Question 1

Improshare

Accepted Answer

A)  requires the full involvement of all employees 
B)  includes nonproduction workers in the measurement of the organization's productivity 
C)  ties all incentives to savings plans 
D)  does not include non-production workers in the measurement of the organization's productivity 
E)  is not appropriate for service-providers like schools and hospitals 
A)  requires the full involvement of all employees 
B)  includes nonproduction workers in the measurement of the organization's productivity 
C)  ties all incentives to savings plans 
D)  does not include non-production workers in the measurement of the organization's productivity 
E)  is not appropriate for service-providers like schools and hospitals B

Question 2

Performance-based systems can only use monetary rewards as incentives.

Accepted Answer

A) True 
 B)False  False

Question 3

When the strategic goal is growth, it is reasonable to reward employees for achieving growth targets.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is true about performance-based pay:

Accepted Answer

A)  has no influence the decision of an applicant to not apply for a position 
B)  seldom influences the final decision of an applicant to accept an offer of employment 
C)  is more likely to attract good rather than poor performers 
D)  allows the best performers to reap inconsequential rewards 
E)  all of the above are true 
A)  has no influence the decision of an applicant to not apply for a position 
B)  seldom influences the final decision of an applicant to accept an offer of employment 
C)  is more likely to attract good rather than poor performers 
D)  allows the best performers to reap inconsequential rewards 
E)  all of the above are true

Question 5

The most popular recognition award that firms use is

Accepted Answer

A)  cash 
B)  certificates and plaques 
C)  gift certificates 
D)  travel 
E)  company merchandise 
A)  cash 
B)  certificates and plaques 
C)  gift certificates 
D)  travel 
E)  company merchandise

Question 6

When performance measures are deficient or contaminated, employees are less likely to feel that their efforts directly influence the performance measures used to determine performance-based pay.

Accepted Answer

A) True 
 B)False

Question 7

Incentive pay pegs base pay near the market average and employees earn additional monetary compensation for excellent performance.

Accepted Answer

A) True 
 B)False

Question 8

During a period where individual employee performance was poor, which pay system would give the employer lowest labor costs? Why?

Accepted Answer

Earnings-at-risk, because base pay is se

Question 9

In terms of labor costs, it is advantageous for a firm to tie added compensation to performance and maintain stable base pay rates.

Accepted Answer

A) True 
 B)False

Question 10

What three factors have reduced the use of stock options as incentives?

Accepted Answer

Options that went underwater w

Question 11

Todd's grandmother makes quilts for a New York City gallery. For each completed full-size quilt she completes and delivers to the gallery buyer, she earns $350. What payment plan is used by the gallery to pay Todd's grandmother for her work?

Accepted Answer

A)  the differential piece rate plan 
B)  the standard hour plan 
C)  the merit pay plan 
D)  the base rate plus standard output plan 
E)  the straight piecework plan 
A)  the differential piece rate plan 
B)  the standard hour plan 
C)  the merit pay plan 
D)  the base rate plus standard output plan 
E)  the straight piecework plan

Question 12

With which of the employee payment plans could an employee actually earn less than the market rate if the employer considered his or her performance to be unsatisfactory?

Accepted Answer

A)  earnings-at-risk pay plan 
B)  merit pay plan 
C)  vested pay plan 
D)  incentive pay plan 
E)  none of the above because such a scenario is illegal 
A)  earnings-at-risk pay plan 
B)  merit pay plan 
C)  vested pay plan 
D)  incentive pay plan 
E)  none of the above because such a scenario is illegal

Question 13

A _____ plan is an award of shares with restrictions that require a predetermined length of service to elapse before vesting occurs.

