Organizational Behavior, 18e (Robbins/Judge)
Chapter 8 Motivation: From Concepts to Applications
1)
is not a benefit of flextime.
A) Reduced absenteeism
B) Decreased work/life balance
C) Increased productivity
D) Reduced tardiness
E) Increased autonomy
Answer: B
Explanation: B) Flextime tends to reduce absenteeism and frequently improves productivity,
probably for several reasons. Employees can schedule their work hours to align with personal
demands, reducing tardiness and absences, and they can work when they are most productive.
Flextime can also help employees balance work and family lives.
LO: 3
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
2) Job design is defined as the
.
A) degree to which the job rewards competence
B) way the elements in a job are organized
C) degree to which the job contributes to profit margins
D) degree of decision-making power with the immediate superiors
E) way the job is evaluated in terms of its relative worth to other jobs
Answer: B
Explanation: B) Job design is defined as the way the elements in a job are organized.
LO: 1
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
1
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3) With reference to the job characteristics model, which of the following defines skill variety?
A) the degree to which a job requires completion of a whole and identifiable piece of work
B) the degree to which work activities generate direct and clear information about performance
C) the degree to which a job provides the worker freedom in scheduling and procedure
D) the degree to which a job has an impact on the lives or work of other people
E) the degree to which a job requires a variety of different activities tapping different abilities
Answer: E
Explanation: E) The job characteristics model (JCM) describes jobs in terms of five core job
dimensions: skill variety, the degree to which a job requires a variety of different activities; task
identity, the degree to which a job requires completion of a whole and identifiable piece of work;
task significance, the degree to which a job has an impact on the lives or work of other people;
autonomy, the degree to which a job provides the worker freedom in scheduling; and feedback,
the degree to which carrying out work activities generates direct and clear information about
performance.
LO: 1
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
4) With reference to the job characteristics model, which of the following defines task identity?
A) the degree to which a job requires completion of a whole and identifiable piece of work
B) the degree to which work activities generate direct and clear information about performance
C) the degree to which a job provides the worker freedom in scheduling and procedure
D) the degree to which a job has an impact on the lives or work of other people
E) the degree to which a job requires a variety of different activities
Answer: A
Explanation: A) The job characteristics model (JCM) describes jobs in terms of five core job
dimensions: skill variety, the degree to which a job requires a variety of different activities; task
identity, the degree to which a job requires completion of a whole and identifiable piece of work;
task significance, the degree to which a job has an impact on the lives or work of other people;
autonomy, the degree to which a job provides the worker freedom in scheduling; and feedback,
the degree to which carrying out work activities generates direct and clear information about
performance.
LO: 1
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
2
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5) Adam Sears is an assembly line employee with Swenson Motors. Though Adam is popular
among his supervisors and colleagues, Adam experiences low morale and lack of motivation. He
feels frustrated that his job is restricted to fixing nuts and bolts on the car parts. He fears that he
has no chances of advancing in his career as he cannot completely assemble a car. Which of the
following is true with regard to Adam?
A) Adam's job has high task complexity.
B) Adam's job has a high span of control.
C) Adam's job has low role definition.
D) Adam's job has low task identity.
E) Adam's job has high task significance.
Answer: D
Explanation: D) Adam's job has low task identity. This means that the degree to which the job
requires the completion of a whole and identifiable piece of work is low.
LO: 1
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
6) According to the job characteristics model, task significance is the degree to which
.
A) a job requires completion of a whole and identifiable piece of work
B) a job generates direct and clear information about performance
C) a job provides the worker freedom in scheduling work and determining its procedure
D) a job bears an impact on the lives or work of other people
E) a job requires a variety of different activities
Answer: D
Explanation: D) Task significance is the degree to which a job has an impact on the lives or
work of other people.
LO: 1
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
3
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7) Samantha Barnes is an emergency medical technician. Recently, during an emergency call, she
was able to resuscitate a man who had a cardiac arrest. Subsequently, she spent some time
calming the 12-year-old daughter of the patient and looked after her till the rest of the patient's
family arrived at the hospital. Based on this description, it can be concluded that Samantha's job
is high in
.
A) task identity
B) feedback
C) extrinsic rewards
D) task significance
E) job rotation
Answer: D
Explanation: D) Although Samantha's job has many job characteristics, the description provided
best describes task significance. Task significance refers to the degree to which a job has an
impact on the lives of other people.
LO: 1
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
8) According to the job characteristics model, autonomy is defined as the degree to which
.
A) a job requires completion of a whole and identifiable piece of work
B) a job generates direct and clear information about performance
C) a job provides the worker freedom, independence, and discretion
D) a job has an impact on the lives or work of other people
E) a job requires a variety of different activities
Answer: C
Explanation: C) Autonomy is the degree to which a job provides the worker freedom,
independence, and discretion in scheduling work and determining the procedures in carrying it
out.
LO: 1
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
4
Copyright © 2018 Pearson Education, Inc.
9) According to the job characteristics model,
indicates the degree to which carrying
out work activities generates direct and clear information about your own performance.
A) task significance
B) autonomy
C) feedback
D) task identity
E) skill variety
Answer: C
Explanation: C) According to the job characteristics model, feedback indicates the degree to
which carrying out work activities generates direct and clear information about your own
performance.
LO: 1
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
10) Which of the following series of dimensions of the job characteristics model (JCM) combine
to create meaningful work?
A) autonomy, task identity, and feedback
B) skill variety, autonomy, and task significance
C) skill variety, autonomy, and feedback
D) feedback, task identity, and task significance
E) skill variety, task identity, and task significance
Answer: E
Explanation: E) The first three dimensions in JCM, skill variety, task identity, and task
significance, combine to create meaningful work that the worker will view as important,
valuable, and worthwhile.
LO: 1
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
5
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11) The core dimensions of the job characteristics model can be combined into a single
predictive index called
.
A) extrinsic motivation score
B) personal outcome score
C) job diagnostic score
D) motivating potential score
E) potential development score
Answer: D
Explanation: D) The core dimensions of the job characteristics model can be combined into a
single predictive index, called the motivating potential score.
LO: 1
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
12) Which of the following statements is true regarding the job characteristics model?
