Q&A Hero

Q: A more senior person than yourself who guides you through your career is known as ________. A) a protg B) a mentor C) a teacher D) a friend

Q: A research scientist who needs a job is likely to accomplish this by giving a talk or poster presentation at a professional meeting. A) increase salary B) directly create job opportunities C) increase visibility D) get new research ideas

Q: All of the following are disadvantages associated with piecework plans EXCEPT that workers ________. A) resist attempts to modify production standards B) focus on production quantity instead of quality C) view the plans as unfair and complicated D) dislike new technology or processes

Q: In which of the following do workers receive a basic hourly rate plus a premium equal to the percent by which their performance exceeds the standard? A) variable pay B) straight piecework C) standard hour plan D) standard piecework

Q: An advantage of an online networking community such as LinkedIn is that you can search for people according to their ________. A) skills, experience, and interests B) personality and temperament C) reputation within the industry D) organizational performance reviews

Q: Which of the following terms refers to an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards? A) variable pay B) straight piecework C) straight hourly pay D) standard hour plan

Q: To extend the reach of their networks, people should do all of the following EXCEPT ________. A) take networking classes B) go to college alumni functions C) attend conferences D) join virtual business communities

Q: Networking is useful ________. A) only before you have a job B) only after you have a job C) both before and after you have a job D) only for people who want to change jobs

Q: What type of pay plan is being used when workers are paid a sum for each unit they produce? A) competency-based pay B) job-based pay C) piecework D) bonus

Q: Under the Fair Labor Standards Act, which of the following would NOT be included in overtime pay computations? A) bonus for new hires B) Christmas bonus C) efficiency bonus D) union contract bonus

Q: Many people in fields such as nursing, engineering, and accounting keep their skills up to date by taking formal courses and ________. A) getting internships B) reading journals and attending conferences C) getting fellowships and scholarships D) going through training programs

Q: Which of the following jobs would be least likely to require thousands of hours of practice and experience? A) scientist B) musician C) tennis player D) entrepreneur

Q: Which of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability? A) piecework B) variable pay C) pay-for-performance D) merit pay

Q: Which of the following is NOT a basic tenet of behavior modification? A) Behavior that leads to rewards tends to be repeated. B) Properly scheduled rewards can be used to encourage some behaviors. C) Properly scheduled punishments can be used to minimize some behaviors. D) Employees must understand the link between rewards, punishments, and behavior.

Q: Studies of highly successful people show that they all did this in one way or another. A) had enormous natural ability B) put in 10,000 hours of practice, training, and experience C) worked in lowly jobs as teenagers, learning humility D) relied on family

Q: Studies in a variety of fields show that super-high achievers ________ than others. A) have higher IQ scores B) work fewer hours C) work harder D) are more insecure

Q: Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance? A) behavior modification B) personal development C) instrumentality D) internal motivation

Q: Behavior modification is based upon the principles of rewards and punishments advanced by ________. A) Frederick Taylor B) Frederick Herzberg C) B.F. Skinner D) Edward Deci

Q: Which job might require the highest level of interpersonal skills? A) electrician B) research scientist C) teacher D) fashion designer

Q: According to Vroom's theory, when managers design incentive plans they should do all of the following EXCEPT ________. A) focus on behavior modification methods B) make incentive plans easy to understand C) provide training and support to employees D) boost the confidence level of employees

Q: Which job skill is useful for just about every job? A) interpersonal skills B) computer programming skills C) writing skills D) manual dexterity skills

Q: In Vroom's theory of motivation, which of the following terms refers to the perceived value a person attaches to a reward? A) valence B) instrumentality C) expectancy D) variable pay

Q: How might a job applicant position him- or herself to benefit from changes that occur in the environment? A) have highly specific job skills B) have both general and specific job skills C) have general job skills only D) work on interpersonal skills rather than job skills

Q: In Vroom's theory of motivation, motivation is equal to E * I * V, where I represents ________. A) intrinsic needs B) internalization C) instrumentality D) incentives

