Chapter 9

Question 1

The systematic process of collecting
information related to the nature of a specific job. It
provides the knowledge needed to define jobs and
conduct job evaluation.

Answer 1

job analysis

Question 2

A systematic procedure designed to
aid in establishing pay differentials among jobs within a
single company. It includes classification, comparison of
the relative worth of jobs, blending internal and external
market forces, measurement, negotiation, and judgment

Answer 2

job evaluation

Question 3

The process of assigning pay to jobs,
based on thorough job analysis and job evaluation.

Answer 3

job pricing

Question 4

Composite of experience,
training, and ability as measured by the performance
requirements of a particular job.

Answer 4

skill requirement

Question 5

The allocation of employee
compensation in a variety of forms tailored to
organization pay objectives and/or the needs of
individual employees.

Answer 5

flexible compensation

Question 6

A motivation theory that proposes
that individuals will select an alternative based on
how this choice relates to outcomes such as rewards.
The choice made is based on the strength or value of
the outcome and on the perceived probability that this
choice will lead to the desired outcome.

Answer 6

expectancy theory

Question 7

Rewards that a person receives
from sources other than the job itself. They include
compensation, supervision, promotions, vacations,
friendships, and all other important outcomes apart
from the job itself

Answer 7

extrinsic rewards

Question 8

Fairness in the amount of reward
distributed to employees

Answer 8

distributive justice

Question 9

Concept concerned with
the process used to make and implement decisions
about pay. It suggests that the way pay decisions
are made and implemented may be as important to
employees as the results of the decisions

Answer 9

procedural justice

Question 10

People are motivated by inner needs.
Needs form a hierarchy from most
basic (food and shelter) to higher order (e.g., self-esteem, love, self-actualization).

Answer 10

Maslow’s need hierarchy

Question 11

Employees are motivated by two types of motivators: hygiene factors and
satisfiers.

Answer 11

Herzberg’s two factor theory

Question 12

employees’ assessment
of their ability to perform required job
tasks

Answer 12

expectancy

Question 13

is employees’ beliefs
that requisite job performance will be
rewarded by the organization

Answer 13

Instrumentality

Question 14

is employees’ beliefs
that requisite job performance will be
rewarded by the organization

Answer 14

valence

Question 15

Employees are motivated when
perceived outputs (i.e., pay) are equal
to perceived inputs (e.g., effort, work
behaviors)

Answer 15

equity theory

Question 16

Rewards reinforce (i.e., motivate and
sustain) performance

Answer 16

reinforcement theory

Question 17

challenging performance goals
influence greater intensity and
duration in employee performance.

Answer 17

goal setting theory

Question 18

A theory of motivation that depicts
exchange relationships in terms of two parties: agents
and principals. According to this theory, both sides of
the exchange will seek the most favorable exchange
possible and will act opportunistically if given a
chance.

Answer 18

agency theory

Question 19

The basic cash compensation that an
employer pays for the work performed. Tends to reflect
the value of the work itself and ignore differences in
individual contribution

Answer 19

base pay

Question 20

A general adjustment
that provides equal increases to all employees

Answer 20

across-the-board increase

Question 21

Same as across-the-board
increase, except magnitude based on change in cost of
living (e.g., as measured by the consumer price index
[CPI]).

Answer 21

cost-of-living increase

Question 22

A reward that recognizes outstanding
past performance. It can be given in the form of lumpsum payments or as increments to the base pay

Answer 22

merit pay

Question 23

Payment of entire increase
(typically merit-based) at one time. Because amount is
not factored into base pay, any benefits tied to base pay
do not increase.

Answer 23

lump-sum bonus

Question 24

compensation
that is tied directly to objective measures of individual
production

Answer 24

individual incentive

Question 25

A generic category of pay add-on
(variable pay) which is tied to some
measure of group performance, not
individual performance. Not added into
base pay

Answer 25

success-sharing plans

Question 26

Add-on linked to group performance
(team, division, total company) relative to
exceeding some financial goal

Answer 26

profit sharing

Question 27

goal to exceed is not financial performance of
organization but some cost index (e.g.,
labor cost is most common, might also
include scrap costs, utility costs).

Answer 27

gain sharing

Question 28

Generic category of pay add-on (variable
pay) that differs from success sharing
in that employee not only shares in the
successes but also is penalized during
poor performance years

Answer 28

risk sharing plans