Chapter 7 Motivation: From Concept to Applications

MULTIPLE CHOICE
Management by Objectives
1.

MBO emphasizes converting overall organizational objectives into:

a. capital gains.
b. specific objectives for organizational units and individual members.
c. operational units.
d. terms that the individual worker can understand and accept.
(b; Easy; p. 190)
2.

MBO emphasizes participatively set goals that are:

a. tangible.
b. verifiable.
c. measurable.
d. all of the above
(d; Moderate; p. 190)
3.

For the individual employee, MBO provides:

a. specific personal performance objectives.
b. increased monetary compensation.
c. communication between co-workers.
d. a means to an end.
(a; Moderate; p. 190)
4.

Since MBO works in an organization from the top down as well as from the bottom up, if all
individuals achieve their goals:
a. employees are more likely to be compensated for their efforts.
b. their units goals will be attained and the organizations overall objectives become a reality.
c. the individuals are less likely to be recognized for their work.
d. the organizations objectives will suffer.
(b; Moderate; p. 190)
5.

Which of the following is an example of an MBO objective?

a. Decrease payroll costs by 6%.
b. Increase quality significantly.
c. Process orders quickly.
d. Improve customer service.
(a; Moderate; p. 190)
6.

All of the following are ingredients common to MBO programs except:

a. an explicit time period.
b. participative decision making.
c. consistent monetary rewards.
d. performance feedback.
(c; Easy; p. 190)
7.
Feedback in an MBO program, ideally, is supplemented by:
a. weekly meetings.
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b. periodic managerial evaluations.

c. monthly progress reports by the employee.
d. open book management.
(b; Moderate; p. 190)
8.

MBO objectives are:

a. set unilaterally by the boss.
b. set by the boss and assigned to subordinates to be carried out.
c. set jointly by superior and subordinate.
d. performed by the subordinate and evaluated exclusively by the superior.
(c; Easy; p. 190)
9. A goal of do your best:
a. is better than an easy goal.
b. is better than a hard goal.
c. is inappropriate goal setting.
d. enables the employee to perform their best.
(c, Moderate, p. 191)
10.

According to the goal-setting theory, the goals that result in a high level of individual performance
are:
a. specific hard goals.
b. specific easy goals.
c. no goals at all.
d. general easy goals that give the employee freedom.
(a; Easy; p. 191)
11.

One major difference between the goal-setting theory and MBO is that the goal-setting theory:
a. demonstrates that assigning goals to subordinates frequently works as well as participative
goal-setting.
b. advocates participative goal-setting.
c. requires feedback on performance.
d. does not use objectives.
(a; Challenging; p. 191)
12.

The only possible disagreement between MBO and goal-setting theory relates to the issue of:
a. feedback.
b. goals.
c. objectives.
d. participation.
(d; Challenging; p. 191)

Employee Recognition Programs

13.

Which of the following is true about employee recognition programs?

a. The best ones recognize individual accomplishments only.
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b. The best ones recognize group accomplishments only.

c. The best ones recognize individual and group accomplishments.
d. The best ones use single sources.
(c; Challenging; p. 192)
14.

Laura may only make minimum wage, but her supervisor regularly compliments her and she has
been chosen employee of the month twice this year. This is a good example of the power of:
a. recognition.
b. participation.
c. goal setting.
d. pay.
(a; Moderate; p. 192)
15.

Which of the following is not true regarding recognition?

a. Rewarding a behavior with recognition immediately following that behavior is likely to
encourage its repetition.
b. Recognition can take many forms.
c. To enhance group cohesiveness and motivation, you can celebrate team successes.
d. Good work should only be recognized in private.
(d; Moderate; p. 193)
16.

Researchers found that employees considered the most powerful workplace motivator to be:
a. recognition.
b. money.
c. opportunity for advancement.
d. autonomy.
(a; Moderate; p. 193)
17.

Which of the following is a form of recognition?

a. personal congratulations
b. a handwritten note
c. public notice
d. all of the above
(d; Easy; p. 193)
18.

