Chapter 3 A Behavioural Framework for Compensation PDF

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Chapter 3 - A Behavioural Framework for Compensation True / False 1. A sales organization rewards employees for the number of client contacts made via telephone. A review of client contact quality determines that most of these contacts will never convert into sales. As it relates to reward problems, this exemplifies a lack of congruency between rewards and behaviour. a. True b. Fals e ANSWER: True 2. The three key employee behaviours that may be desired by employers are membership, task, and citizenship. a. True b. Fals e ANSWER: True 3. The key employee attitudes are flexibility, citizenship, and individual goal commitment. a. True b. Fals e ANSWER: Fals e 4. Reward dissatisfaction can result from perceived inequity. a. True b. Fals e ANSWER: True 5. Equity theory partially explains the basic notion of perceived inequity between one’s view of his or her contribution and the contribution of others in similar contexts. a. True b. Fals e ANSWER: True 6. Job satisfaction is a key employee behaviour. a. True b. Fals e ANSWER: Fals e 7. Distributive justice refers to the fairness of the process in giving rewards. a. True Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation b. Fals e ANSWER: Fals e 8. The principal source of citizenship behaviour is organizational identification. a. True b. Fals e ANSWER: True 9. Classical management strategies generally require a reward system that focuses on task behaviour. a. True b. Fals e ANSWER: True 10. The first step in designing a reward system that will produce the behaviour the organization needs is to develop rewards that address salient employee needs. a. True b. Fals e ANSWER: Fals e Multiple Choice 11. At a unionized firm, workers went on strike even after management offered them a two percent increase in pay. The union representing the workers said that the proposed increase did not match the workers’ contributions to the firm. What type of reward problem is evident in this situation? a. failure to produce the desired behaviour b. production of the desired behaviour and undesirable consequences c. production of reward dissatisfaction d. lack of task behaviour ANSWER: c 12. You operate an inbound call centre serving the various needs of your customers. Over the last several months, you notice that customers are waiting on hold for several minutes before being served. To motivate operators, you introduce an incentive program that rewards those operators that answer over 200 calls per 8-hour shift. Shortly thereafter, wait times drop but service complaints escalate. What kind of reward problem does this vignette describe? a. failure to produce desired behaviour b. production of desired behaviour and undesirable consequences c. production of reward dissatisfaction Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation d. unfair compensation practices ANSWER: b 13. Which short scenario best describes organizational citizenship behaviour? a. Joe, a shop mechanic, approaches management with an initiative that will improve customer service. b.Duane, a faculty member, starts and finishes his lectures on time as per his syllabus. c. Mary, a university graduate, was so impressed with company ABC that she decided to join the company. Ten years later she was still working for ABC. d.Carlos “volunteers” for special community events on behalf of his company only when he is paid overtime. ANSWER: a 14. You are extremely happy with your job and would not hesitate to recommend your company as a good place to work. Which key employee attitude are you expressing? a. organizational identification b. motivation c. job satisfaction d. commitment ANSWER: c 15. What is the definition of membership behaviour? a. paying ones dues on time b. being polite with others c. a decision to join and stay with a firm d. the attitude one holds toward one’s job and the workplace ANSWER: c 16. You have been asked to explain to a client the notion of work motivation. Which of the following would best characterize an employee’s work motivation? a. someone that is happy with his job b. someone that puts forward great effort to perform a task well c. someone that shares the organization’s goals and aspirations d. someone that is happy and satisfied with the job content and his/her performance ANSWER: b 17. Which of the following is associated with job satisfaction? a. increased job effort b. lower employee turnover c. higher training costs d. job security ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation 18. Which of the following is NOT a key employee attitude? a. job satisfaction b. work motivation c. organizational identification d. organizational citizenship ANSWER: d 19. An employee survey at a particular company indicated very strong employee job satisfaction levels. Management was elated with the outcome of the survey. What is a likely consequence of having satisfied employees? a. decreased grievances b. employees who are more innovative c. employees who are more cooperative d. improved interdepartmental integration and communication ANSWER: a 20. When a potential employee joins an organization, there is often an implied contract between the employee and the organization, based on expectations of rewards and contributions. Which of the following best describes this contract? a. provincial labour code b. deprivation contract c. psychological contract d. perceived equity ANSWER: c 21. Your employer has not kept his promises in relation to pay, benefits, and ongoing training and development opportunities. Which of the following best describes your situation? a. unethical behaviour b. lack of organizational justice c. perceived inequity d. violation of the psychological contract ANSWER: d 22. Which theory is most applicable in explaining why a hockey player who earns $10 million per year is dissatisfied with his pay? a. equity b. relative deprivation c. psychological contract d. reinforcement ANSWER: a 23. You think your salary is unfair compared to others in your