment

27) The work arrangement that doesn't seem to be widely adopted by employees is ________.
A) flextime
B) core hours
C) telecommuting
D) job sharing
E) employee involvement
Answer: D
Diff: 2 Page Ref: 86
Topic: Motivating by Changing the Nature of the Work Environment

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
28) Which of the following is a job that does not lend itself to telecommuting?
A) an attorney who spends most of her time researching on the computer
B) a writer of copy for an advertising firm
C) a car salesman who demonstrates the features of a new model of car
D) a telemarketer who uses the phone to contact clients
E) a product support specialist who fields calls from irate customers
Answer: C
Diff: 1 Page Ref: 86
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Reflective Thinking Skills

29) The Japanese are increasingly considering job sharing to ________.


A) increase flexibility
B) avoid layoffs
C) add more part-time positions
D) accommodate working mothers
E) stimulate the economy
Answer: B
Diff: 3 Page Ref: 86
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Multicultural and Diversity Understanding

30) About ________ percent of the U.S. workforce telecommutes.


A) 2
B) 10
C) 25
D) 50
E) 75
Answer: B
Diff: 1 Page Ref: 86
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Use of Information Technology

31) Potential benefits of telecommuting include which of the following?


A) a larger labor pool from which to select
B) reduced office-space costs
C) less turnover
D) improved morale
E) all of the above
Answer: E
Diff: 2 Page Ref: 86
Topic: Motivating by Changing the Nature of the Work Environment

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
32) The major drawback for management with telecommuting is ________.
A) increased cost of office space
B) less direct supervision
C) higher turnover
D) lower productivity
E) more hours worked
Answer: B
Diff: 2 Page Ref: 86-87
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Reflective Thinking Skills

33) The downside of telecommuting from the employee's perspective is ________.


A) the "out of sight/out of mind" effect
B) no overtime earned
C) too many promotions
D) high costs for computer equipment
E) 24 hours on call
Answer: A
Diff: 3 Page Ref: 86-87
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Use of Information Technology

34) The underlying logic of employee involvement is that by involving workers and increasing
their autonomy and control over their work lives, employees will become all of the following
except more ________.
A) motivated
B) competent
C) productive
D) satisfied
E) committed to the organization
Answer: B
Diff: 2 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Reflective Thinking Skills

35) What term is used for a participative process that uses the entire capacity of employees and is
designed to encourage increased commitment to the organization's success?
A) MBO
B) employee involvement
C) reengineering
D) OB Mod
E) job sharing
Answer: B
Diff: 2 Page Ref: 87
Topic: Employee Involvement

9
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
36) Participative management and representative participation are forms of ________.
A) job rotation
B) job enrichment
C) employee involvement
D) employee recognition
E) employee incentives
Answer: C
Diff: 2 Page Ref: 87
Topic: Employee Involvement

37) What is the distinct characteristic common to all participative management programs?
A) joint decision making
B) autonomy
C) empowerment
D) productivity enhancement
E) quality awareness
Answer: A
Diff: 3 Page Ref: 87
Topic: Employee Involvement

38) What is participative management?


A) a method of management where subordinates make corporate decisions and management
helps carry out those decisions
B) a method of management where upper management participates in the organization's strategic
planning
C) a method of management where subordinates share a degree of decision-making power with
their immediate superiors
D) a method of management where low-level workers meet occasionally with the CEO to discuss
problems within their department
E) a method of management where low-level workers are responsible for making corporate
policy decisions
Answer: C
Diff: 2 Page Ref: 87
Topic: Employee Involvement

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
39) A manager introduces participative management in an effort to boost morale and
productivity. If he wants to make sure that it has as great a chance of success as possible he
should ensure all of the following except which of the following?
A) The issues decided upon must be relevant to the employees.
B) The employees must be informed and competent enough to make decisions.
C) The employees must be trusted by the manager.
D) The manager must be trusted by the employees.
E) There must be representative participation through work councils and board representatives.
Answer: E
Diff: 3 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Analytic Skills

40) Your supervisor has heard that employee involvement is important and you have been
instructed to research various methods of employee involvement. You are supposed to help assist
in the analysis of the probable effects of each of the programs being considered. You have
decided to let employees select a small group to represent them and work with management. This
is termed ________.
A) representative participation
B) an ESOP
C) quality circles
D) participative management
E) an AESOP
Answer: A
Diff: 2 Page Ref: 87
Topic: Employee Involvement

41) What is the name for employees who sit on a company's board of directors and represent the
interests of the firm's employees?
A) board representatives
B) works councils
C) quality circles
D) union representatives
E) board leaders
Answer: A
Diff: 1 Page Ref: 87
Topic: Employee Involvement

11
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
42) Research 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
E) lowers costs considerably
Answer: C
Diff: 2 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Communication Abilities

43) What does legislation require almost every company in Western Europe to do?
A) Have a form of representative participation.
B) Provide employee ownership.
C) Provide flextime.
D) Set up quality circles.
E) Have flexible benefit options.
Answer: A
Diff: 1 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Multicultural and Diversity Understanding

44) What is the goal of representative participation?


