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Understanding Incentive Systems Quiz

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

A bonus for meeting sales targets

Explanation

Monetary reward external to the task.

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

Paid time off

Explanation

Reward not involving money.

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

To improve employee performance

Explanation

Enhancing overall employee performance.

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

Sense of accomplishment

Explanation

Internal satisfaction as a motivator.

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

Subjectivity

Explanation

Effective systems avoid subjective criteria.

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

Acknowledging and praising employees' achievements

Explanation

Acknowledging and praising accomplishments.

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

Seniority-based incentives

Explanation

Rewards based on years of service.

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

Reinforcement

Explanation

Using rewards to strengthen desired behavior.

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

Decreased motivation

Explanation

Risk of demotivation due to focus on rewards.

#10

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

Specific, Measurable, Achievable, Relevant, Time-bound

Explanation

Criteria for effective goal setting.

#11

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

Merit-based incentives

Explanation

Rewards tied to performance fairness.

#12

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

Merit-based incentives

Explanation

Rewards tied to individual performance.

#13

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

Seniority-based incentives

Explanation

Equal rewards regardless of performance.

#14

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

Profit-sharing incentives

Explanation

Rewards based on a share of company profits.

#15

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

Hawthorne effect

Explanation

Behavior change when aware of observation.

#16

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

Classical economics

Explanation

Predictable response to self-interest incentives.

#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

Explanation

Overemphasis on incentivized tasks neglecting others.

#18

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

Equity theory

Explanation

Motivation based on fairness in inputs and outcomes.

#19

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

Equity tension

Explanation

Discomfort due to perceived unfairness in rewards.

#20

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

Salary

Explanation

Salary as a factor preventing dissatisfaction.

#21

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

Esteem needs

Explanation

Recognition and appreciation as higher-level needs.

Understanding Incentive Systems Quiz

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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?

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

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

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

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

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