Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Motivation is best defined as a process that ________. 1)

A) meets an individual's needs
B) results in a level of effort
C) accounts for an individual's efforts toward attaining a goal
D) intensifies an individual's efforts
E) stabilizes over time

2) What are the three key elements of motivation? 2)

A) intensity, direction, and persistence
B) stimulation, progress, and achievement
C) reactance, congruence, and circumstance
D) interest, activity, and reward
E) awareness, effort, and outcome

3) Maslow's hierarchy of needs arranges those needs in which of the following orders? 3)
A) physiological, safety, social, esteem, and self-actualization
B) physiological, esteem, safety, social, and self-actualization
C) physiological, social, safety, esteem, and self-actualization
D) safety, physiological, esteem, social, and self-actualization
E) safety, physiological, social, esteem, and self-actualization

4) Which level of Maslow's hierarchy of needs deals with satisfying one's hunger, thirst, and need for 4)
shelter?
A) physiological
B) safety
C) psychological
D) social
E) esteem

5) Which of the following were considered higher-order needs by Maslow? 5)

A) recognition, pay, admiration
B) esteem, self-actualization
C) physiological, safety, social
D) social, esteem, self-actualization
E) safety, social, esteem

6) Who developed ERG theory? 6)

A) Dieckmann
B) Maslow
C) Ouchi
D) Alderfer
E) McClelland

1
 7) Which one of the following is not a characteristic of ERG theory? 7)
A) More than one level of needs may serve as motivators at the same time.
B) It involves a frustration-regression process.
C) The existence needs must be satisfied before the relatedness needs become important.
D) It proposes three levels of needs: existence, relatedness, and growth.
E) It is an extension and improvement of Maslow's theory.

8) What is the major problem with Maslow's hierarchy of needs in organizational behavior? 8)
A) It is difficult to apply to the workplace.
B) It is vague as to how a workplace can satisfy higher-order needs.
C) Its terminology tends to alienate those to whom it is applied.
D) There is little evidence that needs are structured or operate in the way it describes.
E) It is almost impossible to assess how well an individual has a particular need filled.

9) Which of the following theories was proposed by Douglas McGregor? 9)

A) expectancy theory
B) two-factor theory
C) hierarchy of needs theory
D) Theories X and Y
E) ERG theory

10) How would a Theory X manager view employees? 10)

A) viewing work as a normal daily activity
B) not motivated by rewards
C) needing to be coerced to achieve goals
D) exercising self control
E) seeking responsibility

11) A Theory Y manager would assume that employees would ________. 11)
A) need to be controlled
B) attempt to avoid work
C) avoid responsibility
D) exercise self direction
E) dislike work

12) Who proposed a two-factor theory? 12)

A) Maslow
B) Surber
C) McClelland
D) Herzberg
E) Alderfer

13) Two-factor theory suggests that dissatisfaction is caused by extrinsic factors. Which of the following 13)
is an example of such a factor?
A) advancement
B) recognition
C) achievement
D) working conditions
E) nature of the work itself

2
14) Which of the following is not true about the two-factor theory? 14)
A) Hygiene factors are demotivators.
B) A job becomes satisfying when the dissatisfying characteristics are removed.
C) Working conditions are characterized as hygiene factors.
D) Responsibility is a satisfier.
E) Intrinsic factors are motivators.

15) McClelland's theory of needs concentrates on which three needs? 15)

A) achievement, power, and affiliation
B) control, status, and relationships
C) power, acceptance, and confirmation
D) achievement, realization, and acceptance
E) affiliation, control, and realization

16) Jasmine is trying to gain control of her department. Although she will be greatly compensated if 16)
she achieves this aim and will gain control over many subordinates, the main reason she is
pursuing this position is that she thinks she can do the job better than her predecessors and wants
people to know that this is so. What need would McClelland say primarily drives Jasmine in this
case?
A) the need for achievement
B) the need for influence
C) the need for power
D) the need for control
E) the need for attainment

17) How does McClelland define the need for affiliation? 17)
A) same as Maslow's social need
B) desire for friendly and close interpersonal relationships
C) need to make others behave in a novel way
D) drive to excel, to strive to succeed.
E) all of the above

18) The issue of whether or not intrinsic and extrinsic motivators are independent is considered in 18)
which theory?
A) equity
B) two-factor
C) expectancy
D) reinforcement
E) cognitive evaluation

19) Cognitive evaluation theory suggests that which of the following would not serve to increase an 19)
employee's motivation?
A) make pay not contingent on performance
B) support employee development
C) base pay on performance
D) praise good performance
E) make the work interesting

3
20) According to the goal-setting theory of motivation, highest performance is reached when goals are 20)
set to which level?
A) impossible but inspirational
B) difficult but attainable
C) only marginally challenging
D) slightly beyond a person's actual potential
E) easily attained

21) Which of the following is not an important issue relating to goal-setting theory? 21)
A) feedback
B) defining the goal
C) goal specificity
D) goal difficulty
E) equity among co-workers

22) What is generally considered to be the single best thing that managers can do to improve 22)
performance?
A) restrict the use of punishment as a means of motivating workers
B) give abundant opportunities for employee growth
C) allocate tasks depending on personality
D) concentrate on intrinsic rewards rather than extrinsic rewards
E) set specific, challenging goals

