Topic 8

Question 1

Correcting Mechanism

Answer 1

In place to fix any mistake made by the system.

Question 2

Distributive Justice

Answer 2

Perceptions are based upon employees’ views of the distribution of rewards in the organization.

Question 3

Ego and Esteem Needs

Answer 3

The desire for self-respect, self-esteem, and for the esteem of others.

Question 4

Equity Theory

Answer 4

Based on comparisons between the ratio of employees’ inputs and rewards to the ratio of inputs and rewards of others.

Question 5

Expectancy Perception

Answer 5

Asks, “Can I perform at the level required for the reward”? Which grows out of employees’ perceptions of the clarity of performance expectations and of their own abilities

Question 6

Expectancy Theory

Answer 6

The theory that motivation is a function not only of the perceived contingency of the rewards, but also of how much the employee values the reward, and whether or not they believe that they can perform at the required level

Question 7

Explanation

Answer 7

The systematic process of job evaluation, job analysis, market surveys, and performance measurement are important because they provide managers with the explanation of how a system was designed and a decision was made.

Question 8

Instrumentality Perception

Answer 8

Asks, “If I perform, will I receive the reward”? It focuses on the contingency between employee actions and the reward.

Question 9

Interactional Justice

Answer 9

Refers to perceptions of the extent to which the employee was treated with due respect.

Question 10

Intrinsic Motivation Theory

Answer 10

Stipulates that employees attribute their behavior to internal and external causes; also referred to as Self-determination Theory.

Question 11

Job Performance Model

Answer 11

Is a depiction that defines performance and outlines its causes.

Question 12

Law of Unintended Consequences

Answer 12

This principle states that not all of the consequences of a reward system change are foreseeable.

Question 13

Motivation

Answer 13

Internal drive that causes an individual to decide to take action. There are several theories regarding motivation: Reinforcement Theory, Expectancy Theory, Tournament Theory, Justice (Equity) Theory, and Intrinsic Motivation Theory.

Question 14

Motivational Judgement

Answer 14

Managers need to understand the importance of Motivational Judgement because different views of motivation might be useful at different times. In some ways, these views are compatible. For example, reinforcement and expectancy theory would both recommend that contingencies in pay be made very clear. In other ways, the theories have some points of conflict. For example, Intrinsic Motivation would suggest that the clear contingencies in pay serve to undermine employees’ intrinsic reasons for working.

Question 15

Motivational Preferences

Answer 15

Not all employees are motivated by the same rewards and systems should be designed with enough flexibility to allow for as much customization as possible. For example, one employee may be very interested in earning money to make a purchase. For that employee a cash bonus system may prove very effective. For another employee, however, they might find more value in having more time off. For that employee, the free time may actually prove more motivating.

Question 16

Multiple Sources

Answer 16

That is, if an employee’s performance is being assessed, competencies rated, or market prices established, it is important that multiple people have input into the process. Ideally, some of this input should come from non-management peers to further enhance procedural justice.

Question 17

Performance-based Pay

Answer 17

Pay is contingent upon certain performance-related behaviors or results.

Question 18

Physiological Needs

Answer 18

Needs that must be satisfied for the person to survive, including food, water, oxygen, sleep, sex, and sensory satisfaction.

Question 19

Procedural Justice

Answer 19

Focuses on the process by which the reward distribution was determined.

Question 20

Reinforcement Principle

Answer 20

States that when positive consequences (rewards) follow a behavior, that behavior becomes more likely to be seen in the future. Conversely, when negative consequences (punishments) follow a behavior, then that behavior will be less likely to be observed. Thus, designing a reward system requires careful consideration to the consequences that follow performance-related behavior at work.

Question 21

Reinforcement Theory

Answer 21

Derived by behavioral scientist B.F. Skinner and others, is built on the assumption that behavior is a function of its consequences.

Question 22

Safety and Security Needs

Answer 22

A desire for security, stability, dependency, protection, freedom from fear and anxiety, and a need for structure, order, and law.

Question 23

Self-actualization Needs

Answer 23

The needs for self-realization, continuous self-development, and the process of becoming all that a person is capable of becoming.

Question 24

Social Needs

Answer 24

The need for emotional love, friendship, and affectionate relationships with people in general, but especially a spouse, children, and friends.

Question 25

Timing Principle

Answer 25

Specifies that the smaller the time gap between the behavior and the reward or punishment, the greater impact on behavior.

Question 26

Tournament Theory

Answer 26

A theory which states that people are highly motivated to receive extremely valuable rewards, even when the probability of receiving the reward is quite small.

Question 27

Valence Perception

Answer 27

Asks, “Do I value the reward?” Employees use their personal value systems and circumstances to evaluate the extent to which the rewards being offered are rewarding to them.

Question 28

Variability Principle

Answer 28

Points out that new behaviors are most quickly acquired when employees receive the reward every time a behavior is exhibited (low variability), but they are more likely to persist in an acquired behavior even after rewards have stopped when the behavior was not rewarded every time (high variability, also known as intermittent reinforcement).

Question 29

Voice

Answer 29

Employees should be given input into the decision.