Chapter08

Essentials of Organizational Behavior, 14e (Robbins/Judge)Chapter 8
Motivation: From Concepts to Applications1) 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 workB) the degree to which work activities generates direct and clear information about performanceC) the degree to which a job provides the worker freedom in scheduling and procedureD) the degree to which a job has an impact on the lives or work of other peopleE) the degree to which a job requires a variety of different activitiesAnswer:  EExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.2) 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 workB) the degree to which work activities generates direct and clear information about performanceC) the degree to which a job provides the worker freedom in scheduling and procedureD) the degree to which a job has an impact on the lives or work of other peopleE) the degree to which a job requires a variety of different activitiesAnswer:  AExplanation:  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.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.3) Increasingly, research on motivation focuses on approaches that link motivational concepts to changes in the way ________ is/are structured.A) organizational designB) paymentC) workD) benefitsE) organizational cultureAnswer:  CExplanation:  C) Increasingly, research on motivation focuses on approaches that link motivational concepts to changes in the way work is structured.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.4) Ned is particularly adept at designing and creating new fashions. In which of the following would Ned have the highest level of skill variety?A) doing alterations at the dry cleanersB) creating custom bridal gowns in a bridal storeC) creating custom gowns and suits for a pageantD) working as a private tailor for a local real estate agentE) working as a stylist for a local celebrityAnswer:  CExplanation:  C) While all positions would allow some skill variety, creating gowns and suits for a pageant would allow Ned the opportunity to use the widest range of skills and talents.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.5) Ned is particularly adept at designing and creating new fashions. In which of the following would Ned have the highest level of task identity?A) doing alterations at the dry cleanersB) creating custom bridal gowns in a bridal storeC) creating custom gowns and suits for a pageantD) working as a private tailor for a local real estate agentE) working as a stylist for a local celebrityAnswer:  DExplanation:  D) By working with one specific person, Ned can not only create custom suits, but he can also create the whole, identifiable look for the agent.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.6) Ned is particularly adept at designing and creating new fashions. In which of the following would Ned have the highest level of autonomy?A) doing alterations at the dry cleanersB) creating custom bridal gowns in a bridal storeC) creating custom gowns and suits for a pageantD) working as a private tailor for a local real estate agentE) working as a stylist for a local celebrityAnswer:  AExplanation:  A) Other than taking measurements and meeting deadlines, doing alterations at the dry cleaner would allow Ned the most freedom in scheduling and procedure.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.7) Which of the following is not one of the core job dimensions in the job characteristics model (JCM)?A) task significanceB) feedbackC) autonomyD) rewardE) skill varietyAnswer:  DExplanation:  D) 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.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.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 workB) work activities generates direct and clear information about performanceC) a job provides the worker freedom in scheduling the workD) a job has an impact on the lives or work of other peopleE) a job requires a variety of different activitiesAnswer:  CExplanation:  C) 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.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.9) 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 workB) work activities generates direct and clear information about performanceC) a job provides the worker freedom in scheduling and procedureD) a job affects the lives or work of other peopleE)  a job requires a variety of different activitiesAnswer:  DExplanation:  D) Task significance is the degree to which a job affects the lives or work of other people.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.10) John is a design manager for a production company. He independently assigns teams, chooses projects, researches trends, and is able to work from home two to three days a week. He provides a status report to the design director once a month. Based on this description and as per the job characteristics model, it’s safe to say that John’s job is high in ________.A) task identityB) feedbackC) autonomyD) task significanceE) skill varietyAnswer:  CExplanation:  C) Autonomy is the degree to which a job provides the worker freedom, independence, and discretion in scheduling the work and determining the procedures in carrying it out. John has freedom and control over his job procedures and assignments and although John’s job has many job characteristics, the description provided best describes autonomy.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.11) Samantha is an emergency medical technician. Yesterday, due to an emergency, she was called to a house where a man suffered a heart attack. She was able to resuscitate the man, and while her colleagues were transporting him to the ambulance she spent 10 minutes calming the 12-year-old daughter, who was home alone with the father at that time. Based on this description, it’s safe to say that Samantha’s job is high in ________.A) task identityB) feedbackC) rewardD) task significanceE) skill varietyAnswer:  DExplanation:  D) Although Samantha’s job has many job characteristics, the description provided best describes Dashay’s sense of task significance. Task significance refers to the degree to which a job has an impact on the lives of other people.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.12) In the job characteristics model (JCM), which three core job dimensions combine to create meaningful work?A) autonomy, task identity, and feedbackB) skill variety, autonomy, and task significanceC) skill variety, autonomy, and feedbackD) feedback, task identity, and task significanceE) skill variety, task identity, and task significanceAnswer:  EExplanation:  E) The first three dimensions in JCM—skill variety, task identity, and task significance—combine to create meaningful work that the incumbent will view as important, valuable, and worthwhile.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.13) 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 significanceB) autonomyC) feedbackD) task identityE) skill varietyAnswer:  CExplanation:  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.