Question 1

The incentive payout under the Scanlon Plan is based upon increases in the sales volume of an organization's products.

Accepted Answer

A) True 
 B)False

Question 2

Employees are comfortable with the employee stock ownership plan because the federally established Pension Benefit Guaranty Corporation guarantees them their contribution to the plan.

Accepted Answer

A) True 
 B)False

Question 3

A weakness of profit-sharing plans is that employees do not have total control over the profitability of an organization.

Accepted Answer

A) True 
 B)False

Question 4

Piecework may be inappropriate where technology changes are frequent.

Accepted Answer

A) True 
 B)False

Question 5

The greatest influence on executive base salary is most likely:

Accepted Answer

A) the amount of short-term incentives received. 
B) the amount of long-term incentives received. 
C) the levels of competitive salaries in the job market. 
D) the time spent in the occupation. 
A) the amount of short-term incentives received. 
B) the amount of long-term incentives received. 
C) the levels of competitive salaries in the job market. 
D) the time spent in the occupation.

Question 6

Historically,incentive plans have not been a major element of strategic compensation management.

Accepted Answer

A) True 
 B)False

Question 7

Straight commission plans may induce salespeople to grant price concessions.

Accepted Answer

A) True 
 B)False

Question 8

According to Sammer,which of the following is NOT a characteristic of a successful incentive plan?

Accepted Answer

A) Identify important organizational metrics that encourage employee behavior. 
B) Involve employees and have incentive programs that seem fair to employees. 
C) Find technically detailed, quantitative, and extremely thorough payout formulas. 
D) Establish a clear link between performance and payout. 
A) Identify important organizational metrics that encourage employee behavior. 
B) Involve employees and have incentive programs that seem fair to employees. 
C) Find technically detailed, quantitative, and extremely thorough payout formulas. 
D) Establish a clear link between performance and payout.

Question 9

Compensation specialists recognize all the following generations of employees EXCEPT:

Accepted Answer

A) Generation X. 
B) Generation Y. 
C) Boomers. 
D) Synthesizers. 
A) Generation X. 
B) Generation Y. 
C) Boomers. 
D) Synthesizers.

Question 10

Major advantages of piecework systems are that the wage payment is simple to compute,and an organization can predict labor costs with reasonable accuracy.

Accepted Answer

A) True 
 B)False

Question 11

Fixed pay is more flexible than variable pay.

Accepted Answer

A) True 
 B)False

Question 12

Employees may not believe that their compensation is tied to effort and performance,and they may not be able to differentiate between merit pay and other types of pay increases.

Accepted Answer

A) True 
 B)False

Question 13

Generally,a bonus plan does not become part of an employee's base pay.

Accepted Answer

A) True 
 B)False

Question 14

Meshing compensation and organizational objectives help employees assume ownership of their jobs,thereby improving their effort and overall job performance.

Accepted Answer

A) True 
 B)False

Question 15

ESOPs have been criticized because a pensioner can become dependent on the stock price.

Accepted Answer

A) True 
 B)False

Question 16

Identify the principal methods for compensating salespersons and the advantages of each method.

Accepted Answer

Compensation plans for sales personnel m

Question 17

Noncash incentive rewards are most effective as motivators when the award is:

Accepted Answer

A) a complete surprise to the recipient. 
B) combined with a meaningful employee recognition program. 
C) increased every year it is given. 
D) tailored to individual employees. 
A) a complete surprise to the recipient. 
B) combined with a meaningful employee recognition program. 
C) increased every year it is given. 
D) tailored to individual employees.

Question 18

Enterprise incentive plans allow all organizational members to participate in the plan's payout.

Accepted Answer

A) True 
 B)False

Question 19

Rate busting refers to:

Accepted Answer

A) an increase in productivity due to external competition. 
B) an increase in output that results in the disapproval of fellow employees. 
C) setting incentive performance standards for employees. 
D) a decrease in productivity due to lack of motivation. 
A) an increase in productivity due to external competition. 
B) an increase in output that results in the disapproval of fellow employees. 
C) setting incentive performance standards for employees. 
D) a decrease in productivity due to lack of motivation.

Question 20

A problem with creating team incentive plans is that:

Accepted Answer

A) they encourage negativity rather than cooperative behavior. 
B) not all teams that are created are alike. 
C) they don't enable employees to share efficiency gains.. 
D) they pay only when agreed-upon standards are met or exceeded. 
A) they encourage negativity rather than cooperative behavior. 
B) not all teams that are created are alike. 
C) they don't enable employees to share efficiency gains.. 
D) they pay only when agreed-upon standards are met or exceeded.

The incentive payout under the Scanlon Plan is based upon increases in the sales volume of an organization's products.

Employees are comfortable with the employee stock ownership plan because the federally established Pension Benefit Guaranty Corporation guarantees them their contribution to the plan.

A weakness of profit-sharing plans is that employees do not have total control over the profitability of an organization.

Piecework may be inappropriate where technology changes are frequent.

The greatest influence on executive base salary is most likely:

Historically,incentive plans have not been a major element of strategic compensation management.

Straight commission plans may induce salespeople to grant price concessions.

According to Sammer,which of the following is NOT a characteristic of a successful incentive plan?

Compensation specialists recognize all the following generations of employees EXCEPT:

Major advantages of piecework systems are that the wage payment is simple to compute,and an organization can predict labor costs with reasonable accuracy.

Fixed pay is more flexible than variable pay.

Employees may not believe that their compensation is tied to effort and performance,and they may not be able to differentiate between merit pay and other types of pay increases.

Generally,a bonus plan does not become part of an employee's base pay.

Meshing compensation and organizational objectives help employees assume ownership of their jobs,thereby improving their effort and overall job performance.

ESOPs have been criticized because a pensioner can become dependent on the stock price.

Identify the principal methods for compensating salespersons and the advantages of each method.

Noncash incentive rewards are most effective as motivators when the award is:

Enterprise incentive plans allow all organizational members to participate in the plan's payout.

Rate busting refers to:

A problem with creating team incentive plans is that:

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 incentive payout under the Scanlon Plan is based upon increases in the sales volume of an organization's products.

Employees are comfortable with the employee stock ownership plan because the federally established Pension Benefit Guaranty Corporation guarantees them their contribution to the plan.

A weakness of profit-sharing plans is that employees do not have total control over the profitability of an organization.

Piecework may be inappropriate where technology changes are frequent.

The greatest influence on executive base salary is most likely:

Historically,incentive plans have not been a major element of strategic compensation management.

Straight commission plans may induce salespeople to grant price concessions.

According to Sammer,which of the following is NOT a characteristic of a successful incentive plan?

Compensation specialists recognize all the following generations of employees EXCEPT:

Major advantages of piecework systems are that the wage payment is simple to compute,and an organization can predict labor costs with reasonable accuracy.

Fixed pay is more flexible than variable pay.

Employees may not believe that their compensation is tied to effort and performance,and they may not be able to differentiate between merit pay and other types of pay increases.

Generally,a bonus plan does not become part of an employee's base pay.

Meshing compensation and organizational objectives help employees assume ownership of their jobs,thereby improving their effort and overall job performance.

ESOPs have been criticized because a pensioner can become dependent on the stock price.

Identify the principal methods for compensating salespersons and the advantages of each method.

Noncash incentive rewards are most effective as motivators when the award is:

Enterprise incentive plans allow all organizational members to participate in the plan's payout.

Rate busting refers to:

A problem with creating team incentive plans is that:

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