Question 1

AS early as 1984 management guru Peter F.Drucker argued that CEO pay had ________.

Accepted Answer

A)  fallen way too low 
B)  barely kept up with inflation 
C)  been too much influenced by government regulation 
D)  rocketed out of control 
A)  fallen way too low 
B)  barely kept up with inflation 
C)  been too much influenced by government regulation 
D)  rocketed out of control

Question 2

Incentive plans may fail because employees have little ability to affect performance standards.

Accepted Answer

A) True 
 B)False

Question 3

A bonus is supplemental to base wages.

Accepted Answer

A) True 
 B)False

Question 4

A grant of units equal in value to the fair market value or book value of a share of stock;on a specified date the executive will be paid the appreciation in the value of the units
Up to that time.This is known as:

Accepted Answer

A)  Stock appreciation rights 
B)  A stock purchase 
C)  Restricted stock 
D)  Phantom stock 
A)  Stock appreciation rights 
B)  A stock purchase 
C)  Restricted stock 
D)  Phantom stock

Question 5

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The philosophy behind the Scanlon Plan is that:

Accepted Answer

A)  employees should make suggestions to improve performance and be rewarded for their contributions. 
B)  organizational profits should improve through sales efforts. 
C)  managers and employees should establish quality and quantity goals for optimum organizational performance. 
D)  rewards are shared with employees based on improved profits. 
A)  employees should make suggestions to improve performance and be rewarded for their contributions. 
B)  organizational profits should improve through sales efforts. 
C)  managers and employees should establish quality and quantity goals for optimum organizational performance. 
D)  rewards are shared with employees based on improved profits.

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

If employees' pay is based not on the actual amount of time it takes them to complete a job but instead on a predetermined amount of time for completing the job,which incentive plan are they working under?

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 12

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

Question 13

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 14

When setting performance measures for incentive systems,we can say that the best measures are:

Accepted Answer

A)  quantitative,simple to understand,and show a clear relationship to improved performance. 
B)  qualitative,flexible,and create competition between employees. 
C)  those that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D)  those that reduce administrative costs,determine rewards based only on quantity,and reward only exceptional employees. 
A)  quantitative,simple to understand,and show a clear relationship to improved performance. 
B)  qualitative,flexible,and create competition between employees. 
C)  those that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D)  those that reduce administrative costs,determine rewards based only on quantity,and reward only exceptional employees.

Question 15

Briefly describe the Scanlon Plan.

Accepted Answer

The Scanlon Plan enables employees who o

Question 16

Studies have shown that variable pay plans may not achieve their proposed objectives or lead to organizational improvements due to each of the following,EXCEPT:

Accepted Answer

A)  incentive plans sometimes fail to satisfy employee expectations for pay gains 
B)  taxes are often a demotivator 
C)  management may have failed to give adequate attention to the design and implementation of the plan 
D)  employees may have little ability to affect performance standards 
A)  incentive plans sometimes fail to satisfy employee expectations for pay gains 
B)  taxes are often a demotivator 
C)  management may have failed to give adequate attention to the design and implementation of the plan 
D)  employees may have little ability to affect performance standards

AS early as 1984 management guru Peter F.Drucker argued that CEO pay had ________.

Incentive plans may fail because employees have little ability to affect performance standards.

A bonus is supplemental to base wages.

A grant of units equal in value to the fair market value or book value of a share of stock;on a specified date the executive will be paid the appreciation in the value of the units Up to that time.This is known as:

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:

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

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

The philosophy behind the Scanlon Plan is that:

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

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

If employees' pay is based not on the actual amount of time it takes them to complete a job but instead on a predetermined amount of time for completing the job,which incentive plan are they working under?

Piecework is appropriate when:

The greatest influence on executive base salary is most likely:

When setting performance measures for incentive systems,we can say that the best measures are:

Briefly describe the Scanlon Plan.

Studies have shown that variable pay plans may not achieve their proposed objectives or lead to organizational improvements due to each of the following,EXCEPT:

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

AS early as 1984 management guru Peter F.Drucker argued that CEO pay had ________.

Incentive plans may fail because employees have little ability to affect performance standards.

A bonus is supplemental to base wages.

A grant of units equal in value to the fair market value or book value of a share of stock;on a specified date the executive will be paid the appreciation in the value of the units Up to that time.This is known as:

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:

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

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

The philosophy behind the Scanlon Plan is that:

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

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

If employees' pay is based not on the actual amount of time it takes them to complete a job but instead on a predetermined amount of time for completing the job,which incentive plan are they working under?

Piecework is appropriate when:

The greatest influence on executive base salary is most likely:

When setting performance measures for incentive systems,we can say that the best measures are:

Briefly describe the Scanlon Plan.

Studies have shown that variable pay plans may not achieve their proposed objectives or lead to organizational improvements due to each of the following,EXCEPT:

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