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.14) Anya is a graphic designer in a firm specializing in making logos for their clients. Last week, she got client specifications on how to make a new logo. She was able to create a prototype, and having got it initially reviewed by her immediate supervisor, she made changes until the client was satisfied with her final product. Based on this description, it’s safe to say that Anya’s job is high in ________ and ________.A) task significance; feedbackB) autonomy; skill varietyC) feedback; skill varietyD) task identity; feedbackE) skill variety; autonomyAnswer:  DExplanation:  D) According to the job characteristics model, task identity is the degree to which a job requires completion of a whole and identifiable piece of work. Feedback indicates the degree to which carrying out work activities generates direct and clear information about your own performance.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.15) The theory of job design suggests that the way elements in a job are organized can influence employee ________.A) job satisfactionB) citizenship behaviorsC) effortD) ethicsE) motivationAnswer:  CExplanation:  C) Job design suggests that the way elements in a job are organized can influence employee effort, and the model discussed next can serve as a framework to identify opportunities for changes to those elements.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.16) In thinking about the Motivating Potential Score (MPS), if jobs score high on motivating potential, the model predicts that motivation, performance, and satisfaction will improve, while ________ and ________ will be reduced.A) counterproductive work behaviors; gossipB) gossip; recidivismC) recidivism; absenceD) absence; turnoverE) turnover; counterproductive work behaviorsAnswer:  DExplanation:  D) When jobs have high levels of motivation, employees are less likely to experience the withdrawal behaviors of absences and turnover.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.17) Research studies suggest that employee experience of meaningfulness, responsibility, and knowledge of results is the same regardless of whether the team is working together face-to-face or within a virtual environment.Answer:  FALSEExplanation:  Virtual environments do not offer the same opportunities for developing personal relationships within the organizational setting as does a traditional setting.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  AnalyticalLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.18) The job characteristics model describes any job in terms of five core job dimensions and these five dimensions are skill variety, task significance, autonomy, reward, and feedback.Answer:  FALSEExplanation:  The job characteristics model describes any job in terms of five core job dimensions and these five dimensions are skill variety, task identity, task significance, autonomy, and feedback.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.19) The job characteristics model describes any job in terms of five core job dimensions. Task significance is one of these five dimensions and it represents the degree to which a job requires completion of a whole and identifiable piece of work.Answer:  FALSEExplanation:  Task significance is the degree to which a job has an impact on the lives or work of other people. Task identity is the degree to which a job requires completion of a whole and identifiable piece of work.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.20) The job characteristics model describes any job in terms of five core job dimensions. Feedback is one of these five dimensions and it represents the degree to which carrying out work activities generates direct and clear information about your own performance.Answer:  TRUEExplanation:  Feedback is the degree to which carrying out work activities generates direct and clear information about your own performance.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.21) Andrew is a software tester. He runs through the same types of programs day after day looking for bugs and reporting them. He is taking night classes on programming. Often, he knows the best solution to many of the bugs, but he is still learning to code. Describe two job characteristics that Andrew is striving to improve, and explain two ways that Andrew’s manager can redesign his current job to help him reach his goals.Answer:  Andrew is striving to have greater task identity, which is the degree to which a job requires completion of a whole and identifiable piece of work. He would like to not only look for the programming bugs, but be able to fix them. He is also looking for skill variety, or the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent. It is clear that he is bored with only the testing aspect of his job.Andrew’s boss needs to redesign his job to include aspects of job enrichment, which refers to the vertical expansion of jobs. Job enrichment increases the degree to which the worker controls the planning, execution, and evaluation of his or her work. One way to enrich Andrew’s job would be to put him in contact with his internal clients, the programmers. They could establish a set of bug recommendations that Andrew could fix, where he could begin to learn the types of code required. His boss should also open the feedback channels so that the programmers can tell Andrew when he is making proper adjustments and using his new skills adequately.Diff: 3AACSB:  Reflective thinkingQuest. Category:  SynthesisLO:  8.1 Describe how the job characteristics model (JCM) motivates by changing the work environment.22) 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.D) It decreases supervisory workload.E) It decreases the flexibility in scheduling work.Answer:  CExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.23) The periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level is called job ________.A) enlargementB) expansionC) rotationD) sharingE) enrichmentAnswer:  CExplanation:  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.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.24) What is another term for cross-training?A) work enrichmentB) job sharingC) work enlargementD) job enhancementE) job rotationAnswer:  EExplanation:  E) Job rotation, or the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level, is also called cross-training.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.25) Shawna works as a sales agent at a local big box electronics retailer in the camera department. Though she has been successful in her position, she has grown a bit tired and is suffering from overroutinization. Which of the following would be the best opportunity for job rotation for Shawna?A) moving to sales in the computer departmentB) moving to customer serviceC) moving to human resourcesD) moving to assistant managerE) moving to a new storeAnswer:  AExplanation:  A) In job rotation, people stay at the organizational level with similar skills sets. Moving to computers would allow Shawna to continue using her skills, just in a different setting.