1. When compared to merit pay, incentive pay:

1) can be more subjectively based

2) is a permanent increase in pay

3) is not as useful in tying rewards to outcomes as merit pay

4) can take the form of profit sharing and gain sharing

5) is accurately described by all of the above

2. Which of the following statements about specifying and measuring performance is true?

1) Many firms rely heavily on financial measures

2) One of the easiest to use measures for employees performance is a qualitative measure such as customer satisfaction survey

3) Organizations should look for ways to measure employee results not employee behavior

4) organizations should take the same approach to measure performance whether taking long-term or short-term perspective.

5) Traditional commissions focus on long-term performance

3. When completing a personality measure, some applicants might fake answers to make themselves look better. According to research, how does this affect the validity of personality measures?

1) Faking clearly reduces the criterion-related validity of personality measures

2) Faking does not significantly alter validity coefficients.

3) Faking reduces reliability but not validity

4) Faking clearly increases the criterion-related validity of personality measures.