Q: It is a good idea for people to think of their career as a business and themselves as ________ that business. A) the CEO of B) an employee in C) a customer of D) a supervisor in

Q: In Vroom's theory of motivation, motivation is equal to E * I * V, where E represents ________. A) existence B) expectancy C) esteem D) energy

Q: In a society that is experiencing a widespread obesity "epidemic," one might expect opportunities in this field to increase the most. A) counseling B) sports management C) fitness D) personal security

Q: The perceived relationship between successful performance and obtaining the reward is referred to by Vroom as ________. A) instrumentality B) valence C) expectancy D) optimism

Q: Which of the following might be a competitive edge for a person applying for an accounting job? A) exceptional writing skills B) exceptional problem-solving skills C) computer programming experience D) exceptional public speaking skills

Q: According to Victor Vroom, expectancy could also be referred to as the ________. A) probability that effort will lead to success B) relationship between performance and reward C) perceived value a person attaches to a reward D) employer's strategy for motivating employees

Q: In looking for possible jobs, a primary concern should be to pay attention to the ________. A) jobs that are in high-tech industries B) jobs that are in low-tech industries C) industries that have the highest compensation scale D) industries that are expanding rather than declining

Q: Rebecca's manager wants to acknowledge her outstanding service record for the past quarter. The manager decides to give Rebecca a bonus of $1000 as a reward. According to Edward Deci, which of the following will most likely occur as a result? A) The bonus will encourage Rebecca to work harder than before. B) The bonus will detract from Rebecca's inner desire to work hard. C) Rebecca's bonus will satisfy her higher-level needs and increase her motivation. D) Rebecca will feel inadequate because the bonus fails to address hygiene factors.

Q: Which of the following might be a competitive edge for a person applying for a firefighting job? A) athletic ability B) exceptional writing skills C) computer programming experience D) exceptional public speaking skills

Q: Which of the following found that extrinsic rewards could detract from an employee's intrinsic motivation? A) Frederick Taylor B) Frederick Herzberg C) David McClelland D) Edward Deci

Q: According to Herzberg's Hygiene-Motivator theory, which of the following factors will most likely satisfy employees' higher-level needs? A) base salary B) achievement C) incentive pay D) co-worker relationships

Q: The phrase "Play to your strengths" when applying for a job means ________. A) don't show employers your weaknesses B) be aggressive during job interviews C) apply to only the most ambitious jobs D) apply to jobs that suit your abilities

Q: Which of the following is a true statement about Herzberg's Hygiene-Motivator theory? A) Highly motivated workers rely equally on lower-level and higher-level needs. B) Assigning workers to teams can eliminate job-associated stress and frustration. C) Providing employees with feedback and challenge satisfies their lower-level needs. D) Managers can create a self-motivated workforce by providing feedback and recognition.

Q: A new upgrade for a product is expected to increase demand by a factor of 4. If all other factors remain equal, how is EOQ likely to change? A) EOQ will double. B) EOQ will increase by 50 percent. C) EOQ will decrease by 50 percent. D) EOQ will not change.

Q: Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction? A) Frederick Taylor B) Abraham Maslow C) Frederick Herzberg D) David McClelland

Q: Mia, a manager at Best Buy, should be able to find Q, the most economic order size for a product, by ________. A) locating where the carrying costs curve and the total costs curve intersect B) locating where the carrying costs curve and the ordering costs curve intersect C) locating where the carrying costs curve and the ordering costs curve are parallel D) locating where the total costs curve and the ordering costs curve are parallel

Q: Mia, a manager at Best Buy, increases the order size for a product that the company sells, which will ________. A) increase both ordering costs and carrying costs B) increase ordering costs and decrease carrying costs C) decrease both ordering costs and carrying costs D) decrease ordering costs and increase carrying costs

Q: A management approach based on improving work methods through observation and analysis is known as ________. A) strategic management B) scientific management C) management by objectives D) performance management

Q: Which of the following identifies the goal of managers who use the economic order quantity (EOQ) model? A) minimizing carrying costs and ordering costs B) maximizing carrying costs and ordering costs C) maximizing carrying costs and minimizing ordering costs D) maximizing carrying costs and total costs

