Question 1

Robix uses an incentive payout that is based upon increases in sales volume. Robix is using a Scanlon plan.

Accepted Answer

A) True 
 B)False  False

Question 2

The straight commission plan is limited by all of the following disadvantages EXCEPT that

Accepted Answer

A) salespeople will stress low-priced products. 
B) customer service after the sale is likely to be neglected. 
C) earnings tend to fluctuate widely between good and poor periods of business. 
D) salespeople are tempted to grant price concessions. 
A) salespeople will stress low-priced products. 
B) customer service after the sale is likely to be neglected. 
C) earnings tend to fluctuate widely between good and poor periods of business. 
D) salespeople are tempted to grant price concessions. A

Question 3

When the team developing the XLR at Robix brought it in under budget, team members received a bonus. The amount each individual received varied based on salary level. In this situation, the team bonus was paid out in proportion to their relative contribution to the team.

Accepted Answer

A) True 
 B)False  False

Question 4

Employees on the production line at Robix are paid based on the number of units that roll off their line each day. Because they receive a specified payment for each unit, they are paid under a straight piecework program.

Accepted Answer

A) True 
 B)False

Question 5

The salespeople at Robix are compensated under a straight commission plan. Because their compensation rate is not fixed, one way to help them avoid any personal cash flow problems is to allow them a salary draw.

Accepted Answer

A) True 
 B)False

Question 6

The most widely used sales incentive program is the __________ plan.

Accepted Answer

A) straight salary 
B) straight commission 
C) combined salary and commission 
D) commission plus bonus 
A) straight salary 
B) straight commission 
C) combined salary and commission 
D) commission plus bonus

Question 7

Robix wants to be known as a leader in first-to-market for new technology, so employees are rewarded for the speed by which they develop new products. Their incentive plan is tied to an organizational goal.

Accepted Answer

A) True 
 B)False

Question 8

A weakness of profit-sharing plans is that employees do not have total control over the profitability of an organization.

Accepted Answer

A) True 
 B)False

Question 9

The success of the Lincoln Electric Company profit-sharing plan rests largely on

Accepted Answer

A) contributions by employees. 
B) objective standards. 
C) comparison data between departments. 
D) economics of the review period. 
A) contributions by employees. 
B) objective standards. 
C) comparison data between departments. 
D) economics of the review period.

Question 10

In most profit-sharing plans, about __________ of the net profit is shared.

Accepted Answer

A) 5 to 10 percent 
B) 10 to 15 percent 
C) 15 to 20 percent 
D) 20 to 25 percent 
A) 5 to 10 percent 
B) 10 to 15 percent 
C) 15 to 20 percent 
D) 20 to 25 percent

Question 11

Employees on the XL27 production line at Robix whose work exceeds a standard level of output receive a higher rate of pay than those whose work meets the standard. They are working under the __________ incentive plan.

Accepted Answer

A) differential piece rate 
B) standard piece rate 
C) exception bonus rate 
D) individual rate pay 
A) differential piece rate 
B) standard piece rate 
C) exception bonus rate 
D) individual rate pay

Question 12

The performance threshold in incentive plans is the name given to the amount awarded to an employer.

Accepted Answer

A) True 
 B)False

Question 13

The advantages of employee stock ownership plans include all of the following EXCEPT that

Accepted Answer

A) employers are able to provide retirement benefits to employees at a relatively low cost. 
B) employees' pensions are less vulnerable due to diversification. 
C) employee stock ownership plans can increase employees' pride of ownership. 
D) employee stock ownership plans can provide an incentive for employees to increase productivity. 
A) employers are able to provide retirement benefits to employees at a relatively low cost. 
B) employees' pensions are less vulnerable due to diversification. 
C) employee stock ownership plans can increase employees' pride of ownership. 
D) employee stock ownership plans can provide an incentive for employees to increase productivity.

Question 14

Executive compensation consists of all of the following EXCEPT

Accepted Answer

A) base salary. 
B) proficiency adjustments. 
C) perquisites. 
D) short-term incentives. 
A) base salary. 
B) proficiency adjustments. 
C) perquisites. 
D) short-term incentives.

Question 15

Discuss the advantages of incentive pay programs.

Accepted Answer

The advantages of incentive pay programs

Question 16

To minimize the problems of merit raises, organizations should use

Accepted Answer

A) labor market comparisons. 
B) employee input. 
C) merit guidelines. 
D) the opinions of several managers. 
A) labor market comparisons. 
B) employee input. 
C) merit guidelines. 
D) the opinions of several managers.

Question 17

Executive base salaries represent between __________ percent of the total annual compensation.

Accepted Answer

A) 10 and 20 
B) 20 and 30 
C) 30 and 40 
D) 40 and 50 
A) 10 and 20 
B) 20 and 30 
C) 30 and 40 
D) 40 and 50

Question 18

Robix wants to increase employee job satisfaction and improve customer awareness. One way they could accomplish this is by instituting a gainsharing plan.

