chapter 12

Question 1

financial rewards paid ot workers whos eproduction exceeds some predetermined standard

Answer 1

financial incentives

Question 2

the ratio of outputs divided by the inputs

Answer 2

productivity

Question 3

output standards devised based on careful, scientific analysis

Answer 3

fair days work

Question 4

management approach based on improving work methods through observation and analysis

Answer 4

scientific management movement

Question 5

any plan that ties pay to productivity or profitability, usually as one time lump payments

Answer 5

variable pay

Question 6

motivation that derives from the pleasure someone gets from doing the job or task

Answer 6

intrinsic motivation

Question 7

a persons expectation that his or her effort will lead to performance

Answer 7

expectancy

Question 8

the perceived relationship between successul performance and obtaining the reward

Answer 8

instrumentality

Question 9

the perceived value a person attaches to the reward

Answer 9

valence

Question 10

using contingent rewards or punishment to change behavior

Answer 10

behavior modification

Question 11

a system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day

Answer 11

piecework

Question 12

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 12

straight piecework

Question 13

any salary increase awarded to an employee based on his or her individual performance

Answer 13

merit pay

Question 14

plans that are designed to motivate short term performance of managers and which are tied to company profitability

Answer 14

annual bonus

Question 15

the right to purchase a stated number of shares of a company stock at today’s price at some time in the future

Answer 15

stock option

Question 16

a payment companies make in connection with a change in ownership or control of a company

Answer 16

golden parachute

Question 17

team incentive plan

Answer 17

a plan in which a production standard is set for specific work group, and its members are paid incentives if the group exceeds the production standard

Question 18

incentive plan in which all or most employees can participate

Answer 18

organization-wide incentive plan

Question 19

a plan whereby employees share in the company’s profits

Answer 19

profit-sharing plan

Question 20

an incentive plan developed in 1937 by Joseph scanlon and designed to encourage cooperation, involvement, and sharing of benefits

Answer 20

scanlon pan

Question 21

an incentive plan that engages employees in a common effort o achieve productivity objectives and share the gains

Answer 21

gain-sharing plan

Question 22

plan that puts some portion of employees normal pay at risk if they dont meet their goals, in return for possibly obtaining a much larger bonus if they exceed their goals

Answer 22

earnings at risk pay plan

Question 23

a corporation contributes hares of its own stock to a trust in which additional contributions are made annually. the trust distributes the stock to employees on retirement or separation from service

Answer 23

employee stock ownership plan