A) The operation of the model is universal and unaffected by cultural factors.
B) The operation of the model is relatively individualistic in nature.
C) The operation of the model requires employees to have similar skill sets.
D) The operation of the model cannot be quantitatively measured.
E) The operation of the model fulfills only extrinsic motivational needs.
Answer: B
Explanation: B) The job characteristics model is relatively individualistic in nature as it
considers the relationship between the employee and his or her work. This suggests that job
enrichment strategies may not have the same effects in collectivistic cultures as in individualistic
cultures.
LO: 1
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
6
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13) Which of the following statements is true regarding job rotation?
A) It decreases the flexibility with which an organization can adapt to a change.
B) It decreases employee motivation.
C) It decreases productivity in the short run.
D) It decreases supervisory workload.
E) It decreases the flexibility in scheduling work.
Answer: C
Explanation: C) Job rotation increases the flexibility with which an organization can adapt to a
change. It reduces boredom and increases motivation. Productivity tends to reduce when a
worker moves into a new position, and supervisory workload tends to increase because
supervisors may have to spend more time answering questions and monitoring the work of
recently rotated employees.
LO: 2
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
14) The periodic shifting of an employee from one task to another with similar skill requirements
at the same organizational level is defined as
.
A) job enlargement
B) job analysis
C) job rotation
D) job sharing
E) job enrichment
Answer: C
Explanation: C) The periodic shifting of an employee from one task to another with similar skill
requirements at the same organizational level is called job rotation.
LO: 2
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
7
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15) A prerequisite condition for job rotation is the
.
A) presence of high level of autonomy among workers
B) presence of high need for affiliation among workers
C) presence of employees with similar skill sets and requirements
D) presence of alternative work arrangements for employees to avail
E) presence of employee involvement programs
Answer: C
Explanation: C) The periodic shifting of an employee from one task to another with similar skill
requirements at the same organizational level is called job rotation.
LO: 2
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
16) Managers at Flavors, a restaurant chain, train their employees such that in the absence of
employees, someone trained in the same skills can step in and do the job equally well. Thus,
many modules in training are extensive as they provide employees with details of the skill sets
required for different jobs. In practice, this lengthy training program does help the company as a
well-trained and flexible workforce is at their disposal at all times. The managers at Flavors use
.
A) job rotation
B) vertical enhancement
C) telecommuting
D) job sharing
E) flextime
Answer: A
Explanation: A) This is an example of job rotation, or the periodic shifting of an employee from
one task to another with similar skill requirements at the same organizational level.
LO: 2
AACSB: Analytic Skills
Difficulty: Easy
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
8
Copyright © 2018 Pearson Education, Inc.
CalTrack Services has been facing employee-related issues like decreased productivity, low
morale, and poor organizational commitment in recent times. At a meeting to discuss strategies
to address these issues of immediate concern, Joe McEnroe, the production manager, proposed
that the roles of employees working on key projects be enhanced to increase autonomy. He felt
that this would enhance productivity, motivation, and accountability. Taking a cue from
McEnroe, Paul Wilbur suggested job rotation as a solution to the problem they were facing.
Wilbur felt that a change of job roles would make the employees keener to learn and perform. He
emphasized that job rotation would help management create a larger skill base to choose from,
depending on the needs of specific projects.
17) Which of the following, if true, would weaken the argument of adopting job rotation?
A) The employees of the company have similar skill sets which are suited to transfer of learning.
B) The company has been conducting professional training programs to keep all employees upto-date with the developments in the field.
C) AmWeb, one of the major rival firms, witnessed a substantial rise in profits following its
cross-training program for employees.
D) The research evidence favoring job rotation has rarely used samples from the service industry.
E) The company is now entering its busiest business season with multiple project deadlines.
Answer: E
Explanation: E) Job rotation is the periodic shifting of an employee from one task to another
with similar skill requirements at the same organizational level. With the busiest business season
coming up, time is at a premium for this company, and job rotation, though beneficial in the long
run, will result in wastage of time for all employees involved; it will also cause a drop in the
immediate productivity. If the employees of the company have similar skill sets which are suited
to transfer of learning, then this would strengthen the argument in favor of adopting job rotation.
The fact that the company has been conducting professional training programs to keep all
employees up-to-date with the developments in the field does not weaken the argument of
adopting job rotation. The fact that AmWeb, one of the major rival firms, witnessed a substantial
rise in profits following its cross-training program for employees does not strengthen or weaken
the argument of adopting job rotation for CalTrack. The fact that research evidence favoring job
rotation has rarely used samples from the service industry does not strengthen or weaken the
argument of adopting job rotation.
LO: 2
AACSB: Reflective Thinking
Difficulty: Hard
Quest. Category: Critical Thinking
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
9
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18) Which of the following, if true, would strengthen the argument in favor of adopting job
rotation?
A) The company is currently facing numerous budget constraints.
B) The company can enhance productivity of existing employees in various areas for different
projects.
C) Two front-level managers have resigned in the last quarter as they were not promoted.
D) The company has launched a new brand which is cannibalizing one of its existing products.
E) The company has recently given employees new responsibilities by combining their routine
tasks into natural work units.
Answer: B
Explanation: B) If the company can enhance productivity of existing employees in various areas
for different projects, then this would strengthen the argument for adopting job rotation. The
strengths of job rotation are that it reduces boredom, increases motivation, and helps employees
better understand how their work contributes to the organization. An indirect benefit is that
employees with a wider range of skills give management more flexibility in scheduling work,
adapting to changes, and filling vacancies. Since CalTrack needs to increase productivity, job
rotation would help the company create a pool of workers who are skilled in different areas that
are important for different projects. If the company is currently facing numerous budget
constraints, it would weaken the argument of adopting job rotation. The fact that two front-level
managers have resigned in the last quarter as they were not promoted does not strengthen the
argument in favor of adopting job rotation. The fact that the company has launched a new brand
which is cannibalizing one of its existing products does not strengthen the argument of adopting
job rotation. If the company has recently given employees new responsibilities by combining
their routine tasks into natural work units, then this does not strengthen the argument in favor of
adopting job rotation.