Q: Which of the following terms refers to financial rewards paid to workers whose production exceeds some predetermined standard? A) indirect financial payments B) merit payments C) hardship allowances D) financial incentives

Q: Jeff, a manager at the Flux Soap Store, lowered the reorder point for Butterscotch-Lemon soap from 33 percent of maximum to 20 percent of maximum. What is Jeff likely to observe? A) The level of Butterscotch-Lemon soap in stock should increase. B) Sales of Butterscotch-Lemon soap should decrease. C) Sales of Butterscotch-Lemon soap should increase. D) The level of Butterscotch-Lemon soap in stock should drop.

Q: Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________. A) social loafing B) systematic soldiering C) work shifting D) group logrolling

Q: List the basic steps in implementing a gainsharing plan.

Q: Jeff, a manager at the Flux Soap Store, notices that the store regularly runs out of Jasmine-Berry soap. Currently, the reorder point is fixed when inventory reaches 40 percent of maximum. Which adjustment should Jeff make in a fixed-point reordering system? A) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at 30 percent of maximum. B) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at 10 percent of maximum. C) Jeff should raise the reorder level to a point where inventory of Jasmine-Berry soap is at 50 percent of maximum. D) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at half of the previous level.

Q: How does a fixed-point reordering system work? A) When inventory level reaches 50 percent of maximum, the system orders new inventory. B) When inventory level reaches 33 percent of maximum, the system orders new inventory. C) At some preestablished inventory level, the system automatically orders new inventory. D) At some random inventory level, the system automatically orders new inventory.

Q: Explain the advantages of employee stock ownership plans.

Q: In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans.

Q: A queuing theory analysis for the Department of Motor Vehicles determines that customers typically wait for 8 minutes and that the agency should strive never to exceed more than 5 customers in a single line. An analysis comes up with a value for P of 0.125. What does this P value mean? A) that customers will wait an average of 12.5 minutes B) that the chances that a customer will need to wait for more than 5 people in line are 1 in 8 C) that customers will wait an average of 0.125 minutes D) that the chances that a customer will need to wait for more than 5 people in line are 1 in 12.5

Q: A queuing theory analysis for the Department of Motor Vehicles determines that customers typically wait for 8 minutes and that the agency should strive never to exceed more than 5 customers in a single line. What is the maximum amount of time that customers should be expected to wait? A) 8 minutes B) 40 minutes C) 20 minutes D) 24 minutes

Q: What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the legislation? Why or why not?

Q: Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. Suppose the plant decides exclusively to make either the maximum number of iPhone components or the maximum number of Droid phones. Which choice will result in the greater profit? Monthly Product Droid iPhone Capacity (Hours) Design 5 8 5000 Manufacture 2.5 2.5 2500 Profit per unit $4 $6 A) Making Droid units will result in $4000 more profit. B) Making iPhone units will result in $250 more profit. C) Making Droid units will result in $250 more profit. D) Making iPhone units will result in $3750 more profit.

Q: You are the manager of large used car retailer, and sales are sluggish. What incentive plan would be best for motivating your sales team? What steps should you take to ensure that your incentive plan is effective?

Q: Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so. Identify some positive reinforcement rewards that a manager could use on a day-to-day basis to reward employees. What does research suggest about the impact of financial and nonfinancial incentives on employees?

Q: Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones. How much profit will it make? Monthly Product Droid iPhone Capacity (Hours) Design 5 8 5000 Manufacture 2.5 2.5 2500 Profit per unit $4 $6 A) $3750 B) $1500 C) $5250 D) $4000

Q: Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones. How many of each type of phone will it make? Monthly Product Droid iPhone Capacity (Hours) Design 5 8 5000 Manufacture 2.5 2.5 2500 Profit per unit $4 $6 A) 375 iPhone units and 625 Droid units B) 500 iPhone units and 500 Droid units C) 1000 iPhone units and 1000 Droid units D) 625 iPhone units and 375 Droid units

Q: You are the CEO of Blue Bay Motor Boat Company, a mid-size firm that manufactures speed boats. What incentive plan would you implement for the firm's engineers? What incentive plan would you implement for the firm's managers?

