SHRM Ch11 (Incentives & Rewards)

______ states that positive outcomes occur when individuals learn the relationship between actions and consequences and, as a result, modify their behavior accordingly.

• Goal-setting theory

• Reinforcement theory

• Expectancy theory

• Instrumentality theory

______states that goals serve as a motivator to focus the efforts of employees toward desired outcomes when the goals are specific, challenging, attainable, and when feedback on progress is provided.

• Goal-setting theory

• Reinforcement theory

• Expectancy theory

• Instrumentality theory

______ states that employees make decisions regarding how to act at work based on which behaviors they believe will lead to their most valued work-related rewards and outcomes.

• Goal-setting theory

• Reinforcement theory

• Instrumentality theory

• Expectancy theory

The degree to which employees believe that, if they work toward a certain performance objective, they will be able to achieve that objective is called ______.

• instrumentality

• valence

• agency

• expectancy

The perceived link between one’s performance and receiving the reward or incentive payment promised that reflects whether employees believe that achieving an objective will be rewarded is called ______.

• instrumentality

• expectancy

• valence

• agency

______ is the degree of value employees place on different rewards.

• Valence

• Instrumentality

• Expectancy

• Agency

______ states that managers can motivate their employees to act in certain ways by aligning employee interests with the interests of the firm’s other stakeholders.

• Reinforcement theory

• Agency theory

• Goal-setting theory

• Expectancy theory

A compensation adjustment based on the results of an employee’s performance evaluations is called a ______.

• lump-sum bonus

• merit pay increase

• piecework bonus

• differential increase

Which of the following is not a common problem associated with merit pay increase plans?

• Performance ratings are not always accurate or reliable

• A company’s labor costs can quickly escalate

• Employees may devote energy to the wrong tasks

• Increases are backward focused

______ is a one-time payment based on an employee’s level of performance.

• lump-sum merit bonus

• merit pay increase

• piecework bonus

• differential increase