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.2 Compare the main ways that jobs can be redesigned.26) Managers at Precision Technologies, a custom-machine shop in Indiana, train workers on all the company’s equipment so they can move around as needed in response to incoming orders. Based on this information, which of the following methods is most likely being used by Precision Technologies?A) job rotationB) job enlargementC) job enrichmentD) job sharingE) flextimeAnswer:  AExplanation:  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.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  8.2 Compare the main ways that jobs can be redesigned.27) What is the main strength of job rotation?A) It eliminates management involvement.B) It increases motivation.C) It increases productivity.D) It decreases training costs.E) It decreases supervisor work load.Answer:  BExplanation:  B) The strengths of job rotation are that it reduces boredom, increases motivation, and helps employees better understand how their work contributes to the organization. The weaknesses are that training costs increase, and productivity is reduced, and it’s more demanding on supervisors.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.28) You notice that members of the janitorial staff are low skilled and are suffering from overroutinization of their work. They are most likely to be motivated by ________.A) employee stock optionsB) skill-based pay planC) job rotationD) merit-based pay plansE) gainsharingAnswer:  CExplanation:  C) If employees suffer from overroutinization of their work, one alternative is job rotation, or the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level.Diff: 2AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  8.2 Compare the main ways that jobs can be redesigned.29) Job enrichment increases the degree to which the worker controls the ________.A) planning, execution, and evaluation of the workB) planning, execution, and evaluation of company plansC) horizontal integration of his or her tasksD) evaluation of his or her peersE) feedback that a worker receives from his or her supervisor and peersAnswer:  AExplanation:  A) Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.30) Job ________ expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.A) sharingB) enrichmentC) centralizationD) enlargementE) rotationAnswer:  BExplanation:  B) Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.31) 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 task identity and task significance dimensions of a job?A) combining tasksB) forming natural work unitsC) establishing client relationshipsD) expanding jobs verticallyE) opening feedback channelsAnswer:  BExplanation:  B) Forming natural work units makes an employee’s tasks an identifiable and meaningful whole. Thus it involves modifying task identity and task significance dimensions of a job.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.32) The evidence on job enrichment shows it ________.A) reduces absenteeismB) increases supervisory workloadC) reduces satisfactionD) increases turnover costE) reduces employee motivationAnswer:  AExplanation:  A) The evidence on job enrichment shows it reduces absenteeism and turnover costs and increases satisfaction.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.33) Singapore Airlines is rated one of the best airlines in the world and often requires ticket agents to serve as baggage handlers. What is the logic behind this action?A) Ticket agents often have attitude problems and need to be “punished.”B) Ticket agents often have stressful jobs and need a break.C) Ticket agents often deal with luggage and so cross-training makes them more efficient.D) Baggage handlers in Singapore often go on strike and replacements are needed.E) There is no logical reason for this action.Answer:  CExplanation:  C) Job rotation and cross training allows for more job flexibility as well as a better understanding of the overall operations of the organization.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.34) In most cases, corporate social responsibility and relational job design function in the same manner.Answer:  FALSEExplanation:  While RJD holds intriguing possibilities for CSR initiatives, CSR efforts are usually voluntary and therefore would not fall under the umbrella of job functions.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  AnalyticalLO:  8.2 Compare the main ways that jobs can be redesigned.35) Job enlargement is also called cross-training.Answer:  FALSEExplanation:  Job rotation is also called cross-training.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.36) Job rotation tends to increase productivity and decrease supervisory workload.Answer:  FALSEExplanation:  Job rotation tends to decrease productivity and increase supervisory workload because supervisors might have to spend more time answering questions and monitoring the work of recently rotated employees.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.37) Job sharing expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.Answer:  FALSEExplanation:  Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.38) What is job rotation? What are the various advantages and disadvantages of job rotation?Answer:  If employees suffer from overroutinization of their work, one alternative is job rotation, or the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level. It is also called cross-training.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. However, job rotation is not without drawbacks. Training costs increase, and productivity is reduced by moving a worker into a new position just when efficiency at the prior job is creating organizational economies. Job rotation also creates disruptions when members of the work group have to adjust to the new employee. And supervisors may also have to spend more time answering questions and monitoring the work of recently rotated employees.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.39) What is job enrichment? Describe various methods of job enrichment that are based on the job characteristics model.Answer:  Job enrichment expands jobs by increasing the degree to which the worker controls the planning, execution, and evaluation of the work.Various methods of job enrichment that are based on the job characteristics model are:1. Combining tasks: It puts fractionalized tasks back together to form a new and larger module of work. 2. Forming natural work units: It makes an employee’s tasks create an identifiable and meaningful whole. 3. Establishing client relationships: It increases the direct relationships between workers and their clients (clients can be internal as well as outside the organization). 4. Expanding jobs vertically: It gives employees responsibilities and control formerly reserved for management.5. Opening feedback channels: It lets employees know how well they are doing and whether their performance is improving, deteriorating, or remaining constant.