Accepted Answer

A) True 
 B)False

Question 19

The disadvantages of profit sharing include all of the following EXCEPT that

Accepted Answer

A) payments may lose their motivational value as they are made only once a year. 
B) plans may not pay off for several years in a row. 
C) effective profit sharing plans require a second HR program. 
D) employee morale could drop during time periods after no bonus has been given. 
A) payments may lose their motivational value as they are made only once a year. 
B) plans may not pay off for several years in a row. 
C) effective profit sharing plans require a second HR program. 
D) employee morale could drop during time periods after no bonus has been given.

Question 20

Fixed pay is more flexible than variable pay.

Accepted Answer

A) True 
 B)False

Robix uses an incentive payout that is based upon increases in sales volume. Robix is using a Scanlon plan.

The straight commission plan is limited by all of the following disadvantages EXCEPT that

When the team developing the XLR at Robix brought it in under budget, team members received a bonus. The amount each individual received varied based on salary level. In this situation, the team bonus was paid out in proportion to their relative contribution to the team.

Employees on the production line at Robix are paid based on the number of units that roll off their line each day. Because they receive a specified payment for each unit, they are paid under a straight piecework program.

The salespeople at Robix are compensated under a straight commission plan. Because their compensation rate is not fixed, one way to help them avoid any personal cash flow problems is to allow them a salary draw.

The most widely used sales incentive program is the __________ plan.

Robix wants to be known as a leader in first-to-market for new technology, so employees are rewarded for the speed by which they develop new products. Their incentive plan is tied to an organizational goal.

A weakness of profit-sharing plans is that employees do not have total control over the profitability of an organization.

The success of the Lincoln Electric Company profit-sharing plan rests largely on

In most profit-sharing plans, about __________ of the net profit is shared.

Employees on the XL27 production line at Robix whose work exceeds a standard level of output receive a higher rate of pay than those whose work meets the standard. They are working under the __________ incentive plan.

The performance threshold in incentive plans is the name given to the amount awarded to an employer.

The advantages of employee stock ownership plans include all of the following EXCEPT that

Executive compensation consists of all of the following EXCEPT

Discuss the advantages of incentive pay programs.

To minimize the problems of merit raises, organizations should use

Executive base salaries represent between __________ percent of the total annual compensation.

Robix wants to increase employee job satisfaction and improve customer awareness. One way they could accomplish this is by instituting a gainsharing plan.

The disadvantages of profit sharing include all of the following EXCEPT that

Fixed pay is more flexible than variable pay.

The Rewards and Challenges of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employees Rights and Discipline

The Dynamics of Labor Relations

International Human Resources Management

Implementing HR Strategy: High-Performance Work Systems

Filters

Exam 10: Pay-For-Performance: Incentive Rewards

Robix uses an incentive payout that is based upon increases in sales volume. Robix is using a Scanlon plan.

The straight commission plan is limited by all of the following disadvantages EXCEPT that

When the team developing the XLR at Robix brought it in under budget, team members received a bonus. The amount each individual received varied based on salary level. In this situation, the team bonus was paid out in proportion to their relative contribution to the team.

Employees on the production line at Robix are paid based on the number of units that roll off their line each day. Because they receive a specified payment for each unit, they are paid under a straight piecework program.

The salespeople at Robix are compensated under a straight commission plan. Because their compensation rate is not fixed, one way to help them avoid any personal cash flow problems is to allow them a salary draw.

The most widely used sales incentive program is the __________ plan.

Robix wants to be known as a leader in first-to-market for new technology, so employees are rewarded for the speed by which they develop new products. Their incentive plan is tied to an organizational goal.

A weakness of profit-sharing plans is that employees do not have total control over the profitability of an organization.

The success of the Lincoln Electric Company profit-sharing plan rests largely on

In most profit-sharing plans, about __________ of the net profit is shared.

Employees on the XL27 production line at Robix whose work exceeds a standard level of output receive a higher rate of pay than those whose work meets the standard. They are working under the __________ incentive plan.

The performance threshold in incentive plans is the name given to the amount awarded to an employer.

The advantages of employee stock ownership plans include all of the following EXCEPT that

Executive compensation consists of all of the following EXCEPT

Discuss the advantages of incentive pay programs.

To minimize the problems of merit raises, organizations should use

Executive base salaries represent between __________ percent of the total annual compensation.

Robix wants to increase employee job satisfaction and improve customer awareness. One way they could accomplish this is by instituting a gainsharing plan.

The disadvantages of profit sharing include all of the following EXCEPT that

Fixed pay is more flexible than variable pay.

The Rewards and Challenges of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employees Rights and Discipline

The Dynamics of Labor Relations

International Human Resources Management

Implementing HR Strategy: High-Performance Work Systems

Filters