Organizational behavior 16th edition by robbins judge test bank CH07

Chapter 7 Motivation: From Concept to Applications
MULTIPLE CHOICE
Motivating by Changing the Nature of the Work Environment
1.

Which of the following is not one of the core job dimensions in the JCM model?
a. task significance
b. feedback
c. autonomy
d. status
e. skill variety
(d; Moderate; p. 226-227)
2.

In the JCM model, what three core job dimensions combine to create meaningful work?
a. autonomy, task identity, and feedback
b. skill variety, autonomy, and task significance
c. skill variety, autonomy, and feedback
d. feedback, task identity, and task significance
e. skill variety, task identity, and task significance
(e; Moderate; p. 227)
3.

According to JCM theory, which of the following results in the maximum internal rewards for an
individual?
a. when they are given tangible rewards
b. when they learn that they personally have performed well on a task that they care about
c. when they initiate a program that enables them to work with a variety of like-minded
colleagues
d. when their training is realized and their expectations are met
e. when they are singled out for praise for successfully completing an arduous task

(b; Challenging; p. 227)
4.

How is the motivational potential score (MPS) calculated?
a. skill variety × task identity × task significance × autonomy × feedback
b. 3(skill variety + task identity + task significance) + autonomy + feedback
c. (skill variety + task identity + task significance)/3 × autonomy × feedback
d. skill variety × task identity × task significance + autonomy + feedback
e. (skill variety + task identity + task significance + autonomy + feedback)/5
(c; Moderate; p. 228)
5.

What is another term for cross-training?.
a. work enrichment
b. job sharing
c. work enlargement
d. job enhancement
e. job rotation
(e; Easy; p. 229)
6.

What is the main strength of job rotation?
a. It eliminates boredom on the job.
b. It increases motivation.
c. It increases productivity.
d. It decreases training costs
e. It decreases supervisor workload.
(b; Challenging; p. 229)
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7.

A trucking company routinely makes all of its office staff work for a week in the warehouse area;
loading trucks, cleaning trucks, and doing other work which they are capable of. This program is
an example of which of the following?
a. job rotation
b. job enlargement
c. job enrichment
d. job sharing
e. flextime
(a; Moderate; p, 229-231)
8.

A company redesigns the jobs of the workers in accounts receivables, so that instead of simply
billing customers, they will also be responsible for following up on non-payment, liaising between
customers and the departments billing them, and other related tasks. What term would best be
used to describe these changes?
a. job rotation
b. job enlargement
c. job enrichment
d. job sharing
e. flextime
(b; Moderate; p, 230)
9.

How do most employees react to job enlargement efforts?.
a. unqualified approval
b. somewhat enthusiastically
c. with a lack of enthusiasm

d. the reaction tends to be mixed
e. there tends to be very little reaction
(c; Easy; p. 230)
10.

Job enrichment increases the degree to which the worker controls the _____.
a. planning, execution and evaluation of his or her work
b. planning, execution and evaluation of company plans
c. horizontal integration of his or her tasks
d. feedback that a worker receives from his or her supervisor and peers
e. evaluation of his or her peers
(a; Challenging; p. 230)
11.

Which one of the following is not one of the guidelines for enriching jobs?
a. form job redesign units
b. establish client relationships
c. open feedback channels
d. combine tasks
e. expand jobs vertically
(a; Challenging; p. 231)
12.

A firm introduces job enrichment in order to motivate its employees. Evidence would suggest
that which of the following is the most likely result of this change?
a. reduced absenteeism and turnover costs
b. lower fixed costs
c. a drop in quality
d. a decrease in productivity
e. an increase in productivity

(a; Challenging; p. 232)
13.
Beyond redesigning the nature of the work itself, and involving employees in decisions, another
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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. flextime
b. job sharing
c. job rotation
d. telecommuting
e. job enrichment
(a; Moderate; p. 232)
14.

Which of the following has not been shown to be a benefit of flextime.?
a. reduced absenteeism
b. improved productivity
c. increased meaningfulness
d. increased satisfaction
e. improved promptness
(c; Moderate; p. 233)
15.

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 computer
b. a writer of copy for an advertising firm
c. a car salesman who demonstrates the features of a new model of car
d. a telemarketer who uses the phone to contact clients

e. a product support specialist who fields calls from irate customers
(c; Easy; p. 234)
Employee Involvement
16.

