1. A major drawback of the behavioral observation scale is:

    B. the amount of information required.
  2. A(n) _____ is a gathering at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.

    B. calibration meeting
  3. T/F In the tell-and-sell approach, managers tell employees their ratings and then let the employees explain their side of the story.
  4. To improve the performance of underutilizers, managers should:

    C. link rewards to performance outcomes.
  5. T/F Attribute-based performance methods are tightly linked to organizational strategy.
  6. Which of the following is true of the attribute approaches to performance management?

    C. They can be applied to a wide variety of jobs and organizations.
  7. In which performance technique are managers given three performance rating scales per dimension and asked to indicate whether the employee's performance is above (+), at (0), or below (-) the statements?

    E. Mixed-standard scale
  8. The administrative purpose of a performance management system refers to:

    B. the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.
  9. The relevant aspects of employee performance are based on:

    C. the outcomes of a job analysis.
  10. T/F The critical-incident method is a behavioral approach to performance management.
  11. Which rater error leads employees to believe that no aspects of their performance need improvement?

    D. Halo Error
  12. How does an organization promote fairness and reduce political behavior in the appraisal system?

    C. Train managers to use the appraisal process.
  13. T/F In terms of measuring performance, a major advantage of ranking systems is that they often are linked to the organization's goals.
  14. Performance management has a(n) _____ purpose, meaning that it serves as a basis for improving employees' knowledge and skills.

    A. developmental
  15. T/F Core self-evaluation refers to pervasive low levels of satisfaction in all aspects of life, compared with other people's feelings.
  16. _____ is an employee's recognition that demands of the job are incompatible or contradictory.

    B. Role conflict
  17. _____ is generally the last stage in an alternative dispute resolution system.

    E. Arbitration
  18. If peer review does not lead to a settlement, a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement. This process is called:

    A. mediation.
  19. Thomas Fenton was terminated from his job with no explanation of why he was let go. It is likely that Thomas has NOT experienced:

    B. interactional justice.
  20. When employees cannot work with management to make changes, they may engage in ____, taking their charges to the media in the hope that if the public learns about the situation, the organization will be forced to change.

    D. whistle-blowing
  21. You are concerned about an "unacceptable level" of job dissatisfaction among a number of work teams in your organization, and you have determined the primary cause of the dissatisfaction is the uncertainty that exists among employees regarding what is expected of them. Based on this limited information, the most appropriate intervention would be:

    C. role analysis technique.
  22. The positive or negative bottom-line opinions that individuals have of themselves is known as:

    C. core self-evaluation.
  23. When organizations adjust pay to reflect working conditions or local labor markets, such adjustments are called:

    D. pay differentials.
  24. Which of the following is a potential disadvantage of skill-based pay systems?

    C. Lack of implementation of new skills
  25. T/F Product markets place an upper limit on the pay organizations can offer employees.
  26. _____ are most common for white-collar jobs and for jobs that are not covered by union contracts.

    A. Pay ranges
  27. T/F Under a two-tier wage plan, employees doing the same job are paid two
    different rates, depending on their background and training.
  28. Organizations under pressure to cut labor costs may respond by:

    E. postponing hiring decisions.
  29. A rate of pay for each unit produced is known as:

    C. piecework rate.
  30. "Shrinkage" is also referred to as:

    C. employee theft.
  31. A company that views employees as resources is most likely to use a(n) _____ pay rate

    C. above-market
  32. Economic theory holds that the most profitable pay level, all things being equal, would be:

    B. at the market rate.
  33. If employees conclude that they are underrewarded, they are likely to make up the difference in all of the following ways EXCEPT:

    E. finding a way to reduce their outcomes.
  34. The Fair Labor Standards Act (FLSA) includes provisions for:

    B. minimum wage.
  35. Which of the following would act as a market force during the development of a pay structure?

    A. Obtaining human resources in labor markets
  36. _____ does not necessarily provide an alternative to the bureaucracy and paperwork of traditional pay structures, because it requires records related to skills, training, and knowledge acquired.

    B. Skill-based pay
  37. T/F Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary.
  38. An organization uses Scanlon plan to provide incentives to employees. The workers produce parts worth $5 million. The target ratio set by the
    organization is 30%. The employees will be given a bonus if the actual labor costs are less than:

    • B. $1.5 million.
    • 5 million times .3
  39. The trend, since the 1990s, in larger public companies, is to grant stock options to:

    A. all employees.
  40. An effective incentive pay plan should:

    A. have performance measures linked to the organization's goals.
  41. Retention bonuses refer to:

    B. one-time incentives paid in exchange for remaining with the company.
  42. What is a balanced scorecard?

    B. A combination of performance measures directed toward the company's long-and short-term goals and used as the basis for awarding incentive pay.
  43. Which of the following is a quantity-oriented incentive provided to employees?

    E. Standard hour plan.
  44. What is backdating?

    E. Changing price in the original option agreement so that the option holder can buy stock at a bargain price.
  45. Why do organizations use profit sharing?

    D. It costs less when the organization is experiencing financial difficulties.
  46. An advantage of merit pay is that:

    E. it makes the reward more valuable by relating it to economic conditions.
  47. Which of the following is true of 529 savings plans?

    C. They allow parents and other family members defer taxes on the earnings of their deposits into the 529 account.
  48. Which one of the following is an objective of the unemployment insurance program?

    B. To provide an incentive for employers to stabilize employment
  49. T/F A defined contribution plan guarantees a specified level of retirement income.
  50. T/F Social Security benefits are free from federal income taxes and state taxes in about half the states.
  51. Under the Older Workers Benefit Protection Act of 1990, employers wishing to use early-retirement waivers must adhere to which of the
    following guidelines?

    A. Inform employees that they may consult with a lawyer before signing.
  52. Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

    D. ERISA
  53. T/F Under FASB standards, employers fund retirement benefits on a pay-as-you-go basis.
  54. A popular defined-contribution plan whereby employees contribute pretax dollars which are then matched by the employer is known as:

    B. Section 401(k) plans.
  55. The cost of a worker's compensation insurance depends on:

    C. the state where the company is located.
  56. Which of these had been accomplished by the Employee Retirement Income Security Act of 1974?

    B. The act established rights relating to vesting.
Card Set
Test 2