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.2 Compare the main ways that jobs can be redesigned.40) 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 schedule?A) flextimeB) job centralizationC) job rotationD) job enlargementE) job enrichmentAnswer:  AExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.41) An arrangement that allows two or more individuals to split a traditional 40-hour-a-week job is called ________.A) flextimeB) job sharingC) job rotationD) telecommutingE) job enrichmentAnswer:  BExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.42) Which of the following is the major drawback of job sharing from management’s perspective?A) increase in supervisory workloadB) increased costs for providing supporting infrastructure (such as desk and computer) to two employees instead of oneC) difficulty in finding compatible partnersD) difficulty in designing the reward structureE) difficulty in coordinating schedulesAnswer:  CExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.43) Janice and Shunil are both senior software analysts. They have worked together on projects for six years and get along great. Janice is pregnant and anticipating the arrival of her first child and she is not willing to work full time. Shunil would like to experiment with 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 Shunil?A) job enlargementB) telecommutingC) job rotationD) job sharingE) job enrichmentAnswer:  DExplanation:  D) Because Janice and Shunil are looking for fewer required work hours, 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.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  8.3 Explain how specific alternative work arrangements can motivate employees.44) 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 computerB) a copywriter for an advertising firmC) a car salesman who demonstrates the features of a new model of carD) a telemarketer who uses the phone to contact clientsE) a product support specialist who handles queries sent by customersAnswer:  CExplanation:  C) Three categories of jobs are candidates for telecommuting: 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 (such as telemarketers, customer-service representatives, reservation agents, and product support specialists) are natural candidates. A car salesman cannot opt for telecommuting as he has to demonstrate the features of the car to the potential customers.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.45) 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:  CExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.46) Which of the following is not a management benefit of telecommuting?A) larger labor pool for recruitmentB) higher productivity of employeesC) decreased office expendituresD) improved morale in generalE) decreased salary expensesAnswer:  EExplanation:  E) The plusses of telecommuting for management include a larger labor pool from which to select, higher productivity, less turnover, improved morale, and reduced office space costs. Telecommuting does not lead to decreased salary expenses.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.47) Jason works at home at least 2 days a week on a computer linked to his employer’s office. He goes to work at odd hours and returns as he pleases. Which of the following terms accurately represents Jason’s work arrangement?A) autonomyB) job sharingC) flextimeD) telecommutingE) task identityAnswer:  DExplanation:  D) No commuting, flexible hours, freedom to dress as you please, and few or no interruptions from colleagues. It’s called telecommuting, and it refers to working at home at least 2 days a week on a computer linked to the employer’s office.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.48) For management, the major downside of telecommuting is ________.A) decreased productivityB) increased turnoverC) reduced moraleD) difficulty in scheduling workE) less direct supervision of employeesAnswer:  EExplanation:  E) The potential plusses 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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.49) While flextime has been shown to increase an organization’s overall profitability, under which circumstance does this effect only seem to occur?A) when flextime is promoted for the overall good of the companyB) when flextime is offered only to those who make lower wagesC) when flextime is promoted as a work-life balance strategyD) when flextime is make a general scheduling optionE) when flextime is offered only seasonally and not year roundAnswer:  CExplanation:  C) Flextime is seen to be a “family friendly” action on the part of the organization and an effort to increase motivation. If it is promoted as a way to help the organization, it is often viewed as simply a scheduling option.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  AnalyticalLO:  8.3 Explain how specific alternative work arrangements can motivate employees.50) You are looking at flextime and realize that it will probably work least well for which of the following jobs?A) insurance billersB) custodial workersC) receptionistD) equipment maintenance staffE) IT personnelAnswer:  CExplanation:  C) Flextime is not applicable to every job. It is not a viable option for receptionists, sales personnel in retail stores, or similar jobs for which comprehensive service demands that people be at their workstations at predetermined times. A school nurse must be at her workstation during school hours. Insurance billers, custodial workers, equipment maintenance staff, and IT personnel can work in flexible working hours.Diff: 2AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  8.3 Explain how specific alternative work arrangements can motivate employees.51) Flextime tends to reduce absenteeism and frequently improves worker productivity.Answer:  TRUEExplanation:  Flextime tends to reduce absenteeism and frequently improves worker 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.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.52) Job rotation allows two or more individuals to split a traditional 40-hour-a-week job.Answer:  FALSEExplanation:  Job sharing allows two or more individuals to split a traditional 40-hour-a-week job.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.53) A positive relationship exists between telecommuting and supervisor performance ratings.Answer:  TRUEExplanation:  A positive relationship exists between telecommuting and supervisor performance ratings.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.54) Discuss the advantages and disadvantages of flextime.Answer:  There are several advantages of flextime. They include reduced absenteeism, increased productivity, reduced overtime expenses, reduced hostility toward management, reduced traffic congestion around work sites, elimination of tardiness, and increased autonomy and responsibility for employees, any of which may increase employee job satisfaction.Flextime’s major drawback is that it’s not applicable to every job. It works well with clerical tasks for which an employee’s interaction with people outside his or her department is limited. It is not a viable option for receptionists, sales personnel in retail stores, or similar jobs for which comprehensive service demands that people be at their workstations at predetermined times.