Topic 10 - Intangible Rewards

Question 1

What are Intangible Rewards?

Answer 1

Psychological, social, and contextual factors in organizations outside traditional pay and benefits that are rewarding to employees.

Question 2

How do intangible rewards benefit employees and organizations?

Answer 2

They influence employee, team, and organizational actions by addressing non-monetary motivational factors.

Question 3

Which employee needs are more directly impacted by intangible rewards, according to Maslow?

Answer 3

Social (relationships, belonging), Esteem (autonomy, achievement), and Self-actualization (growth, meaning).

Question 4

What is the role of Maslow’s Hierarchy of Needs in understanding intangible rewards?

Answer 4

It serves as a guide to identify what employees find rewarding, despite limited research support for its hierarchical structure.

Question 5

How do intangible rewards enhance the Total Rewards strategy?

Answer 5

By addressing intrinsic motivational factors that go beyond tangible rewards like pay and benefits.

Question 6

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

Extrinsic rewards
Intangible rewards
Monetary rewards
Valued rewards

Answer 6

Intangible rewards

Question 7

What is the Pay as Meaning Principle?

Answer 7

The principle that the rewards employees receive from organizations have both economic and informational value, shaping how employees view themselves beyond monetary benefits.

Question 8

How does the Pay as Meaning Principle affect employees’ perception of pay?

Answer 8

Employees compare their pay to others, and these comparisons influence their perception of fairness and self-worth.

Question 9

What informational value does a $1,000 bonus provide to an employee, beyond its economic value?

Answer 9

It makes the employee feel noticed, important, and competent.

Question 10

How can understanding the Pay as Meaning Principle improve a manager’s approach to rewards?

Answer 10

Managers can distribute both economic and intangible rewards, addressing employees’ need for recognition and validation.

Question 11

Why is it important to consider both the economic and informational value of rewards in Total Rewards?

Answer 11

Focusing on both aspects helps managers create a more holistic rewards system that meets financial and psychological needs.

Question 12

The Pay as Meaning principles states that:

The rewards employees receive from the government have informational value in addition to their economic value
The rewards that the employer will have as monetary value in addition to their economic value
The rewards employees receive from organizations have informational value in addition to their economic value
None of the above

Answer 12

The rewards employees receive from organizations have informational value in addition to their economic value

Question 13

What is the Purpose Principle?

Answer 13

The Purpose Principle states that employees derive intangible rewards when the organization’s core purpose aligns with their personal values.

Question 14

Why might a job as a Doctor seem more desirable than as a Debt Collector?

Answer 14

Because the purpose of the job aligns more closely with values such as helping others, which provide intangible rewards.

Question 15

What is Person-Organization Fit?

Answer 15

It refers to the alignment between an employee’s values and the organization’s values, enhancing the Total Rewards experience.

Question 16

How can organizations improve Person-Organization Fit?

Answer 16

By recruiting based on values and skills, signaling organizational values during recruitment, and socializing employees through training and rituals.

Question 17

What role does a firm’s recruiting image play in Person-Organization Fit?

Answer 17

It signals the organization’s values, helping attract employees whose values align with the company.

Question 18

How does Goldman Sachs use internships to enhance Person-Organization Fit?

Answer 18

Internships allow potential employees to understand the firm’s culture, high-performance expectations, and rewards, helping ensure alignment.

Question 19

What is Strategy Shift in the context of the Purpose Principle?

Answer 19

It involves redefining organizational activities to align with values-driven purposes, creating greater returns for both employees and the organization.

Question 20

Can an organization with a less noble core purpose still apply the Purpose Principle?

Answer 20

Yes, by shifting strategies to focus on areas of business more consistent with employee values.

Question 21

What is Transformational Leadership?

Answer 21

A leadership style that motivates employees to transcend self-interest and connect their values to the organization’s purpose.

Question 22

How do Transformational Leaders inspire employees?

Answer 22

Through their directions, stories, actions, and systems, creating a sense of purpose and connection to organizational goals.

Question 23

What intangible rewards can Transformational Leadership provide employees?

Answer 23

A sense of purpose, meaning, and motivation tied to their work.

Question 24

How does Howard Schultz at Starbucks exemplify Transformational Leadership?

Answer 24

By implementing programs that engage employees in social issues, provide development training, and offer free undergraduate education.

Question 25

How does Starbucks create a sense of meaning for its employees?

Answer 25

By connecting work to social impact and providing growth opportunities through initiatives led by Howard Schultz.

Question 26

Why is leadership style considered part of a Total Rewards strategy?

Answer 26

Because it provides intangible rewards, such as purpose and motivation, which enhance employee satisfaction and retention.

Question 27

What is an example of an organization using values to guide strategy?

Answer 27

A debt collection business could shift its strategy to focus on financial education, aligning with employees’ values and purpose.