The underlying logic of employee involvement is that by involving workers and increasing their
autonomy and control over their work lives, employees will become all of the following except
more _____.
a. motivated
b. competent
c. productive
d. satisfied
e. committed
(b; Moderate; p. 235)

17.

What term is used for a participative process that uses the entire capacity of employees and is
designed to encourage increased commitment to the organization’s success?
a. MBO
b. employee involvement
c. reengineering
d. OB Mod
e. job sharing
(b; Moderate; p. 235)
18.

After completing cooking school with very similar grades, Joe and Gary both looked forward to
working in restaurants. Joe found work as a short-order cook in a cramped diner. On many shifts
he worked alone, and had to cook a large number of meals on outdated equipment. Gary found

work in a modern hotel kitchen. He had a small staff helping him prepare a small number of
elaborate meals to order. Gary became a highly regarded chef, while Joe left the restaurant
industry. This example illustrates that an individual needs what in order to perform well?
a. ability
b. motivation
c. opportunity to perform
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d. adequate compensation
e. feedback
(c; Challenging; p. 235)
19.

A manager introduces participative management in an effort to boost morale and productivity. If
he wants to make sure that it has as great a chance of success as possible he should ensure all
of the following except_____?
a. the issues decided upon must be relevant to the employees
b. the employees must be informed and competent enough to make decisions
c. the employees must be trusted by the manager
d. the manager must be trusted by the employees
e. representative participation through work councils and board representatives
(e; Challenging; p. 236)
20.

What is the distinct characteristic common to all participative management programs?
a. joint decision making
b. autonomy
c. empowerment
d. productivity enhancement

e. quality awareness
(a; Challenging; p. 236)
21.

Research shows that works councils tend to be ineffective for which of the following reasons?
a. Members of works council tend to side with management when making decisions for fear of
being punished.
b. Works councils represent the wishes of employees that are often at odds with the best
direction of an organization.
c. Works councils are dominated by management and their input has little impact on employees
or the organization
d. Works councils insert an extra element into decision making which slows the response of an
organization to changing conditions.
e. Members of works councils are in general not qualified to make large decisions concerning
the direction of an organization.
(c; Moderate; p. 236)
22.

What is participative management?
a. A method of management where subordinates make corporate decisions and management
helps carry out those decisions
b. A method of management where upper management participates in the organization’s
strategic planning
c. A method of management where subordinates share a degree of decision-making power with
their immediate superiors
d. A method of management where low-level workers meet occasionally with the CEO to
discuss problems within their department
e. A method of management where low-level workers are responsible for making corporate
policy decisions
(c; Moderate; p. 236)

23.

Research studies conducted on the participation-performance relationship show that the use of
participation _____.
a. enhances job satisfaction
b. increases motivation
c. has only a modest influence on employee productivity
d. greatly influences employee attitudes
e. lowers costs considerably
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(c; Moderate; p. 236)
24.

What does legislation require almost every company in Western Europe to do?
a. have a form of representative participation
b. provide employee ownership
c. provide flextime
d. set up quality circles
e. have flexible benefit options
(a; Easy; p. 236)
25.

What is the goal of representative participation?
a. for workers to own the firms where they work
b. to help workers’ self-esteem
c. to provide greater motivation and productivity
d. to redistribute power within the organization
e. to empower high level managers

(d; Moderate; p. 236)
26.

What is the name for employees who sit on a company’s board of directors and represent the
interests of the firm’s employees?
a. board representatives
b. works councils
c. quality circles
d. union representatives
e. board leaders
(a; Easy; p. 236)
27.

Experience shows that the greatest value of representative participation is which of the
following?
a. increased motivation
b. increased satisfaction
c. symbolic
d. decreased absenteeism
e. increased commitment
(c; Moderate; p. 236)
28.

Which of the following once popular programs now seems to be a fad that has come and gone?
a. MBO
b. Job redesign
c. ESOP
d. Quality circles
e. Projection groups
(d; Moderate; p. 236)

29.

What term is used for work groups of employees and supervisors who meet regularly to discuss
their quality problems and recommend solutions?
a. department teams
b. cooperative groups
c. evaluation teams
d. quality circles
e. mixed-motive decision teams
(d; Moderate; p. 236-237)
30.
Which of the following is not an example of employee involvement?
a. variable-pay programs
b. participative management
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c. quality circles
d. employee stock ownership plans
e. seasonal bonus programs
(a; Moderate; p. 237)
31.

