Exam 10: Pay-For-Performance: Incentive Rewards

Piecework may be inappropriate where technology changes are frequent.

Robix has a robust incentive program that rewards employees generously for completing tasks ahead of schedule and/or under budget. They have found, however, that this plan does not motivate certain employees. Of the following groups, the employees not motivated by this plan are most likely

Robix senior management has as one of its goals to promote interaction and support between management and employees, as they feel that this would improve productivity and, ultimately, company profitability. Robix should consider an Improshare plan.

What are the pros and cons of high executive pay?

A problem with creating team incentive plans is that

Generally, an employee stock ownership plan is more likely to serve its intended purposes in privately held companies than in publicly held ones.

Robix is investigating ways to incentivize professional employees who engage in more complex tasks. The most effective incentives will include all of the following EXCEPT

Under a straight piecework plan, if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50. The piece rate is $1.50 per unit.

Annual bonuses represent the main element of executive short-term incentives.

When computing executive pay, many organizations are tying __________ to traditional financial gauges.

In most profit-sharing plans, about 20 to 25 percent of net profits are shared with employees.

The pay for employees on the KRX line at Robix is not based on the actual amount of time it takes them to complete a job. Rather, they are paid based on a predetermined amount of time for completing the job. These employees are working under the

Incentive plans may fail because employees have little ability to affect performance standards.

Twice a year, Robix pays all of its regular employees a bonus that is based on the firm's profits in the previous six months. This is an example of a profit sharing plan.

In an effort to increase employee productivity, Robix has initiated a stock option program. This means that for a limited period of time, employees will be able to purchase some shares of stock in Robix as a set price.

Profit sharing refers to any procedure by which an employer pays employees

A study on bonus versus actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by __________ percent.

A major criticism of short-term incentives for executives is that they place too much emphasis on monthly or quarterly performance, which may lead to negligence of long-term survival and growth objectives.

Profit-sharing plans have limited motivational value as payments are only made once a year or deferred until retirement.

By using employee stock ownership plans, employers can provide retirement benefits for their employees at a relatively low cost.