Question 1

Executive compensation consists of all of the following except:

Accepted Answer

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

Question 2

What are the pros and cons of high executive pay?

Accepted Answer

Pros: Large financial incentives reward

Question 3

Perquisites are special benefits given to executive employees.

Accepted Answer

A) True 
 B)False

Question 4

The gainsharing plan that has as its most significant feature effective employee participation through committee representation is:

Accepted Answer

A)  profit sharing. 
B)  the Rucker Plan. 
C)  the Scanlon Plan. 
D)  Improshare. 
A)  profit sharing. 
B)  the Rucker Plan. 
C)  the Scanlon Plan. 
D)  Improshare.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

According to the National Center for Employee Ownership,in 2010 approximately _____ organizations have employee stock ownership plans

Accepted Answer

A)  3,500 
B)  10,500 
C)  17,500 
D)  24,500 
A)  3,500 
B)  10,500 
C)  17,500 
D)  24,500

Question 8

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

Accepted Answer

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

Question 9

Team bonuses may be paid out equally to each team member,in proportion to their base pay,or in proportion to their relative contribution to the team.

Accepted Answer

A) True 
 B)False

Question 10

The operation of a merit pay plan depends on the effectiveness of the performance appraisal system.

Accepted Answer

A) True 
 B)False

Question 11

More than _____ of companies globally are offering variable pay programs.

Accepted Answer

A)  20 percent 
B)  40 percent 
C)  60 percent 
D)  80 percent 
A)  20 percent 
B)  40 percent 
C)  60 percent 
D)  80 percent

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Compensation committees justify large executive compensation packages for all of the following reasons except:

Accepted Answer

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

Question 14

A compensation plan that compensates sales employees based on a percentage of sales is known as a:

Accepted Answer

A)  straight ratio plan. 
B)  straight salary plan. 
C)  straight commission plan. 
D)  straight bonus plan. 
A)  straight ratio plan. 
B)  straight salary plan. 
C)  straight commission plan. 
D)  straight bonus plan.

Question 15

Disadvantages of profit sharing include all of the following except:

Accepted Answer

A)  because payments are made only once a year,they may lose their motivational value. 
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)  because payments are made only once a year,they may lose their motivational value. 
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 16

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

Accepted Answer

A) True 
 B)False

Question 17

In order for organizations to minimize the problems of merit raises,they should use:

Accepted Answer

A)  labor market comparisons. 
B)  employee input. 
C)  merit guidelines. 
D)  the opinions of several managers. 
A)  labor market comparisons. 
B)  employee input. 
C)  merit guidelines. 
D)  the opinions of several managers.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT one of the simple rules for maintaining motivation among professionals?

Accepted Answer

A)  provide clear goals 
B)  give prompt feedback 
C)  reward performance quickly 
D)  eliminate autonomy in work 
A)  provide clear goals 
B)  give prompt feedback 
C)  reward performance quickly 
D)  eliminate autonomy in work

Question 20

Which of the following is an individual type of incentive plan?

Accepted Answer

A)  Improshare 
B)  lump sum merit pay 
C)  stock options 
D)  employee stock ownership plans 
A)  Improshare 
B)  lump sum merit pay 
C)  stock options 
D)  employee stock ownership plans

Executive compensation consists of all of the following except:

What are the pros and cons of high executive pay?

Perquisites are special benefits given to executive employees.

The gainsharing plan that has as its most significant feature effective employee participation through committee representation is:

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

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

According to the National Center for Employee Ownership,in 2010 approximately _____ organizations have employee stock ownership plans

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

Team bonuses may be paid out equally to each team member,in proportion to their base pay,or in proportion to their relative contribution to the team.

The operation of a merit pay plan depends on the effectiveness of the performance appraisal system.

More than _____ of companies globally are offering variable pay programs.

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

Compensation committees justify large executive compensation packages for all of the following reasons except:

A compensation plan that compensates sales employees based on a percentage of sales is known as a:

Disadvantages of profit sharing include all of the following except:

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

In order for organizations to minimize the problems of merit raises,they should use:

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

Which of the following is NOT one of the simple rules for maintaining motivation among professionals?

Which of the following is an individual type of incentive 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

Executive compensation consists of all of the following except:

What are the pros and cons of high executive pay?

Perquisites are special benefits given to executive employees.

The gainsharing plan that has as its most significant feature effective employee participation through committee representation is:

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

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

According to the National Center for Employee Ownership,in 2010 approximately _____ organizations have employee stock ownership plans

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

Team bonuses may be paid out equally to each team member,in proportion to their base pay,or in proportion to their relative contribution to the team.

The operation of a merit pay plan depends on the effectiveness of the performance appraisal system.

More than _____ of companies globally are offering variable pay programs.

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

Compensation committees justify large executive compensation packages for all of the following reasons except:

A compensation plan that compensates sales employees based on a percentage of sales is known as a:

Disadvantages of profit sharing include all of the following except:

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

In order for organizations to minimize the problems of merit raises,they should use:

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

Which of the following is NOT one of the simple rules for maintaining motivation among professionals?

Which of the following is an individual type of incentive 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