Question 28

The purpose principle states that:

The employer derives intangible rewards from an organization’s value-consistent purpose
Market conditions help the employee feel valued in the workplace
Employees derive intangible rewards from an organization’s value-consistent purpose
Market conditions help the employer empower the employees

Answer 28

Employees derive intangible rewards from an organization’s value-consistent purpose

Question 29

When the values of an employee align with the values of the organization, it is referred to as _________________________________.

Transformational leadership
Strategy shift
Person-organization fit
Purpose principle

Answer 29

Person-organization fit

Question 30

How do social relationships function as Intangible Rewards in the workplace?

Answer 30

They can add to or reduce the value employees derive from their employment and performance, influencing their workplace experience.

Question 31

Why are peer relationships important in the modern workplace?

Answer 31

The complexity and interdependence of work require collaboration, and quality peer relationships create a climate of acceptance and collective support.

Question 32

How do supervisory relationships impact employee satisfaction?

Answer 32

Employees’ satisfaction with work is heavily influenced by their immediate supervisors, making management-employee relationships a key focus of a Total Rewards system.

Question 33

Why should organizations nurture quality management-employee relationships?

Answer 33

Positive supervisory relationships can enhance employee satisfaction and motivation, contributing to a more rewarding work experience.

Question 34

How do customer relationships factor into employees’ experiences at work?

Answer 34

Positive customer interactions provide intangible rewards, while conflict-oriented relationships can emotionally drain employees.

Question 35

How can improving customer relationships enhance a Total Rewards system?

Answer 35

Programs that foster positive customer interactions reduce emotional strain and increase intangible rewards for employees.

Question 36

What role do peer and team relationships play in workplace satisfaction?

Answer 36

They contribute to a sense of belonging and support, which enhances employees’ overall experience and motivation.

Question 37

Which is NOT discussed as a group of work relationships?

Supervisory relationships
Customer relationships
Peer relationships
Manager relationships

Answer 37

Manager relationships

Workplace relationships include customer, supervisory, and peer relationships.

Question 38

Which of the folowing deals with customer relationships?

Employees being accountable to supervisors or managers who oversee their work, assign tasks, and provide feedback
Working with others is a necessity of the modern workplace
Interactions aimed at meeting customer needs can also have a large impact on the employees’ experiences at work

Answer 38

Interactions aimed at meeting customer needs can also have a large impact on the employees’ experiences at work

Question 39

Employees having quality relationships with their co-workers and creating a climate of acceptance is an example of:

Manager relationships
Peer relationships
Customer relationships
Supervisory relationships

Answer 39

Peer relationships

Question 40

True or False. When employees have quality relationships with their peers, it can create a climate of acceptance and collectiveness that provides intangible rewards to employees.

Answer 40

True

Question 41

An employee’s satisfaction with work is heavily influenced by their:

Job description
Job skills
Immediate supervisor
Coworkers

Answer 41

Immediate supervisor

An employee’s satisfaction with work is heavily influenced by their immediate supervisor.

Question 42

Where interactions and relationships with customers are ________, the employee will receive ________ intangible rewards.

Positive, negative
Positive, positive
Negative, negative
Negative, positive

Answer 42

Positive, positive

Where interactions and relationships with customers are positive, the employee will receive positive intangible rewards.

Question 43

True or False. Due to the increasing complexity and interdependence of work, working with others is not a necessity of the modern workplace.

Answer 43

False

Question 44

A ___________________should also consider how to build and nurture quality and rewarding management-employee relationships at work.

Employee rewards system
Total rewards system
Employee valuation system
None of the above

Answer 44

Total rewards system

A total rewards system should also consider how to build and nurture quality and rewarding management-employee relationships at work.

Question 45

What is Organizational Culture?

Answer 45

It is the shared beliefs, values, norms, and assumptions within an organization that shape its unique “personality.”

Question 46

How does Organizational Culture differ in strong and weak cultures?

Answer 46

In strong cultures, there is consistency in employee behavior, and deviation from norms is not allowed, whereas in weak cultures, more individuality is shown, and rules are weakly applied.

Question 47

Why is Organizational Culture important for Total Rewards design?

Answer 47

It influences how employees experience the organization and can shape their satisfaction, while rewards systems can also impact the culture itself.

Question 48

How do rewards systems interact with Organizational Culture?

Answer 48

Rewards shape behavior, so the design of rewards systems should consider their potential impact on the organization’s culture.

Question 49

What artifacts can reflect an organization’s culture?

Answer 49

Stories, rituals, systems, politics, and use of physical space are artifacts that reveal the culture.

Question 50

Which is not a reason why organizational culture is important to a total rewards program?

