Understanding Incentive Systems Quiz

Explore the nuances of incentive systems with 21 thought-provoking questions. Test your knowledge on extrinsic, intrinsic incentives, and more!

#1

Which of the following is an example of an extrinsic incentive?

Job satisfaction
A bonus for meeting sales targets
Personal achievement
Intrinsic motivation
#2

Which of the following is an example of a non-monetary incentive?

Salary increase
Paid time off
Cash bonus
Stock options
#3

What is the primary purpose of implementing an incentive system in an organization?

To increase employee turnover
To decrease employee motivation
To improve employee performance
To discourage teamwork
#4

Which of the following is an example of an intrinsic incentive?

Promotion
Recognition
Salary bonus
Sense of accomplishment
#5

Which of the following is NOT a characteristic of an effective incentive system?

Clear objectives
Subjectivity
Fairness
Flexibility
#6

In the context of incentive systems, what does the term 'recognition' refer to?

Providing monetary rewards
Acknowledging and praising employees' achievements
Offering promotions
Implementing performance evaluations
#7

What is the term used to describe an incentive system that provides rewards based on an employee's length of service with the organization?

Performance-based incentives
Merit-based incentives
Seniority-based incentives
Team-based incentives
#8

In incentive theory, what is the term used to describe the process of increasing the likelihood of a behavior by providing a reward?

Punishment
Reinforcement
Motivation
Satisfaction
#9

Which of the following is a potential disadvantage of performance-based incentives?

Increased productivity
Decreased motivation
Improved job satisfaction
Enhanced teamwork
#10

In the context of incentive systems, what does the acronym SMART stand for?

Systematic, Motivating, Achievable, Rewarding, Timely
Specific, Measurable, Achievable, Relevant, Time-bound
Strategic, Meaningful, Actionable, Resourceful, Targeted
Structured, Managed, Appropriate, Rational, Transparent
#11

Which type of incentive is based on the principle of fairness and equity?

Performance-based incentives
Merit-based incentives
Seniority-based incentives
Equality-based incentives
#12

What is the term used to describe an incentive system that rewards employees based on their individual performance?

Team-based incentives
Merit-based incentives
Seniority-based incentives
Equality-based incentives
#13

Which incentive system is based on distributing bonuses or rewards equally among employees regardless of their individual performance?

Performance-based incentives
Profit-sharing incentives
Seniority-based incentives
Team-based incentives
#14

What is the term used to describe an incentive system where employees receive a percentage of the company's profits?

Performance-based incentives
Profit-sharing incentives
Seniority-based incentives
Team-based incentives
#15

What is the term used to describe the phenomenon where individuals work less hard when they are being watched?

Social loafing
Hawthorne effect
Incentive gradient
Principal-agent problem
#16

Which economic theory suggests that individuals respond to incentives in a predictable manner based on their rational self-interest?

Behavioral economics
Classical economics
Game theory
Prospect theory
#17

What is the term used to describe a situation where an employee focuses only on tasks that are easily quantifiable and incentivized, neglecting other important aspects of their job?

Goal displacement
Goal setting
Goal commitment
Goal attainment
#18

Which psychological theory suggests that individuals are motivated by the desire to maintain a balance between their inputs and outcomes compared to others?

Expectancy theory
Equity theory
Two-factor theory
Hierarchy of needs theory
#19

What is the term used to describe the psychological discomfort felt when individuals perceive their input is not fairly rewarded?

Equity tension
Effort imbalance
Injustice aversion
Relative deprivation
#20

According to the Herzberg Two-Factor Theory, which of the following is a hygiene factor?

Recognition
Achievement
Salary
Advancement
#21

According to Maslow's Hierarchy of Needs, which level encompasses the need for recognition, respect, and appreciation?

Physiological needs
Safety needs
Social needs
Esteem needs

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