Chapter 6: Applied Performance Practices

Question 1

money and financial rewards at basic level represent

Answer 1

form of exchange; employees provide their labor, skill, and knowledge in return for money and
benefits from the organization

Question 2

4 objectives of financial rewards

Answer 2

1. membership and seniority
2. job status
3. competencies
4. performance

Question 3

job evaluation

Answer 3

rating the worth of jobs within an organization by measuring the required skill, effort, responsibility, and working conditions

Question 4

Skill-based pay plans

Answer 4

variation of competency-based rewards in which people receive higher pay determined by their mastery of measurable skills

Question 5

3 types of performance-based rewards

Answer 5

1. individual
2. team
3. organization

Question 6

gainsharing plan

Answer 6

calculates bonuses from the work unit’s cost savings and productivity improvement

Question 7

Employee stock ownership plans (ESOPs)

Answer 7

(organizational reward) encourage employees to buy company stock, usually at a discounted price

Question 8

stock options

Answer 8

(organizational reward) give employees the right to purchase company stock at a predetermined price up to a fixed expiration date

Question 9

profit-sharing plan

Answer 9

employees receive a percentage of the previous year’s company profits