A) for workers to own the firms where they work
B) to help workers' self-esteem
C) to provide greater motivation and productivity
D) to redistribute power within the organization
E) to empower high-level managers
Answer: D
Diff: 2 Page Ref: 87
Topic: Employee Involvement

45) Works councils and board representatives are the two most common forms of ________.
A) employee recognition
B) representative participation
C) participative management
D) job enrichment
E) employee benefits
Answer: B
Diff: 2 Page Ref: 87-88
Topic: Employee Involvement

12
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
46) Research shows that works councils tend to be ineffective for which of the following
reasons?
A) Members of works council tend to side with management when making decisions for fear of
being punished.
B) Works councils represent the wishes of employees that are often at odds with the best
direction of an organization.
C) Works councils are dominated by management and their input has little impact on employees
or the organization
D) Works councils insert an extra element into decision making which slows the response of an
organization to changing conditions.
E) Members of works councils are in general not qualified to make large decisions concerning
the direction of an organization.
Answer: C
Diff: 2 Page Ref: 88
Topic: Employee Involvement
AASCB Tag: Analytic Skills

47) Experience shows that the greatest value of representative participation is which of the
following?
A) increased motivation
B) increased satisfaction
C) symbolic
D) decreased absenteeism
E) increased commitment
Answer: C
Diff: 2 Page Ref: 88
Topic: Employee Involvement

48) Job evaluation establishes ________.


A) the amount of compensation to be paid
B) external equity
C) the worth of the job to the organization
D) how many tasks to be included in a job
E) how to evaluate an employee
Answer: C
Diff: 3 Page Ref: 88
Topic: Using Rewards to Motivate Employees

49) In a 2006 study, what percentage of top performers indicated pay was a key factor in losing
top talent?
A) 21
B) 41
C) 61
D) 71
Answer: D
Diff: 2 Page Ref: 88
Topic: Using Rewards to Motivate Employees

13
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
50) Initially setting pay levels requires balancing ________.
A) the company's budget
B) supply and demand of labor
C) internal and external equity
D) job worth and demand
E) job worth and internal equity
Answer: C
Diff: 2 Page Ref: 88
Topic: Using Rewards to Motivate Employees

51) Which of the following are all forms of variable-pay programs?


A) piece-rate, merit-based pay, gainsharing
B) profit sharing, lump-sum bonuses, extended vacations
C) wage incentive plans, flextime, piece-rate
D) retirement benefits, extended vacations, wage incentive plans
E) wage rate increases, bonuses, flextime
Answer: A
Diff: 1 Page Ref: 89
Topic: Using Rewards to Motivate Employees

52) Which of the following is one advantage of variable pay plans to management?
A) They turn fixed labor costs into variable labor costs.
B) They turn low producers into high producers.
C) They turn slow employees into fast employees.
D) They turn high fixed costs into low fixed costs.
E) They turn lower performance into fewer employees.
Answer: A
Diff: 3 Page Ref: 89
Topic: Using Rewards to Motivate Employees

53) Which of the following is an example of a piece-rate plan?


A) time and a half for overtime
B) $2 for each unit produced
C) productivity bonus
D) commission
E) $10 per hour worked
Answer: B
Diff: 2 Page Ref: 89
Topic: Using Rewards to Motivate Employees

14
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
54) Merit-based pay plans are based on ________.
A) union negotiations
B) performance appraisal ratings
C) company profits
D) company productivity improvements
E) company stock performance
Answer: B
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees

55) Which of the following is cited as a limitation of merit pay plans?