Q: Employers may award merit pay as traditional merit increases that increase an employee's base pay or as a lump sum merit raise. Explain the pros and cons of these two choices.

Q: Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. What is the maximum number of Droid units that the factory can make? Monthly Product Droid iPhone Capacity (Hours) Design 5 8 5000 Manufacture 2.5 2.5 2500 Profit per unit $4 $6 A) 625 B) 1000 C) 5000 D) 800

Q: Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. What is the maximum number of iPhone units that the factory can make? Monthly Product Droid iPhone Capacity (Hours) Design 5 8 5000 Manufacture 2.5 2.5 2500 Profit per unit $4 $6 A) 625 B) 1000 C) 5000 D) 800

Q: Explain the advantages and disadvantages of using piecework as a pay plan.

Q: Briefly describe Vroom's theory and its three components. How can managers use Vroom's theory as they develop effective incentive plans?

Q: Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. What is the maximum number of units that the factory can make of either type of phone component? Monthly Product Droid iPhone Capacity (Hours) Design 5 8 5000 Manufacture 2.5 2.5 2500 Profit per unit $4 $6 A) 2500 B) 2000 C) 500 D) 1000

Q: Which of the following would cause a well-run company to become highly leveraged? A) when the money that the company can earn investing the money that it borrows is equal to the cost of borrowing B) when the money that the company can earn investing the money that it borrows is significantly less than the cost of borrowing C) when the money that the company can earn investing the money that it borrows is significantly greater than the cost of borrowing D) when the money that the company can earn investing the money that it borrows is equal to more than half of the cost of borrowing

Q: Dual-career ladders are effective tools for managing the professional pay of working mothers who desire a work-life balance.

Q: Which of the following characterizes a highly leveraged company? A) high total assets relative to total debt B) high total debt relative to total assets C) high total debt relative to inventories D) high total interest payments relative to total debt

Q: An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

Q: When is the acid test an especially important test for a company's liquidity? A) when the economy is slow and inventory is not selling B) when the economy is robust and inventory is selling fast C) with companies that exclusively sell services and therefore do not have any inventory D) with companies that exclusively sell services to the wealthy and therefore are not subject to economic downturns

Q: In order for a firm to have an effective incentive plan, there should be a clear relationship between employee effort and quantity or quality of output.

Q: A company has a current ratio of 0.85 to 1. What should a manager in the company worry about? A) The company has too many assets and is not using them efficiently. B) The company has too much inventory. C) The company may start to have trouble paying salaries. D) The company is paying salaries that are too high.

Q: Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm, which is why the programs are decreasing in popularity.

Q: Common stock is the most common payment form used in gainsharing plans.

Q: A company has a current ratio of 2.75 to 1. What should a manager in the company conclude? A) The company is getting the best possible return on its assets. B) The company has too many liabilities. C) The company is not getting the best possible return on its assets. D) The company is not getting the best possible return on its liabilities.

Q: The Scanlon plan is a type of gainsharing plan.

Q: Fixed costs for a product are $30,000. The product itself sells for $3.00 and it costs $1.50 to make each product. How can the plant decrease the break-even point by 5000 units? A) Increase P, the price of the item, by $0.50. B) Increase TFC, the fixed costs for item, by $5000. C) Decrease P, the price of the item, by $0.50. D) Decrease TFC, the fixed costs for item, by $5000.

Q: Studies suggest that team incentive plans enhance productivity because the work load is equally distributed among team members, which fosters cooperation.

Q: Fixed costs for a product are $60,000. The product itself sells for $4.00 and it costs $1.00 to make each product. How will the break-even point for the product change if the variable cost per unit goes up to $1.50? A) The break-even point will increase by 4000. B) The break-even point will increase by 24,000. C) The break-even point will decrease by 4000. D) The break-even point will increase by 20,000.