23) What sort of goals does Management by Objectives (MBO) emphasize? 23)
A) inspirational, teachable, and creative
B) hierarchical, attainable, and effective
C) achievable, controllable, and profitable
D) challenging, emotional, and constructive
E) tangible, verifiable, and measurable

24) Management by Objectives (MBO) emphasizes translating overall organizational objectives into 24)
________.
A) terms that the individual worker can understand and accept
B) capital gains
C) operational units
D) specific objectives for organizational units and individual members
E) personal gain

25) Who sets MBO objectives? 25)

A) the boss and immediate subordinates
B) the boss
C) the employees performing the task in question
D) they are set jointly by superior and subordinate
E) each working division in cooperation with management

26) Which of the following is an example of an MBO objective? 26)

A) Increase employee satisfaction.
B) Modernize outdated equipment.
C) Decrease payroll costs by 6%.
D) Improve customer service.
E) Train employees to use new invoicing software.

4
27) What is the term used for an individual's personal evaluation of their ability to perform? 27)
A) self-efficacy
B) expectancy
C) autonomy
D) auto-discrimination
E) task identity

28) How do proponents of reinforcement theory view behavior? 28)

A) as a product of heredity
B) as a reflection of the inner state of the individual
C) as environmentally caused
D) as the result of a cognitive process
E) as a function of one's power need

29) What is the major failure of reinforcement theory in explaining changes in behavior? 29)
A) It cannot adequately describe the original behavior.
B) It originated in the studies of the responses of animals.
C) Most behavior is in fact environmentally caused.
D) It does not recognize the effect of feelings, attitudes, and other cognitive variables.
E) It ignores the effect of rewards and punishments upon behavior.

30) In equity theory, individuals assess the ________. 30)

A) cost-benefit ratio
B) outcome-input ratio
C) quantity-quality trade-off
D) pareto efficient outcome
E) efficiency-effectiveness trade-off

31) When people perceive an imbalance in their outcome-input ratio relative to others, ________. 31)
A) equity tension is created
B) distributive justice is questioned
C) they seek to move to another position of authority
D) reinforcement theory is imbalanced
E) expectancy theory is violated

32) Which of the following is not a comparison an employee can use in equity theory? 32)
A) other-outside
B) self-goal
C) other-inside
D) self-inside
E) self-outside

33) What would be the predicted result of overpaying a piece-rate worker, according to equity theory? 33)
A) There will be no effect.
B) The employee will seek a higher wage.
C) Quantity will increase.
D) Quality will increase.
E) Quality will decrease.

5
34) Contemporary research on equity theory focuses on ________ justice. 34)
A) procedural
B) interpersonal
C) organizational
D) distributive
E) interactional

35) People who perceive that they are victims of interactional injustice tend to blame their immediate 35)
supervisor rather than the organization at large. Why is this?
A) Interactional justice or injustice is intimately tied to the conveyer of the information.
B) When people are not treated with respect they tend to retaliate against those closest to hand.
C) Interactional injustice is most often the result of impersonal policies of the organization.
D) Interactional injustice is in the eyes of those who perceive they are disrespected.
E) Interactional injustice can only occur during face-to-face encounters.

36) Who developed expectancy theory? 36)

A) McClelland
B) Sondak
C) Maslow
D) House
E) Vroom

37) What theory attempts to measure the strength of one's expectations and predict motivation? 37)
A) equity theory
B) goal setting theory
C) Surberist theory
D) ERG theory
E) expectancy theory

38) Hannah is an office worker who processes health insurance forms. She has worked at her present 38)
job for three years. Initially she was criticized by her supervisor for sloppy work, but in the months
after that improved considerably. Now she consistently processes her forms without errors and
above quota. However she has found her supervisor has not responded to the extra effort she puts
in, giving her no praise and no financial reward. Hannah will most likely perceive that there is a
problem in which of the following relationships?
A) performance-reward
B) rewards-personal goals
C) rewards-effort
D) performance-achievement
E) effort-performance

39) The degree to which an individual believes that performing at a particular level will generate a 39)
desired outcome is defined by expectancy theory as what kind of relationship?
A) effort-performance
B) reward-personal goal
C) effort-satisfaction
D) agent-actor
E) performance-reward

6
40) Which of the following is one of the relationships proposed in expectancy theory? 40)
A) reward-satisfaction relationship
B) performance-achievement relationship
C) rewards-personal goals relationship
D) effort-satisfaction relationship
E) satisfaction-performance relationship

41) Which of the following is not one of the core job dimensions in the job characteristics model (JCM)? 41)
A) feedback
B) autonomy
C) skill variety
D) status
E) task significance

42) In the job characteristics model (JCM), what three core job dimensions combine to create 42)
meaningful work?
A) autonomy, task identity, and feedback
B) skill variety, task identity, and task significance
C) skill variety, autonomy, and feedback
D) skill variety, autonomy, and task significance
E) feedback, task identity, and task significance

