BHC6323 Chapter 9

A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded. 

• TRUE

• FALSE

Group incentive pay increases turnover of better performers, while individual incentive increases turnover of poorer performers. 

• TRUE

• FALSE

Evidence suggests that talented people are motivated to join organizations with strong links between performance and pay. 

• TRUE

• FALSE

Flexible compensation is based on the idea that the organization knows what package of rewards would best suit an individual employee's needs. 

• TRUE

• FALSE

When a company moves from an individual incentive plan to a group incentive plan, the company is most likely to experience _____. 

• higher turnover among high performers

• an increase in instrumentality

• higher turnover among poor performers

• an increase in perceived equity

Droppiece Inc. is a company that provides more performance-based pay and less base pay than its competitors. Who among the following is most likely to join Droppiece? 

• George, a recently married man who wants a stable income

• Stella, a recent college graduate who loves to take on a challenge

• Mark, a musician who wants to supplement his income

• Sara, a senior citizen who wants a job only to keep herself busy

According to the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees. 

• equity

• expectancy

• agency

• reinforcement

_____ is the value employees attach to the organization rewards offered for satisfactory job performance. 

• Equity

• Instrumentality

• Valence

• Reinforcement