The _____ have been especially effective at making suggestion systems work.
a. Americans
b. Japanese
c. Portuguese
d. Canadians
(b; Moderate; p. 193)

19.

One of the most well-known and widely used recognition devices is:
a. bonuses.
b. suggestion systems.
c. brainstorming.
d. company t-shirts.
(b; Moderate; p. 193)
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20.

The laws of _____ require companies to have elected representatives from their employee groups
as members of their board of directors.
a. New Zealand
b. Brazil
c. Denmark
d. Great Britain
(c; Challenging; p. 193)
21.

Which of the following countries does not have a law requiring companies to have elected
representatives from their employee groups as members of their board of directors?
a. Germany
b. Austria
c. Brazil
d. Sweden
(c; Challenging; p. 103)
22.

Employee involvement encompasses such popular ideas as:

a. employee ownership.
b. workplace democracy.
c. empowerment.
d. all of the above
(d; Moderate; p. 194)
What Is Employee Involvement?
23.

A participative process that uses the entire capacity of employees and is designed to encourage
increased commitment to the organizations success is:
a. MBO.
b. employee involvement.
c. reengineering.
d. OB Mod.
(b; Moderate; p. 194)
24.

Participation:
a. is synonymous with employee involvement.
b. is a more limited term than employee involvement.
c. is the larger framework of which employee involvement is a subset.
d. and employee stock ownership plans are synonymous.
(b; Challenging; p. 195)
25.

Which of the following is not an example of employee involvement?

a. variable-pay programs
b. participative management
c. quality circles
d. employee stock ownership plans
(a; Moderate; p. 195)
26.

The distinct characteristic common to all participative management programs is the use of:
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a. joint decision making.

b. increased compensation.
c. flexible benefits.
d. all of the above
(a; Moderate; p. 195)
27.

Participative management:
a. is a panacea for poor morale.
b. is a panacea for low productivity.
c. is not appropriate for every organization.
d. does not require trust.
(c; Challenging; p. 195)
28.

Participative management is a method of management in which:

a. subordinates make corporate decisions and management helps carry out those decisions.
b. all upper management participate in the organizations strategic planning.
c. subordinates share a significant degree of decision-making power with their immediate
superiors.
d. low-level workers meet occasionally with the CEO to discuss problems within their department.
(c; Moderate; p. 195)
29.

Management would want to share its _____ power with subordinates because it may increase
commitment to decisions and can result in better decisions.
a. coercive
b. referent
c. communication
d. decision-making
(d; Moderate; p. 195)
30.

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.
(c; Moderate; p. 195)

31.

Almost every country in Western Europe has some type of legislation requiring companies to
practice:
a. representative participation.
b. MBO.
c. OB Mod.
d. quality circles.
(a; Easy; p. 195)
32.

_____ has been called the most widely legislated form of employee involvement around the
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world.
a. Representative participation
b. MBO
c. OB Mod
d. Quality circles
(a; Moderate; p. 195)
33.

The goal of representative participation is:

a. for workers to own the firms where they work.
b. to help workers self-esteem.
c. to provide greater distinction between workers and management.
d. to redistribute power within the organization.
(d; Moderate; p. 195)
34.

_____ are employees who sit on a companys board of directors and represent the interests of the
firms employees.
a. Board representatives
b. Works councils
c. Quality circles
d. Union representatives
(a; Moderate; p. 196)
35.

_____ link employees with management.

a. Board representatives
b. Works councils
c. Quality circles
d. Union representatives
(b; Moderate; p. 196)
36.

Overall, the greatest value of representative participation is:

a. increased motivation.
b. increased satisfaction.
c. symbolic.
d. all of the above
(c; Moderate; p. 196)

37.

Work groups of employees and supervisors who meet regularly to discuss their quality problems
and recommend solutions is a form of participative management called:
a. department teams.
b. cooperative groups.
c. evaluation teams.
d. quality circles.
(d; Moderate; p. 196)
38.