While _____ is/are likely to increase productivity, it shows little or no effect on employee
satisfaction.
a. ESOP
b. MBO program
c. quality circles
d. job redesign
e. social reconstruction

(c; Moderate; p. 237)
32.

Participative management is compatible with all of the following except _____.
a. ERG theory
b. Theory X
c. stimulating the achievement need
d. MBO
e. success needs
(b; Moderate; p. 237)
33.

Which of the following is Theory X is consistent with?
a. the autocratic style of managing people
b. participative management
c. ERG theory
d. the cognitive evaluation theory
e. none of the above
(a; Challenging; p. 237)
34.

Which of the following is not true?
a. Theory Y aligns with the participative management style.
b. Employee involvement programs provide intrinsic motivation.
c. Theory X aligns with the autocratic management style.
d. Employee involvement is incompatible with ERG theory.
e. Making and implementing decisions can help satisfy an employee’s needs for achievement,
recognition, and enhanced self-esteem.
(d; Moderate; p. 237)
Rewarding Employees

35.

Which of the following are all forms of variable-pay programs?
a. piece-rate, wage incentive plans, gainsharing
b. profit-sharing, lump-sum bonuses, extended vacations
c. wage incentive plans, flextime, piece-rate
d. retirement benefits, extended vacations, wage incentive plans
e. wage rate increases, bonuses, flextime
(a; Easy; p. 238)
36.

Which of the following is one advantage of variable pay plans to management?
a. They turn fixed labor costs into variable labor costs
b. They turn low producers into high producers
c. They turn slow employees into fast employees
d. They turn high fixed costs into low fixed costs
e. They turn lower performance into fewer employees
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(a; Challenging; p. 238)
37.

Which of the following is not one of the most widely used variable-pay programs?
a. piece-rate wages
b. merit-based pay
c. flat pay
d. employee stock ownership
e. profit sharing plans
(c; Easy; p. 238)

38.

Which of the following is an example of a piece-rate plan?
a. time and a half for overtime
b. $2 for each unit produced
c. productivity bonus
d. commission
e. none of the above
(b; Moderate; p. 239)
39.

Much of the compensation of traders at Synalco, a metals trading company, is in the form of
stock options. The amount of options distributed is based on the company’s net profits. What sort
of compensation plan is this?
a. profit-sharing
b. gainsharing
c. merit based
d. ESOP
e. employee ownership
(a; Moderate; p. 240)
40.

What is the name for a n incentive plan where improvements in group productivity determine the
total amount of money that is allocated.
a. ESOP
b. gainsharing
c. profit-sharing
d. piece rates
e. employee ownership
(b; Moderate; p. 240)

41.

How is gainsharing an improvement on profit sharing?
a. It focuses on productivity gains rather than profits.
b. It rewards specific behaviors
c. It does not distribute profits, only gains in profits.
d. It rewards behaviors that are less influenced by external factors.
e. Superior employees can receive incentive awards even when the organization isn’t profitable
(a; Moderate; p. 241)
42.

In what sort of companies is gainsharing most popular?
a. large manufacturing companies
b. large service organizations
c. small, non-unionized manufacturing companies
d. small, privately-held companies
e. non-profit organizations
(a; Challenging; p. 240-241)
43.

What sort of plan is a company-established benefit plan where employees acquire stock as part
of their benefits?
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a. MBO program
b. job redesign
c. ESOP
d. quality circle
e. piece-rate

(c; Moderate; p. 241)
44.

Research on employee stock ownership programs indicates that they are clearly successful in
doing which of the following?.
a. increasing employee satisfaction
b. reducing salaries.
c. reducing stress
d. increasing productivity
e. increasing employee expectations
(a; Moderate; p. 241)
45.

What is the term used for a pay plan where pay levels are based on how many skills employees
have or how many jobs they can do?
a. a variable pay plan
b. flexible pay
c. competency-based pay
d. gainsharing
e. ISOP
(c; Moderate; p. 242)
46.

A certain corporation ties its compensation for front-line operations managers to developing their
skills in leadership, workforce development, and functional excellence. What is this sort of
compensation scheme called?
a. job-based pay.
b. training-based pay.
c. individual merit-based pay.
d. skill-based pay

e. development-based pay
(d; Moderate; p. 242)
47.

What is the appeal of skill-based plans from management’s point of view _____.
a. flexibility
b. low cost
c. motivation
d. productivity
e. all of the above
(a; Moderate; p. 243)
48.