LO: 2
AACSB: Reflective Thinking
Difficulty: Hard
Quest. Category: Critical Thinking
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
19) One of the methods of job enrichment is to expand jobs vertically. This method involves
modifying the
dimension of the job.
A) task significance
B) autonomy
C) feedback
D) task identity
E) skill variety
Answer: B
Explanation: B) Expanding jobs vertically involves giving employees responsibilities and
control formerly reserved for management. Thus, it modifies the autonomy dimension of the job.
LO: 2
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
10
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20) Job enrichment is the process of
.
A) periodic shifting of an employee from one task to another with similar skill requirements at
the same organizational level
B) expansion of jobs by increasing the degree to which the worker controls the planning,
execution, and evaluation of the work
C) redistribution of power within the organization through work councils and board
representations
D) distribution of a significant degree of power between subordinates and supervisors
E) evaluation of an employee wherein subordinates, peers, and managers provide comprehensive
feedback
Answer: B
Explanation: B) Job enrichment expands jobs by increasing the degree to which the worker
controls the planning, execution, and evaluation of the work.
LO: 2
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
21) The job characteristics model describes five dimensions of a job. A job can be enriched by
modifying one or more of these five dimensions. Which of the following methods of job
enrichment involves modifying skill variety and task identity dimensions of a job?
A) combining tasks
B) forming natural work units
C) establishing client relationships
D) expanding jobs vertically
E) opening feedback channels
Answer: A
Explanation: A) Combining tasks puts fractionalized tasks back together to form a new and
larger module of work. Thus, it involves modifying skill variety and task identity dimensions of a
job.
LO: 2
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
11
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22) Beyond redesigning the nature of the work itself and involving employees in decisions,
another approach to making the work environment more motivating is to alter work
arrangements to meet employee needs. Which of the following is designed to give employees
greater control of their schedule?
A) flextime
B) gainsharing
C) job rotation
D) job enlargement
E) job enrichment
Answer: A
Explanation: A) With flextime, employees can schedule their work hours to align with personal
demands, reducing tardiness and absences, and they can work when they are most productive.
LO: 3
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
23) Employees who use the flextime option have to
.
A) work from the office for three days of the week
B) work from home on a relatively permanent basis
C) work from the office based on a schedule fixed with the compatible partner they function with
D) work from the office during the common core period and put in the extra hours per their
convenience
E) work from home only two days a week
Answer: D
Explanation: D) With flextime, employees can schedule their work hours to align with personal
demands, reducing tardiness and absences, and they can work when they are most productive.
Employees must work a specific number of hours per week but are free to vary their hours of
work within certain limits. All employees have to be at the office for the common core period,
and flextime employees enjoy flexibility as to when they put in the extra hours.
LO: 3
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
12
Copyright © 2018 Pearson Education, Inc.
24) An arrangement that allows two or more individuals to split a traditional 40-hour-a-week job
is called
.
A) flextime
B) job sharing
C) gainsharing
D) telecommuting
E) job rotation
Answer: B
Explanation: B) Job sharing allows two or more individuals to split a traditional 40-hour-a-week
job. One might perform the job from 8:00 A.M. to noon and the other from 1:00 P.M. to 5:00
P.M., or the two could work full but alternate days.
LO: 3
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
25) Janice and Shane are both senior software analysts. They have worked together on projects
for six years and get along very well. Janice is anticipating the arrival of her first child and will
not be able to work on a full-time basis in the future. Shane is contemplating opening his own
business as a home media installation consultant and does not want to continue to work full time.
They both need some income. Which of the following alternative job structures would be best for
Janice and Shane?
A) job enlargement
B) telecommuting
C) job rotation
D) job sharing
E) job enrichment
Answer: D
Explanation: D) Since Janice and Shane are looking to work for fewer than the normal work
hours required, the best option for them would be to participate in job sharing, which allows two
or more individuals to split a traditional 40-hour-a-week job. The other structure options are still
40-hour-a-week commitments.
LO: 3
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
13
Copyright © 2018 Pearson Education, Inc.
26) Which of the following statements is true regarding job sharing?
A) It expands jobs by increasing the degree to which the worker controls the planning, execution,
and evaluation of the work.
B) It is also called cross-training.
C) It allows two or more individuals to split a traditional 40-hour-a-week job.
D) It involves periodic shifting of an employee from one task to another with similar skill
requirements at the same organizational level.
E) Job sharing is a method of job enrichment.
Answer: C
Explanation: C) Job enrichment expands jobs by increasing the degree to which the worker
controls the planning, execution, and evaluation of the work. Job sharing is not a method of job
enrichment, it is an alternative work arrangement. Job rotation involves periodic shifting of an
employee from one task to another with similar skill requirements at the same organizational
level, and it is also called cross-training. Job sharing allows two or more individuals to split a
traditional 40-hour-a-week job.
LO: 3
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
27) Which of the following alternative work arrangements enables the organization to draw on
the talents of more than one individual in a given job?
A) telecommuting
B) flextime
C) gainsharing
D) profit sharing
E) job sharing
Answer: E
Explanation: E) Job sharing allows an organization to draw on the talents of more than one
individual in a given job. It is an opportunity to get two heads but pay for only one.
LO: 3
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
14
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28) Which of the following is the major drawback of job sharing from management's
perspective?
A) increase in supervisory workload
B) increased costs for providing supporting infrastructure (such as desk and computer) to two
employees instead of one
C) difficulty in finding compatible partners
D) difficulty in designing the reward structure
E) difficulty in coordinating schedules
Answer: C
Explanation: C) The major drawback of job sharing from management's perspective is finding
compatible pairs of employees who can successfully coordinate the intricacies of one job.
LO: 3
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
15
Copyright © 2018 Pearson Education, Inc.
29) After the training and development manager at Add Worth, Nicole Hayes, resigned, the CEO
has made it a priority that the position be filled soon by someone of equal expertise and
experience as Nicole. To locate the right candidate, Jennifer Ray, the HR manager, has been
contacting recruitment firms, checking job sites, and pushing for referrals from the employees.