Quality circles were originally begun in ____ and exported to ____ in the 1950s.
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a. Japan; Europe
b. the U.S.; Europe
c. the U.S.; Japan
d. Japan; the U.S.
(c; Moderate; p. 196)
39.

Quality circles meet regularly to:

a. discuss their quality problems.
b. investigate causes of the problems.
c. recommend solutions.
d. all of the above
(d; Moderate; p. 196)
40.

One author suggested that the ___ was the management fad of the 1980s, but theyve become a
flop.
a. MBO program
b. reengineering program
c. ESOP
d. quality circle
(d; Moderate; p. 196)
41.

A company-established benefit plan in which employees acquire stock as part of their benefits is
a(n):
a. MBO program.
b. reengineering program.
c. ESOP.
d. quality circle.
(c; Moderate; p. 197)
42.

Research on employee stock ownership programs indicates that they:

a. increase employee satisfaction.
b. reduce salaries.
c. reduce stress.
d. increase productivity.
(a; Moderate; p. 197)

43.

Participative management is compatible with all of the following except:

a. ERG theory.
b. Theory X.
c. efforts to stimulate the achievement need.
d. MBO.
(b; Moderate; p. 198)
44.

Theory X is consistent with:

a. the autocratic style of managing people.
b. participative management.
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c. ERG theory.
d. the cognitive evaluation theory.
(a; Challenging; p. 198)
45.

Which of the following is true?

a. Theory Y aligns with the autocratic management style.
b. Employee involvement programs provide intrinsic motivation.
c. Theory Y aligns with the autocratic management style.
d. Employee involvement is incompatible with ERG theory.
(b; Moderate; p. 198)
Variable-Pay Programs
46.

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
(a; Easy; p. 199)
47.

One advantage of variable pay plans to management is that they turn _____ into _____.
a. fixed costs; variable costs
b. high productivity; low productivity
c. slow employees; high performers
d. high costs; lower costs
(a; Challenging; p. 199)
48.

The most widely used variable-pay programs include all of the following except:
a. piece-rate wages.
b. bonuses.
c. gainsharing.
d. hourly wages.
(d; Moderate; p. 199)

49.

An employee who _____ is paid according to a piece-rate plan.

a. performs community services
b. is paid $2 for each unit produced
c. is paid time and a half for overtime
d. is on commission
(b; Moderate; p. 200)
50.

Organization-wide programs that distribute compensation based on some established formula

designed around a companys profitability are termed:
a. profit-sharing plans.
b. gainsharing.
c. variable pay.
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d. ESOPs.
(a; Moderate; p. 200)
51.

_____ is an incentive plan where improvements in group productivity determine the total amount of
money that is allocated.
a. ESOP
b. Gainsharing
c. Variable pay
d. Scanlon plan
(b; Moderate; p. 200)
52.

Which of the following is true about organizations with profit-sharing plans?

a. They have more predictable salaries.
b. Recession doesnt affect pay in these organizations.
c. They have higher levels of profitability.
d. They have more grievances.
(c; Moderate; p. 200)
53.

Variable pay compensation is probably most compatible with:

a. Theory Y.
b. expectancy theory.
c. MBO.
d. participative management.
(b; Moderate; p. 201)
54.

If rewards are allocated completely on nonperformance factors, such as seniority or job title, then
employees are likely to:
a. complain to management.
b. quit their jobs.
c. reduce their effort.
d. absent themselves from work.
(c; Moderate; p. 199)

55.

One advantage of variable-pay programs is that they:

a. are easy to administer.
b. are a form of flexible benefits.
c. avoid the fixed expense of permanent salary increases.
d. decrease total employee compensation.
(c; Moderate; p. 199)
56.

The new trend in variable-pay programs is:

a. larger incentives.
b. including upper management.
c. piece-rate plans.
d. including nonmanagerial employees.
(d; Challenging; p. 200)

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57.