43) According to the job characteristics model, which of the following results in the maximum internal 43)
rewards for an individual?
A) when they are singled out for praise for successfully completing an arduous task
B) when their training is realized and their expectations are met
C) when they initiate a program that enables them to work with a variety of like-minded
colleagues
D) when they learn that they personally have performed well on a task that they care about
E) when they are given tangible rewards

44) How is the motivational potential score (MPS) calculated? 44)

A) skill variety x task identity x task significance x autonomy x feedback
B) 3(skill variety + task identity + task significance) + autonomy + feedback
C) (skill variety + task identity + task significance + autonomy + feedback)/5
D) skill variety x task identity x task significance + autonomy + feedback
E) (skill variety + task identity + task significance)/3 x autonomy x feedback

45) What is another term for cross-training? 45)

A) work enrichment
B) job rotation
C) job sharing
D) work enlargement
E) job enhancement

46) What is the main strength of job rotation? 46)

A) It increases productivity.
B) It eliminates boredom on the job.
C) It decreases supervisor workload.
D) It decreases training costs
E) It increases motivation.

7
47) A company redesigns the jobs of the workers in accounts receivables, so that instead of simply 47)
billing customers, they will also be responsible for following up on non-payment, liaising between
customers and the departments billing them, and other related tasks. What term would best be
used to describe these changes?
A) job sharing
B) job rotation
C) job enrichment
D) flextime
E) job enlargement

48) Job enrichment increases the degree to which the worker controls the ________. 48)
A) horizontal integration of his or her tasks
B) planning, execution, and evaluation of company plans
C) feedback that a worker receives from his or her supervisor and peers
D) planning, execution, and evaluation of his or her work
E) evaluation of his or her peers

49) Which one of the following is not one of the guidelines for enriching jobs? 49)
A) open feedback channels
B) form job redesign units
C) establish client relationships
D) expand jobs vertically
E) combine tasks

50) Beyond redesigning the nature of the work itself and involving employees in decisions, another 50)
approach to making the work environment more motivating is to alter work arrangements. Which
of the following is designed to give an employee greater control of their schedule?
A) job rotation
B) flextime
C) job enrichment
D) telecommuting
E) job sharing

51) Which of the following is a job that does not lend itself to telecommuting? 51)
A) a product support specialist who fields calls from irate customers
B) a telemarketer who uses the phone to contact clients
C) an attorney who spends most of her time researching on the computer
D) a writer of copy for an advertising firm
E) a car salesman who demonstrates the features of a new model of car

52) The underlying logic of employee involvement is that by involving workers and increasing their 52)
autonomy and control over their work lives, employees will become all of the following except
more ________.
A) productive
B) satisfied
C) committed
D) competent
E) motivated

8
53) What is the distinct characteristic common to all participative management programs? 53)
A) empowerment
B) quality awareness
C) productivity enhancement
D) autonomy
E) joint decision making

54) A manager introduces participative management in an effort to boost morale and productivity. If 54)
he wants to make sure that it has as great a chance of success as possible he should ensure all of the
following except ________.
A) the issues decided upon must be relevant to the employees
B) the employees must be trusted by the manager
C) the employees must be informed and competent enough to make decisions
D) the manager must be trusted by the employees
E) there is representative participation through work councils and board representatives

55) What is the goal of representative participation? 55)

A) to provide greater motivation and productivity
B) to help workers' self-esteem
C) to redistribute power within the organization
D) for workers to own the firms where they work
E) to empower high level managers

56) What term is used for work groups of employees and supervisors who meet regularly to discuss 56)
their quality problems and recommend solutions?
A) cooperative groups
B) mixed-motive decision teams
C) department teams
D) quality circles
E) evaluation teams

57) Which of the following is not true? 57)

A) Employee involvement programs provide intrinsic motivation.
B) Theory X aligns with the autocratic management style.
C) Implementing decisions can help satisfy an employee's needs for achievement.
D) Theory Y aligns with the participative management style.
E) Employee involvement is incompatible with ERG theory.

58) Which of the following are all forms of variable-pay programs? 58)
A) wage incentive plans, flextime, piece-rate
B) profit-sharing, lump-sum bonuses, extended vacations
C) piece-rate, wage incentive plans, gainsharing
D) wage rate increases, bonuses, flextime
E) retirement benefits, extended vacations, wage incentive plans

59) Which of the following is not one of the most widely used variable-pay programs? 59)
A) flat pay
B) merit-based pay
C) profit sharing plans
D) piece-rate wages
E) employee stock ownership

9
60) Which of the following is one advantage of variable-pay plans to management? 60)
A) They turn high fixed costs into low fixed costs.
B) They turn low producers into high producers.
C) They turn fixed labor costs into variable labor costs.
D) They turn slow employees into fast employees.
E) They turn lower performance into fewer employees.

61) Which of the following is an example of a piece-rate plan? 61)

A) productivity bonus
B) US$2 for each unit produced
C) commission
D) time and a half for overtime
E) none of the above

62) A certain corporation ties its compensation for front-line operations managers to developing their 62)
skills in leadership, workforce development, and functional excellence. What is this sort of
compensation scheme called?
A) skill-based pay
B) job-based pay
C) individual merit-based pay
D) training-based pay
E) development-based pay

63) What is an advantage of bonuses over merit pay? 63)

A) Employees don't view bonuses as pay.
B) Bonuses are based on an objective output.
C) Pay levels are based on employees' skills.
D) Employees are rewarded for recent performance.
E) Bonuses are paid based on a formula.

