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1. Compensation systems that pay large performance bonuses seek individuals who

ID: 327626 • Letter: 1

Question

1. Compensation systems that pay large performance bonuses seek individuals who are:

Question 1 options: A. risk takers B. individualists C. lacking self esteem D. only working for the benefits

2. All of the following are problems with merit pay except:

It utilizes subjective performance ratings

It can be more costly because increases are added into base pay

C. It is an inexpensive and efficient method of compensation

There is not enough of a reward difference between increments in performance

3. According to Herzberg’s motivation theory:

A. performance inputs and outputs must be clearly defined

B. payouts should match expectations

C. pay can meet hygiene needs but will not motivate performance

D. pay is a strong motivator

4. According to equity theory, compensation serves as a/an _________ and performance serves as a/an __________ .

A.

It utilizes subjective performance ratings

B.

It can be more costly because increases are added into base pay

C. It is an inexpensive and efficient method of compensation

D.

There is not enough of a reward difference between increments in performance

3. According to Herzberg’s motivation theory:

A. performance inputs and outputs must be clearly defined

B. payouts should match expectations

C. pay can meet hygiene needs but will not motivate performance

D. pay is a strong motivator

4. According to equity theory, compensation serves as a/an _________ and performance serves as a/an __________ .

5. Sometimes a job is not a good match in a salary survey, and is more complex (i.e., has more duties) than the benchmark job, or less complex (i.e., has fewer duties). To correct for these differences, an analyst might multiply the survey data by some percentage corresponding to the analyst’s judgment of the differences between these jobs. This is termed:

Explanation / Answer

1) A

The risk taking individuals are looked for as they will get high compensation in case of success which will be beneficial for organization also

2) C

It is an expensive method of compensation compared to other methods

4) Compensation serves as an input and Performance is an output