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.3 Explain how specific alternative work arrangements can motivate employees.55) ________ is a participative process that uses employees’ input to increase their commitment to the organization’s success.A) Job enrichmentB) Employee involvementC) Organizational reengineeringD) Corporate restructuringE) Job sharingAnswer:  BExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.56) Which of the following is the distinct characteristic common to all participative management programs?A) joint decision makingB) autonomyC) commitmentD) productivity enhancementE) quality improvementAnswer:  AExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.57) 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 employeesB) few representatives of workers sit on a company’s board of directorsC) subordinates share a significant degree of decision-making power with their immediate superiorsD) low-level workers meet occasionally with the CEO to discuss problems within their departmentE) low-level workers are responsible for making corporate policy decisionsAnswer:  CExplanation:  C) Participative management is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.58) Lavon has been feeling dissatisfied with his position of late. Particularly, he feels that he is underutilized. According to motivation theories, what should Lavon’s supervisor do?A) fire himB) promote himC) include him in revising his job descriptionD) mentor him to use his time betterE) appoint him to numerous committeesAnswer:  CExplanation:  C) By including Lavon in determining the job description, his supervisor would allow Lavon the opportunity to not only make decisions about his work but also to take those tasks from start to finish.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.4 Describe how employee involvement measures can motivate employees.59) The two major forms of employee involvement are participative management and ________.A) organizational restructuringB) job sharingC) representative participationD) job rotationE) job enlargementAnswer:  CExplanation:  C) The two major forms of employee involvement are participative management and representative participation.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.60) Almost every country in Western Europe requires companies to practice ________, called “the most widely legislated form of employee involvement around the world.”A) participative managementB) corporate restructuringC) representative participationD) management by objectivesE) organizational reengineeringAnswer:  CExplanation:  C) Almost every country in Western Europe requires companies to practice representative participation, called “the most widely legislated form of employee involvement around the world.” Corporate restructuring and organizational reengineering are not related to employee involvement.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.61) Which of the following statements is true regarding participative management?A) Participative management typically has only a modest influence on variables such as employee productivity and motivation.B) The two most common forms are works councils and board representatives.C) It is called “the most widely legislated form of employee involvement around the world.”D) Research evidence on participative management indicates that it is a sure means for improving employee performance.E) Participative management involves few representatives of workers sitting on the company’s board of directors.Answer:  AExplanation:  A) Participative management typically has only a modest influence on variables such as employee productivity and motivation. The research evidence on participative management is decidedly mixed and it is not a sure means for improving employee performance. One of the most common forms of representative participation (not participative management) is work councils and it involves few representatives of workers sitting on the company’s board of directors.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.62) The two most common forms of representative participation are ________ and board representatives.A) quality circlesB) work councilsC) employee unionsD) task teamsE) self-regulatory organizationAnswer:  BExplanation:  B) The two most common forms of representative participation are work councils and board representatives.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.63) Which of the following terms best describes employees who sit on a company’s board of directors and represent the interests of the firm’s employees?A) board representativesB) works councilsC) quality circlesD) union representativesE) board leadersAnswer:  AExplanation:  A) Board representatives are employees who sit on a company’s board of directors and represent the interests of the firm’s employees. The influence of representative participation on working employees seems to be minimal.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.64) The two most common forms of participative management are works councils and board representatives.Answer:  FALSEExplanation:  The two most common forms of representative participation are works councils and board representatives. Participative management involves joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.65) If one is interested in changing employee attitudes or in improving organizational performance, representative participation would be a good choice.Answer:  FALSEExplanation:  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. If one is interested in changing employee attitudes or in improving organizational performance, representative participation would be a poor choice.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.66) What is employee involvement and why is it important? What are the two major forms of employee involvement?Answer:  Employee involvement is defined as a participative process that uses employees’ input to increase their commitment to the organization’s success. The underlying logic is that by involving workers in those decisions that affect them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive, and more satisfied with their jobs. The two major forms of employee involvement are:a) Participative management. Participative management programs use joint decision making. Subordinates actually share a significant degree of decision-making power with their immediate superiors.b) Representative participation. Representative participation refers to worker representation by a small group of employees who actually participate on the board. The goal is to redistribute power within an organization, putting labor on a more equal footing with the interests of management and stockholders by letting workers be represented by a small group of employees who actually participate.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.67) What is representative participation? Discuss its influence on workers.Answer:  Almost every country in Western Europe requires companies to practice representative participation, called “the most widely legislated form of employee involvement around the world.” Its goal is to redistribute power within an organization, putting labor on a more equal footing with the interests of management and stockholders by letting workers be represented by a small group of employees who actually participate. The two most common forms are works councils and board representatives. Works councils are groups of nominated or elected employees who must be consulted when management makes decisions about employees. Board representatives are employees who sit on a company’s board of directors and represent employees’ interests.