Podcast
Questions and Answers
What does the letter 'V' in the motivation equation (Motivation = E x I x V) represent?
What does the letter 'V' in the motivation equation (Motivation = E x I x V) represent?
- Valence (correct)
- Vocational interest
- Value of performance
- Velocity
If either Expectancy, Instrumentality, or Valence is equal to zero, motivation will still occur.
If either Expectancy, Instrumentality, or Valence is equal to zero, motivation will still occur.
False (B)
What does a piecework plan primarily reward?
What does a piecework plan primarily reward?
- Teamwork performance
- Standardized pay raises
- Quantity of units produced (correct)
- Quality of work
What principle states that high performance followed by a reward makes future high performance more likely?
What principle states that high performance followed by a reward makes future high performance more likely?
Merit pay becomes part of the employee's basic salary.
Merit pay becomes part of the employee's basic salary.
In piecework plans, a worker is paid based on the quantity of ______ produced.
In piecework plans, a worker is paid based on the quantity of ______ produced.
Name one factor that determines the size and frequency of pay increases in a merit pay program.
Name one factor that determines the size and frequency of pay increases in a merit pay program.
Which of the following is NOT an implication for designing incentive plans?
Which of the following is NOT an implication for designing incentive plans?
In a merit pay program, increases are often based on a __________ that combines performance rating and pay range.
In a merit pay program, increases are often based on a __________ that combines performance rating and pay range.
Match the following terms with their definitions:
Match the following terms with their definitions:
What is a key factor influencing whether an employee decides to join or remain at an organization?
What is a key factor influencing whether an employee decides to join or remain at an organization?
What is one major criticism of merit pay programs?
What is one major criticism of merit pay programs?
Organizations that use team rewards are likely to attract individualistic employees.
Organizations that use team rewards are likely to attract individualistic employees.
Match the merit pay adaptations with their descriptions:
Match the merit pay adaptations with their descriptions:
According to the piecework plan, all employees easily exceed the production standard.
According to the piecework plan, all employees easily exceed the production standard.
What role does a QC Supervisor play in a piecework plan?
What role does a QC Supervisor play in a piecework plan?
What is the main disadvantage of commission plans?
What is the main disadvantage of commission plans?
Combination plans typically have a 50% base salary and 50% commission structure.
Combination plans typically have a 50% base salary and 50% commission structure.
What is the most famous long-term incentive offered to employees?
What is the most famous long-term incentive offered to employees?
Most firms provide short-term incentives in the form of ______.
Most firms provide short-term incentives in the form of ______.
Match the following incentive types with their characteristics:
Match the following incentive types with their characteristics:
Which commission plan alternative limits risk for the salesperson?
Which commission plan alternative limits risk for the salesperson?
Annual bonuses are typically based solely on an employee's performance rating.
Annual bonuses are typically based solely on an employee's performance rating.
What incentive structure primarily motivates executives in decision-making?
What incentive structure primarily motivates executives in decision-making?
What is one of the advantages of providing benefits to employees for employers?
What is one of the advantages of providing benefits to employees for employers?
Premiums for employee benefits are typically tax deductible as a corporate expense.
Premiums for employee benefits are typically tax deductible as a corporate expense.
What effect do employee benefits have on employee productivity?
What effect do employee benefits have on employee productivity?
Employees with personal life and disability insurance can enjoy additional protection including __________ in the event of serious illness or disability.
Employees with personal life and disability insurance can enjoy additional protection including __________ in the event of serious illness or disability.
Match the following employee benefits with their corresponding advantages:
Match the following employee benefits with their corresponding advantages:
What is one interpretation of Article 4 of the New labor code?
What is one interpretation of Article 4 of the New labor code?
Offering innovative employee perks can lead to lower employee satisfaction.
Offering innovative employee perks can lead to lower employee satisfaction.
Why do organizations implement employee perks?
Why do organizations implement employee perks?
What is one common reason organizations outsource services?
What is one common reason organizations outsource services?
Contractualization became widely used in the Philippines in the 80s and 90s.
Contractualization became widely used in the Philippines in the 80s and 90s.
Identify one of the objectives of the total pay model.
Identify one of the objectives of the total pay model.
The cost of service rendered by an employee in completing a task for the organization is referred to as _____.
The cost of service rendered by an employee in completing a task for the organization is referred to as _____.
Match the types of employees with their descriptions:
Match the types of employees with their descriptions:
Which of the following is NOT a factor to control in managing labor costs?
Which of the following is NOT a factor to control in managing labor costs?
Controlling the number of employees hired and the hours worked is an effective approach to managing labor costs.
Controlling the number of employees hired and the hours worked is an effective approach to managing labor costs.
What process is commonly outsourced to alleviate administrative burdens?
What process is commonly outsourced to alleviate administrative burdens?
Which of the following is the first step in the forecasting cycle?
Which of the following is the first step in the forecasting cycle?
A compa-ratio greater than 1 indicates that employees are paid less than the intended policy.
A compa-ratio greater than 1 indicates that employees are paid less than the intended policy.
What are the two aspects of control on managers' pay decisions?
What are the two aspects of control on managers' pay decisions?
The range maximum and minimum set the extreme amounts to be paid for __________ work.
The range maximum and minimum set the extreme amounts to be paid for __________ work.
Match the following segments with their corresponding definitions:
Match the following segments with their corresponding definitions:
What is one of the reasons why pay information should be communicated to employees?
