All of the Questions are True/False.

1. If any one of the components of expectancy theory (valence, expectancy, or instrumentality) is near zero, there is little or no motivation.

2. Equity theory is based on perception, which may not be correct.

3. Negative reinforcement causes a person to stop a desired action.

4. Entitlement-style pay philosophies motivate employees to perform better over time.

5. Seventeen-year-olds have unrestricted hours of work.

6. Compensation components include all rewards that can be classified as monetary payments and in-kind payments.

7. Compensation components only include monetary payments to an employee.

8. Incentive pay is also called variable pay.

9. Not all people value the same reward, which can affect their motivation to perform.

10. According to equity theory, people compare their inputs and financial rewards to those earned the prior year for the same work.

11. Perceptions of being under-rewarded can lead to negative consequences for the organization, including theft and sabotage.

12. Ability to pay is determined by assessing estimated revenues from business operations, then deciding what percentage of revenues go toward compensation costs.

13. When analyzing ability to pay, it is especially important to accurately determine incentive pay, since it is promised to workers from the beginning of the year.

14. Performance philosophies of compensation don’t tend to work well in competitive industries.

15. We have to provide equal pay for equal work unless there is a difference in productivity, seniority, merit, or other factors other than sex.

16. Regulations exist under FLSA for child workers who are 14-17 years old.