CHAPTER 12

Question 1

• American mechanical engineer who sought to improve industrial efficiencies
• Made 3 major contributions in the late 1800s
• Known as the father of the scientific management approach

Answer 1

Frederick Taylor

Question 2

Output standards devised based on careful, scientific analysis

Answer 2

Fair’s day work

Question 3

Management approach based on improving work methods through observation and analysis.

Answer 3

Scientific Management Movement

Question 4

paid to workers whose production exceeds some predetermined standard.

Answer 4

Financial Incentives

Question 5

• Ties employee’s pay to the employee’s performance
• Any plan that ties pay to some measure of performance, such as productivity or profitability.

Answer 5

Pay for Performance

Question 6

• Incentive plan that ties a group or team’s pay to some measure of the firm’s overall profitability

Answer 6

Variable Pay Plan

Question 7

Who said the best way to motivate someone is to organize the job so that doing it provides the challenge and recognition we all need to help satisfy “higher-level” needs for things like accomplishment and recognition.

Answer 7

Frederick Herzberg

Question 8

Who invented Two factor theory

Answer 8

Frederick Herzberg

Question 9

What are the two factors in two factor theory

Answer 9

Hygiene factors and motivators

Question 10

• Basic factors that must be present in the workplace to prevent dissatisfaction
• Such as adequate pay, job security and working conditions
• These are necessary but not sufficient for job satisfaction

Answer 10

Hygiene Factors

Question 11

• Factors that contribute to job satisfaction and motivation
• Such as challenging work, recognition, and opportunities for growth and development

Answer 11

Motivators

Question 12

A psychologist who has done extensive research on motivation and how people are driven to achieve their goals.

Answer 12

Edward Deci

Question 13

His work highlights the potential negative impact of extrinsic rewards, such as bonuses or promotions, on intrinsic motivation.

Answer 13

Edward Deci

Question 14

A psychologist who developed the expectancy theory of motivation.

Answer 14

Victor Vroom

Question 15

Refers to the individual’s belief that their efforts will lead to the desired performance level. In other words, they must believe that their hard work will pay off and they will achieve their goals.

Answer 15

Expectancy

Question 16

Refers to the individual’s belief that the desired outcome will be accompanied by a reward or other positive consequences. In other words, they must believe that their success will lead to a desirable outcome.

Answer 16

Instrumentality

Question 17

Refers to the value that the individual places on the potential outcome or reward. In other words, they must believe that the outcome or reward is desirable and worth pursuing.

Answer 17

Valence

Question 18

A technique used to change behavior through rewards or punishments that are contingent on performance.

Answer 18

Behavior Modification

Question 19

2 main principles of behavior modification

Answer 19

1. behavior that leads to a positive consequence (reward) tends to be repeated same goes with negative consequence
2. reward or punishment must be directly tied to the behavior

Question 20

• the oldest and still most popular individual incentive plan.
• it involves paying the worker a specified amount for each piece or unit he/she produces.

Answer 20

Piecework

Question 21

entails a strict proportionality between results and rewards regardless of output. It is an incentive plan in which a person is paid a sum for each item he or she makes or sells with a strict proportionality between results and rewards.

Answer 21

Straight Piecework

Question 22

• the worker is paid a basic hourly rate but is paid an extra percentage of his or her rate for production exceeding the stand per hour or per day.
• Similar to piecework payment but based on a percent.

Answer 22

Standard Hour Plan

Question 23

A permanent cumulative salary increases the firm awards to an individual employee based on his or her individual performance

Answer 23

Merit Pay

Question 24

A compensation structure that provides an alternative to the traditional career path that requires employees to move into management in order to earn higher pay

Answer 24

Dual Career - Ladders

Question 25

refers to informal manager–employee exchanges such as praise, approval, or expressions of appreciation for a job well done.

Answer 25

Social Recognition Program

Question 26

Means providing quantitative or qualitative information on task performance so as to change or maintain performance; showing workers a graph of how their performance is trending is an example.

Answer 26

Performance Feedback

Question 27

Refers to the way that tasks, responsibilities, and authority are organized and structured within a job.

Answer 27

Job Design

Question 28

Some firms pay salespeople fixed salaries (perhaps with occasional incentives in the form of bonuses, sales contest prizes, and the like).

Answer 28

Salary Plan

Question 29

Straight commission plans pay salespeople for results, and only for results. It tends to attract high-performing salespeople who see that effort clearly produces rewards. Sales costs are proportionate to sales rather than fixed.

Answer 29

Commission Plan

Question 30

Most companies pay salespeople a combination of salary and commissions, usually with a sizable salary component. An incentive mix of about 70% base salary / 30% incentive seems typical.

Answer 30

Combination Plan

Question 31

what are plans in which all or most employees can participate, and which generally tie the reward to some measure of company-wide performance.

Answer 31

Variable pay plans

Question 32

Are an incentive plan where all or most employees receive a share of the company’s annual profits.

Answer 32

Profit - sharing plans

Question 33

A gain sharing program designed to encourage cooperation, involvement, and sharing of benefits

Answer 33

Scanlon plans

Question 34

An incentive plan that engages many or all employees in a common effort to achieve a company’s productivity objectives, with any resulting cost-savings gains shared among employees and the company

Answer 34

Gainsharing

Question 35

Plan that puts some portion of employees’ normal pay at risk if they don’t meet their goals, in return for possibly obtaining a much larger bonus if they exceed their goals.

Answer 35

At - Risk Pay Plans

Question 36

Company-wide plans in which the employer contributes shares of its own stock (or cash to be used to purchase such stock) to a trust established to purchase shares of the firm’s stock for employees.

Answer 36

Employee Stock Ownership Plans