Question 1

Which of the following is NOT a reason that team incentive plans have grown more popular?

Accepted Answer

A)  There is emphasis on cost-reduction. 
B)  Teamwork is important. 
C)  Coordination among workers is important. 
D)  Unions have demanded team incentive plans. 
A)  There is emphasis on cost-reduction. 
B)  Teamwork is important. 
C)  Coordination among workers is important. 
D)  Unions have demanded team incentive plans.

Question 2

Which of the following best describes profit sharing?

Accepted Answer

A)  The employer pays employees an incentive based on their merit. 
B)  The employer pays employees an incentive based on labour cost savings. 
C)  The employer pays employees a bonus based on the overall productivity of their particular work group. 
D)  The employer pays employees a special current or deferred sum based on the profits of the enterprise. 
A)  The employer pays employees an incentive based on their merit. 
B)  The employer pays employees an incentive based on labour cost savings. 
C)  The employer pays employees a bonus based on the overall productivity of their particular work group. 
D)  The employer pays employees a special current or deferred sum based on the profits of the enterprise.

Question 3

Employers using a lump-sum merit program will need to periodically increase base salaries in order for employees to keep pace with the cost of living or general market wages.

Accepted Answer

A) True 
 B)False

Question 4

It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package. Which of the following best describes these benefits?

Accepted Answer

A)  They are illegal, but executives usually get away without being caught. 
B)  They are known as perquisites. 
C)  They are known as golden parachutes. 
D)  They are unusual for top executives. 
A)  They are illegal, but executives usually get away without being caught. 
B)  They are known as perquisites. 
C)  They are known as golden parachutes. 
D)  They are unusual for top executives.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a major concern about executive compensation?

Accepted Answer

A)  the timing of the bonus 
B)  the growing gap between leaders and the company's lowest-paid employees 
C)  the lack of perquisites 
D)  the lack of objective market data 
A)  the timing of the bonus 
B)  the growing gap between leaders and the company's lowest-paid employees 
C)  the lack of perquisites 
D)  the lack of objective market data

Question 7

Identify the principal methods for compensating salespeople and the advantages of each method.

Accepted Answer

Compensation plans for sales personnel m

Question 8

In the Scanlon Plan, how is employee participation primarily achieved?

Accepted Answer

A)  through screening and shop committees 
B)  through financial committees 
C)  through suggestion boxes 
D)  through management committees 
A)  through screening and shop committees 
B)  through financial committees 
C)  through suggestion boxes 
D)  through management committees

Question 9

One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which of the following is a problem with creating team incentive plans?

Accepted Answer

A)  They encourage cooperative rather than individualistic behaviour. 
B)  Not all teams are alike. 
C)  They enable employees to share efficiency gains. 
D)  They pay only when agreed-upon standards are met or exceeded. 
A)  They encourage cooperative rather than individualistic behaviour. 
B)  Not all teams are alike. 
C)  They enable employees to share efficiency gains. 
D)  They pay only when agreed-upon standards are met or exceeded.

Question 12

When setting performance measures for incentive systems, what can we say about the best measures?

Accepted Answer

A)  They are quantitative, simple to understand, and show a clear relationship to improved performance. 
B)  They are qualitative, flexible, and create competition between employees. 
C)  They are those measures that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D)  They are unattainable in order to inspire increased levels of performance. 
A)  They are quantitative, simple to understand, and show a clear relationship to improved performance. 
B)  They are qualitative, flexible, and create competition between employees. 
C)  They are those measures that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D)  They are unattainable in order to inspire increased levels of performance.

Question 13

Why are some compensation plans referred to as variable pay?

Accepted Answer

A)  because employee pay varies with market pay 
B)  because employee pay is comprised of varying components 
C)  because employee pay is linked to performance 
D)  because employer costs vary with the incentives offered 
A)  because employee pay varies with market pay 
B)  because employee pay is comprised of varying components 
C)  because employee pay is linked to performance 
D)  because employer costs vary with the incentives offered

Question 14

Financial incentives for salespeople are widely used.

Accepted Answer

A) True 
 B)False

Question 15

How is the base pay for CEOs largely established?

