Question 1

The idea behind the Scanlon Plan is that employees should offer ideas to improve productivity and,in turn,be rewarded for those ideas.

Accepted Answer

A) True 
 B)False

Question 2

For incentive plans to work effectively,employees must see a clear connection between the incentive payments they receive and their performance.

Accepted Answer

A) True 
 B)False

Question 3

Management should guard against incentive payments being seen as _____.

Accepted Answer

A) too competitive 
B) equitable 
C) permanent 
D) an entitlement 
A) too competitive 
B) equitable 
C) permanent 
D) an entitlement

Question 4

Special benefits given to executive employees,such as assigned chauffeurs,country club memberships,and special vacation policies,are known as:

Accepted Answer

A) executive rewards. 
B) perquisites. 
C) golden parachutes. 
D) assigned benefits. 
A) executive rewards. 
B) perquisites. 
C) golden parachutes. 
D) assigned benefits.

Question 5

An incentive given for a special employee contribution not directly tied to a performance standard is a:

Accepted Answer

A) piece rate plan. 
B) differential piece rate. 
C) merit pay. 
D) spot bonus. 
A) piece rate plan. 
B) differential piece rate. 
C) merit pay. 
D) spot bonus.

Question 6

If an employee's pay is based not on the actual amount of time it takes him or her to complete a job but instead on a predetermined amount of time for completing the job,he or she is working under the _____.

Accepted Answer

A) piece rate plan 
B) standard hour plan 
C) time division plan 
D) completion pay system 
A) piece rate plan 
B) standard hour plan 
C) time division plan 
D) completion pay system

Question 7

Which of the following is NOT an advantage of an incentive pay program?

Accepted Answer

A) Incentives focus employee efforts on specific performance targets. 
B) Incentives are a way to increase equity and justice in an organization. 
C) Incentives are a way to distribute success among those not responsible for producing that success. 
D) Incentives are a means to reward or attract top performers when salary budgets are low. 
A) Incentives focus employee efforts on specific performance targets. 
B) Incentives are a way to increase equity and justice in an organization. 
C) Incentives are a way to distribute success among those not responsible for producing that success. 
D) Incentives are a means to reward or attract top performers when salary budgets are low.

Question 8

Improshare plans promote interaction and support between management and employees.

Accepted Answer

A) True 
 B)False

Question 9

Briefly describe the Scanlon Plan.

Accepted Answer

The Scanlon Plan enables employees who o

Question 10

Contemporary reasons given by organizations for implementing incentive plans are:

Accepted Answer

A) improving or maintaining high levels of productivity. 
B) focusing employee efforts on specific performance targets. 
C) linking compensation rewards to the achievement of results. 
D) all of the above. 
A) improving or maintaining high levels of productivity. 
B) focusing employee efforts on specific performance targets. 
C) linking compensation rewards to the achievement of results. 
D) all of the above.

Question 11

Most experts advocate abolition of stock options due to their failing popularity and media scandals.

Accepted Answer

A) True 
 B)False

Question 12

According to one budget survey,_____ percent of reporting organizations use variable pay.

Accepted Answer

A) 100 
B) 80 
C) 60 
D) 40 
A) 100 
B) 80 
C) 60 
D) 40

Question 13

A major criticism of short-term incentives for executives is that they place too much emphasis on short-term performance,which may lead to negligence of long-term survival and growth objectives.

Accepted Answer

A) True 
 B)False

Question 14

Group incentive plans do all of the following EXCEPT:

Accepted Answer

A) enabling employees to share the benefits of improved efficiency. 
B) encouraging cooperation. 
C) reducing free-ride effect. 
D) rewarding employees for total contribution to organizational performance. 
A) enabling employees to share the benefits of improved efficiency. 
B) encouraging cooperation. 
C) reducing free-ride effect. 
D) rewarding employees for total contribution to organizational performance.