Which of the following is not a downside of skill-based pay?
a. People can “top out.”
b. Skills can become obsolete.
c. Ambitious people can confront minimal advancement opportunities.
d. People are paid for acquiring skills for which there is no immediate need.
e. It doesn’t address the level of performance
(c; Moderate; p. 243)
49.
Skill-based pay plans are not consistent with which of the following theories?.
a. ERG theory
b. the achievement need
c. reinforcement theory
d. two-factor theory
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e. Maslow’s theory

(d; Challenging; p. 243)
50.

Paying people to expand their skill levels is consistent with the which need.
a. affiliation
b. achievement
c. social
d. security
e. physiological
(b; Moderate; p. 243)
51.

A rise in which of the following was reported by companies that pay employees for learning extra
skills?
a. operating costs
b. employee performance
c. turnover
d. absenteeism
e. perceptions of unfairness
(b; Moderate; p. 243)
52.

What is the term used for the situation where employees are allowed to pick and choose from
among a menu of benefit options.
a flexible pay
b. benefit menu options
c. flexible benefits
d. benefit participation
e. flextime
(c; Easy; p. 244)

53.

The average organization supplies fringe benefits worth approximately what percent of an
employee’s salary?.
a. 25
b. 30
c. 35
d. 40
e. 50
(d; Challenging; p. 244)
54.

Which of the following is not a typical option in a flexible benefit program?
a. additional life insurance
b. disability insurance
c. expanded health coverage.
d. tax free health care spending accounts
e. mortgage relief
(e; Easy; p. 244)
55.

What are modular benefit plans?
a. essential benefits and a menu-like selection of other benefits
b. pre-designed packages of benefits
c. they employees to set aside funds up to the dollar amount offered in the plan to pay for
services
d. a scheme designed for single employees with no dependents
e. a scheme designed for employees with families
(b; Moderate; p. 244)

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56.

Why are flexible benefit plans consistent with expectancy theory’s thesis?
a. they allow organizations to minimize costs associated with benefits
b. they provides a suite of tangible rewards that can be offered as motivation
c. organizational rewards should be linked to each individual employee’s goals
d. they make employment at firms providing such programs more attractive
e. the motivation to gain extra benefits promotes productivity
(c; Challenging; p. 244)
57.

Employee recognition programs are consistent with which of the following?
a. goal setting theory
b. cognitive evaluation theory
c. reinforcement theory
d. expectancy theory
e. Marxist theory
(c; Challenging; p. 245)
58.

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. Which of the following is
Laura’s attitude most likely a function of?
a. recognition
b. motivation
c. goal setting.
d. involvement

e. reactance
(a; Moderate; p. 245)
59.

Which of the following is a form of recognition?
a. personal congratulations
b. job enlargement
c. job sharing
d. flexible benefit packages
e. profit sharing
(a; Easy; p. 245)
60.

Researchers report that which of the following was considered by employees to be the most
powerful workplace motivator?
a. recognition
b. money
c. opportunity for advancement
d. autonomy
e. vacation time
(a; Moderate; p. 246)
TRUE/FALSE
Motivating by Changing the Nature of the Work Environment
61.
The JCM model consists of task significance, feedback, meaningfulness and autonomy.
(False; Challenging; p. 226-227)
62.

Jobs that are high on motivating potential must be high on at least one of the three factors that
lead to experienced meaningfulness, and they must be high on both autonomy and feedback.

(True; Moderate; p. 228)
63.

The dimensions of the JCM that create meaningfulness include task identity, skill variety, and
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task significance.
(True; Moderate; p. 227)
64.

Jobs that have the intrinsic elements of variety, identity, significance, autonomy, and feedback
are more satisfying and generate higher performance from people than jobs that lack these
characteristics.
(True; Easy; p. 228)
65.
Job enrichment, job sharing, and job rotation are all job redesign options.
(False; Moderate; p. 229-230)
66.

The strengths of job rotation are that it eliminates boredom, increases motivation, and increases
productivity.
(False; Challenging; p. 229-230)
67.
In job rotation, the nature of the work performed is changed.
(False; Challenging; p. 230)
68.
Most employees do not view efforts at job enlargement enthusiastically.
(True; Moderate; p. 230)
69.

Job enrichment increases the degree to which the worker controls the execution of company
plans.
(False; Moderate; p. 231)
70.