However, she has only found candidates with little or no experience in the field who were willing
to work full time for the position. At the next meeting with the CEO, Jennifer proposes an
alternative strategy; she suggests hiring two experienced candidates who are open to the idea of
handling the training needs on a part-time basis as a team. The CEO listens to her proposal but is
not too convinced by it. Which of the following, if true, would strengthen Jennifer's proposal to
use job sharing for the vacant position?
A) Trainers are exempted from the requirement of being at the office throughout the common
core period of the workday.
B) The employees of the company on the work council have planned to demand the flextime
option.
C) A good proportion of the company's prized workforce comprises employees from the baby
boomer generation who are set to retire in the impending future.
D) The headhunting firms that Jennifer contacted are usually helpful in generating a good pool of
potential candidates.
E) A rival firm recently adopted telecommuting to reduce administrative costs cutting into its
bottom line.
Answer: C
Explanation: C) The fact that a good proportion of the company's prized workforce comprises
employees of the baby boomer generation who are set to retire in the near future does strengthen
the implementation of job sharing. Job sharing is useful as it helps utilize the talent of employees
who do not wish to work full time like retirees and housewives. If trainers are exempted from the
requirement of being at the office throughout the common core period of the workday, that does
not favor the adoption of job sharing. The fact that the employees of the company on the work
council have planned to demand the flextime option does not favor the adoption of job sharing.
The fact that the headhunting firms that Jennifer contacted are usually helpful in generating a
good pool of potential candidates does not mean that Add Worth must adopt job sharing. The fact
that a rival firm recently adopted telecommuting to reduce administrative costs cutting into its
bottom line does not strengthen the argument that Add Worth must implement job sharing.
LO: 3
AACSB: Reflective Thinking
Difficulty: Hard
Quest. Category: Critical Thinking
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
16
Copyright © 2018 Pearson Education, Inc.
30) The option of working at home at least 2 days a week on a computer linked to the employer's
office is termed as
.
A) job sharing
B) social loafing
C) offshoring
D) telecommuting
E) homeshoring
Answer: D
Explanation: D) Telecommuting refers to an alternative work arrangement that enables the
employee to work at home at least 2 days a week on a computer linked to the employer's office.
LO: 3
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
31) Amanda McPherson is a working mother with one child and an ailing parent to look after in
addition to her duties as a wife and job responsibilities as a legal consultant. Since Amanda
always feels pressed for time, the news that the consultancy she works for would allow her to
work from home two days a week came as a great relief to her. She now feels more motivated to
work for the company, as the company has taken into account her personal and professional
needs. The company has allowed Amanda to use the option of
.
A) gainsharing
B) offshoring
C) telecommuting
D) homeshoring
E) job sharing
Answer: C
Explanation: C) Telecommuting refers to an alternative work arrangement that enables the
employee to work at home at least two days a week on a computer linked to the employer's
office.
LO: 3
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
17
Copyright © 2018 Pearson Education, Inc.
32) An MNC in a developing country is operating amidst severe space constraints, and the
infrastructural conditions in the city are bad, causing a lot of lost man-hours. Anticipating rapid
growth in the months to come, the company has created a recruitment plan based on its revenue
expectations. However, it wants to manage this expansion without undertaking an expensive
physical expansion. Which of the following could be a solution for the company?
A) profit sharing
B) groupshifting
C) telecommuting
D) gainsharing
E) codetermining
Answer: C
Explanation: C) Telecommuting refers to an alternative work arrangement that enables the
employee to work at home at least 2 days a week on a computer linked to the employer's office.
LO: 3
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
33) For management, the major downside of telecommuting is
.
A) decreased productivity
B) increased turnover
C) reduced morale
D) difficulty in scheduling work
E) less direct supervision of employees
Answer: E
Explanation: E) The potential pluses of telecommuting for management include a larger labor
pool from which to select, higher productivity, less turnover, improved morale, and reduced
office space costs. The major downside for management is less direct supervision of employees.
LO: 3
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
18
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34) Telecommuting is an option that suits professionals like
.
A) trainers
B) nurses
C) analysts
D) receptionists
E) sales representatives
Answer: C
Explanation: C) Three categories of professionals are most suitable for the option of
telecommuting. These are routine information-handling tasks, mobile activities, and professional
and other knowledge-related tasks. Writers, attorneys, analysts, and employees who spend the
majority of their time on computers or the telephone are natural candidates.
LO: 3
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
35) Which of the following factors represents the influence of social aspects of the work
environment on motivation?
A) task identity
B) autonomy
C) feedback
D) interdependence
E) skill variety
Answer: D
Explanation: D) Some social characteristics that improve job performance include
interdependence, social support, and interactions with other people outside work. Social
interactions are strongly related to positive moods and give employees more opportunities to
clarify their work role and how well they are performing. Social support gives employees greater
opportunities to obtain assistance with their work.
LO: 3
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
19
Copyright © 2018 Pearson Education, Inc.
36) The job characteristic model fails to consider the role
plays in employee
motivation.
A) job design
B) meaningfulness
C) social support
D) growth need
E) responsibility
Answer: C
Explanation: C) The job characteristics model is relatively individualistic in nature as it
considers only the relationship between the employee and his or her work and does not consider
social aspects. Policies such as job rotation, worker empowerment, and employee participation
have positive effects on productivity, at least partially because they encourage more
communication and a positive social environment. Some social characteristics that improve job
performance include interdependence, social support, and interactions with other people outside
work. Social interactions are strongly related to positive moods and give employees more
opportunities to clarify their work role and how well they are performing. Social support gives
employees greater opportunities to obtain assistance with their work.
LO: 3
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
37)
is a participative process that uses employees' input to increase their commitment
to the organization's success.
A) Job enrichment
B) Employee involvement
C) Vertical integration
D) Groupshifting
E) Job sharing
Answer: B
Explanation: B) Employee involvement is a participative process that uses employees' input to
increase their commitment to the organization's success. The logic is that if workers are engaged
in decisions that affect them and have increased autonomy, they will become more motivated,
committed, productive, and satisfied with their jobs.
LO: 4
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
20
Copyright © 2018 Pearson Education, Inc.
38) To be effective, an employee involvement program must
.
