Exam 10: Pay-For-Performance: Incentive Rewards

Management should guard against incentive payments being seen as

__________ is a bonus incentive plan which uses employee and management committees to gain cost-reduction improvements.

Incentive plans can create an organizational environment of shared commitment since individuals contribute to organizational success.

The operation of a merit pay plan depends on the effectiveness of the performance appraisal system.

The idea behind the Scanlon plan is that employees should offer ideas to improve productivity and, in turn, be rewarded for those ideas.

In 2011, a study by the American Psychological Association found that __________ of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.

A spot bonus is usually given for some employee effort that is not directly tied to an established performance standard.

Robix senior management wants to use an incentive plan that will allow all Robix employees to benefit from the plan's payout. This means they should be looking at enterprise incentive plans.

Robix has an employee stock ownership plan. In this plan, the employees own shares of stock, but they do not actually buy them.

The compensation of salespeople at Robix fluctuates each pay period, as the amount each person receives is determined solely as a percentage of his or her sales. They are paid according to a straight commission plan.

Under the Scanlon plan or Improshare program, psychological ownership can play a stronger role than financial ownership in employee performance.

A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period, which does not require executive financing is known as

Piecework is appropriate when

Robix has established rewards based on group contributions. In order to do this effectively, they should measure performance without considering the contributions of other teams and they should use this system when work is organizationally interdependent.

Incentive plans based on productivity can reduce labor costs.

Salespeople at Julee's are compensated based on a percentage of sales. This is known as a

Executive base salaries represent between 10 and 20 percent of total annual compensation.

Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as

An advantage of using a straight salary plan to compensate sales employees is that employees are paid for performing only sales effort.

Briefly describe the Scanlon plan.