The overall evidence on job enrichment generally shows that it increases satisfaction, reduces
absenteeism, and reduces turnover costs.
(True; Moderate; p. 231)
71.
Flextime is shown to increase the meaningfulness employees find in their work.
(False; Easy; p. 232)
72.

The scheduling options of flextime, job sharing, and telecommuting are all approaches to make
the workplace environment more motivating.
(True; Moderate; p. 232-233)
73.
Job rotation, flextime, and job sharing are all designed to increase employee flexibility.
(False; Challenging; p. 233-234)
Employee Involvement
74.

Employee involvement is a participation process that is designed to encourage increased
commitment to the organization’s success.
(True; Moderate; p. 235)
75.

Employee involvement programs should take into account cultural factors such as differences in
power-distance culture.

(True; Easy; p. 235)
76.

The laws of the United States require companies to have elected representatives from their
employee groups as members of their board of directors.
(False; Moderate; p. 236)
77.
Participative management implies joint decision making and equal decision-making roles.
(False; Moderate; p. 236)
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78.

Participation typically has only a modest influence on variables such as employee productivity,
motivations, and job satisfaction.
(True; Easy; p. 236)
79.

If one is interested in changing employee attitudes or in improving organizational performance,
representative participation would be a good choice.
(False; Challenging; p. 236)
80.

The two most common forms that representative participation takes are works councils and
board representatives.
(True; Challenging; p. 236)
81.

Participative management has had a profound influence on employee productivity and

motivation.
(False; Moderate; p. 236)
82.

Board representatives are employees who sit on a company’s board of directors and represent
the interests of the firm’s employees.
(True; Moderate; p. 236)
83.
Quality circles became popular in North America during the 1980s.
(True; Moderate; p. 236)
84.

Quality circles have the authority to find problems, assess alternative actions, and implement a
solution.
(False; Challenging; p. 237)
85.
Quality circles have been a big success in businesses using them.
(False; Moderate; p. 237)
86.

The lack of planning and top management commitment often contributed to quality circle
failures.
(True; Challenging; p. 237)
Rewarding Employees
87.
Theory X is consistent with participative management.
(False; Easy; p. 237)
88.

Theory X aligns with autocratic management while Theory Y aligns with participative

management.
(True; Moderate; p. 237)
89.

Employee involvement programs could provide employees with intrinsic motivation by increasing
opportunities for growth and responsibility.
(True; Challenging; p. 237)
90.

Employee involvement is compatible with ERG Theory and efforts to achieve the affiliation
need.
(False; Challenging; p. 237)
91.
Variable-pay compensation pays people for the time they spend on the job and seniority.
(False; Easy; p. 238)
92.
Variable-pay programs turn part of an organization’s fixed labor costs into a variable cost.
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(True; Easy; p. 238)
93.
Employee compensation will decline if performance declines in variable-pay programs.
(True; Moderate; p. 238)
94.

Piece-rate plans, wage incentives, profit sharing, bonuses, and gainsharing are all forms of
flexible benefits.
(False; Moderate; p. 238-239)
95.

Both piece-rate and gainsharing plans are examples of variable-pay compensation.
(True; Easy; p. 239)
96.
Piece-rate wages are a traditional form of variable pay compensation.
(True; Moderate; p. 239)
97.

People who sell peanuts at ball parks, keeping $.75 for every bag of peanuts they sell, are being
paid piece-rate wages.
(True; Moderate; p. 239)
98.
Variable pay is probably most compatible with two-factor theory predictions.
(False; Moderate; p. 239)
99.
Piece-rate plans are based on group productivity.
(False; Moderate; p. 239)
100.

Pay for performance means the employees have to share in the risks as well as the rewards of
their employer’s business.
(False; Moderate; p. 239)
101.
Profit sharing may be paid by direct cash outlay or as stock options.
(True; Challenging; p. 240)
102.
Gainsharing and profit sharing are the same thing.
(False; Easy; p. 240)
103.

An employee in a gainsharing plan can receive incentive awards even if the organization isn’t

profitable.
(True; Moderate; p. 241)
104.

Studies generally show that organizations with profit sharing plans have higher levels of
profitability than those without.
(True; Moderate; p. 241)
105.
Studies show that gainsharing programs have a positive impact on employee attitudes.
(True; Moderate; p. 241)
106.

Gainsharing’s popularity seems to be narrowly focused among large, unionized manufacturing
companies.
(True; Challenging; p. 241)
107.