A) rightsize the company by eliminating obsolete positions
B) incorporate the unique demands of different cultures
C) mandatorily establish work councils in the company
D) eliminate the influence of employees in managerial decision making
E) implement autocratic ways of handling its employees
Answer: B
Explanation: B) Employee involvement programs differ among countries. Studies have shown
how an employee involvement program that was successful in one cultural context backfired
among employees of another culture. Thus, to be successful, an employee involvement program
must incorporate the unique demands of different cultures.
LO: 4
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
39) Which of the following is the distinct characteristic of participative management programs?
A) joint decision making
B) representative participation
C) performance norms
D) establishment of work councils
E) autocratic decision making
Answer: A
Explanation: A) The distinct characteristic common to all participative management programs is
joint decision making, in which subordinates share a significant degree of decision-making
power with their immediate superiors.
LO: 4
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
21
Copyright © 2018 Pearson Education, Inc.
40) Participative management is a method of management where
.
A) representatives of workers form work councils and these councils must be consulted when
management makes decisions about employees
B) few representatives of workers sit on a company's board of directors
C) subordinates share a significant degree of decision-making power with their immediate
superiors
D) low-level workers meet occasionally with the CEO to discuss problems within their
department
E) low-level workers are responsible for making corporate policy decisions
Answer: C
Explanation: C) Participative management is joint decision making, in which subordinates share
a significant degree of decision-making power with their immediate superiors.
LO: 4
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
41) The two major forms of employee involvement are participative management and
.
A) organizational restructuring
B) job sharing
C) representative participation
D) job rotation
E) job enlargement
Answer: C
Explanation: C) The two major forms of employee involvement are participative management
and representative participation.
LO: 4
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
22
Copyright © 2018 Pearson Education, Inc.
42) Representative participation is characterized by
.
A) joint decision making by employees and management
B) democratic leadership behaviors
C) open and honest two-way communication
D) a significant positive impact on employee morale and performance
E) compliance with the legal need to redistribute power within organizations
Answer: E
Explanation: E) Representative participation is a widely legislated form of employee
involvement aimed at redistributing power within an organization and putting labor on a more
equal footing with the interests of management and stockholders. This is done by letting workers
be represented by a small group of employees who actually participate.
LO: 4
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
43) The two most common forms of representative participation are
and board
representatives.
A) quality circles
B) work councils
C) employee unions
D) task teams
E) cross-functional teams
Answer: B
Explanation: B) The two most common forms of representative participation are work councils
and board representatives.
LO: 4
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
23
Copyright © 2018 Pearson Education, Inc.
44) The main drawback of representative participation as an employee involvement measure is
that
.
A) it is a time-consuming process
B) it is able to exert its impact only in the short run
C) it is primarily symbolic in its impact
D) it is consistent with the Theory Y view of motivation
E) it is likely to require a major change in organizational roles
Answer: C
Explanation: C) The influence of representative participation on working employees seems to be
minimal. Works councils are dominated by management and have little impact on employees or
the organization. While participation might increase the motivation and satisfaction of employee
representatives, there is little evidence this trickles down to the employees they represent. The
greatest value of representative participation is symbolic. If one is interested in changing
employee attitudes or in improving organizational performance, representative participation
would be a poor choice.
LO: 4
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
24
Copyright © 2018 Pearson Education, Inc.
45) Woodworth & Baines is a retail chain that has taken up numerous measures to improve
employee attitude, motivation, and organizational performance. New training programs,
employee engagement initiatives, and an employee welfare council were the three main
strategies implemented as part of the employee empowerment program. Norman Kilner was one
of twenty employees nominated to the employee welfare council where they were required to
interact with the management to promote the interests of the employees. Additionally, the job
roles of these twenty employees were vertically enhanced to give them more autonomy in the
organization. However, six months into the employee empowerment program, a survey by HR
revealed no actual change in employee attitudes. Similarly, a survey conducted by the production
manager revealed that work productivity had not increased by any substantial measure either.
Which of the following, if true, would best explain this outcome?
A) Management strengthened the regulations relating to employee absenteeism in this period.
B) Management retained the degree of control they had in the organizational affairs.
C) The company moved from a merit-based to a piece-rate pay system in the last quarter.
D) The employees performed poorly because of the lack of training and development programs.
E) Management implemented a 360-degree feedback system for performance appraisals.
Answer: B
Explanation: B) The fact that management retained the degree of control they had in the
organizational affair does explain this outcome. The influence of representative participation on
working employees seems to be minimal. Works councils are dominated by management and
have little impact on employees or the organization. While participation might increase the
motivation and satisfaction of employee representatives, there is little evidence this trickles down
to the employees they represent. The fact that management strengthened the regulations relating
to employee absenteeism in this period does not explain this outcome. The fact that the company
moved from a merit-based to a piece-rate pay system in the last quarter does not explain this
outcome. The outcome cannot be attributed to the employees lacking training. The fact that
management implemented a 360-degree feedback system for performance appraisals does not
explain this outcome.
LO: 4
AACSB: Reflective Thinking
Difficulty: Hard
Quest. Category: Critical Thinking
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
25
Copyright © 2018 Pearson Education, Inc.
46) Which of the following is Theory X consistent with?
A) the autocratic style of managing people
B) the principles of participative management
C) the vertical enhancement of jobs to enhance autonomy
D) the use of recognition and achievements to motivate employees
E) the reduced need of supervision and direction from managers
Answer: A
Explanation: A) Theory Y is consistent with participative management and Theory X with the
more traditional autocratic style of managing people.
LO: 4
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
47) Internal equity refers to the
.
A) list of the knowledge, skills, and abilities required in a particular job
B) arrangement of the elements of different jobs in the organization
C) worth of the job to the organization
D) organization's pay relative to pay elsewhere in its industry
E) framework of tasks, duties, and responsibilities that the job involves
Answer: C
Explanation: C) Internal equity refers to the worth of the job to the organization. It is usually
established through a technical process called job evaluation.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
48) The external competitiveness of an organization's pay relative to elsewhere in the industry is
measured by its
.
A) external benefit
B) external rotation
C) external costs
D) external equity
E) external liability
Answer: D
Explanation: D) The external competitiveness of an organization's pay relative to pay elsewhere
in its industry is defined as external equity.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
26
Copyright © 2018 Pearson Education, Inc.