Question 15

Common output measures for productivity include:

Accepted Answer

A) sales. 
B) materials. 
C) labor costs. 
D) total costs. 
A) sales. 
B) materials. 
C) labor costs. 
D) total costs.

Question 16

Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as:

Accepted Answer

A) stock options. 
B) stock grants. 
C) restricted stocks. 
D) performance shares. 
A) stock options. 
B) stock grants. 
C) restricted stocks. 
D) performance shares.

Question 17

An analysis of executive salaries shows that the largest portion of executive pay is received in long-term incentive rewards and bonuses.

Accepted Answer

A) True 
 B)False

Question 18

By using employee stock ownership plans,employers can provide retirement benefits for their employees at a relatively low cost.

Accepted Answer

A) True 
 B)False

Question 19

The standard hour plan provides bonus payment for completing work in less than the specified time.

Accepted Answer

A) True 
 B)False

Question 20

The percentage of cash compensation paid out in commissions is called a draw.

Accepted Answer

A) True 
 B)False

The idea behind the Scanlon Plan is that employees should offer ideas to improve productivity and,in turn,be rewarded for those ideas.

For incentive plans to work effectively,employees must see a clear connection between the incentive payments they receive and their performance.

Management should guard against incentive payments being seen as _____.

Special benefits given to executive employees,such as assigned chauffeurs,country club memberships,and special vacation policies,are known as:

An incentive given for a special employee contribution not directly tied to a performance standard is a:

If an employee's pay is based not on the actual amount of time it takes him or her to complete a job but instead on a predetermined amount of time for completing the job,he or she is working under the _____.

Which of the following is NOT an advantage of an incentive pay program?

Improshare plans promote interaction and support between management and employees.

Briefly describe the Scanlon Plan.

Contemporary reasons given by organizations for implementing incentive plans are:

Most experts advocate abolition of stock options due to their failing popularity and media scandals.

According to one budget survey,_____ percent of reporting organizations use variable pay.

A major criticism of short-term incentives for executives is that they place too much emphasis on short-term performance,which may lead to negligence of long-term survival and growth objectives.

Group incentive plans do all of the following EXCEPT:

Common output measures for productivity include:

Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as:

An analysis of executive salaries shows that the largest portion of executive pay is received in long-term incentive rewards and bonuses.

By using employee stock ownership plans,employers can provide retirement benefits for their employees at a relatively low cost.

The standard hour plan provides bonus payment for completing work in less than the specified time.

The percentage of cash compensation paid out in commissions is called a draw.

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

The idea behind the Scanlon Plan is that employees should offer ideas to improve productivity and,in turn,be rewarded for those ideas.

For incentive plans to work effectively,employees must see a clear connection between the incentive payments they receive and their performance.

Management should guard against incentive payments being seen as _____.

Special benefits given to executive employees,such as assigned chauffeurs,country club memberships,and special vacation policies,are known as:

An incentive given for a special employee contribution not directly tied to a performance standard is a:

If an employee's pay is based not on the actual amount of time it takes him or her to complete a job but instead on a predetermined amount of time for completing the job,he or she is working under the _____.

Which of the following is NOT an advantage of an incentive pay program?

Improshare plans promote interaction and support between management and employees.

Briefly describe the Scanlon Plan.

Contemporary reasons given by organizations for implementing incentive plans are:

Most experts advocate abolition of stock options due to their failing popularity and media scandals.

According to one budget survey,_____ percent of reporting organizations use variable pay.

A major criticism of short-term incentives for executives is that they place too much emphasis on short-term performance,which may lead to negligence of long-term survival and growth objectives.

Group incentive plans do all of the following EXCEPT:

Common output measures for productivity include:

Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as:

An analysis of executive salaries shows that the largest portion of executive pay is received in long-term incentive rewards and bonuses.

By using employee stock ownership plans,employers can provide retirement benefits for their employees at a relatively low cost.

The standard hour plan provides bonus payment for completing work in less than the specified time.

The percentage of cash compensation paid out in commissions is called a draw.

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