Unit 6 - B

Question 1

What is the best of the following options for changing employee behavior:

a. Re-engineer the organization’s performance system
b. Hire good employees
c. Convince employees that changing is best for them
d. Punish employees for misbehaving

Answer 1

a. Re-engineer the organization’s performance system

Question 2

Which of the following is not a sub-specialty of OBM

a. Pay for performance
b. Behavior based safety
c. Performance management
d. Curriculum design

Answer 2

d. Curriculum design

Question 3

Which of the following would be considered an intervention in OBM rather than a specific sub-specialty of OBM?

a. Pay for Performance
b. Performance management
c. Behavioral systems analysis
d. Training and instruction

Answer 3

d. Training and instruction

Question 4

Individuals who are self-employed probably do not require performance management to manage their own behavior because:

a. All contingencies in the company are aligned
b. The entrepreneur arranges her own reinforcers
c. Entrepreneurs work without reinforcement
d. Entrepreneurs are self-motivated

Answer 4

a. All contingencies in the company are aligned

Question 5

A pay for performance system equitably aligns both:

a. Government and employee contingencies
b. Employee and organizational performance
c. Management and governmental goals
d. Organizational and management goals

Answer 5

b. Employee and organizational performance

Question 6

Open book management can be considered a conceptualization of a(n)

a. Marxism
b. Open system
c. Closed system
d. Pay for performance

Answer 6

b. Open system

Question 7

Which of the following statements is true regarding closed versus open systems?

a. Closed systems focus more directly on customer needs than open systems
b. Open systems are much less resilient and sustainable then closed systems
c. Closed systems are more likely to lead to rapid improvement
d. Open systems are more responsive to external events

Answer 7

d. Open systems are more responsive to external events

Question 8

The most common objections to a pay for performance programs include all of the following except:

a. Pay for performance programs are too complex
b. Monetary incentives can be counter-productive
c. Selecting correct measures can be too difficult
d. Company management should never use monetary incentives

Answer 8

d. Company management should never use monetary incentives

Question 9

All of the following are accurate statements of problems associated with the common practice of paying for time, except one. Which one is NOT a problem with paying for time?

a. Employees almost never prefer a pay for time-based pay structure
b. This may function as a form of non-contingent fixed-time delivery of money
c. Pay for time encourages slow performance, and can lead to high overtime costs
d. Employees are likely to extend the time to finish jobs to fill whatever time is allotted

Answer 9

a. Employees almost never prefer a pay for time-based pay structure

Question 10

Which of the following statements is false regarding performance-based promotions

a. Can result in, and even promote, competitive tension among employees
b. Promoting the best employees takes them away from jobs at which they excel
c. It may be the only available way to reward top performers, but without enough positions to reward all
d. Top performers are almost always great managers, since they know the job so well

Answer 10

d. Top performers are almost always great managers, since they know the job so well

Question 11

When managers employ the “management by exception” style they:

a. Begin collecting data systematically
b. Systematically reinforce appropriate performance
c. Often rely on excessive negative reinforcement and punishment
d. Deliver too many reinforcers

Answer 11

c. Often rely on excessive negative reinforcement and punishment

Question 12

Traditional management tends to X undesirable behavior and Y desirable behavior

a.
X = punish
Y = ignore

b.
X = ignore
Y = punish

c.
X = reinforce
Y = reinforce

d.
X = ignore
Y = can’t identify

Answer 12

a.
X = punish
Y = ignore

Question 13

Which of the following is not a traditional alternative compensation strategy (as compared to pay-for-performance)

a. Gain sharing
b. Bartering
c. Commissions
d. Merit increase

Answer 13

b. Bartering

Question 14

Merit increases are generally

a. Very objective
b. A high effort intervention
c. Implemented in an inequitable way
d. Not preferred by employee

Answer 14

c. Implemented in an inequitable way

Question 15

While pay-for-performance procedures are highly recommended, alternative strategies are often used instead. The alternative to pay-for performance (from the list below) which is most likely to be effective at producing positive organizational outcomes and improved employee performance is :

a. Merit Increase
b. Commissions
c. Stock options
d. Goal sharing

Answer 15

d. Goal sharing

Question 16

All of the following are likely problems with using gain sharing, except

a. Continuous cutting of expenses can lead to cuts in quality
b. The most efficient employees are not identified, so rewards are not equitable
c. It does not promote cooperation among employees
d. It is a self-limiting process, since only a certain amount of savings can be obtained

