Exam 5: Performance Pay Choices

As the owner of a real estate firm with multi-office operations,you provide a bonus to all sales personnel in the highest-producing office each month.What type of performance pay plan are you using?

Which of the following terms is used to describe pay that is geared only to the volume of sales or transactions,with no base pay component?

When should the proportion of base pay relative to commission be higher?

Which of the following is not a suitable condition for merit pay?

Profit sharing plans can reduce the need for employee supervision.

Individual performance pay plans generally focus on promoting which type of behaviour?

These plans are set up so that a payout is contingent on the achievement of three- to five-year performance goals.

Which of the following best explains why,despite their motivational potential,piece rate systems often do not motivate maximum effort?

What do employees receive under an employee stock bonus plan?

Which of the following statements refers to a targeted incentive?

Which of the following managerial practices,combined with an employee stock plan,will increase the performance effects of employee ownership?

When is profit sharing most important to a company?

What differentiates merit pay from other types of performance pay,such as piece rates,sales commissions,and target incentives?

There are three types of profit sharing plans discussed in the text.Identify and briefly explain each of them.

Which of the following statements best describes a merit raise?

The three types of profit sharing plans are the current distribution plan,the deferred payout plan,and the amortization plan.

From an employer's point of view,what is the most attractive feature of gain-sharing plans?

In general,individual performance pay fits best with which managerial strategy?

Employee stock plans are simpler to implement in privately-held rather than publicly-traded corporations.

Attendance programs are less risky for organizations in which intrinsic motivation is low in the first place.