Question 1

What's the first step in the three-step approach in deciding on team incentives?

Accepted Answer

A)  Performance measures are decided. 
B)  The size of the incentive is decided. 
C)  A payout formula is determined. 
D)  A survey is conducted. 
A)  Performance measures are decided. 
B)  The size of the incentive is decided. 
C)  A payout formula is determined. 
D)  A survey is conducted. A

Question 2

Under which of the following conditions can incentive plans fail to achieve their objectives?

Accepted Answer

A)  when the goals are based on organizational performance 
B)  when employees are too motivated 
C)  when employees have little ability to affect performance standards 
D)  when the objectives are too focused 
A)  when the goals are based on organizational performance 
B)  when employees are too motivated 
C)  when employees have little ability to affect performance standards 
D)  when the objectives are too focused C

Question 3

Which of the following is a key condition for the success of merit pay raises?

Accepted Answer

A)  The amount must be fairly substantial. 
B)  Employees must work in teams. 
C)  The performance goals must be tough to achieve. 
D)  The raise should be awarded every two months. 
A)  The amount must be fairly substantial. 
B)  Employees must work in teams. 
C)  The performance goals must be tough to achieve. 
D)  The raise should be awarded every two months. A

Question 4

Which of the following is a reason why merit raises may fail to achieve their intended purpose?

Accepted Answer

A)  Objective performance measures are used. 
B)  The performance appraisal system is deficient. 
C)  The compensation system is strategic. 
D)  Incentive rewards are linked to organizational goals. 
A)  Objective performance measures are used. 
B)  The performance appraisal system is deficient. 
C)  The compensation system is strategic. 
D)  Incentive rewards are linked to organizational goals.

Question 5

Malo is an engineer. Her salary range was extended to the range used for administrative employees. What is this type of pay system?

Accepted Answer

A)  a hybrid wage system 
B)  broadbanding 
C)  extended range pay system 
D)  a double-track wage system 
A)  a hybrid wage system 
B)  broadbanding 
C)  extended range pay system 
D)  a double-track wage system

Question 6

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

Accepted Answer

A) True 
 B)False

Question 7

A salesperson with a sales volume of $100,000 earning a straight commission of 3 percent would receive $3,000.

Accepted Answer

A) True 
 B)False

Question 8

Mark recently received an incentive for a special contribution not directly tied to a performance standard. What is this incentive called?

Accepted Answer

A)  a piece rate plan 
B)  a spot bonus 
C)  a commission 
D)  a differential piece rate 
A)  a piece rate plan 
B)  a spot bonus 
C)  a commission 
D)  a differential piece rate

Question 9

Which of the following would promote team behaviours and a "culture of ownership" among all employees in the organization?

Accepted Answer

A)  differential piece rates 
B)  commissions 
C)  bonuses 
D)  employee stock ownership plans 
A)  differential piece rates 
B)  commissions 
C)  bonuses 
D)  employee stock ownership plans

Question 10

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Accepted Answer

A) True 
 B)False

Question 11

Standard hour plans are popular in service departments in automobile dealerships.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the problems identified with merit raises. As a manager, what would you do to ensure that merit raises fulfilled their intended value?

Accepted Answer

There are number of problems identified

Question 13

Describe the key goals of profit-sharing plans.

Accepted Answer

In profit-sharing plans, employers pay,

Question 14

Gainsharing is a type of team compensation.

Accepted Answer

A) True 
 B)False

Question 15

Employees receive a specified payment for each unit produced under a straight piecework program.

Accepted Answer

A) True 
 B)False

Question 16

Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure.

Accepted Answer

A) True 
 B)False

Question 17

Because profit-sharing plans often fail to pay off for several years in a row, they can have limited motivational value.

Accepted Answer

A) True 
 B)False

Question 18

Profit-sharing plans represent one way that wealth can be redistributed at which of the following levels?

Accepted Answer

A)  the international level 
B)  the regional level 
C)  the national level 
D)  the firm level 
A)  the international level 
B)  the regional level 
C)  the national level 
D)  the firm level

Question 19

Which of the following is a key objective of enterprise incentive plans?

Accepted Answer

A)  to limit "free ridership" 
B)  to reward top performers 
C)  to support government reward programs 
D)  to create a "culture of ownership" 
A)  to limit "free ridership" 
B)  to reward top performers 
C)  to support government reward programs 
D)  to create a "culture of ownership"

Question 20

A bonus is supplemental to base wages.

Accepted Answer

A) True 
 B)False

What's the first step in the three-step approach in deciding on team incentives?

Under which of the following conditions can incentive plans fail to achieve their objectives?

Which of the following is a key condition for the success of merit pay raises?

Which of the following is a reason why merit raises may fail to achieve their intended purpose?

Malo is an engineer. Her salary range was extended to the range used for administrative employees. What is this type of pay system?

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

A salesperson with a sales volume of $100,000 earning a straight commission of 3 percent would receive $3,000.

Mark recently received an incentive for a special contribution not directly tied to a performance standard. What is this incentive called?

Which of the following would promote team behaviours and a "culture of ownership" among all employees in the organization?

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Standard hour plans are popular in service departments in automobile dealerships.

Discuss the problems identified with merit raises. As a manager, what would you do to ensure that merit raises fulfilled their intended value?

Describe the key goals of profit-sharing plans.

Gainsharing is a type of team compensation.

Employees receive a specified payment for each unit produced under a straight piecework program.

Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure.

Because profit-sharing plans often fail to pay off for several years in a row, they can have limited motivational value.

Profit-sharing plans represent one way that wealth can be redistributed at which of the following levels?

Which of the following is a key objective of enterprise incentive plans?

A bonus is supplemental to base wages.

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

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Exam 10: Pay for Performance: Incentive Rewards

What's the first step in the three-step approach in deciding on team incentives?

Under which of the following conditions can incentive plans fail to achieve their objectives?

Which of the following is a key condition for the success of merit pay raises?

Which of the following is a reason why merit raises may fail to achieve their intended purpose?

Malo is an engineer. Her salary range was extended to the range used for administrative employees. What is this type of pay system?

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

A salesperson with a sales volume of $100,000 earning a straight commission of 3 percent would receive $3,000.

Mark recently received an incentive for a special contribution not directly tied to a performance standard. What is this incentive called?

Which of the following would promote team behaviours and a "culture of ownership" among all employees in the organization?

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Standard hour plans are popular in service departments in automobile dealerships.

Discuss the problems identified with merit raises. As a manager, what would you do to ensure that merit raises fulfilled their intended value?

Describe the key goals of profit-sharing plans.

Gainsharing is a type of team compensation.

Employees receive a specified payment for each unit produced under a straight piecework program.

Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure.

Because profit-sharing plans often fail to pay off for several years in a row, they can have limited motivational value.

Profit-sharing plans represent one way that wealth can be redistributed at which of the following levels?

Which of the following is a key objective of enterprise incentive plans?

A bonus is supplemental to base wages.

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Filters