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1 1.Base pay is a person’s regular salary. Base pay differs from variable pay. Base pay is based on: a.internal equity (job evaluation) and external equity (market data). b.the number of people applying for the position, and how quickly the position needs to be filled. c.government-determined diversity quotas, and the tax credits available to the employer. d.the familiarity with a candidate’s professional reputation, and the size of the candidate’s network of social connections. 2.Which of the following is the best definition of the cutthroat cooperation effect? a.Rewarding results is more important than rewarding behavior (e.g., effort). b.Rewarding behavior (e.g., effort) is more important than rewarding results. c.The phenomenon that demonstrates that it is more difficult for teams to move from competitive to cooperative reward structures than vice versa. d.The theory that it is best not to offer rewards so as not to create confusion or competition for incentives. 3.When using incentives to motivate a team, the team can respond with unintended negative behaviors such as __________. a.social loafing and free riding. b.severely pressuring other team members to decrease performance. c.a decrease in team competitiveness. d.performance gains and increased communication. 4.Recognition is considered one type of team-based pay. Recognition is best described as a(n): a.opportunity to indirectly point out the worst performers in a team. b.monetary award of at least $2500. c.percentage of corporate profits given to the highest performing teams on an annual basis. d.one-time award for a team performing well beyond expectations, or for completing a project, program, or product. 5.An incentive plan where a portion of the bottom-line economic company profits is given to employees is called __________. An incentive plan that combines a measurement of productivity with a financial bonus related to any increases in organizational productivity is called __________. a.job-based pay; skill-based pay b.competency-based pay; productivity-based pay c.profit sharing; gain sharing d.bonus sharing; incentive pay 6.Which type of performance appraisal is best used with teams? a.Skill-based pay b.Job-based pay c.Competency-based pay d.They are all used for team performance appraisals. 7.In regard to job-based pay systems, a key advantage for organizations is: a.the organization can determine what other companies are paying, and can assess whether they are paying more or less than their competition. b.the team members are typically paid only for the skills that they have and are willing to use. c.this system promotes skill flexibility in employees, thereby increasing the number of things one employee can do. d.this system encourages decentralized control of an organization’s pay system.  8.Of the following, which is an advantage of competency-based pay? a.Competency-based pay systems promote less flexibility in employees. b.Individuals who get the opportunity to use their multi-faceted skill set often develop accurate perspectives on organizational problems and challenges. c.This pay system leads to less committed employees. d.An organization with a competency-based pay system must invest a large amount of company money in training and evaluating employees. 9.The 360-degree feedback method is best described as: a.an employee is rated by others each day of the year for a full year. b.an employee is evaluated on 360-data-points by a group of upper management directors who generally have no day- to-day contact with the employee. c.multiple raters from different levels and vantage points evaluate an employee. d.an employee evaluates his or her own performance, and compares it to the standards put forth by the company at large. 10.All of the following are potential problems with 360-degree feedback EXCEPT: a.getting enough sources of feedback. b.some systems can be abused or compromised if members make side-deals to rate one another favorably. c.team members may be unpopular for reasons other than performance. d.raters are guaranteed anonymity, and because they don’t fear retaliation, they are overly critical in their evaluations.

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