Reward Systems and Legal Issues

A traditional approach in implementing reward systems is to reward employees based on how they do their work.

• TRUE

• FALSE

Contingent pay (CP) plans reward individuals based on how well they perform on the job.

• TRUE

• FALSE

Performance management systems are more effective when results are directly tied to the reward system.

• TRUE

• FALSE

Job evaluation is a process of data collection through which an organization can understand the worth of the various jobs and, as a result, can create a pay structure.

• TRUE

• FALSE

In the context of performance management, illegal discrimination means that raters assign scores differentially to various employees based on factors that are not performance-related, such as race, nationality, color, or ethic and national origin.

• TRUE

• FALSE

Contingent pay is also referred to as ​ (a)   .

• Pay for performance
• Gainsharing
• Base Pay

All of the following are conditions that need to be present in order for a CP plan to motivate employees EXCEPT:

• Expectancy

• Valence

• Desire

• Instrumentality

One of several reasons a CP plan could fail is

• Poor performance management system is in place

• Managers are made accountable

• Clear difference in rewards for poor and outstanding performers

• None of the other options

Three of the most popular job evaluation methods are:

• banding

• classification

• point

• ranking

• segregation

Illegal discrimination is also referred to as ​ (a)  

• Disparate treatment
• Adverse impact
• racism
• favoritism