ESOPs are company-established benefit plans in which employees acquire stock as part of their
benefits.
(True; Moderate; p. 241)
108.

Research on ESOPs indicates they increase employee satisfaction.
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(True; Challenging; p. 241)
109.
Skill-based pay encourages employees to concentrate on one or two highly desirable skills.
(False; Moderate; p. 241-242)

110.

From management’s perspective, the greatest appeal of skill-based pay plans is decreased
payroll costs.
(False; Challenging; p. 243)
111.
Skill-based pay plans encourage people to specialize.
(False; Moderate; p. 243)
112.

Traditional benefit packages were designed for the typical employee of the 1950s; a stereotype
that now fits fewer than 10% of employees.
(True; Moderate; p. 244)
113.

Flexible spending plans allow employees to set aside up to the dollar amount offered in the plan
to pay for particular services.
(True; Moderate; p. 244)
114.

Studies show that employees consider wages and benefits to be the most powerful workplace
motivators.
(False; Challenging; p. 245-246)
115.

One of the most expensive motivation programs is that which recognizes an employee’s superior
performance.
(False; Easy; p. 246)
SCENARIO-BASED QUESTIONS
Application of Job Redesign and Scheduling

Allied General Hospital employs many individuals and has decided to try to increase motivation through
job redesign and flexible scheduling. You have been hired as a consultant to help them design and
implement the programs.
116.

You are looking at flextime and realize that it will probably work least well for which of the
following jobs?
a. insurance billers
b. custodial workers
c. floor nurses
d. equipment maintenance staff
e. IT personnel
(c; Challenging; p. 232)
117.

It be difficult to initiate job redesign and flexible scheduling for operating room nurses. Which of
the following is not a reason why this is the case?
a. their job is specialized
b. they are highly paid
c. their shift times are rigorously set
d. they are not easily replaced by other workers
e. their time and skills are in high demand
(b; Challenging; p. 229-230)
118.
Members of the nighttime janitorial staff are generally low skilled and would probably be
motivated by _____.
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a. job enrichment

b. flexible work schedules
c. job enlargement
d. all of the above
e. none of the above
(d; Moderate; p. 230-237)
Application of Employee Involvement Programs
Your supervisor has heard that employee involvement is important and you have been instructed to
research various methods of employee involvement. You are supposed to help assist in the analysis of
the probable effects of each of the programs being considered.
119.

Your supervisor proposes that participative management will solve your productivity, motivation
and job performance problems. Which of the following is not a warning you should give him
about this approach?.
a. employees will only be motivated by decisions on issues in relevant to their interests
b. research shows it has only a modest influence on all these variables
c. it will provide intrinsic rewards for employees
d. is not a sure means for improving employee performance.
e. employees must have competence and knowledge if they are to make a useful contribution
(c; Easy; p. 236)
120.

You have decided to let employees select a small group to represent them and work with
management. This is termed _____.
a. representative participation
b. an ESOP
c. quality circles
d. participative management
e. an AESOP
(a; Moderate; p. 236)

121.

A group of employees will meet regularly to discuss problems and recommend action. This group
is a(n) _____.
a. ESOP
b. works council
c. MBO cluster
d. quality circle
e. matrix team
(d; Moderate; p. 237)
Application of Skill-Based Pay Plans
Amalgamated Industries manufactures parts for furniture. Management has decided to change the
method of payment to a skill-based plan. You are interested in increasing your current compensation and
see this as an opportunity.
122.

You should expect to earn more if you _____.
a. volunteer for overtime
b. increase your production
c. cross train in other jobs
d. become a specialist
e. master common skills
(c; Moderate; p. 243)

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123.

As a manager, you like the plan because it allows _____.

a. protection of territory
b. flexibility
c. elimination of workers
d. decreased payroll costs
e. increased control
(b; Challenging; p. 243)
124.

Which of the following may be a disadvantage of introducing this type of pay plan?
a. Employees will become less motivated.
b. Employees will become more specialized.
c. Employees will tend not to work as hard as before.
d. Your employer may pay for skills that they aren’t using.
e. Your employer will have less control over what each employee does.
(d; Moderate; p. 242-243)
Application of Flexible Benefits
Your workforce is diverse in terms of their needs for benefits. Jim is married with two children and his
wife is at home full time. Janet is single and supports her widowed mother. Bob is married and his wife
has a high-paying job. You decide that you want to devise a benefits program which is tailored to their
individual needs.
125.