Accepted Answer

A)  through job evaluations 
B)  through their education and experience 
C)  through the levels of competitive salaries in the job market 
D)  through the time spent in the occupation 
A)  through job evaluations 
B)  through their education and experience 
C)  through the levels of competitive salaries in the job market 
D)  through the time spent in the occupation

Question 16

Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

Accepted Answer

A)  the comparative low executive base pay 
B)  the amount of the options granted and exercised 
C)  the fact that mainly males are CEOs and that they get these options 
D)  the stock prices in competitive firms 
A)  the comparative low executive base pay 
B)  the amount of the options granted and exercised 
C)  the fact that mainly males are CEOs and that they get these options 
D)  the stock prices in competitive firms

Question 17

What is the philosophy behind the Scanlon Plan?

Accepted Answer

A)  Rewards are shared with employees based on improved profits. 
B)  Employees should offer ideas and suggestions to improve productivity and, in turn, be rewarded for their constructive efforts. 
C)  Organizational profits should improve through sales efforts. 
D)  Managers and employees should establish quality and quantity goals for optimum organizational performance. 
A)  Rewards are shared with employees based on improved profits. 
B)  Employees should offer ideas and suggestions to improve productivity and, in turn, be rewarded for their constructive efforts. 
C)  Organizational profits should improve through sales efforts. 
D)  Managers and employees should establish quality and quantity goals for optimum organizational performance.

Question 18

Which of the following is NOT an advantage of ESOPs?

Accepted Answer

A)  Firms can reward employees with shares. 
B)  The employees' pensions are less vulnerable due to diversification. 
C)  ESOPs can increase employees' pride of ownership. 
D)  ESOPs can provide an incentive for employees to increase productivity. 
A)  Firms can reward employees with shares. 
B)  The employees' pensions are less vulnerable due to diversification. 
C)  ESOPs can increase employees' pride of ownership. 
D)  ESOPs can provide an incentive for employees to increase productivity.

Question 19

Team incentive plans reward team members when performance standards are met or exceeded; however, they tend to foster a psychological climate that negatively impacts team cooperation.

Accepted Answer

A) True 
 B)False

Question 20

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.

Which of the following is NOT a reason that team incentive plans have grown more popular?

Which of the following best describes profit sharing?

Employers using a lump-sum merit program will need to periodically increase base salaries in order for employees to keep pace with the cost of living or general market wages.

It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package. Which of the following best describes these benefits?

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

Which of the following is a major concern about executive compensation?

Identify the principal methods for compensating salespeople and the advantages of each method.

In the Scanlon Plan, how is employee participation primarily achieved?

One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance.

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

Which of the following is a problem with creating team incentive plans?

When setting performance measures for incentive systems, what can we say about the best measures?

Why are some compensation plans referred to as variable pay?

Financial incentives for salespeople are widely used.

How is the base pay for CEOs largely established?

Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

What is the philosophy behind the Scanlon Plan?

Which of the following is NOT an advantage of ESOPs?

Team incentive plans reward team members when performance standards are met or exceeded; however, they tend to foster a psychological climate that negatively impacts team cooperation.

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

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis, Employee Involvement, and Flexible Work Schedules

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Appraising and Improving Performance

Managing Compensation

Employee Benefits

Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Creating High Performance Work Systems

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Exam 10: Pay For Performance: Incentive Rewards

Which of the following is NOT a reason that team incentive plans have grown more popular?

Which of the following best describes profit sharing?

Employers using a lump-sum merit program will need to periodically increase base salaries in order for employees to keep pace with the cost of living or general market wages.

It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package. Which of the following best describes these benefits?

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

Which of the following is a major concern about executive compensation?

Identify the principal methods for compensating salespeople and the advantages of each method.

In the Scanlon Plan, how is employee participation primarily achieved?

One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance.

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

Which of the following is a problem with creating team incentive plans?

When setting performance measures for incentive systems, what can we say about the best measures?

Why are some compensation plans referred to as variable pay?

Financial incentives for salespeople are widely used.

How is the base pay for CEOs largely established?

Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

What is the philosophy behind the Scanlon Plan?

Which of the following is NOT an advantage of ESOPs?

Team incentive plans reward team members when performance standards are met or exceeded; however, they tend to foster a psychological climate that negatively impacts team cooperation.

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

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis, Employee Involvement, and Flexible Work Schedules

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Appraising and Improving Performance

Managing Compensation

Employee Benefits

Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Creating High Performance Work Systems

Filters