It is a major driver of how employees experience the organization
A total rewards system measures the market conditions set through organizational culture
The total rewards system can have a large impact on the culture of the organization
All of the above are important factors in a total rewards program

Answer 50

A total rewards system measures the market conditions set through organizational culture

Question 51

True or False. Culture can be “seen” in the artifacts of the organization such as its stories, rituals, systems, politics, and use of physical space.

Answer 51

True

Question 52

In _______ organizational cultures, more individuality is shown through the organization’s rules being less strictly applied.

Weak
Strong
Large
Small

Answer 52

Weak

Question 53

Organizational culture is:

The idea that the job families should be diverse enough to allow cross functional training
The ability to bring in employees of all diversities
The shared beliefs, values, norms, and assumptions of the organization
The ideas that are forced upon employees without helping

Answer 53

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

Question 54

What is the Job Characteristics Theory?

Answer 54

It specifies qualities of work that improve employee motivation, satisfaction, and performance by making jobs inherently motivating and rewarding.

Question 55

How does enriching work along Job Characteristics Theory dimensions affect pay?

Answer 55

Enriched jobs are more rewarding but also become more valuable, often meriting higher pay.

Question 56

What is Skill Variety?

Answer 56

It is the extent to which a job requires a variety of skills and provides a reasonable challenge, preventing monotony and increasing engagement.

Question 57

How does Skill Variety improve work?

Answer 57

It creates a more psychologically engaging and rewarding work experience by reducing boredom.

Question 58

What is Task Significance?

Answer 58

It is the extent to which work is perceived to have important consequences for others, making it more motivating and satisfying.

Question 59

How can Task Significance be highlighted?

Answer 59

By designing work with meaningful outcomes and leading in ways that emphasize the importance of the work.

Question 60

What is Task Identity?

Answer 60

It is the extent to which employees complete a whole and identifiable piece of work, giving them greater ownership and confirmation of their impact.

Question 61

How does Task Identity affect employees?

Answer 61

It increases intangible rewards by fostering a sense of ownership and satisfaction with the work process.

Question 62

What is Autonomy in work design?

Answer 62

It is the discretion given to employees to choose what to do and how to do it, helping them feel responsible and less constrained.

Question 63

How does Autonomy benefit organizations?

Answer 63

It makes work more rewarding and helps employees bring full information to solve problems effectively.

Question 64

What is Feedback in the context of work design?

Answer 64

It is the direct knowledge of the results of one’s work, motivating employees by allowing them to see the impact of their efforts.

Question 65

Why is Feedback important for employee motivation?

Answer 65

Observing the effects of their work increases motivation and satisfaction, even more than verbal feedback from supervisors.

Question 66

What is Growth Needs Strength?

Answer 66

It is the extent to which employees value and desire challenge and responsibility in their work.

Question 67

How does Growth Needs Strength affect responses to work design?

Answer 67

Employees with high Growth Needs Strength respond more positively to enriching work characteristics, but all employees benefit to some degree.

Question 68

Skill variety refers to:

The extent to which work is designed to focus on a small amount of skills and does not pose a challenge to the employees
The extent to which work is designed to require a variety of skills and poses a reasonable degree of challenge to the employee
The extent to which work is designed to pose a moderate degree of challenge to the employee
None of the above

Answer 68

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

Question 69

The task significance represents:

The extent to which the employee perceives that completion of their work has important consequences for others.
The extent to which the employee perceives that completion of their work does not have important consequences for others
The extent to which the employee perceives that completion of their work has moderate consequences for others
None of the above

Answer 69

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

Question 70

Autonomy represents:

Giving employees no discretion in choosing what to do and how to do it
Giving employees moderate discretion in choosing what to do and how to do it
Giving employees discretion in choosing what to do and how to do it.
None of the above

Answer 70

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

Question 71

Growth Needs Strength is:

The extent to which employees struggle to value and desire challenge and responsibility in work
The extent to which employees value and desire challenge and responsibility in work.
The extent to which employees have a moderate value and desire challenge and responsibility in work
The extent to which employees do not value and desire challenge and responsibility in work

Answer 71

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

Question 72

Why is location important in a Total Rewards perspective?

Answer 72

Location acts as a proxy for various social, cultural, and environmental factors that employees find rewarding or punishing.

Question 73

What are Positive Location Externalities?

Answer 73

These are benefits employees experience from living in a specific location that the organization does not have to pay for, such as beaches or cultural attractions.

Question 74

How can Positive Location Externalities reduce organizational costs?

Answer 74

Organizations may provide lower amounts of other rewards because employees derive value from the location itself.

Question 75

What are Negative Location Externalities?

Answer 75

These are nuisances or drawbacks of a location, such as pollution, traffic, or crime, that make the location less attractive.

Question 76

How do Negative Location Externalities affect Total Rewards?