department, and you threaten to quit your job. Which theory Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation best explains your actions? a. psychological contract b. expectancy theory c. procedural justice d. equity theory ANSWER: d 24. Organizational justice has two key dimensions. Which pair of variables best captures these two dimensions? a. distributive and integrative justice b. distributive and procedural justice c. psychological and tenure-based justice d. psychological and task justice ANSWER: b 25. Which of the following would be an example of distributive justice? a. Based on your performance, you believe you were given the pay raise you deserved. b. You have the opportunity to appeal your pay raise. c. Your managers openly share the reward decision-making process with all employees. d. Reward decisions are based on job-related performance and free of bias. ANSWER: a 26. Which scenario is reflective of an organization displaying procedural justice in their reward system? a. Pay is not similar for employees performing at the same general level. b. Pay is attached to increases in consumer price indexes regardless of actual performance. c. Employees are able to appeal pay increase decisions using a transparent appeal process. d. Employees are not able to articulate when and how pay increases are provided. ANSWER: c 27. A particular employee becomes dissatisfied with a decision by an organization to decrease pay. Which of the following could be considered an attempt by the employee to increase rewards? a. taking longer coffee breaks b. increased absenteeism c. padding their expense accounts d. seeking a less demanding job in a different company ANSWER: c 28. In an effort to improve the relationships with employees, management at ABC recently implemented policies to make their pay more consistent across jobs that were similar. What would this change help with? a. improving the psychological contract b. improving perceptions of procedural justice Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation c. improving perceptions of distributive justice d. decreasing perceptions of relative deprivation ANSWER: b 29. Ashton is committed to his organization out of a sense of belongingness and loyalty. What type of commitment is Ashton displaying? a. affective b. continuance c. task d. moral ANSWER: a 30. Which of the following refers to content theories of motivation? a. theories based on reinforcement theories b. theories that focus on managerial strategies c. theories that focus on understanding the means by which people make choices d. theories that focus on human needs ANSWER: d 31. In what way is there congruency between Maslow’s theory and Herzberg’s theory? a. The higher-order needs correspond to motivators, and lower-order needs correspond to the hygienes factors. b. Both Maslow and Herzberg assume that a satisfied need no longer motivates. c. Both Maslow’s and Herzberg’s theories could be classified as “process theories.” d. Both Maslow and Herzberg explicitly describe the distinction between job satisfaction and work motivation. ANSWER: a 32. Which term is used to describe the degree of urgency an individual attaches to the satisfaction of a particular need? a. hierarchy of needs b. need deprivation c. needs analysis d. need salience ANSWER: d 33. Terry was generously rewarded by his parents when he received excellent grades. His parents are hoping that the rewards will help Terry get similar grades in the future. Which theory helps to explain this scenario? a. Maslow’s theory b. Herzberg’s theory c. expectancy theory d. reinforcement Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation theory ANSWER: d 34. According to reinforcement theory, what happens when organization-controlled rewards stop? a. Employees are motivated to work on their own. b. Intrinsic motivation disappears. c. Desired behaviours eventually disappear. d. There is no change in behaviour. ANSWER: c 35. Which scenario best describes the notion of expectancy, according to the expectancy theory of motivation? a. Paul believes he can complete the project in five days. b.Paul is under the impression that even if he finishes the project in five days, the company will not provide him with the promised promotion. c. Paul does not value the promised promotion. d.Paul would like to be recognized as a valued employee by being given a large pay increase. ANSWER: a 36. According to expectancy theory, which of the following would be an example of negative instrumentality? a. You believe that no matter how hard you work your performance will not be recognized. b. You do not have confidence in your ability to perform the required task. c. You do not value the reward. d. You are not motivated to exert any effort. ANSWER: a 37. Which term refers to the individual’s perception of how likely it is that the effort they give will lead to the successful performance of the desired behaviour? a. valence b. expectancy c. instrumentalit y d. salience ANSWER: b 38. You are the human resource manager for a non-profit organization focusing on cleaning local parks. The vast majority of staff are volunteers from the local community. You are so pleased with their commitment that you approach a consultant looking for advice on what kinds of additional rewards you should provide. Which of the following would be an appropriate recommendation, according to the attribution theory of motivation? a. Offer to pay the attendance fee to any volunteer willing to attend a conference dealing with the value of green space in cities. b.Offer to pay $100.00 per month if volunteers show up for all their shifts. Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation c. Offer to pay volunteers $.50 for every pound of garbage collected from local parks. d.Offer to pay a nominal fee for members that find other volunteers willing to join the organization. ANSWER: a 39. Economic theory of motivation is closely aligned with which management strategy? a. differentiation management strategy b. high-involvement management strategy c. human relations management strategy d. classical management strategy ANSWER: d 40. Zara would typically go “well beyond the call of duty” in the workplace to help her organization achieve its goals. What is Zara displaying? a. membership behaviour b. organizational citizenship behaviour c. task behaviour d. proactive behaviour ANSWER: b Subjective Short Answer 41. Briefly explain the purpose of the behavioural framework for compensation. ANSWER Rewards have a powerful effect on behaviour. It is crucial to understand what specific : attitudes and behaviours are needed by your organization and the role that the reward system can play in producing these behaviours. The behavioural framework can be used as a conceptual tool to help us understand the process through which compensation affects employee behaviour. Knowing the behaviour that various compensation plans will likely produce will help us to design the compensation system most likely to produce the behaviour that we want. 42. Identify the three key job attitudes and explain their roles in determining employee behaviour. ANSWER Job attitudes drive employee behaviour and are derived from the feelings that one has : about one’s work. The three key attitudes that have an impact on employee behaviour are job satisfaction, work motivation, and organizational identification. Job satisfaction can be defined as the attitude one holds toward one’s job and workplace, either positive or negative; work motivation can be defined as the attitude one holds toward good job performance and effort, either positive or negative; and organizational identification consists of a sense of shared goals, belonging, and desire to remain a member of the organization. Each of these attitudes can lead to behaviour that is beneficial to the organization in different ways. Job satisfaction helps generate membership behaviour, motivation generates task behaviour, and organizational identification is needed to generate citizenship behaviour as well as the other two behaviours. The importance of each of these job attitudes and the corresponding behaviour it generates varies by organization. You must consider the context of the organization. Different managerial strategies require different attitudes and behaviours. Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation 43. Summarize the consequences of each job attitude. ANSWER Job satisfaction can lead to decreased work stress, decreased grievances, decreased : absenteeism, decreased turnover, and positive group norms. Work motivation leads to job effort, which should lead to task performance. Organizational identification leads to positive group norms, cooperative behaviour, innovative behaviour, increased job effort, and decreased grievances, absenteeism, and turnover. All of these attitudes are desirable, but how important they are to a given firm depends on the nature of the firm and the managerial strategy. 44. Briefly explain the difference between content theories of motivation and process theories of motivation, and provide examples of each. ANSWER Content (or needs) theories of motivation focus on identifying and understanding the : types of needs that drive behaviour and that could be used to motivate individuals. Examples of content theories used to identify the various employees’ needs (which if unsatisfied will result in motivation) include Maslow’s Needs Hierarchy, Herzberg’s Two-Factor Theory, and Hackman Oldham’s Job Characteristics Theory. Although many people have the same need, different individuals may choose different paths or behaviours to satisfy this need. Process theories, therefore, attempt to explain the process or actual ways in which individuals can be motivated. Examples of process theories of motivation include Reinforcement Theory of Motivation, Expectancy Theory, Attribution Theory, and Economic Theory. 45. From an employee behavioural perspective, what steps need to be followed to design an effective reward system? ANSWER An effective reward system generates the types of employee behaviour that an : organization needs. The following steps will help create an effective reward system. 1. Define the employee behaviour that is really needed. 2. Determine the employee attributes and qualifications necessary to perform the needed behaviour. 3. Identify the needs that individuals possessing these qualifications are likely to find salient. 4. Ensure a positive valence for needed behaviour by providing rewards that address salient needs and by reducing the costs to the employee of performing the behaviour. 5. Make it clear that performance of the behaviour will lead to the promised rewards. 6. Provide conditions that make it likely that employee effort will actually lead to the desired behaviour. 46. A particular employee is provided with a very aggressive sales goal for next year. Management proposes that if sales double, the employee will receive a 50 percent increase to his/her base pay in addition to his/her sales-based commissions. This represents a substantial increase in compensation, and management is confident the employee will be motivated to increase task behaviour. Two months into the program, management notices the employee is actually less motivated. Using expectancy theory, explain possible rationales that may justify the decreased level in motivation and associated task behaviour. (You may make any additional assumptions) ANSWER The expectation is that students make assumptions about issues associated with : expectancy theory of motivation as it applies to this vignette—valence, instrumentality, and expectancy. This question serves as a good class discussion and requires that students make assumptions about the following issues: ∙ employee confidence Copyright Cengage Learning. Powered by Cognero.

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Chapter 3 - A Behavioural Framework for Compensation ∙ trust ∙ historical pattern of behaviour (has the company lived up to their commitment in the past?) ∙ value of reward to the employee, etc.

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