49)
bases a portion of an employee's pay on some individual and/or organizational
measure of performance.
A) Guaranteed pay program
B) Variable-pay program
C) Flexible benefits program
D) Modular plans program
E) Base pay program
Answer: B
Explanation: B) Variable-pay programs base a portion of an employee's pay on some individual
and/or organizational measure of performance.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
50) The
pay plan has long been popular as a means of compensating production
workers by paying a fixed sum for each unit of production completed.
A) competency-based
B) gainsharing
C) piece-rate
D) profit-sharing
E) merit-based
Answer: C
Explanation: C) The piece-rate pay plan has long been popular as a means of compensating
production workers by paying a fixed sum for each unit of production completed. A pure piecerate plan provides no base salary and pays the employee only for what he or she produces.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
27
Copyright © 2018 Pearson Education, Inc.
51) Which of the following is an example of a piece-rate plan?
A) $20 for each hour of work
B) $2 for each unit produced
C) stock options at cheaper prices
D) straight commission plan
E) spot bonuses
Answer: B
Explanation: B) The piece-rate pay plan is a means of compensating production workers by
paying a fixed sum for each unit of production completed. Paying $2 for each unit produced
represents a piece-rate pay plan.
LO: 5
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
52) Which of the following statements is true regarding a merit-based pay plan?
A) It bases pay levels on how many skills employees have or how many jobs they can do.
B) It is also called competency-based pay plan.
C) Unions typically resist merit-based pay plan.
D) It distributes compensation based on an established formula designed around a company's
profitability.
E) A typical merit-based pay plan provides no base salary and pays the employee only for what
he or she produces.
Answer: C
Explanation: C) A merit-based pay plan pays for individual performance based on performance
appraisal ratings. Unions typically resist merit pay plans. A pure piece-rate pay plan provides no
base salary and pays the employee only for what he or she produces.
LO: 3
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
28
Copyright © 2018 Pearson Education, Inc.
53) A
pay plan pays for individual performance based on performance appraisal
ratings.
A) piece-rate
B) merit-based
C) employee stock ownership
D) profit-sharing
E) gainsharing
Answer: B
Explanation: B) A merit-based pay plan pays for individual performance based on performance
appraisal ratings.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
54) Daichi Inc. is a Japanese software development firm known for its high quality products.
Recently, the company held its annual conference and awarded all those employees who were in
the top five percent with substantial monetary rewards. Their performance was evaluated on the
basis of target achievement, client feedback, and quality ratings. Employees whose performance
had not changed drastically were given a minor raise and those who fared badly received no
incentives. Many employees blamed the company for creating differences among employees
because they felt that it would harm the company in the long run, but Daichi Inc. truly believes
that to retain and motivate its best performers, a large incentive is a good step. Daichi Inc. is
using a(n)
here.
A) piece-rate plan
B) employee stock ownership plan
C) modular plan
D) merit-based plan
E) flexible benefits plan
Answer: D
Explanation: D) A merit-based pay plan pays for individual performance based on performance
appraisal ratings. Daichi Inc. rewarded these employees on the basis of meritorious performance.
LO: 5
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
29
Copyright © 2018 Pearson Education, Inc.
55) Which of the following represents a pay plan that rewards employees for recent performance
rather than historical performance?
A) bonus
B) flexible benefits
C) modular plans
D) cafeteria plans
E) base salary
Answer: A
Explanation: A) Bonuses are used in a pay plan that rewards employees for recent performance
rather than historical performance.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
56) What is an advantage of bonuses over merit-based pay plan?
A) Employees don't view bonuses as a part of their salary.
B) Bonuses improve flexibility of the workforce.
C) Bonuses are paid based on a formula.
D) Bonuses improve performance of the group as a whole.
E) Employees are rewarded for recent performance.
Answer: E
Explanation: E) The incentive effects of performance bonuses are generally higher than those of
merit pay because, rather than paying for performance years ago (that was rolled into base pay),
bonuses reward recent performance.
LO: 5
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
57) In which of the following variable-pay programs is the pay level based on how many skills
employees have or how many jobs they can do?
A) bonuses
B) piece-rate pay
C) skill-based pay
D) gainsharing
E) merit-based pay
Answer: C
Explanation: C) Skill-based pay is a pay plan that sets pay levels on the basis of how many skills
employees have or how many jobs they can do.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
30
Copyright © 2018 Pearson Education, Inc.
58) A
plan distributes compensation based on some established formula designed
around revenue of the company.
A) piece-rate
B) merit-based
C) skill-based
D) profit-sharing
E) competency-based
Answer: D
Explanation: D) A profit-sharing plan distributes compensation based on some established
formula designed around a company's profitability.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
59)
is a formula-based group incentive plan that uses improvements in group
productivity from one period to another to determine the total amount of money allocated.
A) Employee stock ownership plan
B) Gainsharing
C) Profit sharing
D) Piece-rate pay plan
E) Merit-based pay plan
Answer: B
Explanation: B) Gainsharing is a formula-based group incentive plan. It uses improvements in
group productivity from one period to another to determine the total amount of money allocated.
It is different from profit sharing in that it ties rewards to productivity gains rather than profits.
Employees in a gainsharing plan can receive incentive awards even when the organization isn't
profitable.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
31
Copyright © 2018 Pearson Education, Inc.
60) Which of the following statements is true regarding gainsharing?
A) Gainsharing focuses on productivity gains rather than profits.
B) Gainsharing involves paying employees based on the number of new skills acquired by them
in a specific time period.
C) Gainsharing does not distribute profits, only gains in profits.
D) Employees working under gainsharing plans have a greater feeling of psychological
ownership.
E) Gain sharing encourages social loafing.
Answer: A
Explanation: A) Gainsharing is a formula-based group incentive plan that uses improvements in
group productivity from one period to another to determine the total amount of money allocated.
Because the benefits accrue to groups of workers, high-performing workers pressure weaker
performers to work harder, improving performance for the group as a whole.
LO: 5
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
61) At Dortix, a manufacturing company, at the end of every quarter, the total production of each
department is calculated and compared with the predetermined targets; the rewards for each set
of divisional employees are determined this way. Dortix uses a
plan to incentivize its
employees.