64) What is the name for an incentive plan where improvements in group productivity determine the 64)
total amount of money that is allocated?
A) ESOP
B) gainsharing
C) employee ownership
D) piece rates
E) profit-sharing

65) Research on employee stock ownership programs indicates that they are clearly successful in doing 65)
which of the following?
A) reducing salaries
B) increasing employee satisfaction
C) reducing stress
D) increasing employee expectations
E) increasing productivity

10
 66) What is the term used for the situation where employees are allowed to pick and choose from 66)
among a menu of benefit options?
A) flexible benefits
B) flexible pay
C) benefit participation
D) benefit menu options
E) flextime

67) Why are flexible benefit plans consistent with expectancy theory's thesis? 67)
A) They allow organizations to minimize costs associated with benefits.
B) The motivation to gain extra benefits promotes productivity.
C) They make employment at firms providing such programs more attractive.
D) They provide a suite of tangible rewards that can be offered as motivation.
E) Organizational rewards should be linked to each individual employee's goals.

68) What are modular benefit plans? 68)

A) a scheme designed for employees with families
B) a scheme designed for single employees with no dependents
C) they employees to set aside funds up to the dollar amount offered in the plan to pay for
services
D) pre-designed packages of benefits
E) essential benefits and a menu-like selection of other benefits

69) Lara only makes minimum wage, but she loves her job. Her supervisor regularly compliments her 69)
and she has been chosen employee of the month twice this year. Which of the following is Lara's
attitude most likely a function of?
A) goal setting
B) reactance
C) recognition
D) motivation
E) involvement

70) Which of the following is a form of recognition? 70)

A) job sharing
B) personal congratulations
C) profit sharing
D) flexible benefit packages
E) job enlargement

71) Researchers report that which of the following was considered by employees to be the most 71)
powerful workplace motivator?
A) vacation time
B) money
C) recognition
D) autonomy
E) opportunity for advancement

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

72) Motivation is a personality trait. 72)

11
73) Motivation is the result of the interaction of the individual and the situation. 73)

74) Leadership is the processes that accounts for an individual's intensity, direction, and persistence of 74)
effort toward attaining a goal.

75) High intensity is unlikely to lead to favorable job-performance outcomes unless the effort is 75)
channeled in a direction that benefits the individual.

76) Research shows that contemporary theories of motivation are generally more valid than the early 76)
theories of motivation.

77) According to Maslow, a need that is essentially satisfied no longer motivates. 77)

78) Esteem is considered a lower order need. 78)

79) Higher-order needs are satisfied externally, whereas lower-order needs are predominantly satisfied 79)
internally.

80) The core needs in ERG theory are reconcilable with Maslow's five need categories. 80)

81) Theory X assumes that human beings are inherently good. 81)

82) McGregor referred to the positive assumptions about human beings as Theory Y. 82)

83) According to Herzberg, some factors lead to satisfaction, and if you remove these factors you create 83)
dissatisfaction.

84) According to Herzberg, pay strongly motivates. 84)

85) A drive to succeed would be described by McClelland as a need for achievement. 85)

86) High achievers attempt the most difficult goals because once achieved, they gain more recognition. 86)

87) Individuals with a high need to achieve prefer job situations with personal responsibility, feedback, 87)
and an intermediate degree of risk

88) Evidence indicates that the best managers are high in nPow and low in nAff. 88)

89) When extrinsic rewards are given to someone for performing an interesting task, it causes intrinsic 89)
interest in the task itself to decline.

90) According to the cognitive evaluation theory, pay should not be directly related to job performance. 90)

91) Evidence gathered about the cognitive evaluation theory leads us to believe that extrinsic and 91)
intrinsic rewards are independent.

92) According to goal-setting theory, a generalized goal will produce a high level of output. 92)

12
 93) External feedback has been shown to be a more powerful motivator than self-generated feedback. 93)

94) Participatively set goals have been clearly shown to elicit improved performance. 94)

95) Self-efficacy refers to an individual's belief that he or she is capable of performing a task. 95)

96) The basic concepts underlying goal-setting theory and reinforcement theory are at odds. 96)

97) The statement that "behavior is a function of its consequences" is consistent with reinforcement 97)
theory.

98) Changes in behavior attributed to reinforcement may also be explained in terms of goals, inequity, 98)
and expectancies.

99) Equity theory proposes that equity tension is the negative tension state which provides the 99)
motivation to do something to correct it.

100) If you pay an individual an hourly rate, according to the equity theory, overpaying this individual 100)
will result in more output.

101) It is possible for an employee to perceive injustice even if the amount and allocation of rewards 101)
among individuals is perceived as fair.

102) Distributive justice refers to the perceived fairness of the process used to determine the distribution 102)
of rewards.

103) Interactional justice is the individual's perception of the degree to which he or she is treated with 103)
dignity, concern, and respect.

104) In expectancy theory, the strength of a person's motivation to perform depends in part on how 104)
strongly he believes he can achieve what he attempts.