A) Being based on an annual performance appraisal, the merit pay is as valid (or invalid) as the
performance ratings on which it is based.
B) The pay raise pool seldom fluctuates.
C) Unions encourage merit pay plans.
D) Employees tend to like merit pay plans.
E) There is little link between pay and performance.
Answer: A
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

56) Which of the following is not one of the most widely used variable-pay programs?
A) piece-rate wages
B) merit-based pay
C) base pay
D) employee stock ownership
E) profit-sharing plans
Answer: C
Diff: 1 Page Ref: 89-91
Topic: Using Rewards to Motivate Employees

57) Amalgamated Industries manufactures parts for furniture. Management has decided to
change the method of payment to a skill-based plan. You are interested in increasing your current
compensation and see this as an opportunity. You should expect to earn more if you ________.
A) volunteer for overtime
B) increase your production
C) cross train in other jobs
D) become a specialist
E) master common skills
Answer: C
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

15
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
58) What is the term used for a pay plan where pay levels are based on how many skills
employees have or how many jobs they can do?
A) a variable pay plan
B) flexible pay
C) competency-based pay
D) gainsharing
E) ISOP
Answer: C
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees

59) Amalgamated Industries manufactures parts for furniture. Management has decided to
change the method of payment to a skill-based plan. You are interested in increasing your current
compensation and see this as an opportunity. As a manager, you like the plan because it allows
________.
A) protection of territory
B) increased flexibility of the workforce
C) elimination of workers
D) decreased payroll costs
E) increased control
Answer: B
Diff: 3 Page Ref: 90
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

60) A certain corporation ties its compensation for front-line operations managers to developing
their skills in leadership, workforce development, and functional excellence. What is this sort of
compensation scheme called?
A) job-based pay
B) training-based pay
C) individual merit-based pay
D) skill-based pay
E) development-based pay
Answer: D
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees

16
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
61) Amalgamated Industries manufactures parts for furniture. Management has decided to
change the method of payment to a skill-based plan. You are interested in increasing your current
compensation and see this as an opportunity. Which of the following may be a disadvantage of
introducing this type of pay plan?
A) Employees will become less motivated.
B) Employees will become more specialized.
C) Employees will tend not to work as hard as before.
D) Your employer may pay for skills that they aren't using.
E) Your employer will have less control over what each employee does.
Answer: D
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

62) Which of the following is not a downside of skill-based pay?


A) People can "top out."
B) Skills can become obsolete.
C) Ambitious people can confront minimal advancement opportunities.
D) People are paid for acquiring skills for which there is no immediate need.
E) It doesn't address the level of performance.
Answer: C
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees

63) A rise in which of the following was reported by companies that pay employees for learning
extra skills?
A) operating costs
B) communication across the organization
C) turnover
D) absenteeism
E) perceptions of unfairness
Answer: B
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees
AASCB Tag: Communication Abilities

17
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
64) Much of the compensation of traders at Synalco, a metals trading company, is in the form of
stock options. The amount of options distributed is based on the company's net profits. What sort
of compensation plan is this?
A) profit sharing
B) gainsharing
C) merit based
D) ESOP
E) employee ownership
Answer: A
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees

65) What is the name for an incentive plan where improvements in group productivity determine
the total amount of money that is allocated?
A) ESOP
B) gainsharing
C) profit sharing
D) piece rates
E) employee ownership
Answer: B
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

66) How is gainsharing different from profit sharing?


A) Gainsharing focuses on productivity gains rather than profits.
B) Gainsharing rewards specific behaviors.
C) Gainsharing does not distribute profits, only gains in profits.
D) Gainsharing rewards behaviors that are less influenced by external factors.
E) With gainsharing, superior employees can receive incentive awards even when the
organization isn't profitable.
Answer: A
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

67) In what sort of companies is gainsharing most popular?


A) large manufacturing companies
B) large service organizations
C) small, non-unionized manufacturing companies
D) small, privately held companies
E) non-profit organizations
Answer: A
Diff: 3 Page Ref: 91
Topic: Using Rewards to Motivate Employees

18
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
68) What sort of plan is a company-established benefit plan where employees acquire stock as
part of their benefits?
A) MBO program
B) job redesign
C) ESOP
D) quality circle
E) piece-rate
Answer: C
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

69) Research on employee stock ownership programs indicates that they are clearly successful in
doing which of the following?.
A) increasing employee satisfaction
B) reducing salaries
C) reducing stress
D) increasing productivity
E) increasing employee expectations
Answer: A
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

70) What is the term used for the situation where employees are allowed to pick and choose from
among a menu of benefit options.
A) flexible pay
B) benefit menu options
C) flexible benefits
D) benefit participation
E) flextime
Answer: C
Diff: 1 Page Ref: 91
Topic: Using Rewards to Motivate Employees