What sort of benefit program would probably be the best choice?
a. a traditional benefit program
b. a flexible benefit program
c. letting them purchase their own benefits
d. an ESOP
e. an AESOP
(b; Easy; p. 244)
126.

What sort of plan would provide pre-designed packages of benefits, put together to meet the
needs of a specific group of employees?.
a. flexible spending
b. core-plus
c. cafeteria
d. modular
e. customized
(d; Easy; p. 244)
127.

You should expect that the flexible benefits program will be all of the following except _____.
a. less expensive
b. consistent with expectancy theory
c. more responsive to individual needs
d. motivational
e. effective in reducing turnover
(a; Moderate; p. 244)
SHORT DISCUSSION QUESTIONS
128.

Explain the three job redesign options.
Job rotation. This is the practice of periodically shifting an employee from one task to
another. When an activity is no longer challenging, the employee is rotated to another
job, usually at the same level, that has similar skill requirements.
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Job enlargement. This is the expansion of jobs horizontally; increasing the number and
variety of tasks that an individual performs. Instead of only sorting the incoming mail by

department, for instance, a mail sorter’s job could be enlarged to include physically
delivering the mail to the various departments or running outgoing letters through the
postage meter.
Job enrichment refers to the vertical expansion of jobs. It increases the degree to which
the worker controls the planning, execution, and evaluation of his or her work. An
enriched job organizes tasks so as to allow the worker to do a complete activity,
increases the employee’s freedom and independence, increases responsibility, and
provides feedback, so an individual will be able to assess and correct his or her own
performance. (Pages 229-231)
129.

What is participative management? Give some examples of its use in organizations.
All participative management programs use joint decision making. Subordinates share a
significant degree of decision-making power with their immediate superiors. Western
Europe uses representative participation. Quality circles and employee stock ownership
plans have also become more popular in the U.S. (Page 236)

130.

Why would management want to share its decision-making power with subordinates?
As jobs have become more complex, managers often don’t know everything their
employees do. Thus, participation allows those who know the most to contribute. The
result can be better decisions. The interdependence in tasks that employees often do
today also requires consultation with people in other departments and work units. This
increases the need for teams, committees, and group meetings to resolve issues that
affect them jointly. Participation additionally increases commitment to decisions. People
are less likely to undermine a decision at the time of its implementation if they shared in
making that decision. Finally, participation provides intrinsic rewards for employees. It
can make their jobs more interesting and meaningful. (Page 236)

131.

What is a quality circle?
A quality circle is a work group of eight to ten employees and supervisors who have a
shared area of responsibility. They meet regularly to discuss their quality problems,
investigate causes of the problems, recommend solutions, and take corrective actions.
Part of the quality circle concept includes teaching participating employees group
communication skills, various quality strategies, and measurement and problem analysis
techniques. (Page 236)

132.

What are skill-based pay plans?
Skill-based pay is an alternative to job-based pay. Rather than having an individual’s job
title define his or her pay category, skill-based pay sets pay levels on the basis of how
many skills employees have or how many jobs they can do. It is also called competencybased or knowledge-based pay. (Pages 242)

133.

How are flexible benefits linked with expectancy theory?
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
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each employee to choose the compensation package that best satisfies his or her current
needs. The fact that flexible benefits can turn the traditional homogeneous benefit
program into a motivator was demonstrated at one company when 80 percent of the

organization’s employees changed their fixed benefit packages when a flexible plan was
put into effect. (Page 244)
134.

How can an employer link employee recognition programs with reinforcement theory?
Consistent with reinforcement theory, rewarding a behavior with recognition immediately
following that behavior is likely to encourage its repetition. Since most organizations are
under severe cost pressures, recognition programs are particularly attractive. (Page 245)

135.

What motivates professionals?
Professionals have a strong and long-term commitment to their field of expertise. Their
loyalty is more often to their profession than to their employer. To keep current in their
field, they need to regularly update their knowledge, and their commitment to their
profession means they rarely define their workweek in terms of 8 to 5 and five days a
week. Money and promotions typically are low on their priority list. Job challenge tends
to be ranked high. Their chief reward in their job is the work itself. Professionals also
value support. They want others to think what they’re working on is important. And
professionals place a high level of importance on having skill-development opportunities.
Provide them with ongoing challenging projects. Give them autonomy to follow their
interests and allow them to structure their work in ways that they find productive.
Reward them with educational opportunities that allow them to keep current in their field.
Also reward them with recognition and ask questions and engage in other actions that
demonstrate to them you’re sincerely interested in what they are doing. (Page 249)

MEDIUM LENGTH DISCUSSION QUESTIONS
136.