Gainsharings popularity seems to be narrowly focused among:

a. large, unionized manufacturing companies.
b. large service organizations.
c. small, non-unionized manufacturing companies.
d. small, privately-held companies.
(a; Challenging; p. 200)
58.

Many reasons are given for not adopting the pay-for-performance concept. Of the following,
which is not one of those reasons?
a. It is difficult to determine what should constitute performance.
b. Employees pay does not have to stay in step with inflation.
c. There is an historical attachment to cost-of-living raises.
d. It is difficult to determine how to measure performance.
(b; Challenging; p. 201)
Skill-Based Pay Plans
59.

When pay levels are based on how many skills employees have or how many jobs they can do,
_____ is being used.
a. a variable pay plan
b. flexible pay
c. competency-based pay
d. gainsharing
(c; Moderate; p. 202)
60.

Skill-based pay:
a. is an alternative to job-based pay.
b. is called competency-based pay.
c. is called knowledge-based pay.
d. all of the above
(d; Moderate; pp. 202-203)

61.

From managements point of view, the appeal of skill-based plans is their:

a. flexibility.
b. low cost.
c. motivation.
d. ease of administration.
(a; Moderate; pp.202-203)
62.

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.
(c; Moderate; p. 203)
63.

Skill-based pay plans are compatible with all of the following except:
a. ERG theory.
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b. the achievement need.

c. reinforcement theory.
d. motivating professionals.
(d; Challenging; p. 203)
64.

Paying people to expand their skill levels is consistent with the _____ need.
a. affiliation
b. achievement
c. social
d. security
(b; Moderate; p. 203)
65.

Companies that pay employees for learning extra skills reported higher:
a. operating costs.
b. employee performance.
c. turnover.
d. absenteeism.
(b; Challenging; p. 204)
Flexible Benefits
66.

If employees are allowed to pick and choose from among a menu of benefit options, they are said
to have:
a inconsistent needs.
b. benefit menu options.
c. flexible benefits.
d. participative management.
(c; Easy; p. 204)

67.

The average organization provides fringe benefits worth approximately _____ percent of an
employees salary.
a. 25
b. 30
c. 35
d. 40
(d; Challenging; p. 204)
68.

Options in the flexible benefit programs might include:

a. extended disability.
b. college tuition reimbursement programs.
c. extended vacation time.
d. all of the above
(d; Easy; p. 204)
69.

In the future, we can expect the percentage of large and medium-sized companies offering flexible
benefit plans to increase to reflect:
a. the expanding diversity among employees.
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b. growing entitlement.
c. greater competition for employees.
d. greater desire to give employees more.
(a; Challenging; p. 205)
70.

A major drawback of flexible benefit programs is:

a. the organizations costs are generally higher.
b. employees can purchase fewer total benefits.
c. reduced flexibility.
d. these plans are only available to larger companies.
(b; Moderate; p. 205)
Special Issues in Motivation
71.

Professionals are typically motivated by:

a. money.
b. time off.
c. job challenge.
d. promotions.
(c; Challenging; p. 206)
72.

Which of the following is not true about motivating professionals?

a. They are motivated by money.
b. They are motivated by challenging jobs.
c. They are loyal to their profession rather than their employer.
d. Their commitment to their profession means they rarely define their workweek in terms of 8 to 5
and five days a week.
(a; Moderate; p. 206)
73.

To motivate professionals, you should do all of the following except:

a. provide them with ongoing challenging projects.
b. give them autonomy.
c. reward them with higher salaries.
d. allow them to structure their work in ways that they find productive.
(c; Moderate; p. 206)
74.

What motivates contingent workers?

a. opportunity for permanent status
b. training opportunities
c. freedom
d. all of the above
(d; Moderate; pp. 206-207)
75.

The opportunity for training will motivate:

a. professionals.
b. contingent workers.
c. a and b
d. none of the above
(c; Moderate; pp. 206-207)
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76.

In order to maximize the motivation of a diverse workforce, the key word will be:
a. fairness.
b. flexibility.
c. status.
d. money.
(b; Moderate; p. 207)
77.