Answer 16

c. It does not promote cooperation among employees

Question 17

Which of the following is not generally considered an organizational target?

a. Customer service
b. Strategic projects
c. Safety violations
d. Regulatory compliance

Answer 17

c. Safety violations

Question 18

Which of the following is considered a short-term organizational goal?

a. Productivity
b. Regulatory compliance
c. Strategic projects
d. Customer service

Answer 18

a. Productivity

Question 19

The standard practice is to calculate performance scorecards ________.

a. Yearly
b. Monthly
c. As needed
d. Weekly

Answer 19

b. Monthly

Question 20

On a monthly scorecard (table form), baseline performance is listed for each category of performance in the vertical column …

a. Indicated by a “0” at the top of the column
b. Indicated by a “100” at the top of the column
c. At the right hand margin of the table
d. At the left hand margin of the table

Answer 20

a. Indicated by a “0” at the top of the column

Question 21

In an organization’s typical profit indexed performance pay™ system, the typical range of possible multipliers is:

a. 1-5
b. 0-10
c. 0-1
d. 0-3

Answer 21

d. 0-3

Question 22

Where would be the company multiplier, according to the following scale, if the company earned $129,000 in one month:

0. 00 = $90,000
1. 50 = $97,500
2. 00 = $105,000
3. 25 = $108,750
4. 50 = $112,500
5. 75 = $116,250
6. 00 = $120,000
7. 25 = $123,750
8. 50 = $127,500
9. 75 = $131,250
10. 00 = $135,000

a. 2.25
b. 2.50
c. 2.00
d. 2.75

Answer 22

b. 2.50

Question 23

What is the exposure if a company has $170,000 in payroll and decides to implement a basis of 4% for all employees?

a. $68,000
b. $6,800
c. $5,000
d. $60,000

Answer 23

b. $6,800

Question 24

What is the dollar amount for a multiplier scale of 1 if an organization decides to share 40% of profits with employees, has an exposure of 16,000, and a threshold of $325,000?

a. $390,000
b. $365,000
c. $385,000
d. $325,000

Answer 24

b. $365,000

Question 25

Which of the following is the first step in transitioning to a pay-for-performance system?

a. Assess current management practices
b. Set up database to report the scores each month
c. Have a PFP design session with senior management
d. Conduct manager interviews to design lower level scorecards

Answer 25

a. Assess current management practices

Question 26

During the phased-in transition to a pay for performance system, at which level should voluntary pay reductions for employees be implemented?

a. Pay reductions should never be voluntary
b. Level 2
c. Pay reductions are never a proper procedure in Pay-for-performance
d. Level 3

Answer 26

b. Level 2

Question 27

The first employees to switch from base pay to pay-for-performance should be the:

a. Managers
b. Bottom performers
c. Best performers
d. Middle performers

Answer 27

c. Best performers

Question 28

To transition to a pay for performance system, the following are required:

X = Managers well-versed in pay for performance

Y = A formal transition plan

a. Both X and Y
b. X only
c. Y only
d. Neither X or Y

Answer 28

a. Both X and Y

Question 29

At which phase is there usually a management hiring freeze?

a. 1
b. 0
c. 4
d. 8

Answer 29

c. 4

Question 30

Which of the following is not a role of management when a pay for performance system is in-place:

a. Facilitate work prospecting
b. Help employees maximize earning potentials
c. Improve scorecards
d. Closely monitor employee performance

Answer 30

d. Closely monitor employee performance

Question 31

Some research suggests that when compared to traditional pay, pay-for-performance:

a. Increases performance in employees, but is not affordable
b. Increases the number and effectiveness of managers in the organization
c. Increases performance for most employees, but not all employees prefer it
d. Increases performance for every employee

Answer 31

c. Increases performance for most employees, but not all employees prefer it

Question 32

In the human service example from the lecture, during the final year of the transition to a pay-for-performance system, the company had payroll costs that were _____.

a. At first less, but then more than before pay-for-performance
b. Higher than before implementing pay-for-performance
c. Highly unpredictable and variable
d. Lower than before implementing pay-for-performance

Answer 32

d. Lower than before implementing pay-for-performance