Topic 10

Question 1

Autonomy

Answer 1

Giving employees discretion in choosing what to do and how to do it.

Question 2

Feedback

Answer 2

Knowledge of the results of the employee’s work.

Question 3

Growth Needs Strength

Answer 3

The extent to which employees value and desire challenge and responsibility in work.

Question 4

Intangible Rewards

Answer 4

Defined as psychological, social, and contextual factors in organizations outside the traditional pay and employee benefits categories that are rewarding to employees.

Question 5

Job Characteristics Theory

Answer 5

Specifies the qualities of work that will be inherently motivating and rewarding to employees.

Question 6

Negative Location Externality

Answer 6

A punishment or nuisance that an employee experiences by virtue of living in a particular location.

Question 7

Organizational Culture

Answer 7

The shared beliefs, values, norms, and assumptions of the organization.

Question 8

Pay As Meaning Principle

Answer 8

States that the rewards employees receive from organizations have informational value in addition to their economic value.

Question 9

Person-organization Fit

Answer 9

Achieved in several ways, including recruiting and selecting employees based upon fit as well as technical skills, having a recruiting image that signals the values of the firm, socializing employees through training and rituals to understand the values of the firm, and aligning all elements of the rewards system to be consistent with the organizational values.

Question 10

Positive Location Externality

Answer 10

A reward or benefit, not paid for by the organization, that the employee experiences by virtue of living at a particular location.

Question 11

Purpose Principle

Answer 11

States that employees derive intangible rewards from an organization’s value-consistent Purpose. That is, when the core purposes of a business align with the values of an employee, then that employee will perceive value in maintaining his or her relationship with the organization. There are several actions organizations can take to use the Purpose Principles as part of their Total Rewards strategy.

Question 12

Skill Variety

Answer 12

Refers to the extent to which work is designed to require a variety of skills and poses a reasonable degree of challenge to the employee.

Question 13

Strategy Shift

Answer 13

A gradual shift towards being involved in businesses with a more value-driven purpose as organizations systematically define their activities in light of their values.

Question 14

Task Identity

Answer 14

The extent to which the employee completes a whole and identifiable piece of work.

Question 15

Task Significance

Answer 15

Represents the extent to which the employee perceives that completion of their work has important consequences for others.

Question 16

Transformational Leadership

Answer 16

Creates a sense of purpose in the minds of employees, motivating them to transcend self-interest in order to accomplish the goals of the organization. Through their directions, stories, actions, and systems, Transformational Leaders inspire employees in such a way that employees see the connection between their values and the purpose of the organization. Through this leadership approach, therefore, employees can receive greater intangible rewards from their membership in the organization.