Question 1

In a straight piece-rate system, wages are determined by:

Accepted Answer

A)  dividing the number of units produced by the piece rate for one unit. 
B)  multiplying the number of units produced by the piece rate for one unit. 
C)  adding the piece rate for one unit by the number of units produced. 
D)  dividing the piece rate for one unit by the number of units produced. 
A)  dividing the number of units produced by the piece rate for one unit. 
B)  multiplying the number of units produced by the piece rate for one unit. 
C)  adding the piece rate for one unit by the number of units produced. 
D)  dividing the piece rate for one unit by the number of units produced. B

Question 2

Describe piece-rate systems.

Accepted Answer

The most basic individual incentive systems are piece-rate systems. Under a straight piece-rate system, wages are determined by multiplying the number of units produced (such as garments sewn or service calls handled) by the piece rate for one unit. The wage for each employee is easy to figure, and labor costs can be accurately predicted.
A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard. Managers can determine the quotas or standards by using time and motion studies. For example, assume that the standard production quota for a worker is set at 300 units per day and the standard rate is 14 cents per unit. However, for all units over the standard, the employee receives 20 cents per unit. Under this system, the worker who produces 400 units in one day would get $62. Many possible combinations of straight and differential piece-rate systems can be used. Not everyone responds the same to piece-rate systems. Some work hard to make more money, others do the minimum. When workers are paid with a piece-rate system inequality in pay naturally arises. This inequality can also affect how people respond to the idea of piece rates.
Despite their incentive value, piece-rate systems can be difficult to apply because determining appropriate standards can be a complex and costly process for many types of jobs. In some instances, the cost of determining and maintaining the standards may be greater than the benefits derived. Also, jobs in which individuals have limited control over output or high standards of quality are necessary may be unsuited to piecework unless quality can be measured.

Question 3

Which of the following is an advantage of establishing employee stock ownership plans?

Accepted Answer

A)  Employees are not dependant on the employers for their retirement benefits. 
B)  Firms can receive favorable tax treatment. 
C)  Firms have lesser control over organizational productivity. 
D)  The employees can purchase shares of company stock for an unlimited period of time. 
A)  Employees are not dependant on the employers for their retirement benefits. 
B)  Firms can receive favorable tax treatment. 
C)  Firms have lesser control over organizational productivity. 
D)  The employees can purchase shares of company stock for an unlimited period of time. B

Question 4

Which of the following is the best example of variable pay?

Accepted Answer

A)  Basic pay 
B)  Conveyance allowance 
C)  Severance pay 
D)  Incentive 
A)  Basic pay 
B)  Conveyance allowance 
C)  Severance pay 
D)  Incentive

Question 5

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true of discretionary efforts?

Accepted Answer

A)  It is the difference between the amount of effort a person has exerted and the minimum amount of effort that he or she needs to exert to keep from being fired. 
B)  It is the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired. 
C)  It is the difference between the maximum amount of effort a person can exert and the amount of effort a person has exerted while on-the-job. 
D)  It is the difference between the amount of effort a person has exerted and the maximum amount of effort that a person can exert while on-the-job. 
A)  It is the difference between the amount of effort a person has exerted and the minimum amount of effort that he or she needs to exert to keep from being fired. 
B)  It is the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired. 
C)  It is the difference between the maximum amount of effort a person can exert and the amount of effort a person has exerted while on-the-job. 
D)  It is the difference between the amount of effort a person has exerted and the maximum amount of effort that a person can exert while on-the-job.

Question 7

What are employee stock ownership plans?

Accepted Answer

Employee stock ownership plans

Question 8

Variable pay is _____.

Accepted Answer

A)  compensation that is tied to the employee's performance 
B)  compensation that is tied to the employee's seniority 
C)  compensation that is tied to the employee's ethnicity 
D)  compensation that is tied to the employee's qualification 
A)  compensation that is tied to the employee's performance 
B)  compensation that is tied to the employee's seniority 
C)  compensation that is tied to the employee's ethnicity 
D)  compensation that is tied to the employee's qualification

Question 9

_____ are special benefits-usually noncash items-for executives.

Accepted Answer

A)  Executive Salaries 
B)  Base Salaries 
C)  Perquisites 
D)  Golden Parachutes 
A)  Executive Salaries 
B)  Base Salaries 
C)  Perquisites 
D)  Golden Parachutes

Question 10

Improshare is a gainsharing method that typically _____.

