Question 1

A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as a:

Accepted Answer

A) merit plan. 
B) straight salary plan. 
C) lump-sum merit pay. 
D) standard hour plan. 
A) merit plan. 
B) straight salary plan. 
C) lump-sum merit pay. 
D) standard hour plan. B

Question 2

Group incentive plans include:

Accepted Answer

A) straight salary plan. 
B) Improshare. 
C) straight commission plan. 
D) sales incentives. 
A) straight salary plan. 
B) Improshare. 
C) straight commission plan. 
D) sales incentives. B

Question 3

Discuss the problems identified with merit raises.As a manager what should one do to insure that merit raises fulfill their intended value?

Accepted Answer

There are a number of problems identified with merit raises.First,unlike a bonus,a merit raise may be perpetuated year after year even when performance declines.When this happens,employees come to expect the increase and see it as being unrelated to their performance.Second,employees in some organizations are opposed to merit raises because,among other reasons,they do not really trust management.What are referred to as merit raises often turn out to be increases based on seniority,organizational politics,favoritism,or raises to accommodate increases in cost of living or area wage rates.Third,money available for merit increases may be inadequate to satisfactorily raise employees' base pay.Fourth,managers may have no guidance in how to define and measure performance,resulting in vagueness regarding merit award criteria.Fifth,employees may be unable to differentiate between merit pay (i.e.,compensation tied to effort and performance)and other types of pay increases.Sixth,there may be a lack of honesty and cooperation between management and employees.Finally,it has been shown that "overall" merit pay plans do not motivate higher levels of employee performance.There are no easy solutions to these problems.However,organizations may establish a merit pay guidelines chart that functions as a "look-up" table for awarding merit increases on the basis of (1)employee performance,(2)position in the pay range,and in a few cases,(3)time since the last pay increase.In addition,organizations should strive to ensure that their performance appraisal system is reliable and valid.Any deficiencies in the performance appraisal system (as discussed in Chapter 8)can impair the operation of a merit pay plan.A third tactic that organizations may use is to implement a lump-sum merit pay incentive plan.Under this type of plan,employees receive a single lump-sum increase at the time of their review,an increase that is not added to their base salary.This innovative approach provides financial control by maintaining annual salary expenses and helps to provide a clear link between pay and performance.

Question 4

Annual bonuses represent the main element of executive short-term incentives.

Accepted Answer

A) True 
 B)False

Question 5

A spot bonus is usually given for some employee effort that is not directly tied to an established performance standard.

Accepted Answer

A) True 
 B)False

Question 6

The performance threshold in incentive pay programs is:

Accepted Answer

A) the minimum level an employee must reach in order to qualify for fixed pay. 
B) the minimum level an employee must reach in order to qualify for variable pay. 
C) an organizational objective that signifies profitability. 
D) a customized incentive plan which measures employee output and rewards exceptional employee performance. 
A) the minimum level an employee must reach in order to qualify for fixed pay. 
B) the minimum level an employee must reach in order to qualify for variable pay. 
C) an organizational objective that signifies profitability. 
D) a customized incentive plan which measures employee output and rewards exceptional employee performance.

Question 7

Compensation committees justify large executive compensation packages in the following ways EXCEPT:

Accepted Answer

A) effective executives create shareholder value. 
B) good executive talent is in great demand. 
C) the pay gap between the CEO and employees builds credibility. 
D) large incentives reward superior performance. 
A) effective executives create shareholder value. 
B) good executive talent is in great demand. 
C) the pay gap between the CEO and employees builds credibility. 
D) large incentives reward superior performance.

Question 8

Piecework is appropriate when:

Accepted Answer

A) technology changes are frequent. 
B) quality is more important than quantity. 
C) productivity standards are difficult to develop. 
D) a job is fairly standardized. 
A) technology changes are frequent. 
B) quality is more important than quantity. 
C) productivity standards are difficult to develop. 
D) a job is fairly standardized.

Question 9

More than 80 percent of companies globally are offering variable pay programs.

Accepted Answer

A) True 
 B)False

Question 10

The most widely used sales incentive program is the _____ plan.

Accepted Answer

A) straight salary 
B) straight commission 
C) combined salary and commission 
D) commission plus bonus 
A) straight salary 
B) straight commission 
C) combined salary and commission 
D) commission plus bonus

Question 11

Incentive plans based on productivity can reduce labor costs.

Accepted Answer

A) True 
 B)False

Question 12

Standard hour plans are popular in service departments in automobile dealerships.

Accepted Answer

A) True 
 B)False

Question 13

Employees receive a specified payment for each unit produced under a straight piecework program.