Answer 76

Organizations may need to enhance other elements of their Total Rewards system to compensate for the negative aspects of a location.

Question 77

What is the role of labor market competitors in location-based rewards?

Answer 77

The presence of competitors in the same location can reduce the impact of Positive Location Externalities, as employees may leave while retaining location benefits.

Question 78

Why might organizations in less attractive locations offer higher Total Rewards?

Answer 78

To compensate for Negative Location Externalities and attract employees despite the drawbacks of the location.

Question 79

True or False. Location of the workplace is an important factor in the career choices of most employees.

Answer 79

True

Location is one of the largest pieces of the Intangible Rewards pie. Indeed, it is not possible to understand the career choices people make without considering the location of each job offer.

Question 80

In order to understand total rewards, managers need to understand both the ________ and _____________ value of those rewards.

Ethnocentric, informational
Economic, ethnocentric
Economic, informational
None of the above

Answer 80

Economic, informational

Question 81

When the core purposes of a business align with the values of an employee, then that employee will perceive value in ________________his or her relationship with the organization.

Maintaining
Moving
Ignoring
None of the above

Answer 81

Maintaining

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.

Question 82

True or False. Location is one of the largest pieces of the intangible rewards pie.

Answer 82

True

Indeed it is not possible to understand the career choices people make without considering the location of each job offer.

Question 83

Which of the following is not a Purpose Principle?

Transformational Leadership
Person-Organization Fit
Transformational Management
Strategy Shift

Answer 83

Transformational Management

Question 84

Of the following, which most aligns with the Person-Organization Fit style?

Leading through directions, stories, & actions
Being involved in business with a value-driven purpose
Recruiting for talent as well as match to the organization
Being willing to learn and adapt new skills

Answer 84

Recruiting for talent as well as match to the organization

Question 85

Of the following, which most aligns with the Strategy Shift?

Recruiting for talent as well as match to the organization
Being willing to learn and adapt new skills
Leading through directions, stories, & actions
Being involved in business with a value-driven purpose

Answer 85

Being involved in business with a value-driven purpose

Question 86

Of the following, which most aligns with Transformational Leadership?

Leading through directions, stories, & actions
Being involved in business with a value-driven purpose
Recruiting for talent as well as match to the organization
Being willing to learn and adapt new skills

Answer 86

Leading through directions, stories, & actions

Question 87

True or False. As organizations systematically define their activities in light of their values, there will be a gradual shift towards being involved in businesses with a more value-driven purpose.

Answer 87

True

This Strategy Shift can create, for the organization and the employees, greater returns from the Total Rewards approach.

Question 88

_________________ can have an important impact on employees and the meaning they perceive in work.

Government
Leaders
Managers
Senior management

Answer 88

Leaders

Transformational Leadership 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.

Question 89

Transformational Leaders inspire employees in a way that they see:

Values
Purpose
Both A & B
None of the above

Answer 89

Both A & B

Transformational Leaders inspire employees in such a way that employees see the connection between their values and the purpose of the organization.

Question 90

Through transformational leadership, employees can receive greater ________________from their membership in the organization.

Internal rewards
Intangible rewards
Extrinsic rewards
Domestic rewards

Answer 90

Intangible rewards

Question 91

True or False. The total rewards perspective is broad enough to capture leadership styles in the organization, one of the intangible drivers of employee satisfaction and motivation.

Answer 91

True

Question 92

True or False. If an employee can leave your organization and retain the benefits of living in a particular location, this will expand the benefits your organization can accrue from positive externalities.

Answer 92

False

Question 93

__________________ are an important part of the modern workplace.

Benefits
Social relationships
Paid time off
All of the above

Answer 93

Social relationships

Question 94

Relationships can either add to or reduce the ___________ employees receive from their employment and performance.

Rewards
Desire
Value
All of the above

Answer 94

Value

Question 95

Relationships at work include all of the following except:

Self
Peer
Supervisory
Customer

Answer 95

Self

Question 96

True or False. The quality of these peer and team relationships can have a significant influence on employees experiences at work.

Answer 96

True

Question 97

When employees have quality relationships with their peers, it can create a climate of ________________________ that provides Intangible Rewards to employees.

Acceptance
Collectiveness
Both A & B
None of the above

Answer 97

Both A & B

When employees have quality relationships with their peers, it can create a climate of acceptance and collective feeling that provides intangible rewards to employees.

Question 98

True or False. All organizations use some form of hierarchy to organize employees.

Answer 98

True

This typically results in employees being accountable to supervisors or managers who oversee their work, assign tasks, and provide feedback.

Question 99

An employees’ satisfaction with work is heavily influenced by ____________________.

Management
Colleagues
Amount of work
Immediate supervisor

Answer 99

Immediate supervisor

Total rewards system should also consider how to build and nurture quality and rewarding management-employee relationships at work.