Motivation of people holding jobs with highly repetitive tasks can be made easier by:
a. increasing pay.
b. increasing autonomy.
c. careful selection.
d. ESOPs.
(c; Moderate; p. 208)
78.

Low-skilled service workers can best be motivated by:

a. more interesting jobs.
b. flexible scheduling.
c. raising pay.
d. stock options.
(c; Moderate; p. 208)
TRUE/FALSE
Management By Objectives
79.
Installing a variable-pay program can make goal-setting theory operational.
(False; Challenging; p. 190)
80.
In MBO, goals are unilaterally set by the employee and communicated to the boss.
(False; Easy; p. 190)
81.
In MBO, goals are established for departments and units rather than for individual employees.
(False; Moderate; p. 190)
82.

The four ingredients common to MBO programs are goal specificity, participative decision making,
an implicit time period, and performance feedback.
(False; Challenging; p. 190)
83.
MBO seeks to give continuous feedback on progress toward goals.
(True; Moderate; p. 190)
84.
In MBO, goals should be tangible and measurable.
(True; Moderate; p. 190)
85.
MBO relies on participatively set goals.
(True; Easy; p. 190)
86.
MBO directly advocates specific goals and feedback.
(True; Moderate; p. 191)

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87.
MBO would be most effective when the goals are easily reached by the employees.
(False; Moderate; p. 191)
88.

There are almost no documented cases where MBO has been implemented but failed to meet
managements expectations.
(False; Easy; p. 191)
Employee Recognition Programs
89.
The best employee recognition programs are those that recognize just individual accomplishments.
(False; Challenging; p. 193)
90.

Consistent with reinforcement theory, rewarding a behavior with recognition immediately following
that behavior is likely to encourage its repetition.
(True; Moderate; p. 193)
91.

One of the most expensive recognition programs is that which recognizes an employees superior
performance.
(False; Easy; p. 193)
92.
One of the most well-known and widely used recognition devices is the use of suggestion systems.
(True; Moderate; p. 193)

Employee Involvement Programs

93.

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. 193)
94.

Employee involvement is a participation process that uses the entire capacity of employees and is
designed to encourage increased commitment to the organizations success.
(True; Moderate; p. 194)
95.
Employee participation and employee involvement are synonymous.
(False; Challenging; pp. 194-195)
96.
Participative management implies joint decision making and equal decision-making roles.
(False; Moderate; p. 195)
97.

It is generally agreed among OB scholars that participative management should be treated as an

ethical imperative.
(False; Challenging; p. 195)
98.

Participation typically has only a modest influence on variables such as employee productivity,
motivations, and job satisfaction.
(True; Easy; p. 195)

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99.

If one is interested in changing employee attitudes or in improving organizational performance,

representative participation would be a good choice.
(False; Challenging; p. 195)
100.

The two most common forms that representative participation takes are works councils and board
representatives.
(True; Challenging; p. 196)
101.
Participative management has had a profound influence on employee productivity and motivation.
(False; Moderate; p. 196)
102.

Board representatives are employees who sit on a companys board of directors and represent the
interests of the firms employees.
(True; Moderate; p. 196)
103.
Quality circles originated in the United States.
(True; Moderate; p. 196)
104.

Quality circles have the authority to find problems, assess alternative actions, and implement a
solution.
(False; Challenging; p. 196)
105.
Quality circles have been a big success in businesses using them.
(False; Moderate; p. 196)
106.
The lack of planning and top management commitment often contributed to quality circle failures.
(True; Challenging; p. 197)
107.

ESOPs are company-established benefit plans in which employees acquire stock as part of their
benefits.
(True; Moderate; p. 197)
108.
Research on ESOPs indicates they increase employee satisfaction.
(True; Challenging; p. 197)
109.
Theory X is consistent with participative management.
(False; Easy; p. 198)
110.

Theory X aligns with autocratic management while Theory Y aligns with participative
management.
(True; Moderate; p. 198)
111.