105) The JCM model consists of task significance, feedback, meaningfulness, and autonomy. 105)

106) The dimensions of the JCM that create meaningfulness include task identity, skill variety, and task 106)
significance.

107) Jobs that are high on motivating potential must be high on at least one of the three factors that lead 107)
to experienced meaningfulness, and they must be high on both autonomy and feedback.

108) Jobs that have the intrinsic elements of variety, identity, significance, autonomy, and feedback are 108)
more satisfying and generate higher performance from people than jobs that lack these
characteristics.

109) Job enrichment, job sharing, and job rotation are all job redesign options. 109)

110) The strengths of job rotation are that it eliminates boredom, increases motivation, and increases 110)
productivity.

13
 111) Job enrichment increases the degree to which the worker controls the execution of company plans. 111)

112) The overall evidence on job enrichment generally shows that it increases satisfaction, reduces 112)
absenteeism, and reduces turnover costs.

113) The scheduling options of flextime, job sharing, and telecommuting are all approaches to make the 113)
workplace environment more motivating.

114) Job rotation, flextime, and job sharing are all designed to increase employee flexibility. 114)

115) Participative management implies joint decision making and equal decision-making roles. 115)

116) If one is interested in changing employee attitudes or in improving organizational performance, 116)
representative participation would be a good choice.

117) Quality circles have been a big success in businesses using them. 117)

118) The lack of planning and top management commitment often contributed to quality circle failures. 118)

119) Theory X is consistent with participative management. 119)

120) Employee involvement is compatible with ERG Theory and efforts to achieve the affiliation need. 120)

121) Employee compensation will decline if performance declines in variable-pay programs. 121)

122) Piece-rate plans are based on group productivity. 122)

123) From management's perspective, the greatest appeal of skill-based pay plans is decreased payroll 123)
costs.

124) Profit-sharing programs may be direct cash outlays or allocations of stock options. 124)

125) Gainsharing and profit-sharing are the same. 125)

126) Studies show that financial incentives are more motivating in the long-run. 126)

127) One of the most expensive motivation programs is that which recognizes an employee's superior 127)
performance.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

You are a new employee with Acme, Inc. Your supervisor has explained your job to you and has indicated that you will have
a great deal of control over your job once you become proficient at it. He compliments your history of accepting
responsibility and suggests that you are to feel free to offer constructive criticism about the way that your job is structured.

128) Your supervisor seems to possess ________ assumptions. 128)

A) Theory V B) Theory W C) Theory X D) Theory Y E) Theory T

14
 129) Which of the following is something you would not expect your supervisor to believe? 129)
A) Employees view work as natural.
B) Workers are generally reliable.
C) The average person will seek responsibility.
D) Workers place security above most other factors.
E) The ability to make innovative decisions is not necessarily the sole province of managers.

130) Which of the following is something you would not expect your supervisor to do? 130)
A) assume that you want to do your job
B) empower you to take responsibility
C) assume that you will be internally motivated
D) allow you freedom to do your job as you believe it should be done
E) monitor your work closely for an opportunity to praise you for work well done

Your fellow employees have a terrible work situation. They work in an old, run-down building with a very old air
conditioning system. The work itself is tedious and the supervisor is rarely available and only shows up to tell people off for
production shortfalls. Nobody has received a promotion in two years. The work is boring, repetitious, and unrewarding. You
have decided to try to apply Herzberg's two-factor theory.

131) You decide that your first job should be to remedy the hygiene factors. Which are they? 131)
A) recognition
B) advancement
C) reprimands
D) intrinsic rewards
E) working conditions

132) Which of the following statements would likely be true? 132)

A) Employees are dissatisfied due to lack of recognition.
B) When the working conditions are improved, employees will be satisfied.
C) The relationship with the supervisor is a motivation factor.
D) Fixing the conditions that make the employees dissatisfied will not make them satisfied.
E) The major reason for dissatisfaction is probably the nature of the work itself.

133) What action would probably most motivate the employees? 133)
A) relying more on punishment for poor performance
B) receiving recognition for a job well done
C) improving in working conditions
D) fixing the air conditioning system
E) having the supervisor "hang around" more

You graduated from college two years ago and began working at Gulf Electronics. You have received good performance
evaluations and a raise. You just found out that a recent college graduate with no experience has been hired at a higher salary
than you are now making.

134) Which of the following will you probably use to evaluate this situation? 134)
A) goal setting
B) reinforcement
C) self-enhancement
D) expectancy
E) equity

15
 135) Your referent comparison for equity theory is termed ________. 135)
A) self-inside
B) other-outside
C) self-outside
D) other-inside
E) inside-outside

136) How can your behavior at work be predicted to change? 136)

A) You will acknowledge that the new person hired is worth more.
B) You will not work so hard.
C) You will work harder.
D) You will call in sick more often.
E) You will act to undermine the new employee.

Allied General Hospital employs many individuals and has decided to try to increase motivation through job redesign and
flexible scheduling. You have been hired as a consultant to help them design and implement the programs.

