Question 1

An "Owners Care" branding message would be linked to which type of compensation system?

Accepted Answer

A)  profit-sharing 
B)  commissions 
C)  piece rates 
D)  perks 
A)  profit-sharing 
B)  commissions 
C)  piece rates 
D)  perks

Question 2

Strategic compensation links organizational goals with employee compensation.

Accepted Answer

A) True 
 B)False

Question 3

At Steelcase, an office furniture maker, employees can earn more than their base pay if they produce more units, such as upholstering more chairs. This part of their pay is determined on units produced. Which of the following plans is being used here?

Accepted Answer

A)  piece rate plan 
B)  completion pay plan 
C)  time division plan 
D)  standard hour plan 
A)  piece rate plan 
B)  completion pay plan 
C)  time division plan 
D)  standard hour plan

Question 4

Stock options are rights attached to the achievement of specific organizational objectives.

Accepted Answer

A) True 
 B)False

Question 5

Financial incentives for salespeople are widely used.

Accepted Answer

A) True 
 B)False

Question 6

A straight salary plan is the most frequently used type of sales incentive plan.

Accepted Answer

A) True 
 B)False

Question 7

Briefly discuss three individual incentive plans. (Students should discuss three of the four following plans.)

Accepted Answer

Piecework is one of the oldest incentive

Question 8

Under straight piecework, employees receive a certain rate for each unit produced.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the most widely used sales incentive program?

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a key factor that contributes to the success of incentive plans?

Accepted Answer

A)  employee entitlements 
B)  management support 
C)  high employee expectations for pay gains 
D)  undefined performance measures 
A)  employee entitlements 
B)  management support 
C)  high employee expectations for pay gains 
D)  undefined performance measures

Question 12

What is the purpose of a profit-sharing plan?

Accepted Answer

A)  to allow workers to contribute ideas and suggestions 
B)  to motivate a total commitment to the organization as a whole 
C)  to enable workers to share in labour cost savings 
D)  to instill commitment to the employee's immediate work group 
A)  to allow workers to contribute ideas and suggestions 
B)  to motivate a total commitment to the organization as a whole 
C)  to enable workers to share in labour cost savings 
D)  to instill commitment to the employee's immediate work group

Question 13

ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume. What type of pay plan does this exemplify?

Accepted Answer

A)  a straight salary plan 
B)  a merit plan 
C)  lump-sum merit pay 
D)  a standard hour plan 
A)  a straight salary plan 
B)  a merit plan 
C)  lump-sum merit pay 
D)  a standard hour plan

Question 14

Under the merit pay system, employees who have better political connections within the company may bear a threat to their supervisor and therefore may end up with a larger share of the "merit pie" than their performance would warrant.

Accepted Answer

A) True 
 B)False

Question 15

Differential piece rate plans guarantee employees at least a base pay.

Accepted Answer

A) True 
 B)False

Question 16

For incentive plans to be successful, one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals, teams, or organizational criteria.

Accepted Answer

A) True 
 B)False

Question 17

As an incentive, Ahmed was offered the opportunity to buy shares of their organization's stock at a discount price. What type of compensation is this?

Accepted Answer

A)  share bonus 
B)  stock bonus 
C)  stock options 
D)  stock purchase 
A)  share bonus 
B)  stock bonus 
C)  stock options 
D)  stock purchase

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Under a straight commission plan, compensation is based entirely on a percentage of sales.

Accepted Answer

A) True 
 B)False

Question 20

Incentive systems for salespeople are complicated by wide differences in the types of sales jobs.

Accepted Answer

A) True 
 B)False

An "Owners Care" branding message would be linked to which type of compensation system?

Strategic compensation links organizational goals with employee compensation.

At Steelcase, an office furniture maker, employees can earn more than their base pay if they produce more units, such as upholstering more chairs. This part of their pay is determined on units produced. Which of the following plans is being used here?

Stock options are rights attached to the achievement of specific organizational objectives.

Financial incentives for salespeople are widely used.

A straight salary plan is the most frequently used type of sales incentive plan.

Briefly discuss three individual incentive plans. (Students should discuss three of the four following plans.)

Under straight piecework, employees receive a certain rate for each unit produced.

Which of the following is the most widely used sales incentive program?

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

Which of the following is a key factor that contributes to the success of incentive plans?

What is the purpose of a profit-sharing plan?

ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume. What type of pay plan does this exemplify?

Under the merit pay system, employees who have better political connections within the company may bear a threat to their supervisor and therefore may end up with a larger share of the "merit pie" than their performance would warrant.

Differential piece rate plans guarantee employees at least a base pay.

For incentive plans to be successful, one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals, teams, or organizational criteria.

As an incentive, Ahmed was offered the opportunity to buy shares of their organization's stock at a discount price. What type of compensation is this?

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

Under a straight commission plan, compensation is based entirely on a percentage of sales.

Incentive systems for salespeople are complicated by wide differences in the types of sales jobs.

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

Exam 10: Pay for Performance: Incentive Rewards

An "Owners Care" branding message would be linked to which type of compensation system?

Strategic compensation links organizational goals with employee compensation.

At Steelcase, an office furniture maker, employees can earn more than their base pay if they produce more units, such as upholstering more chairs. This part of their pay is determined on units produced. Which of the following plans is being used here?

Stock options are rights attached to the achievement of specific organizational objectives.

Financial incentives for salespeople are widely used.

A straight salary plan is the most frequently used type of sales incentive plan.

Briefly discuss three individual incentive plans. (Students should discuss three of the four following plans.)

Under straight piecework, employees receive a certain rate for each unit produced.

Which of the following is the most widely used sales incentive program?

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

Which of the following is a key factor that contributes to the success of incentive plans?

What is the purpose of a profit-sharing plan?

ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume. What type of pay plan does this exemplify?

Under the merit pay system, employees who have better political connections within the company may bear a threat to their supervisor and therefore may end up with a larger share of the "merit pie" than their performance would warrant.

Differential piece rate plans guarantee employees at least a base pay.

For incentive plans to be successful, one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals, teams, or organizational criteria.

As an incentive, Ahmed was offered the opportunity to buy shares of their organization's stock at a discount price. What type of compensation is this?

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

Under a straight commission plan, compensation is based entirely on a percentage of sales.

Incentive systems for salespeople are complicated by wide differences in the types of sales jobs.

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