Question 1

Explain commissions.

Accepted Answer

A commission is a percentage of the mone

Question 2

Hikoma LLC, a toy manufacturer, provides employees with incentives depending on their individual performances. This best exemplifies _____.

Accepted Answer

A)  an employee stock plan 
B)  a commission 
C)  an executive stock option 
D)  a deferred compensation 
A)  an employee stock plan 
B)  a commission 
C)  an executive stock option 
D)  a deferred compensation

Question 3

Which of the following is the most accurate metric of organizational performance in variable pay plans?

Accepted Answer

A)  Customer satisfaction 
B)  Accident rates 
C)  Revenue growth 
D)  Employee satisfaction 
A)  Customer satisfaction 
B)  Accident rates 
C)  Revenue growth 
D)  Employee satisfaction

Question 4

Which of the following best exemplifies spot bonus?

Accepted Answer

A)  An organization that gives a one piece-rate wage for all units produced irrespective of employee productivity 
B)  An organization rewarding an employee for installing a software upgrade 
C)  A sponsor rewarding an athlete for participation in an event 
D)  An organization rewarding an employee for referring someone who is later hired 
A)  An organization that gives a one piece-rate wage for all units produced irrespective of employee productivity 
B)  An organization rewarding an employee for installing a software upgrade 
C)  A sponsor rewarding an athlete for participation in an event 
D)  An organization rewarding an employee for referring someone who is later hired

Question 5

Which of the following is true of recognition awards?

Accepted Answer

A)  The criteria used for rewarding performance is typically the length of service rather than employees' actual performance. 
B)  They can be awarded only during appraisals. 
C)  They are given to a team and not to individual employees. 
D)  The criteria for selecting award winners may be determined subjectively in some situations. 
A)  The criteria used for rewarding performance is typically the length of service rather than employees' actual performance. 
B)  They can be awarded only during appraisals. 
C)  They are given to a team and not to individual employees. 
D)  The criteria for selecting award winners may be determined subjectively in some situations.

Question 6

Describe the three categories of variable pay.

Accepted Answer

Variable pay plans can be classified int

Question 7

A compensation committee generally makes recommendations to the _____ on overall pay policies, salaries for top officers, supplemental compensation such as stock options and bonuses, and additional perquisites for executives.

Accepted Answer

A)  labor union 
B)  board of directors 
C)  federal government 
D)  state government 
A)  labor union 
B)  board of directors 
C)  federal government 
D)  state government

Question 8

Which of the following statements is true of commissions and tips?

Accepted Answer

A)  Tips are paid by the employer; commissions are paid by the customer. 
B)  Both tips and commissions are paid by the customer. 
C)  Both tips and commissions are paid by the employer. 
D)  Tips are paid by the customer; commissions are paid by the employer. 
A)  Tips are paid by the employer; commissions are paid by the customer. 
B)  Both tips and commissions are paid by the customer. 
C)  Both tips and commissions are paid by the employer. 
D)  Tips are paid by the customer; commissions are paid by the employer.

Question 9

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Accepted Answer

A) True 
 B)False

Question 10

Explain employee stock plans.

Accepted Answer

Organizational incentive plans can use s

Question 11

Explain bonuses.

Accepted Answer

Individual employees may receive additio

Question 12

The compensation committee is a:

Accepted Answer

A)  subgroup of the board of directors that is composed of directors who are not officers of the firm. 
B)  subgroup of the management that is composed of managers who are currently the officers of the firm. 
C)  subgroup of the union that is composed of employees who are not officers of the firm. 
D)  subgroup of the shareholders that is composed of investors who are currently the officers of the firm. 
A)  subgroup of the board of directors that is composed of directors who are not officers of the firm. 
B)  subgroup of the management that is composed of managers who are currently the officers of the firm. 
C)  subgroup of the union that is composed of employees who are not officers of the firm. 
D)  subgroup of the shareholders that is composed of investors who are currently the officers of the firm.

Question 13

A draw is a system in which sales representatives can draw advance payments against future commissions.

Accepted Answer

A) True 
 B)False

Question 14

The focus of gainsharing is to increase "discretionary efforts."

