Question 1

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 2

How does the bonus given to employees under Improshare differ from that given under the Scanlon Plan?

Accepted Answer

A)  It is based on individual merit. 
B)  It is based on productivity gains resulting from a reduction in production time. 
C)  It is based on dollar savings. 
D)  The organization does not share in the gains. 
A)  It is based on individual merit. 
B)  It is based on productivity gains resulting from a reduction in production time. 
C)  It is based on dollar savings. 
D)  The organization does not share in the gains.

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

Identify and briefly describe one gainsharing plan that encourages maximum effort and cooperation but is not tied to profit fluctuations, as are profit-sharing plans.

Accepted Answer

Scanlon Plan. The Scanlon Plan enables e

Question 5

Perquisites are special benefits given to executive employees.

Accepted Answer

A) True 
 B)False

Question 6

Given that the CEO is the chief executive and decides on most, if not all, major decisions of the firm, who usually sets his or her pay?

Accepted Answer

A)  the vice-presidents or the second level of executives under the CEOs 
B)  the shareholders of the firm 
C)  the unions through collective bargaining 
D)  a compensation committee 
A)  the vice-presidents or the second level of executives under the CEOs 
B)  the shareholders of the firm 
C)  the unions through collective bargaining 
D)  a compensation committee

Question 7

ESOPs have been criticized because of potential inabilities to pay back the stock of employees when they retire.

Accepted Answer

A) True 
 B)False

Question 8

Why are performance measures vital in incentive plans?

Accepted Answer

A)  because they communicate the importance of the organizational goals 
B)  because they ensure fair pay for women 
C)  because they drive profitability 
D)  because they are fair and equitable 
A)  because they communicate the importance of the organizational goals 
B)  because they ensure fair pay for women 
C)  because they drive profitability 
D)  because they are fair and equitable

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

How does the bonus given to employees under Improshare differ from that given under the Scanlon Plan?

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?

Identify and briefly describe one gainsharing plan that encourages maximum effort and cooperation but is not tied to profit fluctuations, as are profit-sharing plans.

Perquisites are special benefits given to executive employees.

Given that the CEO is the chief executive and decides on most, if not all, major decisions of the firm, who usually sets his or her pay?

ESOPs have been criticized because of potential inabilities to pay back the stock of employees when they retire.

Why are performance measures vital in incentive plans?

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Branding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management and the Employee Appraisal Process

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

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

How does the bonus given to employees under Improshare differ from that given under the Scanlon Plan?

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?

Identify and briefly describe one gainsharing plan that encourages maximum effort and cooperation but is not tied to profit fluctuations, as are profit-sharing plans.

Perquisites are special benefits given to executive employees.

Given that the CEO is the chief executive and decides on most, if not all, major decisions of the firm, who usually sets his or her pay?

ESOPs have been criticized because of potential inabilities to pay back the stock of employees when they retire.

Why are performance measures vital in incentive plans?

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Branding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management and the Employee Appraisal Process

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Filters