MANA 3320 FINAL EXAM REVIEW
QUESTIONS AND ANSWERS
indirect compensation - ANSWER-Provides something of value to employee (i.e.,
benefits), such as sickness and accident protection, retirement pay contributions,
cafeteria services, company physicals.
expectancy theory - ANSWER-Developed by Victor Vroom at Yale. He argued that
employees will be motivated when they believe they can accomplish a task and the
rewards are worth the effort.
equity theory - ANSWER-J. Stacy Adams developed that employees are motivated
when ratio of their perceived outcomes to inputs is at least roughly equal to other
referent individuals
wage compression - ANSWER-occurs when new employees require higher starting
pay than the historical norm, causing narrowing of the pay gap between experienced
and new employees
FLSA (Fair Labor Standards Act) - ANSWER-Federal law that establishes a
minimum wage and requirements for overtime pay and child labor
Pay Philosophy - ANSWER-Formal statement documenting a company's position
about employee compensation; it explains "why" employees are paid the way they
are, creating consistency across pay.
Pay structure - ANSWER-is a hierarchy of jobs and their rates of pay within the
organization. Made up of job structures and pay levels.
Pay levels - ANSWER-provide minimum to maximum pay for a group or subset of
jobs in organization.
Pay lines - ANSWER-
job evaluation - ANSWER-the process of determining the relative worth of the
various jobs within a firm
broadbanding - ANSWER-combining multiple pay levels into one
delayering - ANSWER-Reducing the number of levels in the organization's job
structure
merit pay - ANSWER-a system of linking pay increases to ratings on performance
appraisals
, Comparable worth - ANSWER-When jobs are distinctly different but entail similar
levels of ability, responsibility, skills, and working conditions, they are of equal value
and should have same pay scale
Incentive Options for Individuals - ANSWER-bonus- lump sum payment given to
employees at end of a period
commission- payment for selling an item, usually calculated as a percentage of items
price
merit pay (the best)- rewards top performers with increases in annual wage that
carry over years. most effective when employees understand benefits of incentive
piecework plans- more work employees get done, more they are paid
standard hour plans- each task is assigned a standard amount of work time for
completion
recognition and other non monetary incentives- most effective motivational tools.
includes extra time off, ability to choose tasks and jobs
incentive options for groups - ANSWER-profit sharing plans- portion of company
proceeds paid over time through bonus payment. most effective when management
doesn't minimize profits and posts records of revenues and profits. also when
employees are trained to increase revenues/decrease costs
gainsharing plans- accomplished through factors that cost company money. can be
analyzed for performance improvement.
employee stock ownership plan (ESOP)- company stock given to employees over
time. offers tax advantages to firm and employees. motivated employees to feel/act
more like owners of firm
stock options- employees may buy x shares of company stock in future at a preset
price. motivates employees to improve value of firm.
stock purchasing plans- ability to purchase company stock anytime, usually at
discount.
Dodd-Frank Act - ANSWER-legislation passed in 2010 aimed at reforming the
banking industry and offering consumers greater protection
FMLA (Family and Medical Leave Act) - ANSWER-Federal law requiring
organizations with 50 or more employees to provide up to 12 weeks of unpaid leave
after childbirth or adoption; to care for a seriously ill family member or for an
employee's own serious illness; or to take care of urgent needs that arise when a
spouse, child, or parent in the National Guard or Reserve is called to active duty
Social Security - ANSWER-(FDR) 1935, guaranteed retirement payments for
enrolled workers beginning at age 65; set up federal-state system of unemployment
QUESTIONS AND ANSWERS
indirect compensation - ANSWER-Provides something of value to employee (i.e.,
benefits), such as sickness and accident protection, retirement pay contributions,
cafeteria services, company physicals.
expectancy theory - ANSWER-Developed by Victor Vroom at Yale. He argued that
employees will be motivated when they believe they can accomplish a task and the
rewards are worth the effort.
equity theory - ANSWER-J. Stacy Adams developed that employees are motivated
when ratio of their perceived outcomes to inputs is at least roughly equal to other
referent individuals
wage compression - ANSWER-occurs when new employees require higher starting
pay than the historical norm, causing narrowing of the pay gap between experienced
and new employees
FLSA (Fair Labor Standards Act) - ANSWER-Federal law that establishes a
minimum wage and requirements for overtime pay and child labor
Pay Philosophy - ANSWER-Formal statement documenting a company's position
about employee compensation; it explains "why" employees are paid the way they
are, creating consistency across pay.
Pay structure - ANSWER-is a hierarchy of jobs and their rates of pay within the
organization. Made up of job structures and pay levels.
Pay levels - ANSWER-provide minimum to maximum pay for a group or subset of
jobs in organization.
Pay lines - ANSWER-
job evaluation - ANSWER-the process of determining the relative worth of the
various jobs within a firm
broadbanding - ANSWER-combining multiple pay levels into one
delayering - ANSWER-Reducing the number of levels in the organization's job
structure
merit pay - ANSWER-a system of linking pay increases to ratings on performance
appraisals
, Comparable worth - ANSWER-When jobs are distinctly different but entail similar
levels of ability, responsibility, skills, and working conditions, they are of equal value
and should have same pay scale
Incentive Options for Individuals - ANSWER-bonus- lump sum payment given to
employees at end of a period
commission- payment for selling an item, usually calculated as a percentage of items
price
merit pay (the best)- rewards top performers with increases in annual wage that
carry over years. most effective when employees understand benefits of incentive
piecework plans- more work employees get done, more they are paid
standard hour plans- each task is assigned a standard amount of work time for
completion
recognition and other non monetary incentives- most effective motivational tools.
includes extra time off, ability to choose tasks and jobs
incentive options for groups - ANSWER-profit sharing plans- portion of company
proceeds paid over time through bonus payment. most effective when management
doesn't minimize profits and posts records of revenues and profits. also when
employees are trained to increase revenues/decrease costs
gainsharing plans- accomplished through factors that cost company money. can be
analyzed for performance improvement.
employee stock ownership plan (ESOP)- company stock given to employees over
time. offers tax advantages to firm and employees. motivated employees to feel/act
more like owners of firm
stock options- employees may buy x shares of company stock in future at a preset
price. motivates employees to improve value of firm.
stock purchasing plans- ability to purchase company stock anytime, usually at
discount.
Dodd-Frank Act - ANSWER-legislation passed in 2010 aimed at reforming the
banking industry and offering consumers greater protection
FMLA (Family and Medical Leave Act) - ANSWER-Federal law requiring
organizations with 50 or more employees to provide up to 12 weeks of unpaid leave
after childbirth or adoption; to care for a seriously ill family member or for an
employee's own serious illness; or to take care of urgent needs that arise when a
spouse, child, or parent in the National Guard or Reserve is called to active duty
Social Security - ANSWER-(FDR) 1935, guaranteed retirement payments for
enrolled workers beginning at age 65; set up federal-state system of unemployment
