PFP Is a High Performance Work Characteristic and Is Linked

question 47

Multiple Choice

PFP is a High Performance Work Characteristic and is linked to a firm's performance particularly when the:

• A)CEO pay is a lower base pay with the majority of compensation coming from incentive plans.
• B)PFP system is closely aligned with the company's strategic objectives.
• C)company has both profit sharing and employee stock option plans established.
• D)performance is measurable.
• E)size of the award is sufficient to stimulate increased effort.

---

Definitions:

Effect Size

A quantitative measure of the magnitude of the experimental effect from a study, indicating the size of the difference between groups.

T-statistic

A statistic calculated from a sample of data used to conduct a t-test, which assesses whether there is a significant difference between the means of two datasets.

Type II Error

An error that occurs when a statistical test fails to reject a false null hypothesis, indicating a missed opportunity to detect an actual effect or difference.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive".