MGMT 500 – FINAL EXAM QUESTIONS
WITH 100% CORRECT ANSWERS
LATEST VERSION 2025/2026.
There is little evidence to show that pay plans linking pay to performance result in gains in
organizational performance. - ANS FALSE
Agency theory argues that employees prefer risky pay since rewards can be greater than a
salary. - ANS FALSE
In ______________ theory, incentive pay is motivating if it helps an employee gain a sense of
achievement, recognition or approval. - ANS Maslow's
An individual incentive pay system is associated with high turnover of high performers. -
ANS FALSE
A key factor in increasing trust in top management is ____________. - ANS an acceptable
appraisal system
Both success and risk sharing plans are organizational as opposed to group-level plans. -
ANS FALSE
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Managers have more control over distributive justice than procedural justice. - ANS FALSE
A number of studies show that companies with profit sharing have higher performance than
companies without profit sharing. - ANS TRUE
The "oil" that lubricates the compensation engine is ______________ - ANS performance
management
The ability triangle includes all but ____________. - ANS organization development
A growing number of companies are interested in variable pay because it helps employees
adapt to new technologies and work processes. - ANS TRUE
A _______ plan divides a task into simple actions and determines the time an average worker
takes to complete each action. - ANS Bedeaux
Unions prefer individual to group incentive pay plans since members can earn more money. -
ANS FALSE
The Rowan plan uses a standard that is purposefully set high requiring high performance levels.
- ANS FALSE
An incentive system with three piecework rates is the ____________ plan. - ANS Merrick
The two most commonly used team incentive performance standards are ________________. -
ANS productivity and customer satisfaction
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
WITH 100% CORRECT ANSWERS
LATEST VERSION 2025/2026.
There is little evidence to show that pay plans linking pay to performance result in gains in
organizational performance. - ANS FALSE
Agency theory argues that employees prefer risky pay since rewards can be greater than a
salary. - ANS FALSE
In ______________ theory, incentive pay is motivating if it helps an employee gain a sense of
achievement, recognition or approval. - ANS Maslow's
An individual incentive pay system is associated with high turnover of high performers. -
ANS FALSE
A key factor in increasing trust in top management is ____________. - ANS an acceptable
appraisal system
Both success and risk sharing plans are organizational as opposed to group-level plans. -
ANS FALSE
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Managers have more control over distributive justice than procedural justice. - ANS FALSE
A number of studies show that companies with profit sharing have higher performance than
companies without profit sharing. - ANS TRUE
The "oil" that lubricates the compensation engine is ______________ - ANS performance
management
The ability triangle includes all but ____________. - ANS organization development
A growing number of companies are interested in variable pay because it helps employees
adapt to new technologies and work processes. - ANS TRUE
A _______ plan divides a task into simple actions and determines the time an average worker
takes to complete each action. - ANS Bedeaux
Unions prefer individual to group incentive pay plans since members can earn more money. -
ANS FALSE
The Rowan plan uses a standard that is purposefully set high requiring high performance levels.
- ANS FALSE
An incentive system with three piecework rates is the ____________ plan. - ANS Merrick
The two most commonly used team incentive performance standards are ________________. -
ANS productivity and customer satisfaction
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
