MGT 400 FINAL EXAM QUESTIONS AND ANSWERS
Both pay level and pay system characteristics affect applicants decisions to accept a
job. - Answers -True
Lump-sum bonuses have less risk for workers than merit pay. - Answers -false
The ability triangle includes all but ____________. - Answers -organization
development
Employees prefer compensation at risk plans because they can earn more money than
straight base pay. - Answers -False
Theories dealing with exchange include ____________. - Answers -equity and agency
________ theory argues that performance-based pay is best for complex jobs where
monitoring employee performance is difficult. - Answers -Agency
A problem with incentive pay plans is workers focus exclusively on behaviors that are
rewarded. - Answers -true
Incentive pay systems are an effective way to motivate workers to perform a variety of
tasks in changing situations. - Answers -false
In today's organizations, socialization, the culture and training rather than compensation
packages are typically used to direct employees to desired behaviors. - Answers -false
Which of the following wage components has the clearest line of sight for employees? -
Answers -gain-sharing
A study illustrating the importance of communication in pay systems found that ____ %
of employees who felt well informed regarding about how their pay system worked
considered leaving, while _____ who felt poorly informed considered leaving. -
Answers -15, 41
A key factor in increasing trust in top management is ____________. - Answers -an
acceptable appraisal system
Cafeteria compensation is a new concept, but is being widely and rapidly adopted by
many companies. - Answers -false
The "oil" that lubricates the compensation engine is ______________ - Answers -
performance management
Both pay level and pay system characteristics affect applicants decisions to accept a
job. - Answers -True
Lump-sum bonuses have less risk for workers than merit pay. - Answers -false
The ability triangle includes all but ____________. - Answers -organization
development
Employees prefer compensation at risk plans because they can earn more money than
straight base pay. - Answers -False
Theories dealing with exchange include ____________. - Answers -equity and agency
________ theory argues that performance-based pay is best for complex jobs where
monitoring employee performance is difficult. - Answers -Agency
A problem with incentive pay plans is workers focus exclusively on behaviors that are
rewarded. - Answers -true
Incentive pay systems are an effective way to motivate workers to perform a variety of
tasks in changing situations. - Answers -false
In today's organizations, socialization, the culture and training rather than compensation
packages are typically used to direct employees to desired behaviors. - Answers -false
Which of the following wage components has the clearest line of sight for employees? -
Answers -gain-sharing
A study illustrating the importance of communication in pay systems found that ____ %
of employees who felt well informed regarding about how their pay system worked
considered leaving, while _____ who felt poorly informed considered leaving. -
Answers -15, 41
A key factor in increasing trust in top management is ____________. - Answers -an
acceptable appraisal system
Cafeteria compensation is a new concept, but is being widely and rapidly adopted by
many companies. - Answers -false
The "oil" that lubricates the compensation engine is ______________ - Answers -
performance management
