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Chapter Quiz
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1
Which of the following theories is based on E.L. Thorndike's Law of Effect?
A)The efficiency wage theory
B)The reinforcement theory
C)The equity theory
D)The expectancy theory
E)The agency theory
2
Which of the following theories emphasizes the importance of a person's actual experience of a reward?
A)Reinforcement theory
B)Expectancy theory
C)Equity theory
D)McGregor's Theory X
E)Theory Z
3
According to the expectancy theory, motivation is hypothesized to be a function of _____.
A)cognitive capacity
B)social structure
C)valence perception
D)intrinsic rewards
E)self-esteem
4
The _____ focuses on the divergent goals of the organization's stakeholders and the ways that employee compensation can be used to align these goals.
A)efficiency wage theory
B)equity theory
C)expectancy theory
D)agency theory
E)reinforcement theory
5
Which of the following statements about outcome-oriented or behavior-oriented contracts is true?
A)Information asymmetry is not an issue in behavior-based contracts.
B)Outcome-oriented contracts do not transfer risk to the agent.
C)Behavior-based contracts increase the agent's risks.
D)Outcome-oriented contracts require a compensating wage differential.
E)Merit-pay is an example of an outcome-based contract.
6
René, the head of operations at a large MNC, prefers outcome-oriented contracts to behavior-oriented contracts. Which of the following is likely to be a reason for preference?
A)She is averse to risks.
B)Her projects have high outcome uncertainty.
C)She manages highly programmable jobs.
D)The tasks she oversees have more measurable outcomes.
E)She prefers compensating wage differential.
7
Lila, a manager, prefers outcome-oriented contracts to behavior-oriented contracts. Which of the following is likely to be a reason for her preference?
A)She is averse to risks.
B)Her projects have high profit certainty.
C)She manages highly programmable jobs.
D)The tasks she oversees have less measurable outcomes.
E)She doesn't prefer compensating wage differential.
8
A _____ combines an employee's performance rating with the employee's position in a pay range to determine the size and frequency of his or her pay increases.
A)performance matrix
B)transitional grid
C)compa-ratio
D)utility matrix
E)merit increase grid
9
Which of the following is a system factor?
A)Professional qualification of the employee
B)Employee's commitment to the job
C)Supervision in the employee's organization
D)Attitude of worker toward job responsibility
E)Worker's awareness of customer needs
10
_____ requires that employees be given opportunities to provide input, discuss their performance, and appeal any decision they believe to be incorrect.
A)Representative justice
B)Procedural justice
C)Distributive justice
D)Systematic justice
E)Equitable justice
11
Which of the following programs uses the returns from the company stock as a performance measure?
A)Incentive pay
B)Merit pay
C)Gainsharing
D)Skill-based pay
E)Ownership
12
Relying too heavily on _____ plans may increase cooperation and concern for the welfare of the entire plant or organization, but it may reduce individual work motivation to unacceptable levels.
A)profit sharing and gainsharing
B)merit pay and individual incentives
C)individual incentives and gainsharing
D)skill-based pay and merit pay
E)skill-based pay and team awards
13
Which of the following forms of compensation makes up the bulk of executive compensation?
A)Skill-based pay
B)Gainsharing
C)Incentive pay
D)Short-term bonuses
E)Restricted stock
14
Which of the following is likely to discourage peer monitoring?
A)Employment security
B)Group cohesiveness
C)Individual rights for employees
D)Lack of monetary incentives
E)Low focus on individual gains
15
Which of the following pay strategy dimensions best fits with a business strategy of growth?
A)Above market benefits level
B)Centralized pay decisions
C)High risk sharing
D)Short-term time orientation
E)Above market pay level in the short run





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