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. Although participation might increase the motivation and satisfaction of employee representatives, there is little evidence this trickles down to the operating employees they represent.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.4 Describe how employee involvement measures can motivate employees.68) Explain how participative management can enhance skill variety, task identity, and autonomy as described in the Job Characteristics Model (JCM).Answer:  Skill variety, the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent, can be enhanced by participative management because the employees can begin to view their tasks from a different perspective, that of management, and the need for high productivity and efficiency. By learning to think differently, the employees are learning different mental and relational skills.Task identity, the degree to which a job requires completion of a whole and identifiable piece of work, can be enhanced by participative management by allowing employees to make decisions on the spot without management approval. For example, the woman at the Wegman’s bakery that convinced management to let her include a traditional family recipe in the product line will feel a much stronger sense of task identity.Autonomy, in the sense of determining work procedures and carrying them out, is enhanced by participative management because the employee is able to participate in the decision-making process. Having a voice in the process increases the sense of autonomy and control.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  SynthesisLO:  8.4 Describe how employee involvement measures can motivate employees.69) While setting pay levels initially, an organization has to balance internal equity and external equity. Here external equity indicates ________.A) the amount of growth opportunities the job provides to the employeeB) the worth of the job to the employeeC) the worth of the job to the organizationD) competitiveness of an organization’s pay relative to pay elsewhere in its industryE) the amount of job satisfaction the job provides to the employeeAnswer:  DExplanation:  D) Internal equity refers to the worth of the job to the organization, and external equity refers to the external competitiveness of an organization’s pay relative to pay elsewhere in its industry.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.70) Amalgamated Industries manufactures parts for furniture. Management has decided to change the method of payment to a skill-based pay 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 overtimeB) increase your productionC) cross-train in other jobsD) become a specialistE) improve the quality of your workAnswer:  CExplanation:  C) Skill-based pay is an alternative to job-based pay that bases pay levels on how many skills employees have or how many jobs they can do. If you cross-train in other jobs you will acquire more skills and by doing so raise your pay.Diff: 2AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.71) 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-basedB) gainsharingC) piece-rateD) profit sharingE) merit-basedAnswer:  CExplanation:  C) The piece-rate pay plan has long been popular as a means of compensating production workers by paying a fixed sum for each unit of production completed. A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.72) Which of the following is an example of a piece-rate plan?A) $20 for each hour of workB) $2 for each unit producedC) productivity bonusD) commissionE) paying employees based on number of skillsAnswer:  BExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.73) Vance and Jared were both recently hired to be program directors at an urban university. Vance attended a large, historic university while Jared attended a branch campus of a regional university. Jared is paid 15 percent more than Vance. The best explanation for this is ________.A) Jared is a better negotiatorB) Vance did not do well in schoolC) Jared’s position is worth more to the universityD) Vance’s position is not important to the universityE) the institution is not competitive within the industryAnswer:  CExplanation:  C) While Vance has the better education level, it appears that through internal equity that Jared’s position is worth more than Vance’s to the organization.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.74) ________ plays a role in the motivational success of a variable-pay plans.A) Work-life balanceB) SecrecyC) Team workD) AmountE) EffortAnswer:  BExplanation:  B) While actual pay need not be broadcast, making public general pay categories aid in allowing employees to know that pay is not subjective. Diff: 2AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.75) The key to a successful bonus plan is that the reward needs to be ________.A) tied to a recent performanceB) tied to a specific amount of deliverablesC) equal across everyone in the departmentD) made very publicE) cumulative in natureAnswer:  AExplanation:  A) As opposed to a merit pay raise, bonuses reward a recent event in which the employee has reached a goal or completed an action.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.76) What is an advantage of bonuses over a 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:  EExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.77) Patrick and Allison work at a local car dealership as sales persons and are paid on both salary and commission. What type of pay related motivation is being used?A) variable-pay programB) internal equityC) external equityD) skill-based planE) flexible benefitsAnswer:  AExplanation:  A) Being paid on salary and commission means that pay is determined on the organizational level while still rewarding the individual efforts of the employee.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.78) A ________ pay plan pays for individual performance based on performance appraisal ratings.A) piece-rateB) merit-basedC) skill-basedD) profit sharingE) competency-basedAnswer:  BExplanation:  B) A merit-based pay plan pays for individual performance based on performance appraisal ratings.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.79) ________ 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) An employee stock ownership planB) GainsharingC) Profit sharingD) A piece-rate pay planE) A merit-based pay planAnswer:  BExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.80) 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:  AExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.81) How does gainsharing help the group as a whole?A) The high performers pressure weaker ones to work harder and improve overall performance.B) The high performers can help the low performers by taking on their responsibility.C) The new employees and low performers do not have a part in the overall gains accrued to the group.D) The group’s overheads are distributed evenly across the group.E) The group’s responsibilities are distributed evenly across the group.Answer:  AExplanation:  A) 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. Because the benefits accrue to groups of workers, high performers pressure weaker ones to work harder, improving performance for the group as a whole.