Employee involvement programs could provide employees with intrinsic motivation by increasing
opportunities for growth and responsibility.
(True; Challenging; p. 198)
112.
Employee involvement is compatible with ERG Theory and efforts to achieve the affiliation need.
(False; Challenging; p. 198)
113.

While American employees readily accepted employee involvement programs, managers in India
who tried to empower their employees were rated low by those employees and the use of
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empowerment also negatively affected employee satisfaction.

(True; Moderate; p. 198)
114.

In recent years, many organizations have dropped their quality circles and replaced them with more
comprehensive team-based structures.
(True; Moderate; p. 198)
Variable-Pay Programs
115.
Both piece-rate and gainsharing plans are examples of variable-pay compensation.
(True; Easy; p. 199)
116.
Variable-pay compensation pays people for the time they spend on the job and seniority.
(False; Easy; p. 199)
117.
Piece-rate plans, wage incentives, profit sharing, bonuses, and gainsharing are all forms of flexible
benefits.
(False; Moderate; p. 200)
118.
Piece-rate wages have been around for nearly a century.
(True; Moderate; p. 200)
119.

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. 200)
120.
Variable-pay programs turn part of an organizations fixed labor costs into a variable cost.
(True; Easy; p. 200)
121.
Employee compensation will decline if performance declines in variable-pay programs.
(True; Moderate; p. 200)
122.
Piece-rate plans are based on group productivity.
(False; Moderate; p. 200)
123.
Profit sharing may be paid by direct cash outlay or as stock options.
(True; Challenging; p. 201)
124.
Gainsharing and profit sharing are the same thing.
(False; Easy; p. 200)
125.

An employee in a gainsharing plan can receive incentive awards even if the organization isnt
profitable.
(True; Moderate; p. 200)
126.

Studies generally support the fact that organizations with profit sharing plans have higher levels of
profitability than those without.
(True; Moderate; p. 200)

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127.

An American Management Association study of companies who used gainsharing found that
grievances, absences, and lost-time accidents decreased.
(True; Moderate; p. 200)
128.
Variable pay is probably most compatible with two-factor theory predictions.
(False; Moderate; p. 201)
129.

One study of 400 manufacturing firms found that those companies with wage incentive plans
achieved 43 to 64 percent greater productivity than those without such plans.
(True; Moderate; p. 201)
130.
The cost-of-living raise is rapidly replacing the variable-pay concept.
(False; Moderate; p. 201)
131.
Group and organization-wide incentives reinforce personal goals.
(False; Moderate; p. 201)
132.

Gainsharings popularity seems to be narrowly focused among large, unionized manufacturing

companies.
(True; Challenging; p. 201)
133.

Pay for performance means the employees have to share in the risks as well as the rewards of their
employers business.
(True; Moderate; p. 201)
Skill-Based Pay Plans
134.
Skill-based pay encourages employees to concentrate on one or two highly desirable skills.
(False; Moderate; p. 202)
135.

From managements perspective, the greatest appeal of skill-based pay plans is decreased payroll
costs.
(False; Challenging; p. 202)
136.
Skill-based pay plans encourage people to specialize.
(False; Moderate; p. 202)
137.

The increased use of skills as a basis for pay seems to work well for corporations facing domestic
competition, but is not so effective for firms facing foreign competition.
(False; Moderate; p. 204)
Flexible Benefits
138.

Traditional benefit packages were designed for the typical employee of the 1950s; fewer than 10%
of employees now fit that stereotype, requiring an updated look at these benefits.
(True; Moderate; p. 204)
139.

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. 204)
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Special Issues in Motivation

140.
Professionals are largely motivated by the extrinsic, rather than the intrinsic, rewards of their jobs.
(False; Moderate; p. 206)
141.
The loyalty of professionals is more often to their profession than to their employer.
(True; Moderate; p. 206)
142.
Promotions typically motivate professionals.
(False; Moderate; p. 206)
143.
The terms temporary workers and contingent employees are synonymous.
(True; Moderate; p. 206)
144.
Permanent status is a motivating force for most temporary workers.
(True; Moderate; p. 207)
145.
Turnover rates of 200 percent are not uncommon for fast food restaurants like McDonalds.
(True; Challenging; p. 208)
146.

