Question 1

A popular and prevalent method used in many different industries for motivating and compensating hourly,salaried,and executive personnel is:

Accepted Answer

A)  Rucker Plan 
B)  Stock options 
C)  Scanlon Plan 
D)  perquisites 
A)  Rucker Plan 
B)  Stock options 
C)  Scanlon Plan 
D)  perquisites

Question 2

Team incentive bonuses may be paid out in all of the following ways except:

Accepted Answer

A)  distributed equally among team members 
B)  distributed in proportion to each member's base pay 
C)  distributed in proportion to each member's relative contribution to the team 
D)  distributed on the basis of individual performance appraisal 
A)  distributed equally among team members 
B)  distributed in proportion to each member's base pay 
C)  distributed in proportion to each member's relative contribution to the team 
D)  distributed on the basis of individual performance appraisal

Question 3

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is:

Accepted Answer

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

Question 4

The straight commission plan is limited by all of the following disadvantages,EXCEPT:

Accepted Answer

A)  Salespeople will stress low-priced products 
B)  Customer service after the sale is likely to be neglected 
C)  Earnings tend to fluctuate widely between good and poor periods of business,and
Turnover of trained sales employees tends to increase in poor periods 
D)  Salespeople are tempted to grant price concessions 
A)  Salespeople will stress low-priced products 
B)  Customer service after the sale is likely to be neglected 
C)  Earnings tend to fluctuate widely between good and poor periods of business,and
Turnover of trained sales employees tends to increase in poor periods 
D)  Salespeople are tempted to grant price concessions

Question 5

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)  Incentive payouts are fixed costs linked to the achievement of results. 
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)  Incentive payouts are fixed costs linked to the achievement of results. 
D)  Incentives are a means to reward or attract top performers when salary budgets are low.

Question 6

Group incentive plans include:

Accepted Answer

A)  Standard hour plan 
B)  Improshare 
C)  Stock options 
D)  Sales incentives 
A)  Standard hour plan 
B)  Improshare 
C)  Stock options 
D)  Sales incentives

Question 7

Under an employee stock ownership plan,employees do not actually buy shares in an ESOP.

Accepted Answer

A) True 
 B)False

Question 8

The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes.The piece rate would be ____ per unit

Accepted Answer

A)  $1.95 
B)  $2.55 
C)  $2.95 
D)  $3.15 
A)  $1.95 
B)  $2.55 
C)  $2.95 
D)  $3.15

Question 9

Incentive plans can create an organizational environment of "shared commitment" since individuals contribute to organizational success.

Accepted Answer

A) True 
 B)False

Question 10

In 2011,a study by the American Psychological Association found that _____ of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.

Accepted Answer

A)  16 percent 
B)  25 percent 
C)  34 percent 
D)  43 percent 
A)  16 percent 
B)  25 percent 
C)  34 percent 
D)  43 percent

Question 11

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

Accepted Answer

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

Question 12

Differential piece rate plans guarantee employees at least a base pay.

Accepted Answer

A) True 
 B)False

Question 13

When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity,which type of gainsharing program is being used?

Accepted Answer

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

Question 14

Under a Scanlon or Improshare program,psychological ownership can play a stronger role in employee performance than financial ownership.

Accepted Answer

A) True 
 B)False

Question 15

A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period,which does not require executive financing is known as:

Accepted Answer

A)  Phantom stock 
B)  Stock appreciation rights 
C)  Restricted stock 
D)  Performance shares 
A)  Phantom stock 
B)  Stock appreciation rights 
C)  Restricted stock 
D)  Performance shares

Question 16

Incentive plans based on productivity can reduce labor costs.

Accepted Answer

A) True 
 B)False

Question 17

The performance threshold in incentive pay programs is:

Accepted Answer

A)  piecework 
B)  a minimum level an employee must reach in order to qualify for variable pay 
C)  an organizational objective that signifies profitability 
D)  an entitlement program 
A)  piecework 
B)  a minimum level an employee must reach in order to qualify for variable pay 
C)  an organizational objective that signifies profitability 
D)  an entitlement program

Question 18

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Accepted Answer

A)  3 to 5 percent 
B)  7 to 9 percent 
C)  11 to 13 percent 
D)  15 to 17 percent 
A)  3 to 5 percent 
B)  7 to 9 percent 
C)  11 to 13 percent 
D)  15 to 17 percent

Question 19

Research clearly shows that noncash incentive awards are most effective as motivators when the award is combined with a meaningful employee recognition program.

Accepted Answer

A) True 
 B)False

Question 20

ESOPs can qualify as tax-exempt employee trusts under section ____ of the Internal Revenue Code.

Accepted Answer

A)  402(k) 
B)  457(k) 
C)  401(k) 
D)  407(k) 
A)  402(k) 
B)  457(k) 
C)  401(k) 
D)  407(k)

A popular and prevalent method used in many different industries for motivating and compensating hourly,salaried,and executive personnel is:

Team incentive bonuses may be paid out in all of the following ways except:

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is:

The straight commission plan is limited by all of the following disadvantages,EXCEPT:

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

Group incentive plans include:

Under an employee stock ownership plan,employees do not actually buy shares in an ESOP.

The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes.The piece rate would be ____ per unit

Incentive plans can create an organizational environment of "shared commitment" since individuals contribute to organizational success.

In 2011,a study by the American Psychological Association found that _____ of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.

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

Differential piece rate plans guarantee employees at least a base pay.

When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity,which type of gainsharing program is being used?

Under a Scanlon or Improshare program,psychological ownership can play a stronger role in employee performance than financial ownership.

A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period,which does not require executive financing is known as:

Incentive plans based on productivity can reduce labor costs.

The performance threshold in incentive pay programs is:

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Research clearly shows that noncash incentive awards are most effective as motivators when the award is combined with a meaningful employee recognition program.

ESOPs can qualify as tax-exempt employee trusts under section ____ of the Internal Revenue Code.

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

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Exam 10: Pay-For-Performance: Incentive Rewards

A popular and prevalent method used in many different industries for motivating and compensating hourly,salaried,and executive personnel is:

Team incentive bonuses may be paid out in all of the following ways except:

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is:

The straight commission plan is limited by all of the following disadvantages,EXCEPT:

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

Group incentive plans include:

Under an employee stock ownership plan,employees do not actually buy shares in an ESOP.

The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes.The piece rate would be ____ per unit

Incentive plans can create an organizational environment of "shared commitment" since individuals contribute to organizational success.

In 2011,a study by the American Psychological Association found that _____ of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.

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

Differential piece rate plans guarantee employees at least a base pay.

When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity,which type of gainsharing program is being used?

Under a Scanlon or Improshare program,psychological ownership can play a stronger role in employee performance than financial ownership.

A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period,which does not require executive financing is known as:

Incentive plans based on productivity can reduce labor costs.

The performance threshold in incentive pay programs is:

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Research clearly shows that noncash incentive awards are most effective as motivators when the award is combined with a meaningful employee recognition program.

ESOPs can qualify as tax-exempt employee trusts under section ____ of the Internal Revenue Code.

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