A) profit sharing
B) gainsharing
C) core-plus
D) modular
E) bonus
Answer: B
Explanation: B) Gainsharing is a formula-based group incentive plan that uses improvements in
group productivity from one period to another to determine the total amount of money allocated.
Because the benefits accrue to groups of workers, high-performing workers pressure weaker
performers to work harder, improving performance for the group as a whole.
LO: 5
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
32
Copyright © 2018 Pearson Education, Inc.
62) Which of the following variable pay programs is free from dependence on company profits?
A) profit sharing
B) job sharing
C) bonuses
D) employee stock ownership plans
E) gainsharing
Answer: E
Explanation: E) Gainsharing is a formula-based group incentive plan that uses improvements in
group productivity from one period to another to determine the total amount of money allocated.
Gainsharing differs from profit sharing in tying rewards to productivity gains rather than profits,
so employees can receive incentive awards even when the organization isn't profitable.
LO: 5
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
63) An advantage of the
plan is that because benefits accrue to groups of workers,
high-performing workers pressure weaker performers to work harder, improving performance for
the group as a whole.
A) modular
B) gainsharing
C) skill-based pay
D) flexible benefits
E) profit sharing
Answer: B
Explanation: B) Gainsharing is a formula-based group incentive plan that uses improvements in
group productivity from one period to another to determine the total amount of money allocated.
Because the benefits accrue to groups of workers, high-performing workers pressure weaker
performers to work harder, improving performance for the group as a whole.
LO: 5
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
33
Copyright © 2018 Pearson Education, Inc.
64) Exsell is a popular consumer goods company known for hiring the best resources and using
the best technology to produce an extensive range of goods. The manufacturing units consider
productivity to be the only criterion; targets are upgraded, supervised, and rewarded amply. The
groups with the highest productivity in each manufacturing unit owned by Exsell are
incentivized using a substantial monthly monetary reward program. Of late, there have been
some rumors about the company not doing very well in the market. Many claims of defective
quality, declining market share, and employee unrest have been doing the rounds. However, the
CEO of Exsell recently held a conference with the organization and the media to share its
expansion plans for the coming year. He ended the conference with a discussion of how the
profit margin of the company had grown substantially but many employees were left in doubt.
Which of the following, if true, would indicate the need for Exsell to replace gainsharing with
profit sharing as a variable pay program for its employees?
A) The company used a merit-based pay plan for decades to reward the employees who deserved
recognition for good performance.
B) The company has opened multiple product categories and is experiencing brand dilution.
C) Executives who receive and evaluate client feedback have found a lot of quality concerns
with the products dispatched in recent times.
D) The economy is showing signs of robust growth after last year's recession and losses.
E) The consumer goods industry has traditionally had higher barriers to entry than other
industries of similar size and reach.
Answer: C
Explanation: C) The fact that executives who receive and evaluate client feedback have found a
lot of quality concerns with the products dispatched in recent times does strengthen the
argument. The fact that the client feedback reflects major quality concerns indicates that since
productivity is the sole criterion for evaluation of performance, employees have attained those
targets but compromised on the dimension of quality, resulting in the negative feedback from
clients. Moving to a profit-sharing plan would encourage employees to focus on the productivity
and quality because the overall profits would determine their incentives and compromising on
quality would then be harmful for them. The usage of merit-based pay would have rendered the
individual employees highly motivated and competitive and that does not explain the recent drop
in performance. The fact that the company is experiencing brand dilution does not indicate the
need to adopt profit sharing. The fact that the economy is showing healthy signs of growth after
last year's recession and losses does not strengthen the argument. The economic condition and
barriers to entry are not likely to directly impact the company's decision to use profit-sharing
plans as incentives.
LO: 5
AACSB: Reflective Thinking
Difficulty: Hard
Quest. Category: Critical Thinking
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
34
Copyright © 2018 Pearson Education, Inc.
65) At Esco Retail, all employees are constantly driven to work hard. The company places
maximum emphasis on stocking high quality goods and providing high quality service to retain
the edge they have in the retail industry. To promote organizational commitment further, the
company incentivizes employees by enabling them to purchase company shares at below-market
prices as a part of their benefits. This mode of providing incentives represents the use of
.
A) flexible benefits plans
B) merit-based plans
C) modular plans
D) employee stock ownership plans
E) core-plus plans
Answer: D
Explanation: D) Under the employee stock ownership plan (ESOP), employees acquire stock,
often at below-market prices. Research on ESOPs indicates they increase employee satisfaction.
But their impact on performance is less clear. ESOPs for top management can reduce unethical
behavior.
LO: 5
AACSB: Analytic Skills
Difficulty: Easy
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
66) Which of the following statements is true regarding an employee stock ownership plan
(ESOP)?
A) Under this plan, employees acquire company shares, often at below-market prices.
B) There exists a strong correlation between ESOPs and employee performance.
C) The financial stake in the company is adequate to use ESOPs as an effective means to
motivate employees.
D) ESOPs are effective because, like bonuses, they reward recent performance.
E) ESOPs are also called competency-based pay plans.
Answer: A
Explanation: A) Under the employee stock ownership plan, employees acquire stock, often at
below-market prices. Research on ESOPs indicates they increase employee satisfaction. But their
impact on performance is less clear. ESOPs for top management can reduce unethical behavior.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
35
Copyright © 2018 Pearson Education, Inc.
67) For employee stock ownership plans to be effective in improving performance, they must
.
A) be based solely on productivity like gainsharing plans
B) be implemented such that employees psychologically experience ownership
C) be determined on the basis of performance appraisals and recent performance
D) be planned such that they are unaffected by company profitability
E) be based on the market compensation philosophy
Answer: B
Explanation: B) ESOPs have the potential to increase employee job satisfaction and work
motivation, but employees need to psychologically experience ownership. That is, in addition to
their financial stake in the company, they need to be kept regularly informed of the status of the
business and have the opportunity to influence it in order to significantly improve the
organization's performance.
LO: 5
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
68) Individualized rewards that allow each employee to choose the compensation package that
best satisfies his or her current needs and situation are called
.
