Exam 4: Incentive Pay

How can incentive pay systems,when properly applied,contribute to companies meeting the goals of lowest cost and differentiation strategies?

With which profit sharing formula does the profit sharing pool become funded only after profits exceed a predetermined level but fall below some established maximum level?

Customer satisfaction,labor cost savings,materials cost savings,and reduction in accidents were listed as typical performance measures for which type of incentive plan?

Gunther Rohn was rewarded for making a suggestion that saved Ewe and Eye Electronics thousands of dollars.Which type of incentive compensation approach might have worked best?

Which gain sharing plan bases incentives on the ratio between labor costs and sales value of production (SVOP)?

Which of the following performance measures corresponds to individual/ group/ companywide incentive plans respectively?

Individual incentive plans help to promote the relationship between pay and ________.

This incentive plan has a buy-back provision.

The sales value of production (SVOP)is the sum of sales ________ plus the value of goods in inventory.

Which type of individual incentive plan requires the achievement of multiple,complex objectives without compromising the quality and quantity of output that is generated by employees?

This type of individual incentive plan rewards employees who recruit new customers or new employees.

To have better safety records,XYZ Company gives monetary incentive awards to its workers for lower accident rates due to improper use of heavy equipment.

Which gain sharing plan focuses on lowering the percentage of labor costs using a value-added formula?

This is another name for parallel teams.

This formula for calculating profit sharing awards gives the employees a higher percentage of the profits as the profits increase.

In addition to the guaranteed hourly pay rate,John receives incentives for every item produced over the designated production standard.What kind of incentive plan is used in this situation?

On which teams is membership relatively permanent,with the members working full-time on the team?

In a "pay at ________" profit sharing compensation package,base bay is set below the average for competing employers,and employees' pay can be very meager or very large compared to a similar position elsewhere.

The general rule of thumb is that short-term company goals last less than how long?

John is a design engineer working at an auto manufacturer research and development department.In addition to his normal duties,he is assigned to a team of other engineers developing a highly automated assembly line for the new model of a passenger car.What type of team is John assigned to?