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Human Resource Management, 12e (Dessler)
Chapter 12 Pay for Performance and Financial Incentives

1) 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) human nature
D) group shift
E) group norms
Answer: B
Explanation: Frederick Taylor popularized using financial incentives in the late 1800s. As a supervisory employee of the Midvale Steel Company, Taylor was concerned with what he called "systematic soldiering"—the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level.
Diff: 1 Page Ref: 434
Chapter: 12
Objective: 1
Skill: Concept

2) 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 allowance
D) financial incentives
E) human capital
Answer: D
Explanation: Financial incentives are financial rewards paid to workers whose production exceeds some predetermined standard. Indirect financial payments are a type of employee compensation that includes health benefits.
Diff: 1 Page Ref: 434
Chapter: 12
Objective: 1
Skill: Concept

3) A management approach based on improving work methods through observation and analysis is known as ________.
A) strategic management
B) scientific management
C) management process
D) management by objectives
E) performance management
Answer: B
Explanation: Frederick Taylor spearheaded the scientific management movement, a management approach that emphasized improving work methods through observation and analysis. Taylor also popularized the use of incentive pay as a way to reward employees who produced over standard.
Diff: 1 Page Ref: 434
Chapter: 12
Objective: 1…...

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