A) variable pay programs
B) standardized benefits packages
C) employee recognition programs
D) employee involvement programs
E) flexible benefits plans
Answer: E
Explanation: E) Flexible benefits individualize rewards by allowing each employee to choose
the compensation package that best satisfies his or her current needs and situation. Flexible
benefits can accommodate differences in employee needs based on age, marital status, spouse's
benefit status, and number and age of dependents.
LO: 6
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
36
Copyright © 2018 Pearson Education, Inc.
69) Which of the following statements is true regarding flexible benefits?
A) Flexible benefits are awarded through uniform packages to cover the requirements of a
married couple with two children.
B) Flexible benefits are in accordance with the belief that employees have identical needs that
must be rewarded identically.
C) Gainsharing and profit-sharing plans are two major types of flexible benefits.
D) Flexible benefits can be altered to meet employee needs based on age, marital status, and
number and age of dependents.
E) Flexible benefits are given based on an employee's skills, competence, and productivity.
Answer: D
Explanation: D) Flexible benefits individualize rewards by allowing each employee to choose
the compensation package that best satisfies his or her current needs and situation. Flexible
benefits can accommodate differences in employee needs based on age, marital status, spouse's
benefit status, and number and age of dependents.
LO: 6
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
70)
are predesigned packages, or modules of benefits, each of which meets the needs
of a specific group of employees.
A) Modular plans
B) Employee stock ownership plans
C) Profit-sharing plans
D) Merit-based plans
E) Flextime plans
Answer: A
Explanation: A) The three most popular types of benefits plans are modular plans, core-plus
options, and flexible spending accounts. Modular plans are predesigned packages. or modules of
benefits, each of which meets the needs of a specific group of employees.
LO: 6
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
37
Copyright © 2018 Pearson Education, Inc.
71) Core-plus plans consist of
.
A) predesigned packages of benefits that an employee must accept as a whole
B) monetary benefits which are linked to one's performance appraisals
C) fractions of a company's profit margins determined on the basis of an established formula
D) pretax dollars up to the dollar amount offered in the plan that an employee sets apart to pay
for particular benefits
E) essential benefits and a menu-like selection of other benefits that an employee can choose
from
Answer: E
Explanation: E) The three most popular types of benefits plans are modular plans, core-plus
options, and flexible spending accounts. Core-plus plans consist of a core of essential benefits
and a menu-like selection of others from which employees can select. Typically, each employee
is given benefit credits which allow the purchase of additional benefits that uniquely meet his or
her needs.
LO: 6
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
72) Sally Peterson, who works as an entry-level editor, wants to go for dental reconstruction
surgery and sent a query to her HR department asking for a list of preferred hospitals. The HR
looked through her healthcare plan, which provides only a minimum coverage for routine drugs
and vision care. Consequently, the HR manager informed her that if she wishes to carry on with
the dental procedure, she will have to pay for it on her own. Which of the following benefits
plans should she choose to meet her needs?
A) a basic modular plan
B) a standardized benefits package
C) a core-plus plan
D) a fringe benefits plan
E) a 401k plan
Answer: C
Explanation: C) The three most popular types of benefits plans are modular plans, core-plus
options, and flexible spending accounts. Core-plus plans consist of a core of essential benefits
and a menu-like selection of others from which employees can select. Typically, each employee
is given benefit credits which allow the purchase of additional benefits that uniquely meet his or
her needs.
LO: 6
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
38
Copyright © 2018 Pearson Education, Inc.
73) Flexible spending plans consist of
.
A) a core of essential benefits and a menu-like selection of others from which employees can
select
B) no base salary; the employee is paid only for what he or she produces on the basis of a fixed
sum for each unit of production completed
C) a fraction of a company's profit margins determined on the basis of an established formula
D) pretax dollars up to the dollar amount offered in the plan that an employee sets apart to pay
for particular benefits
E) modules of benefits, each of which meets the needs of a specific group of employees
Answer: D
Explanation: D) The three most popular types of benefits plans are modular plans, core-plus
options, and flexible spending accounts. Flexible spending plans allow employees to set aside
pretax dollars up to the dollar amount offered in the plan to pay for particular benefits, such as
healthcare and dental premiums.
LO: 6
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
74) Which of the following is an example of an intrinsic reward?
A) bonus
B) profit-sharing plan
C) employee stock option
D) employee recognition
E) gainsharing
Answer: D
Explanation: D) Important work rewards can be both intrinsic and extrinsic. Rewards are
intrinsic in the form of employee recognition programs and extrinsic in the form of compensation
systems.
LO: 7
Difficulty: Moderate
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
39
Copyright © 2018 Pearson Education, Inc.
75) Jack Holmes is a middle-aged, lower-level employee at an automobile service center. Though
he is not paid very well, he loves his job. His supervisor speaks to him with respect, and he is the
favored candidate for mentoring new employees because of the vast experience he holds in the
job. Based on this information, which of the following is most likely to be the reason Jack likes
his job?
A) recognition
B) prospects of growth
C) salary
D) flextime
E) job sharing
Answer: A
Explanation: A) Intrinsic rewards in the form of employee recognition programs are increasingly
being recognized as important in job satisfaction and motivation. Jack's attitude stems from the
recognition he receives.
LO: 7
AACSB: Analytic Skills
Difficulty: Moderate
Quest. Category: Application
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
76) Which of the following statements is true regarding employee recognition?
A) Employee recognition is an extrinsic reward.
B) Critics argue that employee recognition programs are highly susceptible to political
manipulation by management.
C) Employee recognition programs are expensive.
D) Centralized programs across multiple offices in different countries can hinder the process of
employee recognition programs.
E) Employee stock option is a more powerful workplace motivator than recognition.
Answer: B
Explanation: B) Employee recognition is an intrinsic reward. Employee recognition programs
are inexpensive. Some research suggests financial incentives may be more motivating in the
short term, but in the long run it's nonfinancial incentives. According to research, recognition is
the most powerful workplace motivator. Critics argue that employee recognition programs are
highly susceptible to political manipulation by management.
LO: 7
Difficulty: Easy
Quest. Category: Concept
Learning Outcome: Describe the major theories of motivation and relate them to organizational
performance
40
Copyright © 2018 Pearson Education, Inc.