71) Your workforce is diverse in terms of their needs for benefits. Jim is married with two
children and his wife is at home full time. Janet is single and supports her widowed mother. Bob
is married and his wife has a high-paying job You decide that you want to devise a benefits
program that is tailored to their individual needs. What sort of benefit program would probably
be the best choice?
A) a traditional benefit program
B) a flexible benefit program
C) letting them purchase their own benefits
D) an ESOP
E) an AESOP
Answer: B
Diff: 1 Page Ref: 91
Topic: Using Rewards to Motivate Employees
AASCB Tag: Multicultural and Diversity Understanding

19
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
72) Your workforce is diverse in terms of their needs for benefits. Jim is married with two
children and his wife is at home full time. Janet is single and supports her widowed mother. Bob
is married and his wife has a high-paying job You decide that you want to devise a benefits
program that is tailored to their individual needs. You should expect that a flexible benefits
program will be all of the following EXCEPT ________.
A) less expensive
B) consistent with expectancy theory
C) more responsive to individual needs
D) motivational
E) accommodate employee differences
Answer: A
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees
AASCB Tag: Multicultural and Diversity Understanding

73) Why are flexible benefit plans consistent with expectancy theory's thesis?
A) They allow organizations to minimize costs associated with benefits.
B) They provide a suite of tangible rewards that can be offered as motivation.
C) Flexible benefits individualize rewards.
D) They make employment at firms providing such programs more attractive.
E) The motivation to gain extra benefits promotes productivity.
Answer: C
Diff: 3 Page Ref: 91
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

74) Your workforce is diverse in terms of their needs for benefits. Jim is married with two
children and his wife is at home full time. Janet is single and supports her widowed mother. Bob
is married and his wife has a high-paying job You decide that you want to devise a benefits
program that is tailored to their individual needs. What sort of plan would provide pre-designed
packages of benefits, put together to meet the needs of a specific group of employees?
A) flexible spending
B) core-plus
C) cafeteria
D) modular
E) customized
Answer: D
Diff: 1 Page Ref: 92
Topic: Using Rewards to Motivate Employees
AASCB Tag: Multicultural and Diversity Understanding

20
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
75) What are modular benefit plans?
A) essential benefits and a menu-like selection of other benefits
B) pre-designed packages of benefits to meet the needs of a specific group of employees
C) they require employees to set aside funds up to the dollar amount offered in the plan to pay
for services
D) a scheme designed for single employees with no dependents
E) a scheme designed for employees with families
Answer: B
Diff: 2 Page Ref: 92
Topic: Using Rewards to Motivate Employees
AASCB Tag: Multicultural and Diversity Understanding

76) In which benefit plan are employees given benefit credits to purchase additional benefits to
add to the core?
A) modular plans
B) core plus plans
C) flexible spending plans
D) ESOPs
E) employee recognition plans
Answer: B
Diff: 2 Page Ref: 92
Topic: Using Rewards to Motivate Employees

77) Which benefit plan can increase employee take-home pay?


A) modular plans
B) core-plus plans
C) flexible spending plans
D) ESOPs
E) employee recognition plans
Answer: C
Diff: 3 Page Ref: 92
Topic: Using Rewards to Motivate Employees
AASCB Tag: Analytic Skills

78) Employee recognition programs are consistent with which of the following?
A) goal setting theory
B) cognitive evaluation theory
C) reinforcement theory
D) expectancy theory
E) Marxist theory
Answer: C
Diff: 3 Page Ref: 92
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

21
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
79) Laura only makes minimum wage, but she loves her job Her supervisor regularly
compliments her and she has been chosen employee of the month twice this year. Which of the
following is Laura's attitude most likely a function of?
A) recognition
B) motivation
C) goal setting
D) involvement
E) reactance
Answer: A
Diff: 2 Page Ref: 92
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

80) Researchers report that which of the following was considered by employees to be the most
powerful workplace motivator?
A) recognition
B) money
C) opportunity for advancement
D) autonomy
E) vacation time
Answer: A
Diff: 2 Page Ref: 92
Topic: Using Rewards to Motivate Employees

81) Which of the following is a form of recognition?