What is employee involvement? Give three examples.

Employee involvement is defined as a participative process that uses the entire capacity
of employees and is designed to encourage increased 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. Examples of employee involvement include participative
management, representative participation, quality circles, and employee stock ownership
plans. Participative management programs use joint decision making. Subordinates
actually share a significant degree of decision-making power with their immediate
superiors. 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. A quality circle is a group of eight to ten employees and
supervisors who have a shared area of responsibility. They meet regularly to discuss
their quality problems, investigate causes of the problems, recommend solutions, and
take corrective action.
Employee stock ownership plans (ESOPs) are companyestablished benefit plans in which employees acquire stock as part of their benefits.
(Pages 235)

137.

Discuss flexible benefit programs.
employees and employers?

What are the advantages and disadvantages to both

Flexible benefit programs allow employees to pick benefits that most meet their needs.
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The idea is to allow each employee to choose a benefit package that is individually
tailored to his or her own need and situation. It replaces the traditional “one-benefit-planfor-all” programs that dominated organizations for more than 50 years. For employees,
flexibility is attractive because they can tailor their benefits and levels of coverage to their
own needs. The major drawback, from the employee’s standpoint, is that the costs of
optional benefits often go up, so fewer total benefits can be purchased. From the
organization’s standpoint, the good news is that flexible benefits often produce savings.
Many organizations use the introduction of flexible benefits to raise deductibles and
premiums. Moreover, once in place, costly increases in things like health insurance
premiums often have to be substantially absorbed by the employee. The bad news for
the organization is that these plans are more cumbersome for management to oversee
and administering the programs is often expensive. (Pages 244)
COMPREHENSIVE ESSAYS
138.

Explain how job redesign and scheduling is linked to motivational theories.
The guidelines for enriching jobs are directly related to the job characteristics model. By
following these guidelines in redesigning jobs, especially with employees who seek
challenge in their work, you’re likely to positively influence the employee’s internal
motivation, the quality of work performance, job satisfaction, and reduce both
absenteeism and turnover.
The enrichment of jobs can also be traced to Herzberg’s two-factor theory. In accordance
with this theory, increasing the intrinsic factors in a job—such as achievement,
responsibility, and growth—makes employees more likely to be satisfied with the job and
motivated to perform it.
A common theme among the scheduling options of flextime, job sharing, and
telecommuting is flexibility. Each gives employees greater discretion over when to come
to work, how much time is spent at work, or where the work is done. Expectancy theory
indirectly addresses flexibility in the importance placed on linking rewards to personal
goals. With today’s employees increasingly concerned about conflicting demands from
work and personal responsibilities, a flexible work schedule is likely to be perceived as a

desirable reward that can help achieve a better work/life balance. (Page 228-229)

139.

List and describe different variable-pay programs. Be sure to include piece-rate plans, profitsharing plans, and gainsharing.
Piece-rate plans, wage incentives, profit sharing, bonuses, and gainsharing are all forms
of variable-pay programs. 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. Bonuses can be paid
exclusively to executives or to all employees. Many companies now routinely reward
production employees with bonuses in the thousands of dollars when company profits
improve.
Profit-sharing plans are organization wide programs that distribute
compensation based on some established formula designed around a company’s
profitably. 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. (Pages 238-240)

140.

How might a manager motivate professional workers?
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Professionals have a strong and long-term commitment to their field of expertise. Their
loyalty is more often to their profession than to their employer. To keep current in their
field, they need to regularly update their knowledge, and their commitment to their
profession means they rarely define their workweek in terms of 8 to 5 and five days a

week. Money and promotions typically are low on their priority list. Job challenge tends
to be ranked high. Their chief reward in their job is the work itself. Professionals also
value support. They want others to think what they’re working on is important. And
professionals place a high level of importance on having skill-development opportunities.
The following should be considered in motivating professionals:
• Provide them with ongoing challenging projects.
• Give them autonomy to follow their interests and allow them to structure their work in
ways that they find productive.
• Reward them with educational opportunities that allow them to keep current in their
field.
• Reward them with recognition.
• Ask questions and engage in other actions that demonstrate to them you’re sincerely
interested in what they are doing.
(Page 249)

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