Because people vary in their tolerance for ambiguity, careful selection of individuals who are asked
to do highly repetitive tasks can cut down on turnover.
(True; Moderate; p. 208)
147.
High pay will usually lead to highly motivated workers in low-skilled, highly repetitious jobs.
(False; Moderate; p. 208)
SCENARIO-BASED QUESTIONS
Application of Management by Objectives
You have just been hired by Computers-R-Us to institute a management by objectives program. The sales
people have asked you to explain the program to them and to help them understand how it will affect them.
148.

You want to make sure that they understand the ingredients common to MBO programs. Which of
the following is not one of those ingredients?
a. Goals should be general enough to allow creativity.
b. Decision making will be participative.
c. Time periods will be explicit.
d. Feedback will be given on each employees performance.
(a; Moderate; pp. 190-191)
149.

Which of the following is an example of an MBO objective?

a. Telephone orders should be processed promptly.
b. All customers should be treated well.
c. Computer sales should be increased by six percent.
d. Employees should reduce absenteeism.
(c; Challenging; pp. 190-191)
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150.

The objectives for each individual will be set:

a. unilaterally by the supervisor.
b. by the employee.
c. by a committee of peers.
d. by the employee and his superior.
(d; Moderate; pp. 190-191)
Application of Employee Recognition Programs
You have read about the merits of employee recognition programs. While you have no significant budget,
you are willing to implement a program in your department.

151.

Consistent with reinforcement theory, the recognition:

a. must immediately follow the behavior to encourage repetition.
b. must be expensive.
c. must come at some time during the same year as the behavior.
d. none of the above
(a; Moderate; pp. 192-193)
152.

Which of the following might be the most successful?

a. suggestions programs
b. handwritten notes
c. bonuses
d. plaques
(a; Moderate; pp. 192-193)
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.
153.

If participative management is used, you would predict that:

a. it would be time consuming.
b. commitment to decisions would increase.
c. it will provide intrinsic rewards for employees.
d. all of the above
(d; Easy; pp. 195-197)
154.

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.
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(a; Moderate; pp. 195-197)

155.

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.
(d; Moderate; pp. 195-197)
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.
156.
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.
(c; Moderate; pp. 202-203)
157.

The appeal from managements perspective is:

a. protection of territory.
b. flexibility.
c. elimination of workers.
d. decreased payroll costs.
(b; Challenging; pp. 202-203)
158.

Which of the following is a disadvantage of skill-based pay plans?

a. Employees are less motivated.
b. Employees are more specialized.
c. Employees tend not to work as hard as before.
d. Employers may pay for skills that they arent using.
(d; Moderate; pp. 202-203)
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.
159.

The best choice available is probably:

a. traditional benefit programs.
b. a flexible benefit program.
c. letting them purchase their own benefits.
d. an ESOP.
(b; Easy; pp. 204-205)

160

160.

The major drawback from the employees standpoint will probably be:
a. reduced flexibility.
b. loss of benefits.
c. costs of individual benefits may go up, so fewer total benefits can be purchased.
d. fewer benefits to choose from.
(c; Easy; pp. 204-205)
161.

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.
(a; Moderate; pp. 204-205)
Application of Special Issues in Motivation
Allied Health Professionals employs many individuals and has discovered that not all of their employees are
motivated by the same things. They have decided to develop different plans for the different segments of
their workforce. The segments that they have decided to concentrate on are health care professionals,
contingent or temporary workers, and nighttime janitorial staff.
162.

The physicians on your staff will probably be motivated by:

a. ongoing opportunities for education and training.
b. autonomy.
c. recognition.
d. all of the above
(d; Moderate; pp. 206-208)
163.