A) personal congratulations
B) job enlargement
C) job sharing
D) flexible benefit packages
E) profit sharing
Answer: A
Diff: 1 Page Ref: 93
Topic: Using Rewards to Motivate Employees

82) Why may job enrichment strategies be less effective in more collectivist cultures?
A) The JCM is relatively individualistic.
B) The core job characteristics are not equally applicable across cultures.
C) Collectivist cultures do not focus on intrinsic job characteristics.
D) The JCM has not been translated into other languages.
Answer: A
Diff: 2 Page Ref: 93
Topic: Global Implications
AASCB Tag: Multicultural and Diversity Understanding

22
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
83) The global research on telecommuting found that
A) telecommuting is more common in the US than in Europe.
B) across the globe, employers are more interested in telecommuting than employees.
C) of the EU countries, Portugal has the highest rate of telecommuting.
D) telecommuting simply works better in the US than in other countries.
Answer: A
Diff: 2 Page Ref: 93
Topic: Global Implications
AASCB Tag: Multicultural and Diversity Understanding

84) All of the following statements about employee involvement are true, EXCEPT
A) Employee involvement programs must reflect national culture.
B) Managers in India who empowered their employees through employee involvement programs
were rated low.
C) US employees accept employee involvement programs, but not all employees from other
culture feel the same way.
D) Employees across the globe warmly receive employee involvement programs.
Answer: D
Diff: 2 Page Ref: 93
Topic: Global Implications
AASCB Tag: Multicultural and Diversity Understanding

85) To motivate employees in organizations, managers should do all of the following EXCEPT
A) recognize individual differences
B) use goals and feedback
C) make decisions for employees including setting goals for them
D) link rewards to performance
E) check the reward system for equity
Answer: C
Diff: 2 Page Ref: 94-95
Topic: Implications for Managers
AASCB Tag: Reflective Thinking Skills

86) The JCM consists of five core job characteristics: task significance, feedback, experienced
meaningfulness, task variety, and autonomy.
Answer: FALSE
Diff: 3 Page Ref: 81
Topic: Motivating by Changing the Nature of the Work Environment

87) The dimensions of the JCM that create meaningfulness include task identity, skill variety,
and task significance.
Answer: TRUE
Diff: 2 Page Ref: Exh 6-1
Topic: Motivating by Changing the Nature of the Work Environment

23
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
88) Jobs that are high on motivating potential must be high on at least one of the three factors
that lead to experienced meaningfulness, and they must be high on both autonomy and feedback.
Answer: TRUE
Diff: 2 Page Ref: 82
Topic: Motivating by Changing the Nature of the Work Environment

89) Jobs that have the intrinsic elements of variety, identity, significance, autonomy, and
feedback are more satisfying and generate higher performance from people than jobs that lack
these characteristics.
Answer: TRUE
Diff: 1 Page Ref: 82
Topic: Motivating by Changing the Nature of the Work Environment

90) In job rotation, jobs are not redesigned; in job enlargement, they are.
Answer: TRUE
Diff: 2 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

91) The strengths of job rotation are that it eliminates boredom, increases motivation, and
increases productivity.
Answer: FALSE
Diff: 3 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

92) In job rotation, the nature of the work performed is changed.


Answer: FALSE
Diff: 3 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment

93) Job enrichment, job enlargement, and job rotation are all job redesign options.
Answer: FALSE
Diff: 2 Page Ref: 83-84
Topic: Motivating by Changing the Nature of the Work Environment

94) Most employees do not view efforts at job enlargement enthusiastically.


Answer: TRUE
Diff: 2 Page Ref: 83
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Reflective Thinking Skills

95) Job enrichment increases the degree to which the worker controls the execution of company
plans.
Answer: FALSE
Diff: 2 Page Ref: 84
Topic: Motivating by Changing the Nature of the Work Environment

24
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
96) The overall evidence on job enrichment generally shows that it increases satisfaction,
reduces absenteeism, and reduces turnover costs.
Answer: TRUE
Diff: 2 Page Ref: 84
Topic: Motivating by Changing the Nature of the Work Environment

97) Evidence on job enrichment indicates conclusively that it increases productivity.


Answer: FALSE
Diff: 2 Page Ref: 84
Topic: Motivating by Changing the Nature of the Work Environment

98) Flextime is shown to increase the meaningfulness that employees find in their work.
Answer: FALSE
Diff: 1 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment

99) The scheduling options of flextime, job sharing, and telecommuting are all approaches to
make the workplace environment more motivating.
Answer: TRUE
Diff: 2 Page Ref: 85
Topic: Motivating by Changing the Nature of the Work Environment

100) Although over 30 percent of large organizations offer employees job sharing, it doesn't
seem to be widely adopted by employees.
Answer: TRUE
Diff: 2 Page Ref: 86
Topic: Motivating by Changing the Nature of the Work Environment

101) For employees with a high social need, telecommuting is a good option.
Answer: FALSE
Diff: 1 Page Ref: 86
Topic: Motivating by Changing the Nature of the Work Environment
AASCB Tag: Use of Information Technology