Accepted Answer

A) True 
 B)False

Question 15

The most common means of providing individual variable pay are profitsharing plans and employee stock plans.

Accepted Answer

A) True 
 B)False

Question 16

Explain nonmonetary incentives.

Accepted Answer

Numerous nonmonetary incentive programs

Question 17

To ensure that spot bonuses works efficiently, employers must keep the amounts reasonable and provide them only for exceptional performance accomplishments.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a disadvantage of the individual incentive system?

Accepted Answer

A)  The net result is typically less than optimal for the competing individual. 
B)  Employees may primarily focus on what is best for them personally. 
C)  This system can be used only for providing monetary incentives. 
D)  This system does not include any form of bonus. 
A)  The net result is typically less than optimal for the competing individual. 
B)  Employees may primarily focus on what is best for them personally. 
C)  This system can be used only for providing monetary incentives. 
D)  This system does not include any form of bonus.

Question 19

A differential piece-rate system pays employees:

Accepted Answer

A)  one piece-rate wage for all units produced irrespective of employee productivity or work output. 
B)  one piece-rate wage for units produced up to a standard output and the employee is not paid for units produced over the standard. 
C)  one piece-rate wage for units produced up to a standard output and the employee is compensated through nonmonetary incentives for units produced over the standard. 
D)  one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard. 
A)  one piece-rate wage for all units produced irrespective of employee productivity or work output. 
B)  one piece-rate wage for units produced up to a standard output and the employee is not paid for units produced over the standard. 
C)  one piece-rate wage for units produced up to a standard output and the employee is compensated through nonmonetary incentives for units produced over the standard. 
D)  one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

Question 20

Describe the conditions necessary for the use of individual incentives.

Accepted Answer

Individual incentive systems tie persona

Explain commissions.

Hikoma LLC, a toy manufacturer, provides employees with incentives depending on their individual performances. This best exemplifies _____.

Which of the following is the most accurate metric of organizational performance in variable pay plans?

Which of the following best exemplifies spot bonus?

Which of the following is true of recognition awards?

Describe the three categories of variable pay.

A compensation committee generally makes recommendations to the _____ on overall pay policies, salaries for top officers, supplemental compensation such as stock options and bonuses, and additional perquisites for executives.

Which of the following statements is true of commissions and tips?

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Explain employee stock plans.

Explain bonuses.

The compensation committee is a:

A draw is a system in which sales representatives can draw advance payments against future commissions.

The focus of gainsharing is to increase "discretionary efforts."

The most common means of providing individual variable pay are profitsharing plans and employee stock plans.

Explain nonmonetary incentives.

To ensure that spot bonuses works efficiently, employers must keep the amounts reasonable and provide them only for exceptional performance accomplishments.

Which of the following is a disadvantage of the individual incentive system?

A differential piece-rate system pays employees:

Describe the conditions necessary for the use of individual incentives.

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

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Exam 12: Variable Pay and Executive Compensation

Explain commissions.

Hikoma LLC, a toy manufacturer, provides employees with incentives depending on their individual performances. This best exemplifies _____.

Which of the following is the most accurate metric of organizational performance in variable pay plans?

Which of the following best exemplifies spot bonus?

Which of the following is true of recognition awards?

Describe the three categories of variable pay.

A compensation committee generally makes recommendations to the _____ on overall pay policies, salaries for top officers, supplemental compensation such as stock options and bonuses, and additional perquisites for executives.

Which of the following statements is true of commissions and tips?

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Explain employee stock plans.

Explain bonuses.

The compensation committee is a:

A draw is a system in which sales representatives can draw advance payments against future commissions.

The focus of gainsharing is to increase "discretionary efforts."

The most common means of providing individual variable pay are profitsharing plans and employee stock plans.

Explain nonmonetary incentives.

To ensure that spot bonuses works efficiently, employers must keep the amounts reasonable and provide them only for exceptional performance accomplishments.

Which of the following is a disadvantage of the individual incentive system?

A differential piece-rate system pays employees:

Describe the conditions necessary for the use of individual incentives.

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