137) You are looking at flextime and realize that it will probably work least well for which of the 137)
following jobs?
A) IT personnel
B) floor nurses
C) administrative workers
D) insurance billers
E) equipment maintenance staff

138) Members of the nighttime cleaning staff are generally low skilled and would probably be 138)
motivated by ________.
A) job enlargement
B) job enrichment
C) flexible work hours
D) all of the above
E) none of the above

Your supervisor has heard that employee involvement is important and you have been instructed to research various
methods of employee involvement. You are supposed to help assist in the analysis of the probable effects of each of the
programs being considered.

139) Your supervisor proposes that participative management will solve your productivity, motivation, 139)
and job performance problems. Which of the following is not a warning you should give him about
this approach?
A) Employees must have competence and knowledge if they are to make a useful contribution.
B) It will provide intrinsic rewards for employees.
C) It is not a sure means for improving employee performance.
D) Research shows it has only a modest influence on all these variables.
E) Employees will only be motivated by decisions on issues in relevant to their interests.

16
 140) You have decided to let employees select a small group to represent them and work with 140)
management. This is termed ________.
A) an AESOP
B) quality circles
C) participative management
D) an ESOP
E) representative participation

141) A group of employees will meet regularly to discuss problems and recommend action. This group 141)
is a(n) ________.
A) works council
B) ESOP
C) quality circle
D) matrix team
E) MBO cluster

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

142) List and explain the three groups of core needs in ERG Theory.

143) What assumptions are held by a Theory Y manager?

144) Differentiate motivators from hygiene factors.

145) Briefly discuss McClelland's Theory of Needs.

146) Briefly explain cognitive evaluation theory.

147) What is self-efficacy?

148) What are the three relationships in Vroom's expectancy theory?

149) What is participative management? Give some examples of its use in organizations.

150) What is a quality circle?

151) What are skill-based pay plans?

152) How are flexible benefits linked with expectancy theory?

153) Describe Maslow's hierarchy of needs.

154) According to Herzberg's Two-Factor Theory, how might a manager motivate employees?

155) What predictions can be made based on the relationship between the achievement need and job performance?

156) Discuss distributive justice and procedural justice and how managers can use these concepts.

157) Clarify the key relationships in expectancy theory.

17
158) Explain the three job redesign options.

159) Discuss goal-setting theory and its implications for managers.

160) What is employee involvement? Give three examples.

161) List and describe different variable-pay programs. Be sure to include piece-rate plans, profit-sharing plans, and
gainsharing.

18
Answer Key
Testname: UNTITLED5

1) C
2) A
3) A
4) A
5) D
6) D
7) C
8) D
9) D
10) C
11) D
12) D
13) D
14) B
15) A
16) A
17) B
18) E
19) C
20) B
21) E
22) E
23) E
24) D
25) D
26) C
27) A
28) C
29) D
30) B
31) A
32) B
33) D
34) C
35) E
36) E
37) E
38) E
39) E
40) C
41) D
42) B
43) D
44) E
45) B
46) E
47) E
48) D
49) B
50) B
19
Answer Key
Testname: UNTITLED5

51) E
52) D
53) E
54) E
55) C
56) D
57) E
58) C
59) A
60) C
61) B
62) A
63) D
64) B
65) B
66) A
67) E
68) D
69) C
70) B
71) C
72) FALSE
73) TRUE
74) FALSE
75) FALSE
76) TRUE
77) TRUE
78) FALSE
79) FALSE
80) TRUE
81) FALSE
82) TRUE
83) FALSE
84) FALSE
85) TRUE
86) FALSE
87) TRUE
88) TRUE
89) TRUE
90) TRUE
91) FALSE
92) FALSE
93) FALSE
94) FALSE
95) TRUE
96) TRUE
97) TRUE
98) TRUE
99) TRUE
100) TRUE
20
Answer Key
Testname: UNTITLED5

101) TRUE
102) FALSE
103) TRUE
104) TRUE
105) FALSE
106) TRUE
107) TRUE
108) TRUE
109) FALSE
110) FALSE
111) FALSE
112) TRUE
113) TRUE
114) FALSE
115) FALSE
116) FALSE
117) FALSE
118) TRUE
119) FALSE
120) FALSE
121) TRUE
122) FALSE
123) FALSE
124) TRUE
125) FALSE
126) FALSE
127) FALSE
128) D
129) D
130) E
131) E
132) D
133) B
134) E
135) D
136) B
137) B
138) D
139) B
140) E
141) C
142) Alderfer argues that there are three groups of core needs - existence, relatedness, and growth.
a) The existence group is concerned with providing our basic material existence requirements.
b) The second group of needs is relatedness - the desire we have for maintaining important interpersonal relationships.
c) Growth needs reflect an intrinsic desire for personal development.
143) Theory Y managers assume that employees can view work as being as natural as rest or play, and therefore the
average person can learn to accept, even seek, responsibility. Theory Y assumes that higher-order needs dominate
individuals. Theory Y managers would contend that ideas as participative decision making, responsible and
challenging jobs, and good group relations are approaches that would maximize an employee's job motivation.