Accepted Answer

A)  premium-priced stock option 
B)  performance-vested restricted stock 
C)  time-based restricted stock 
D)  time-restricted stock option 
E)  indexed stock option 
A)  premium-priced stock option 
B)  performance-vested restricted stock 
C)  time-based restricted stock 
D)  time-restricted stock option 
E)  indexed stock option

Question 14

In the feature Managing the Multicultural Workforce: Rewarding Managers Who Achieve Diversity Goals, according to a study by the Society for Human Resource Management, most Fortune 500 companies do all of the following to create multicultural workforces EXCEPT:

Accepted Answer

A)  do not measure performance against diversity goals 
B)  measure performance but do not use compensation to reward success 
C)  rely on fair hiring methods to produce a multicultural organization 
D)  pay managers to achieve diversity objectives 
E)  all of the above are actions that Fortune 500 companies take to attain workforce diversity 
A)  do not measure performance against diversity goals 
B)  measure performance but do not use compensation to reward success 
C)  rely on fair hiring methods to produce a multicultural organization 
D)  pay managers to achieve diversity objectives 
E)  all of the above are actions that Fortune 500 companies take to attain workforce diversity

Question 15

As a bank teller, Diane realized there was a problem in how customers waited in line. She made a suggestion that reduced the average customer wait by two minutes, causing an increase in customer satisfaction. Diane received a special plaque from the president of the bank and a $200 check. This is an example of a(n):

Accepted Answer

A)  spot award 
B)  gainsharing award 
C)  Scanlon plan 
D)  Improshare plan 
E)  Third generation plan 
A)  spot award 
B)  gainsharing award 
C)  Scanlon plan 
D)  Improshare plan 
E)  Third generation plan

Question 16

Kiely's mother is paying her to read this summer. For every chapter of David Copperfield that she reads and prepares a written synopsis of in one and one-half hours, she receives $3. If she completes the task in less than the allotted time she still receives $3. What payment plan is Kiely's mother using to encourage Kiely to read at the faster rate?

Accepted Answer

A)  the differential piece rate plan 
B)  the standard hour plan 
C)  the merit pay plan 
D)  the base rate plus standard output plan 
E)  the commission plan 
A)  the differential piece rate plan 
B)  the standard hour plan 
C)  the merit pay plan 
D)  the base rate plus standard output plan 
E)  the commission plan

Question 17

Differentiate between merit pay and incentive pay.

Accepted Answer

Merit pay is a perma

Question 18

Susan was referred to the Mastodon Company by her friend Angie. Susan has accepted a job in the production department where Angie works. Angie is thrilled to have her friend working with her so that they can now carpool to work. The company will pay Angie a(n) _______ bonus for encouraging Susan to accept the company's employment offer.

Accepted Answer

A)  acceptance 
B)  up-front 
C)  flat 
D)  referral 
E)  retention 
A)  acceptance 
B)  up-front 
C)  flat 
D)  referral 
E)  retention

Question 19

Besides merit pay, two other types of performance-based pay are:

Accepted Answer

A)  retained earnings and reinvested pay 
B)  incentive pay and 401K plans 
C)  earnings at risk and protected earnings 
D)  earnings at risk and incentive pay 
E)  incentive pay and retained earnings 
A)  retained earnings and reinvested pay 
B)  incentive pay and 401K plans 
C)  earnings at risk and protected earnings 
D)  earnings at risk and incentive pay 
E)  incentive pay and retained earnings

Question 20

How does merit pay differ from incentive pay?

Accepted Answer

A)  Merit pay is awarded to salaried employees while incentive pay is a reward for those who are wage-employees. 
B)  Merit pay typically relies on subjective performance appraisal ratings, and incentive pay is often based on the achievement of performance that can be quantified. 
C)  Incentive pay is a permanent increase, and merit pay is a one-time increase in pay. 
D)  Merit pay plans give managers more latitude in determining large distributions of rewards 
E)  Merit pay is more closely tied to the organizational vision, strategy, and culture than incentive pay. 
A)  Merit pay is awarded to salaried employees while incentive pay is a reward for those who are wage-employees. 
B)  Merit pay typically relies on subjective performance appraisal ratings, and incentive pay is often based on the achievement of performance that can be quantified. 
C)  Incentive pay is a permanent increase, and merit pay is a one-time increase in pay. 
D)  Merit pay plans give managers more latitude in determining large distributions of rewards 
E)  Merit pay is more closely tied to the organizational vision, strategy, and culture than incentive pay.