102) Employee involvement is a participative process that is designed to encourage increased


commitment to the organization's success.
Answer: TRUE
Diff: 2 Page Ref: 87
Topic: Employee Involvement

103) Employee involvement programs should take into account cultural factors such as
differences in power-distance culture.
Answer: TRUE
Diff: 1 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Multicultural and Diversity Understanding

25
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
104) The laws of the United States require companies to have elected representatives from their
employee groups as members of their board of directors.
Answer: FALSE
Diff: 2 Page Ref: 97
Topic: Employee Involvement

105) Participative management implies joint decision-making and equal decision-making roles.
Answer: FALSE
Diff: 2 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Analytic Skills

106) Employee involvement programs could provide employees with intrinsic motivation by
increasing opportunities for growth and responsibility.
Answer: TRUE
Diff: 3 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Reflective Thinking Skills

107) Participation typically has only a modest influence on variables such as employee
productivity, motivations, and job satisfaction.
Answer: TRUE
Diff: 1 Page Ref: 87
Topic: Employee Involvement

108) If one is interested in changing employee attitudes or in improving organizational


performance, representative participation would be a good choice.
Answer: FALSE
Diff: 3 Page Ref: 87
Topic: Employee Involvement
AASCB Tag: Reflective Thinking Skills

109) The two most common forms that representative participation takes are works councils and
board representatives.
Answer: TRUE
Diff: 3 Page Ref: 87-88
Topic: Employee Involvement

110) Participative management has had a profound influence on employee productivity and
motivation.
Answer: FALSE
Diff: 2 Page Ref: 88
Topic: Employee Involvement

26
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
111) Board representatives are employees who sit on a company's board of directors and
represent the interests of the firm's employees.
Answer: TRUE
Diff: 2 Page Ref: 87-88
Topic: Employee Involvement

112) The greatest value of representative participation is symbolic.


Answer: TRUE
Diff: 2 Page Ref: 88
Topic: Employee Involvement

113) Internal equity is usually established through pay surveys.


Answer: FALSE
Diff: 2 Page Ref: 88
Topic: Using Rewards to Motivate Employees

114) Job evaluation establishes internal equity.


Answer: TRUE
Diff: 3 Page Ref: 88
Topic: Using Rewards to Motivate Employees

115) Variable-pay compensation pays people for the time they spend on the job and seniority.
Answer: FALSE
Diff: 1 Page Ref: 89
Topic: Using Rewards to Motivate Employees

116) Variable-pay programs turn part of an organization's fixed labor costs into a variable cost.
Answer: TRUE
Diff: 1 Page Ref: 89
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

117) Employee compensation will decline if performance declines in variable-pay programs.


Answer: TRUE
Diff: 2 Page Ref: 89
Topic: Using Rewards to Motivate Employees

118) Piece-rate plans, wage incentives, profit sharing, bonuses, and gainsharing are all forms of
flexible benefits.
Answer: FALSE
Diff: 2 Page Ref: 89-91
Topic: Using Rewards to Motivate Employees

119) Both piece-rate and gainsharing plans are examples of variable-pay compensation.
Answer: TRUE
Diff: 1 Page Ref: 89-90
Topic: Using Rewards to Motivate Employees

27
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
120) Piece-rate wages are a traditional form of variable pay compensation whereby workers' pay
is based upon the number of units they produce.
Answer: TRUE
Diff: 2 Page Ref: 89
Topic: Using Rewards to Motivate Employees

121) People who sell peanuts at ball parks, keeping $.75 for every bag of peanuts they sell, are
being paid piece-rate wages.
Answer: TRUE
Diff: 2 Page Ref: 89
Topic: Using Rewards to Motivate Employees
AASCB Tag: Analytic Skills

122) Piece-rate plans are based on group productivity.


Answer: FALSE
Diff: 2 Page Ref: 89
Topic: Using Rewards to Motivate Employees

123) Individuals in merit-based pay plans perceive a strong relationship between their
performance and the rewards they receive.
Answer: TRUE
Diff: 3 Page Ref: 90
Topic: Using Rewards to Motivate Employees

124) Profit sharing may be paid by direct cash outlay or as stock options.
Answer: TRUE
Diff: 3 Page Ref: 90
Topic: Using Rewards to Motivate Employees

125) Bonus plans are still reserved for the executive ranks with very few lower ranking
employees included.
Answer: FALSE
Diff: 1 Page Ref: 90
Topic: Using Rewards to Motivate Employees

126) Skill-based pay is not utilized much in white-collar jobs.


