Exam 10: Pay-For-Performance: Incentive Rewards

Robix uses a bonus plan that is based on overall group productivity. The determination of a bonus includes both production employees and nonproduction. Which type of gainsharing program is being used?

A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as a

Robix is launching a set of new incentive plans, based on individual, group, and enterprise pay. While each plan will have unique features, one thing that all plans should have in common is to measure

Robix Industries has announced the rollout of a new incentive program for its production team. A baseline of performance has been established based upon actual production numbers from the last six quarters. If productivity exceeds that deadline in a quarter, 80 percent of the money that is saved will be given to the employees. What type of plan is this?

Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price?

Robix has a stock option program, which means that it rewards employees' performance by giving them shares of stock.

Merit pay plans have been criticized because the merit increase may not be sufficient to raise all employees' base pay.

Historically, incentive plans have not been a major element of strategic compensation management.

Unlike a bonus, a merit raise may be perpetuated year after year even when performance declines.

Robix is launching a new incentive plan for individual pay. To increase its chances for success, the plan should measure

The principal reason behind executive stock options as an incentive is for senior managers to have a significant stake in the success of a business.

Under a differential piece rate, employees whose production performance exceeds the standard output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard.

Meshing compensation and organizational objectives help employees assume ownership of their jobs, which can, in turn, improve their effort and overall job performance.

Raj likes to give small rewards to employees "caught in the act" of doing something good, even if that effort is not directly tied to a performance standard. When he does this, Raj is making use of a

Team incentive bonuses may be paid out in all of the following ways EXCEPT by distributing it

Briefly explain three individual incentive plans.

Noncash incentive rewards are most effective as motivators when the award is

According to the National Center for Employee Ownership, in 2016 approximately __________ organizations have employee stock ownership plans (ESOP) for their employees.

More than 80 percent of companies globally are offering variable pay programs.

Steph works in a company that uses a piecework system. She is an extremely efficient and is capable of producing more units per hour. However, she monitors the productivity rate of her colleagues and is careful to never work at a faster pace than them. Steph is limiting her own productivity to avoid