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.82) Research on employee stock ownership plans indicates that they ________.A) increase employee satisfactionB) decrease company profitsC) reduce stress experienced by employeesD) decrease productivity of employeesE) increase employee turnoverAnswer:  AExplanation:  A) Research on ESOPs indicates they increase employee satisfaction. ESOPs have the potential to increase employee job satisfaction and work motivation when employees psychologically experience ownership.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.83) An advantage of the ________ plan is that benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole.A) merit-based payB) gainsharingC) skill-based payD) piece-rate payE) profit sharingAnswer:  BExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.84) Which of the following statements is true regarding an employee stock ownership plan (ESOP)?A) Under this plan, employees acquire stock, often at below-market prices.B) Research on ESOPs indicates that it does not affect employee satisfaction.C) ESOPs for top management tend to increase unethical behavior.D) Research on ESOPs indicates that ESOPs drastically improve employee performance.E) ESOPs are also called competency-based pay plans.Answer:  AExplanation:  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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.85) Skill-based pay encourages employees to concentrate on one or two highly desirable skills.Answer:  FALSEExplanation:  Skill-based pay is an alternative to job-based pay that bases pay levels on how many skills employees have or how many jobs they can do.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.86) A gainsharing pay plan pays for individual performance based on performance appraisal ratings.Answer:  FALSEExplanation:  A merit-based pay plan pays for individual performance based on performance appraisal ratings. 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.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.87) CEOs are less likely to manipulate firm earnings reports to make themselves look good in the short run when they don’t have an ownership share.Answer:  FALSEExplanation:  CEOs are more likely to manipulate firm earnings reports to make themselves look good in the short run when they don’t have an ownership share, even though this manipulation will eventually lead to lower stock prices. However, when CEOs own a large value of stock they report earnings accurately because they don’t want the negative consequences of declining stock prices.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.88) List and describe different variable-pay programs. Be sure to include piece-rate plans, profit-sharing plans, and gainsharing.Answer:  a) Piece-rate plans. In piece-rate pay plans, workers are paid a fixed sum for each unit of production completed. When an employee gets no base salary and is paid only for what he or she produces, this is a pure piece-rate plan.b) Merit-based pay. Merit-based pay plans also pay for individual performance. However, unlike piece-rate plans, which is pay based on objective output, merit-based pay plans are based on performance appraisal ratings.c) Profit-sharing. Profit-sharing plans are organization-wide programs that distribute compensation based on some established formula designed around a company’s profitably.d) Bonuses. Bonuses can be paid exclusively to executives or to all employees. Many companies now routinely reward production employees with bonuses in thousands of dollars when company profits improve.e) ESOPs. Employee stock ownership plans (ESOPs) are company-established benefit plans in which employees acquire stock, often at below-market prices, as part of their benefits.f) Gainsharing. Gainsharing is a formula-based group incentive plan. Improvements in group productivity determine the total amount of money that is to be allocated. By focusing on productivity gains rather than profits, gainsharing rewards specific behaviors that are less influenced by external factors. Employees in a gainsharing plan can receive incentive awards even when the organization isn’t profitable.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.89) Evaluate variable-pay programs in terms of their impact on motivation and productivity.Answer:  Variable-pay programs increase motivation and productivity. Studies generally support the idea that organizations with profit-sharing plans have higher levels of profitability than those without them. Profit-sharing plans have also been linked to higher levels of employee affective commitment, especially in small organizations. Similarly, gainsharing has been found to improve productivity in a majority of cases and often has a positive impact on employee attitudes. Economist Ed Lazear seems generally right when he says, “Workers respond to prices just as economic theory predicts. Claims by sociologists and others that monetizing incentives may actually reduce output are unambiguously refuted by the data.” But that doesn’t mean everyone responds positively to variable pay plans. A study found that whereas piece-rate pay-for-performance plans stimulated higher levels of productivity, this positive affect was not observed for risk-averse employees.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.90) Lewis Vacation Rentals has been experiencing a recent decline in its bookings. In an effort to increase sales, the company is offering its employees a 1 percent share in the company profit over the next six months in addition to regular employee salaries. Will this plan increase motivation? Why or why not?Answer:  While there is always the possibility that some individuals might be motivated by this plan, as a whole this plan will fail to create the motivation and increased sales that Lewis Vacation Rentals desires. The reason for this is that for profit sharing to be effective, there has to be some sort of profit available. If the company is losing money, it is unlikely employees will be motivated to work more when it is unclear if their efforts will result in any additional income.Diff: 3AACSB:  Application of knowledgeQuest. Category:  ApplicationLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.91) Please discuss one of the drawbacks to a piece-rate plan.Answer:  While answers to this may vary, the response should address some aspect of unfair comparisons, reduction in quality to increase quantity, or increase in workplace injuries.Diff: 3AACSB:  Application of knowledgeQuest. Category:  ConceptLO:  8.5 Demonstrate how the different types of variable-pay programs can increase employee motivation.92) Which of the following is an example of an intrinsic reward?A) bonusB) profit-sharing planC) employee stock optionD) employee recognitionE) gainsharingAnswer:  DExplanation:  D) 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.