Answer: FALSE
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees

127) From management's perspective, the greatest appeal of skill-based pay plans is decreased
payroll costs.
Answer: FALSE
Diff: 3 Page Ref: 90
Topic: Using Rewards to Motivate Employees

28
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
128) Skill-based pay encourages employees to concentrate on one or two highly desirable skills.
Answer: FALSE
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

129) Skill-based pay plans encourage people to specialize.


Answer: FALSE
Diff: 2 Page Ref: 90
Topic: Using Rewards to Motivate Employees

130) Gainsharing and profit sharing are the same thing.


Answer: FALSE
Diff: 1 Page Ref: 90-91
Topic: Using Rewards to Motivate Employees

131) An employee in a gainsharing plan can receive incentive awards even if the organization
isn't profitable.
Answer: TRUE
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

132) Studies generally show that organizations with profit sharing plans have higher levels of
profitability than those without.
Answer: TRUE
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

133) Studies show that gainsharing programs have a positive impact on employee attitudes.
Answer: TRUE
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

134) Gainsharing's popularity seems to be narrowly focused among large, manufacturing


companies.
Answer: TRUE
Diff: 3 Page Ref: 91
Topic: Using Rewards to Motivate Employees

135) ESOPs are company-established benefit plans in which employees acquire stock as part of
their benefits.
Answer: TRUE
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

29
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
136) Research on ESOPs indicates they increase employee satisfaction.
Answer: TRUE
Diff: 3 Page Ref: 91
Topic: Using Rewards to Motivate Employees

137) Flexible spending plans allow employees to set aside up to the dollar amount offered in the
plan to pay for particular services.
Answer: TRUE
Diff: 2 Page Ref: 91
Topic: Using Rewards to Motivate Employees

138) Studies show that employees consider wages and benefits to be the most powerful
workplace motivators.
Answer: FALSE
Diff: 3 Page Ref: 92
Topic: Using Rewards to Motivate Employees

139) One of the most expensive motivation programs is that which recognizes an employee's
superior performance.
Answer: FALSE
Diff: 1 Page Ref: 92-93
Topic: Using Rewards to Motivate Employees

140) While flexible benefits have become the norm in the US, this is not the case in other
countries.
Answer: FALSE
Diff: 1 Page Ref: 94
Topic: Global Implications
AASCB Tag: Multicultural and Diversity Understanding

141) Discuss the Job Characteristics Model.


Answer: The Job Characteristics Model was developed by Hackman and Oldham. It proposes
that any job can be described in terms of five core job characteristics. Skill variety is the degree
to which the job requires a variety of different activities so the worker can use a number of
different skills. Task variety is the degree to which the job requires completion of a whole and
identifiable piece of work. Task significance is the degree to which the job has a substantial
impact on the lives or work of other people. Autonomy is the degree to which the job provides
freedom and discretion to the individual in scheduling the work and determining procedures to
be used in carrying out the work. And finally, feedback is the degree to which carrying out the
work activities required by the job results in the individual obtaining direct and clear information
about the effectiveness of the his or her performance. The presence of these five core job
characteristics impacts the three critical psychological states: knowledge of results, experienced
responsibility, and experienced meaningfulness. The more these three states are present, the
greater will be employees' motivation, performance, and satisfaction. The core dimensions can
be combined into a single predictive index, the motivating potential score (MPS).
Page Ref: 81-82
Topic: Using Rewards to Motivate Employees

30
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
142) Discuss three ways the JCM can be put into practice to make jobs more motivating.
Answer: The JCM can be put into practice to make jobs more motivating with job rotation, job
enlargement, and job enrichment.

Job rotation. This is the practice of periodically shifting an employee from one task to another.
When an activity is no longer challenging, the employee is rotated to another job, usually at the
same level, that has similar skill requirements.

Job enlargement. This is the expansion of jobs horizontally; increasing the number and variety
of tasks that an individual performs. Instead of only sorting the incoming mail by department, for
instance, a mail sorter's job could be enlarged to include physically delivering the mail to the
various departments or running outgoing letters through the postage meter.

Job enrichment refers to the vertical expansion of jobs. It increases the degree to which the
worker controls the planning, execution, and evaluation of his or her work. An enriched job
organizes tasks so as to allow the worker to do a complete activity, increases the employee's
freedom and independence, increases responsibility, and provides feedback, so an individual will
be able to assess and correct his or her own performance.
Page Ref: 83-84
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

143) How can management enrich an employee's job?