Accepted Answer

A) True 
 B)False

Question 14

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Accepted Answer

A) True 
 B)False

Question 15

Executive compensation consists of all of the following EXCEPT:

Accepted Answer

A) base salary. 
B) proficiency adjustments. 
C) perquisites. 
D) short-term incentives. 
A) base salary. 
B) proficiency adjustments. 
C) perquisites. 
D) short-term incentives.

Question 16

Performance of sales people can be affected by all of the following external factors EXCEPT:

Accepted Answer

A) the sales territory. 
B) changes in demand. 
C) changes in the sales volume standard. 
D) seasonal fluctuations. 
A) the sales territory. 
B) changes in demand. 
C) changes in the sales volume standard. 
D) seasonal fluctuations.

Question 17

According to the National Center for Employee Ownership,in 2013 approximately _____ organizations have employee stock ownership plans (ESOP) for their employees.

Accepted Answer

A) 3,500 
B) 11,000 
C) 17,500 
D) 24,500 
A) 3,500 
B) 11,000 
C) 17,500 
D) 24,500

Question 18

_____ are individuals between the ages of 25 and 41 who value a balanced lifestyle of work and play.

Accepted Answer

A) Members of Generation X 
B) Members of Generation Y 
C) Traditionalists 
D) Boomers 
A) Members of Generation X 
B) Members of Generation Y 
C) Traditionalists 
D) Boomers

Question 19

The disadvantages of profit sharing include all of the following EXCEPT that:

Accepted Answer

A) payments may lose their motivational value as they are made only once a year. 
B) plans may not pay off for several years in a row. 
C) effective profit sharing plans require a second HR program. 
D) employee morale could drop during time periods after no bonus has been given. 
A) payments may lose their motivational value as they are made only once a year. 
B) plans may not pay off for several years in a row. 
C) effective profit sharing plans require a second HR program. 
D) employee morale could drop during time periods after no bonus has been given.

Question 20

Employees do not actually buy shares in an employee stock exchange plan.

Accepted Answer

A) True 
 B)False

A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as a:

Group incentive plans include:

Discuss the problems identified with merit raises.As a manager what should one do to insure that merit raises fulfill their intended value?

Annual bonuses represent the main element of executive short-term incentives.

A spot bonus is usually given for some employee effort that is not directly tied to an established performance standard.

The performance threshold in incentive pay programs is:

Compensation committees justify large executive compensation packages in the following ways EXCEPT:

Piecework is appropriate when:

More than 80 percent of companies globally are offering variable pay programs.

The most widely used sales incentive program is the _____ plan.

Incentive plans based on productivity can reduce labor costs.

Standard hour plans are popular in service departments in automobile dealerships.

Employees receive a specified payment for each unit produced under a straight piecework program.

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Executive compensation consists of all of the following EXCEPT:

Performance of sales people can be affected by all of the following external factors EXCEPT:

According to the National Center for Employee Ownership,in 2013 approximately _____ organizations have employee stock ownership plans (ESOP) for their employees.

_____ are individuals between the ages of 25 and 41 who value a balanced lifestyle of work and play.

The disadvantages of profit sharing include all of the following EXCEPT that:

Employees do not actually buy shares in an employee stock exchange plan.

The Challenge of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding 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 Labor Relations

International Human Resources Management

Creating High-Performance Work Systems

Filters

Exam 10: Pay-For-Performance: Incentive Rewards

A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as a:

Group incentive plans include:

Discuss the problems identified with merit raises.As a manager what should one do to insure that merit raises fulfill their intended value?

Annual bonuses represent the main element of executive short-term incentives.

A spot bonus is usually given for some employee effort that is not directly tied to an established performance standard.

The performance threshold in incentive pay programs is:

Compensation committees justify large executive compensation packages in the following ways EXCEPT:

Piecework is appropriate when:

More than 80 percent of companies globally are offering variable pay programs.

The most widely used sales incentive program is the _____ plan.

Incentive plans based on productivity can reduce labor costs.

Standard hour plans are popular in service departments in automobile dealerships.

Employees receive a specified payment for each unit produced under a straight piecework program.

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Executive compensation consists of all of the following EXCEPT:

Performance of sales people can be affected by all of the following external factors EXCEPT:

According to the National Center for Employee Ownership,in 2013 approximately _____ organizations have employee stock ownership plans (ESOP) for their employees.

_____ are individuals between the ages of 25 and 41 who value a balanced lifestyle of work and play.

The disadvantages of profit sharing include all of the following EXCEPT that:

Employees do not actually buy shares in an employee stock exchange plan.

The Challenge of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding 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 Labor Relations

International Human Resources Management

Creating High-Performance Work Systems

Filters