21
Answer Key
Testname: UNTITLED5

144) Conditions surrounding the job such as quality of supervision, pay, company policies, physical working conditions,
relations with others, and job security were characterized by Herzberg as hygiene factors. When they're adequate,
people will not be dissatisfied; neither will these factors cause them to become satisfied when they are filled. Herzberg
suggested that factors associated with the work itself or outcomes directly derived from it, such as promotional
opportunities, opportunities for personal growth, recognition, responsibility, and achievement are motivators. These
are the characteristics that people find intrinsically rewarding.
145) McClelland's theory of needs focuses on three needs: achievement, power, and affiliation. The need for achievement is
the drive to excel; to achieve in relation to a set of standards and to strive to succeed. The need for power is the need to
make others behave in a way that they would not have behaved otherwise. The need for affiliation is the desire for
friendly and close interpersonal relationships.
146) Cognitive evaluation theory proposes that the introduction of extrinsic rewards, such as pay, for work effort that had
been previously intrinsically rewarding due to the pleasure associated with the content of the work itself would tend to
decrease the overall level of motivation.
147) Self-efficacy refers to an individual's belief that he or she is capable of performing a task. The higher your self-efficacy,
the more confidence you have in your ability to succeed in a task. Individuals high in self-efficacy seem to respond to
negative feedback with increased effort and motivation, while those low in self-efficacy are likely to lessen their effort
when given negative feedback.
148) Expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of an
expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the
individual. The theory focuses on three relationships.
a) The effort-performance relationship is the probability perceived by the individual that exerting a given amount of
effort will lead to performance.
b) The performance-reward relationship is the degree to which the individual believes that performing at a particular
level will lead to the attainment of a desired outcome.
c) The rewards-personal goals relationship is the degree to which organizational rewards satisfy an individual's
personal goals or needs and the attractiveness of those potential rewards for the individual.
149) All participative management programs use joint decision making. That is, subordinates actually share a significant
degree of decision-making power with their immediate superiors. Participative management has, at times, been
promoted as a panacea for poor morale and low productivity. But for it to work, the issues in which employees get
involved must be relevant to their interests so they'll be motivated, employees must have the competence and
knowledge to make a useful contribution, and there must be trust and confidence between all parties involved.
150) A quality circle is a work group of eight to ten employees and supervisors who have a shared area of responsibility.
They meet regularly to discuss their quality problems, investigate causes of the problems, recommend solutions, and
take corrective actions.
151) Skill-based pay is an alternative to job-based pay. Rather than having an individual's job title define his or her pay
category, skill-based pay sets pay levels on the basis of how many skills employees have or how many jobs they can
do. It is also called competency-based or knowledge-based pay.
152) Giving all employees the same benefits assumes, falsely, that all employees have the same needs. Thus, flexible
benefits turn the benefits' expenditure into a motivator. Consistent with expectancy theory's thesis that organizational
rewards should be linked to each individual employee's goals, flexible benefits individualize rewards by allowing each
employee to choose the compensation package that best satisfies his or her current needs.

22
Answer Key
Testname: UNTITLED5

153) Maslow's hierarchy of needs hypothesized that within every human being there exists a hierarchy of five needs.
a) The physiological needs include hunger, thirst, shelter, and other bodily needs.
b) Safety includes security and protection from physical and emotional harm.
c) Social includes affection, belongingness, acceptance, and friendship.
d) Esteem includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem
factors such as status, recognition, and attention.
e) Self-actualization is the drive to become what one is capable of becoming; includes growth, achieving one's
potential, and self-fulfillment.
As each of these needs becomes substantially satisfied, the next need becomes dominant. So if you want to motivate
someone, according to Maslow, you need to understand what level of the hierarchy that person is currently on and
focus on satisfying those needs at or above that level.
154) According to Herzberg, the factors leading to job satisfaction are separate and distinct from those that lead to job
dissatisfaction. Therefore, managers who seek to eliminate factors that can create job dissatisfaction may bring about
peace but not necessarily result in motivation, conditions surrounding the job such as quality of supervision, pay,
company policies, physical working conditions, relations with others, and job security were characterized by Herzberg
as hygiene factors. When they are adequate, people will not be dissatisfied; neither will they be satisfied. If we want to
motivate people on their jobs, Herzberg suggested emphasizing factors associated with the work itself or to outcomes
directly derived from it, such as promotional opportunities, opportunities for personal growth, recognition,
responsibility, and achievement. These are the characteristics that people find intrinsically rewarding.
155) Individuals with a high need to achieve prefer job situations with personal responsibility, feedback, and an
intermediate degree of risk. When these characteristics are prevalent, high achievers will be strongly motivated. The
evidence consistently demonstrates, for instance, that high achievers are successful in entrepreneurial activities such as
running their own businesses and managing a self-contained unit within a large organization. A high need to achieve
does not necessarily lead to being a good manager, especially in large organizations. People with a high achievement
need are interested in how well they do personally and not in influencing others to do well. Employees have been
successfully trained to stimulate their achievement need. So if a job calls for a high achiever, management can select a
person with a high need for achievement or develop its own candidate through achievement training.
156) Historically, equity theory focused on distributive justice or the perceived fairness of the amount and allocation of
rewards among individuals. But equity should also consider procedural justice - the perceived fairness of the process
used to determine the distribution of rewards. The evidence indicates that distributive justice has a greater influence on
employee satisfaction than procedural justice, while procedural justice tends to affect an employee's organizational
commitment, trust in his or her boss, and intention to quit. As a result, managers should consider openly sharing
information on how allocation decisions are made, following consistent and unbiased procedures, and engaging in
similar practices to increase the perception of procedural justice. By increasing the perception of procedural fairness,
employees are likely to view their bosses and the organization as positive even if they're dissatisfied with pay,
promotions, and other personal outcomes.
157) Expectancy theory predicts that an employee will exert a high level of effort if he or she perceives that there is a strong
relationship between effort and performance, performance and rewards, and rewards and satisfaction of personal
goals. Each of these relationships, in turn, is influenced by certain factors. For effort to lead to good performance, the
individual must have the requisite ability to perform, and the performance appraisal system that measures the
individual's performance must be perceived as being fair and objective. The performance-reward relationship will be
strong if the individual perceives that it is performance (rather than seniority, personal favorites, or other criteria) that
is rewarded. The strength of the reward-satisfaction will be highest if the individual actually places a high value on the
rewards that they receive.