Answer: An employee's job can be enriched by a number of ways. Combining task takes
existing tasks and puts them back together to form a new and larger module of work. Forming
natural work units means that the tasks an employee does create an identifiable and meaningful
whole. Establishing client relationships increases the direct relationships between workers and
their clients. Expanding jobs vertically gives employees responsibilities and control that were
formerly reserved for management. Opening feedback channels lets employees know how well
they are performing their jobs and whether their performance is improving, deteriorating, or
remaining at a constant level.
Page Ref: Exh 6-2
Topic: Using Rewards to Motivate Employees
AASCB Tag: Analytic Skills

144) Discuss three alternative work arrangements.


Answer: Flextime, job sharing, and telecommuting are three alternative work arrangements.
Flextime stands for flexible work hours. It allows employees some discretion over when they
arrive at work and when they leave. Job sharing allows two or more individuals to split a
traditional 40-hour-a-week job. Telecommuting refers to employees who do their work remotely
at least two days a week using a computer linked to their office.
Page Ref: 85-86
Topic: Using Rewards to Motivate Employees

31
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
145) Discuss the benefits and drawbacks for management of telecommuting.
Answer: The potential benefits of telecommuting include a larger labor pool from which to
select, higher productivity, less turnover, improved morale, and reduced office-space costs. The
drawbacks include less direct supervision of employees and increased difficulty to coordinate
teamwork. The major drawback is that it is not applicable to every job.
Page Ref: 86-87
Topic: Using Rewards to Motivate Employees
AASCB Tag: Use of Information Technology

146) What is participative management?


Answer: All participative management programs use joint decision-making. Subordinates share
a significant degree of decision-making power with their immediate superiors. It is not the
panacea for poor morale and low productivity that it was once thought to be. Research findings
are mixed.
Page Ref: 87
Topic: Employee Involvement

147) List and describe different variable-pay programs. Be sure to include piece-rate plans,
profit-sharing plans, and gainsharing.
Answer: Piece-rate plans, merit-based pay plans, wage incentives, profit sharing, bonuses, skill-
based pay plans, and gainsharing are all forms of variable-pay programs. 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. Unlike
piece-rate plans, which pay based on objective output, merit-based pay plans are based on
performance appraisal ratings. Bonuses can be paid exclusively to executives or to all
employees. Many companies now routinely reward production employees with bonuses in the
thousands of dollars when company profits improve. Skill-based pay is an alternative to job-
based pay. Rather 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. It is also called competency-based or knowledge-based pay. Profit-sharing plans are
organization wide programs that distribute compensation based on some established formula
designed around a company's profitably. 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.
Page Ref: 89-91
Topic: Using Rewards to Motivate Employees

32
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
148) How are flexible benefits linked with expectancy theory?
Answer: Giving all employees the same benefits assumes, falsely, that all employees have the
same needs. Thus, flexible benefits turn the benefits' expenditure into a motivator. Consistent
with expectancy theory's thesis that organizational rewards should be linked to each individual
employee's goals, flexible benefits individualize rewards by allowing each employee to choose
the compensation package that best satisfies his or her current needs.
Page Ref: 91
Topic: Using Rewards to Motivate Employees
AASCB Tag: Reflective Thinking Skills

149) Discuss the importance of employee recognition programs.


Answer: Rewards to employees can be intrinsic or extrinsic. Employee recognition programs are
intrinsic rewards. While financial incentives may be more motivating in the short term,
nonfinancial incentives are more motivating in the long run. Surprisingly enough, recognition
has been identified as the most powerful workplace motivator. The good news is that recognition
programs are inexpensive. However, recognition programs are highly susceptible to political
manipulation by managers. Abuse of the system can then act to de-motivate employees.
Page Ref: 92-93
Topic: Using Rewards to Motivate Employees

150) List five guidelines of what has been learned about motivating employees in organizations.
Answer: Following are five guidelines of what has been learned about motivating employees in
organizations:

1. Recognize individual differences. Since employees have different needs, they should not all
be treated the same.
2. Use goals and feedback. Employees should have hard, specific goals and feedback to know
how they are progressing.
3. Allow employees to participate in decisions that affect them. This can increase productivity,
commitment to work goals, motivation, and job satisfaction.
4. Link rewards to performance. Rewards should be contingent on performance.
5. Check the system for equity. Rewards should also be perceived by employees as equating
with the inputs they bring to the job.
Page Ref: 94-95
Topic: Using Rewards to Motivate Employees

33
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

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