21. The four performance measures of a balanced scorecard include financial measures, customer measures, internal measures, and learning and growth measures.
22. Research suggests that the use of pay-for-performance plans among top-and middle-level managers result in increased levels of profitability.
23. The Securities and Exchange Commission (SEC) requires companies to report compensation levels for the five highest paid executives.
24. Employee involvement in the design and implementation of pay policies has been linked to higher pay satisfaction and job satisfaction.
25. In a concentration business strategy, pay decisions are centralized.
Multiple Choice Questions
26. Which of the following theories emphasizes the importance and immediacy of a reward following a certain behavior?
A. Reinforcement theory
B. Expectancy theory
C. Agency theory
D. Equity theory
As per the reinforcement theory, a response followed by a reward is more likely to recur in the future.
27. According to expectancy theory, motivation is a function of all of the following
except
A. coordination
B. valence
C. instrumentality
D. expectancy
The expectancy theory states that says motivation is a function of valence, instrumentality, and expectancy.
28. _____ can be described as a function of ability and motivation.
A. Attitude
B. Job performance
C. Leadership
D. Team work
Behaviors (job performance) can be described as a function of ability and motivation.
29. Which of the following is an example of intrinsic motivation?
A. A monthly salary of $10,000.
B. A promotion to the position of HR Manager.
C. Interesting work that utilizes a person's various skill sets.
D. Medical insurance.
Intrinsic motivation comes from the nature of the work. Pay, promotions and benefits are forms of extrinsic motivation.
30. Compensation systems differ according to their impact on the dimensions of expectancy theory, but, generally speaking, they have their greatest impact on which dimension?
A. Expectancy
B. Instrumentality
C. Valence
D. Equity
The main factor is instrumentality: the perceived link between behaviors and pay.