Accepted Answer

A)  uses employee committees to calculate and pass on savings to the employees 
B)  sets group piece-rate standards and pays weekly bonuses when those standards
Are exceeded 
C)  identifies favorable employee behavior and rewards employees who adhere to the set standards 
D)  uses employee unions to encourage and promote a positive environment in an organization 
A)  uses employee committees to calculate and pass on savings to the employees 
B)  sets group piece-rate standards and pays weekly bonuses when those standards
Are exceeded 
C)  identifies favorable employee behavior and rewards employees who adhere to the set standards 
D)  uses employee unions to encourage and promote a positive environment in an organization

Question 11

The advantage of a salary-plus-commission system is that it requires the sales representative to sell to receive any form of payment.

Accepted Answer

A) True 
 B)False

Question 12

_____ is a compensation typically computed as a percentage of sales in units or dollars.

Accepted Answer

A)  Severance pay 
B)  Wage 
C)  Basic salary 
D)  Commission 
A)  Severance pay 
B)  Wage 
C)  Basic salary 
D)  Commission

Question 13

Describe the different types of group/team incentives.

Accepted Answer

Group/team reward systems can use differ

Question 14

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Accepted Answer

A) True 
 B)False

Question 15

Recognition awards ensure that the award winners are determined objectively.

Accepted Answer

A) True 
 B)False

Question 16

Define gainsharing.

Accepted Answer

The system of sharing with employees gre

Question 17

The focus of gainsharing is to _____.

Accepted Answer

A)  decrease discretionary efforts 
B)  decrease pay variances 
C)  increase discretionary efforts 
D)  increase pay variances 
A)  decrease discretionary efforts 
B)  decrease pay variances 
C)  increase discretionary efforts 
D)  increase pay variances

Question 18

Employee stock ownership plan is a plan designed to give employees significant stock ownership by their employers.

Accepted Answer

A) True 
 B)False

Question 19

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

Accepted Answer

A) True 
 B)False

Question 20

Explain profit sharing.

Accepted Answer

As the name implies, profitsharing distr

In a straight piece-rate system, wages are determined by:

Describe piece-rate systems.

Which of the following is an advantage of establishing employee stock ownership plans?

Which of the following is the best example of variable pay?

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Which of the following statements is true of discretionary efforts?

What are employee stock ownership plans?

Variable pay is _____.

_____ are special benefits-usually noncash items-for executives.

Improshare is a gainsharing method that typically _____.

The advantage of a salary-plus-commission system is that it requires the sales representative to sell to receive any form of payment.

_____ is a compensation typically computed as a percentage of sales in units or dollars.

Describe the different types of group/team incentives.

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Recognition awards ensure that the award winners are determined objectively.

Define gainsharing.

The focus of gainsharing is to _____.

Employee stock ownership plan is a plan designed to give employees significant stock ownership by their employers.

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

Explain profit sharing.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individualorganization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Unionmanagement Relations

Filters

Exam 12: Variable Pay and Executive Compensation

In a straight piece-rate system, wages are determined by:

Describe piece-rate systems.

Which of the following is an advantage of establishing employee stock ownership plans?

Which of the following is the best example of variable pay?

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Which of the following statements is true of discretionary efforts?

What are employee stock ownership plans?

Variable pay is _____.

_____ are special benefits-usually noncash items-for executives.

Improshare is a gainsharing method that typically _____.

The advantage of a salary-plus-commission system is that it requires the sales representative to sell to receive any form of payment.

_____ is a compensation typically computed as a percentage of sales in units or dollars.

Describe the different types of group/team incentives.

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Recognition awards ensure that the award winners are determined objectively.

Define gainsharing.

The focus of gainsharing is to _____.

Employee stock ownership plan is a plan designed to give employees significant stock ownership by their employers.

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

Explain profit sharing.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individualorganization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Unionmanagement Relations

Filters