23
Answer Key
Testname: UNTITLED5

158) a) Job rotation. This is the practice of periodically shifting an employee from one task to another. When an activity is no
longer challenging, the employee is rotated to another job, usually at the same level, that has similar skill requirements.
b) Job enlargement. This is the expansion of jobs horizontally; increasing the number and variety of tasks that an
individual performs. Instead of only sorting the incoming mail by department, for instance, a mail sorter's job could be
enlarged to include physically delivering the mail to the various departments or running outgoing letters through the
postage meter.
c) Job enrichment. Job enrichment refers to the vertical expansion of jobs. It increases the degree to which the worker
controls the planning, execution, and evaluation of his or her work. An enriched job organizes tasks so as to allow the
worker to do a complete activity, increases the employee's freedom and independence, increases responsibility, and
provides feedback, so an individual will be able to assess and correct his or her own performance.
159) Goal-setting theory proposes that intentions to work toward a goal are a major source of work motivation. Goals tell an
employee what needs to be done and how much effort will need to be expended. The evidence strongly supports the
value of goals. It shows that specific goals increase performance; that difficult goals, when accepted, result in higher
performance than do easy goals; and that feedback leads to higher performance than does nonfeedback. Specific hard
goals produce a higher level of output than does the generalized goal of "do your best." The specificity of the goal itself
acts as an internal stimulus. The more difficult the goals, the higher the level of performance. However, it's logical to
assume that easier goals are more likely to be accepted. But once an employee accepts a hard task, he or she will exert a
high level of effort until it is achieved, lowered, or abandoned. People will do better when they get feedback on how
well they are progressing toward their goals because feedback helps to identify discrepancies between what they have
done and what they want to do; that is, feedback acts to guide behavior. Goal-setting theory presupposes that an
individual is committed to the goals, that is, is determined not to lower or abandon the goal when the goal is made
public, when the individual has an internal locus of control, and when the goal is self-set rather than assigned.
Goal-setting has also been found to be culture bound. It is well adapted to countries like the United States and Canada.
160) Employee involvement is defined as a participative process that uses the entire capacity of employees and is designed
to encourage increased commitment to the organization's success. The underlying logic is that by involving workers in
those decisions that affect them and by increasing their autonomy and control over their work lives, employees will
become more motivated, more committed to the organization, more productive, and more satisfied with their jobs.
Examples of employee involvement include
a) Participative management. Participative management programs use joint decision making. Subordinates actually
share a significant degree of decision-making power with their immediate superiors.
b) Representative participation. Representative participation refers to worker representation by a small group of
employees who actually participate on the board. The goal is to redistribute power within an organization, putting
labor on a more equal footing with the interests of management and stockholders.
c) Quality circles. A quality circle is a group of eight to ten employees and supervisors who have a shared area of
responsibility. They meet regularly to discuss their quality problems, investigate causes of the problems, recommend
solutions, and take corrective action.

24
Answer Key
Testname: UNTITLED5

161) a) Piece-rate plans. In piece-rate pay plans, workers are paid a fixed sum for each unit of production completed. When
an employee gets no base salary and is paid only for what he or she produces, this is a pure piece-rate plan.
b) Merit-based pay. Merit-based pay plans also pay for individual performance. However, unlike piece-rate plans,
which pay based on objective output, merit-based pay plans are based on performance appraisal ratings.
c) Profit-sharing. Profit-sharing plans are organization wide programs that distribute compensation based on some
established formula designed around a company's profitably.
d) Bonuses. Bonuses can be paid exclusively to executives or to all employees. Many companies now routinely reward
production employees with bonuses in the thousands of dollars when company profits improve.
e) Skill-Based Pay. Skill-based pay (also called competency-based or knowledge-based pay) sets pay levels on the basis
of how many skills employees have or how many jobs they can do.
f) ESOPs. Employee stock ownership plans (ESOPs) are company-established benefit plans in which employees
acquire stock, often at below-market prices, as part of their benefits.
g) Gainsharing. Gainsharing is a formula-based group incentive plan. Improvements in group productivity determine
the total amount of money that is to be allocated. By focusing on productivity gains rather than profits, gainsharing
rewards specific behaviors that are less influenced by external factors. Employees in a gainsharing plan can receive
incentive awards even when the organization isn't profitable.

25