Improshare

Performance-based systems can only use monetary rewards as incentives.

When the strategic goal is growth, it is reasonable to reward employees for achieving growth targets.

Which of the following is true about performance-based pay:

The most popular recognition award that firms use is

When performance measures are deficient or contaminated, employees are less likely to feel that their efforts directly influence the performance measures used to determine performance-based pay.

Incentive pay pegs base pay near the market average and employees earn additional monetary compensation for excellent performance.

During a period where individual employee performance was poor, which pay system would give the employer lowest labor costs? Why?

In terms of labor costs, it is advantageous for a firm to tie added compensation to performance and maintain stable base pay rates.

What three factors have reduced the use of stock options as incentives?

Todd's grandmother makes quilts for a New York City gallery. For each completed full-size quilt she completes and delivers to the gallery buyer, she earns $350. What payment plan is used by the gallery to pay Todd's grandmother for her work?

With which of the employee payment plans could an employee actually earn less than the market rate if the employer considered his or her performance to be unsatisfactory?

A _____ plan is an award of shares with restrictions that require a predetermined length of service to elapse before vesting occurs.

In the feature Managing the Multicultural Workforce: Rewarding Managers Who Achieve Diversity Goals, according to a study by the Society for Human Resource Management, most Fortune 500 companies do all of the following to create multicultural workforces EXCEPT:

Differentiate between merit pay and incentive pay.

Besides merit pay, two other types of performance-based pay are:

How does merit pay differ from incentive pay?

Managing Human Resources

Understanding the External and Organizational Environments

Ensuring Fair Treatment and Legal Compliance

HR Planning for Alignment and Change

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Developing an Approach to Total Compensation

Providing Benefits and Services

Promoting Safety, Health, and Well-Being in the Workplace

Understanding Unionization and Collective Bargaining

Filters

Exam 11: Using Performance-Based Pay to Achieve Strategic Objectives

Improshare

Performance-based systems can only use monetary rewards as incentives.

When the strategic goal is growth, it is reasonable to reward employees for achieving growth targets.

Which of the following is true about performance-based pay:

The most popular recognition award that firms use is

When performance measures are deficient or contaminated, employees are less likely to feel that their efforts directly influence the performance measures used to determine performance-based pay.

Incentive pay pegs base pay near the market average and employees earn additional monetary compensation for excellent performance.

During a period where individual employee performance was poor, which pay system would give the employer lowest labor costs? Why?

In terms of labor costs, it is advantageous for a firm to tie added compensation to performance and maintain stable base pay rates.

What three factors have reduced the use of stock options as incentives?

Todd's grandmother makes quilts for a New York City gallery. For each completed full-size quilt she completes and delivers to the gallery buyer, she earns $350. What payment plan is used by the gallery to pay Todd's grandmother for her work?

With which of the employee payment plans could an employee actually earn less than the market rate if the employer considered his or her performance to be unsatisfactory?

A _____ plan is an award of shares with restrictions that require a predetermined length of service to elapse before vesting occurs.

In the feature Managing the Multicultural Workforce: Rewarding Managers Who Achieve Diversity Goals, according to a study by the Society for Human Resource Management, most Fortune 500 companies do all of the following to create multicultural workforces EXCEPT:

Differentiate between merit pay and incentive pay.

Besides merit pay, two other types of performance-based pay are:

How does merit pay differ from incentive pay?

Managing Human Resources

Understanding the External and Organizational Environments

Ensuring Fair Treatment and Legal Compliance

HR Planning for Alignment and Change

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Developing an Approach to Total Compensation

Providing Benefits and Services

Promoting Safety, Health, and Well-Being in the Workplace

Understanding Unionization and Collective Bargaining

Filters