Contingency workers will probably be motivated by:

a. opportunities for training.
b. getting a permanent position.
c. freedom to choose to remain temporary or to get a permanent position.
d. all of the above
(d; Challenging; pp. 206-208)
164.

The nighttime janitorial staff are generally low skilled and would probably be motivated by:
a. traditional approaches for motivation.
b. flexible work schedules.
c. hiring teenagers and retirees.
d. nontraditional approaches to create a close and family-like work environment.
(d; Moderate; pp. 206-208)
SHORT DISCUSSION QUESTIONS
165.
What are the four ingredients common to MBO programs?
(Pages 190-191)
The four ingredients common to MBO programs are goal specificity, participative decision making,
an explicit time period, and performance feedback. The objectives in MBO should be concise
statements of expected accomplishments. The objectives in MBO are not unilaterally set by the
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boss and then assigned to employees. MBO replaces imposed goals with participatively
determined goals. Each objective has a specific time period in which it is to be completed. The
final ingredient is feedback on performance. MBO seeks to give continuous feedback on progress
toward goals.
166.
How can an employer link employee recognition programs with reinforcement theory?
(Page 193)
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.
167.
What is participative management? Give some examples of its use in organizations.
(Page 195)
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.
168.
Why would management want to share its decision-making power with subordinates?
(Page 195)
As jobs have become more complex, managers often dont 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.
169.
What is a quality circle?
(Page 196)
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.
170.
What are skill-based pay plans?
(Pages 202-203)
Skill-based pay is an alternative to job-based pay. Rather than having an individuals 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 competency-based or knowledgebased pay.

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171.
How are flexible benefits linked with expectancy theory?
(Page 205)
Giving all employees the same benefits assumes all employees have the same needs. Yet this
assumption is false. Thus, flexible benefits turn the benefits expenditure into a motivator.
Consistent with expectancy theorys thesis that organizational rewards should be linked to each
individual employees goals, flexible benefits individualize rewards by allowing 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 organizations employees changed their fixed benefit
packages when a flexible plan was put into effect.
172.
What motivates professionals?
(Page 206)
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 theyre
working on is important. And professionals place a high level of importance on having skilldevelopment 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 youre sincerely interested in what they are doing.
MEDIUM LENGTH DISCUSSION QUESTIONS
173.
Discuss Management by Objectives. What are the characteristics of MBO goals?
(Pages 190-191)
Management by Objectives emphasizes participatively set goals that are tangible, verifiable, and
measurable. The four ingredients common to MBO programs are goal specificity, participative
decision making, an explicit time period, and performance feedback. The objectives in MBO
should be concise statements of expected accomplishments. The objectives in MBO are not
unilaterally set by the boss and then assigned to employees. MBO replaces imposed goals with
participatively determined goals. Each objective has a specific time period in which it is to be
completed. The final ingredient is feedback on performance. MBO seeks to give continuous
feedback on progress toward goals.
174.
What is employee involvement? Give three examples.
(Pages 194-197)
Employee involvement is defined as a participative process that uses the entire capacity of
employees and is designed to encourage increased commitment to the organizations 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
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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 company-established benefit plans in which employees acquire stock
as part of their benefits.
175.
Discuss flexible benefit programs. What are the advantages and disadvantages to both employees
and employers?
(Pages 204-205)
Flexible benefit programs allow employees to pick benefits that most meet their needs. 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-plan-for-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
employees standpoint, is that the costs of optional benefits often go up, so fewer total benefits can
be purchased. From the organizations 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.
COMPREHENSIVE ESSAYS
176.

List and describe different variable-pay programs. Be sure to include piece-rate plans, profitsharing plans, and gainsharing.
(Pages 199-201)
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
companys 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 gainshairing plan can receive incentive awards even
when the organization isnt profitable.
177.

How might a manager motivate professional workers, contingent workers, low-skilled service
workers, and people doing highly repetitive tasks?
(Pages 206-208)
164

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 theyre
working on is important. And professionals place a high level of importance on having skilldevelopment 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 youre sincerely interested
in what they are doing.

165