What is one of the reasons why pay information should be communicated to employees?
Monitoring budgeted versus actual increases is a final step in the forecasting cycle.
Monitoring budgeted versus actual increases is a final step in the forecasting cycle.
What does the first stage in the six-stage process of communication involve?
What does the first stage in the six-stage process of communication involve?
Flashcards
Motivation Equation
Motivation Equation
Motivation = Expectancy x Instrumentality x Valence
Valence
Valence
The perceived value an employee attaches to a reward.
Expectancy
Expectancy
The belief that effort will lead to performance.
Instrumentality
Instrumentality
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Behavior Modification
Behavior Modification
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Piecework Plan
Piecework Plan
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Individual Incentive Plans
Individual Incentive Plans
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Pay influence on Labor Force
Pay influence on Labor Force
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Merit Pay Program
Merit Pay Program
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Merit Increase Grid
Merit Increase Grid
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Performance Rating
Performance Rating
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Compa-ratio
Compa-ratio
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Effective Appraisal Procedures
Effective Appraisal Procedures
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Short-Term Bonuses
Short-Term Bonuses
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Piecework Quality Control Issues
Piecework Quality Control Issues
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Straight Commission Plan
Straight Commission Plan
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Combination Plan
Combination Plan
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Short-Term Incentives
Short-Term Incentives
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Long-Term Incentives
Long-Term Incentives
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Annual Bonus
Annual Bonus
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Commission Plan Alternatives
Commission Plan Alternatives
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Sales Compensation
Sales Compensation
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Incentive Mix
Incentive Mix
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Employee Benefits: Employer Advantage
Employee Benefits: Employer Advantage
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Employee Benefits: Financial Benefit
Employee Benefits: Financial Benefit
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Employee Benefits: Productivity Boost
Employee Benefits: Productivity Boost
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Employee Benefits: Tax Deductible
Employee Benefits: Tax Deductible
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Employee Benefits: Employee Peace of Mind
Employee Benefits: Employee Peace of Mind
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Employee Benefits: Additional Protection
Employee Benefits: Additional Protection
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Employee Benefits: Employer Pride
Employee Benefits: Employer Pride
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Employee Benefits: Legal Considerations
Employee Benefits: Legal Considerations
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Total Pay Model
Total Pay Model
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Labor Cost
Labor Cost
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Managing Labor Costs
Managing Labor Costs
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Controlling Employment
Controlling Employment
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Core Employees
Core Employees
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Contingent Workers
Contingent Workers
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Outsourcing
Outsourcing
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Decentralized Decision Making
Decentralized Decision Making
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Bottom-up Budgeting
Bottom-up Budgeting
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Variable Pay
Variable Pay
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Value-Adding Costs
Value-Adding Costs
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Non-Value-Adding Costs
Non-Value-Adding Costs
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Compensation as Communication
Compensation as Communication
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Communication Stages
Communication Stages
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Pay: Change Agent in Restructuring
Pay: Change Agent in Restructuring
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Study Notes
Employee Contributions and Paying For Contributions
- Incentives are crucial in pay plans.
- Frederick Taylor promoted financial rewards for exceeding predetermined job standards.
- Taylor's three key contributions:
- Establishing output standards for jobs.
- Spearheading scientific management (improving work methods).
- Popularizing incentive pay.
- Motivation theories guide incentive plan design.
- Abraham Maslow's Hierarchy of Needs:
- Physiological (survival needs)
- Safety
- Social (belonging)
- Esteem
- Self-actualization (full potential)
- Needs are satisfied in sequence, starting with lower-level needs.
- Frederick Herzberg's Motivators:
- Hygiene factors (satisfy lower-level needs: working conditions, salary, incentives)
- Motivators (satisfy higher-level needs: challenging work, recognition)
- Victor Vroom's Expectancy Theory: Motivation depends on:
- Expectancy (effort leads to performance)
- Instrumentality (successful performance leads to rewards)
- Valence (value of the reward)
- Motivation = Expectancy x Instrumentality x Valence
- No motivation if any of these is zero.
- Abraham Maslow's Hierarchy of Needs:
Individual Employee Incentive and Recognition Programs
- Piecework Plans: Pay based on quantity produced.
- Merit Pay Programs: Salary increases based on performance.
- Merit grids combine performance ratings and pay ranges to determine pay increases.
- Performance ratings and compa-ratios (ratio of employee's pay to the average pay of all employees in a similar job position) influence pay raises.
Incentives for Sales People
- Sales compensation often involves commissions.
- Straight salaries can also be used.
- Straight commission plans reward purely on sales output.
- Combination plans typically combine salary and commission.
- Many firms incentivize managers and executives through short-term incentives(like bonus) and long-term incentives (like stock options).
Team and Organization-Wide Incentives
- Gain-sharing plans do not affect employees' salaries - sharing gains with employees
- Scanlon Plan: an example of a gain-sharing plan, emphasizing cooperation, identity, competence and involvement system.
- Group incentives are designed for smaller work teams.
- Team awards are used for broader company outcomes.
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Description
Explore the concept of employee contributions and the importance of incentive pay in motivating workers. This quiz delves into key contributions by Frederick Taylor, various motivation theories, including Maslow's and Herzberg's, and their applications in pay plans. Test your understanding of how effective incentivescan enhance job performance.