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.6 Show how flexible benefits turn benefits into motivators.93) As flexible benefits are becoming more common, they are also becoming less effective.Answer:  TRUEExplanation:  As flexible benefits become more common, they have also become more of a standard work practice and thus have lost much of their novelty. The cost of flexible benefits has also started to make them less attractive.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.6 Show how flexible benefits turn benefits into motivators.94) 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.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.6 Show how flexible benefits turn benefits into motivators.95) 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. Based on this information, which of the following is most likely to be the reason Laura likes her job?A) recognitionB) motivationC) goal settingD) empowermentE) autonomyAnswer:  AExplanation:  A) Intrinsic rewards in the form of employee recognition programs are increasingly being recognized as important in job satisfaction and motivation. Laura’s attitude stems from recognition.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.96) Which of the following is a form of recognition?A) personal congratulationsB) job enlargementC) job sharingD) flexible benefit packagesE) profit sharingAnswer:  AExplanation:  A) Employee recognition programs range from a spontaneous and private thank-you to widely publicized formal programs in which specific types of behavior are encouraged and congratulated, and the procedures for attaining recognition are clearly identified.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.97) According to research findings, which of the following is more likely to be motivating for the employees in the long run?A) commissionsB) merit-based payC) recognitionD) bonusesE) stock optionsAnswer:  CExplanation:  C) A few years ago, 1,500 employees were surveyed in a variety of work settings to find out what they considered the most powerful workplace motivator. Some research suggests financial incentives may be more motivating in the short term, but in the long run, it’s nonfinancial incentives.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.98) 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) Nonfinancial incentives such as recognition are more motivating in the short term but in the long run financial incentives are more motivating.E) Employee stock option is a more powerful workplace motivator than recognition.Answer:  BExplanation:  B) Employee recognition is an intrinsic reward. Employee recognition programs are inexpensive. Some research suggests financial incentives may be more motivating in the short term, but in the long run it’s nonfinancial incentives and according to research, recognition is the most powerful workplace motivator. Critics argue that employee recognition programs are highly susceptible to political manipulation by management.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.99) Connie works as a nurse at the local hospital. She was very pleased recently when she was awarded “Employee of the Month,” received her picture on the wall, and a gift card to the hospital commissary. Which type of reward has Connie received?A) both intrinsic and extrinsicB) just intrinsicC) just extrinsicD) neither intrinsic nor extrinsicE) variable intrinsic and extrinsicAnswer:  AExplanation:  A) Having her picture on the wall is intrinsic motivation, while the gift card is extrinsic.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.100) Employee recognition programs have been found to be associated with increased employee ________.A) self-esteemB) citizenship behaviorsC) job satisfactionD) self-esteem and job satisfactionE) self-esteem, citizenship behaviors, and job satisfaction.Answer:  DExplanation:  D) Employee recognition programs have been found to be associated with many intrinsic motivational factors such as self-esteem and job satisfaction as well as self-efficacy.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.101) One of the most positive aspects of employee recognition programs is that they are good for the budget of the company.Answer:  TRUEExplanation:  Employee recognition programs need not cost much, if any, money to the company. Praise is free.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.102) Some research suggests nonfinancial incentives may be more motivating in the short term, but in the long run financial incentives are more motivating.Answer:  FALSEExplanation:  Some research suggests financial incentives may be more motivating in the short term, but nonfinancial incentives are more effective in the long run.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.103) Compare and contrast the benefits of intrinsic rewards, such as recognition, and extrinsic rewards, such as pay, as forms of motivation.Answer:  Organizations are increasingly recognizing that both intrinsic and extrinsic rewards are important. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems. Intrinsic rewards range from a spontaneous and private thank-you to widely publicized formal programs in which specific types of behavior are encouraged and the procedures for attaining recognition are clearly identified.Pay, an extrinsic reward, is not the primary factor driving job satisfaction, however, it does motivate people, and companies often underestimate its importance in keeping top talent. No matter how much recognition a top performer gets, he will be tempted to leave if the pay scale is much lower than the market and another offer arrives.Variable pay structures, such as bonuses are often the best production motivators. When pay is tied to performance, the employee’s earnings also recognize contribution rather than being a form of entitlement. Over time, low performers’ pay stagnates, while high performers enjoy pay increases commensurate with their contributions.An obvious advantage of intrinsic rewards like recognition programs is that they are inexpensive, since praise is free. However, they are highly susceptible to political manipulation by management. When applied to jobs for which performance factors are relatively objective, such as sales, recognition programs are likely to be perceived by employees as fair. However, in most jobs, the criteria for good performance aren’t self-evident, which allows managers to manipulate the system and recognize their favorites. Abuse can undermine the value of recognition programs and demoralize employees.Research suggests financial incentives may be more motivating in the short term, but in the long run intrinsic incentives will retain good employees if the extrinsic incentives are competitive.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  8.7 Identify the intrinsic motivational benefits of employee recognition programs.