Question 1

Which of the following statements explains what it means to distribute team incentives equitably?

Accepted Answer

A) Team members are paid incentives that vary according to individual performance. 
B) Each team in the company receives the same amount of discretionary incentive dollars to distribute. 
C) Teams that are in competition with one another are paid incentives based on their relative performance. 
D) Each team member gets the same amount of bonus. 
A) Team members are paid incentives that vary according to individual performance. 
B) Each team in the company receives the same amount of discretionary incentive dollars to distribute. 
C) Teams that are in competition with one another are paid incentives based on their relative performance. 
D) Each team member gets the same amount of bonus.

Question 2

Larry has moved from being a top executive of a large corporation in the private sector to being CEO of a regional non-profit organization. He should expect little variable compensation.

Accepted Answer

A) True 
 B)False

Question 3

Lucerne Manufacturing is investigating the use of team incentives in its production plant. Each work group is composed of about 25 individuals. Given that you are the manager of HR, which of the following responses is the most appropriate for you to give?

Accepted Answer

A) expressing concern about the dilution of individual efforts on such large teams 
B) urging management to go forward with the plan because every job can benefit from increased teamwork 
C) recommending using equal payouts for each team member 
D) recommending that management wait to implement any team incentive plan because this may trigger a union-organizing attempt 
A) expressing concern about the dilution of individual efforts on such large teams 
B) urging management to go forward with the plan because every job can benefit from increased teamwork 
C) recommending using equal payouts for each team member 
D) recommending that management wait to implement any team incentive plan because this may trigger a union-organizing attempt

Question 4

A medium-sized law firm every year distributes a bonus to its employees based on the size of the cases it has won. Even though not every employee has worked on every case, the senior partners of the law firm feel that such a bonus motivates employees to cooperate with and assist one another in times of high workloads. Which type of incentive are they using?

Accepted Answer

A) team 
B) organizational 
C) individual 
D) group 
A) team 
B) organizational 
C) individual 
D) group

Question 5

Which of the following statements does NOT accurately characterize the Scanlon plan?

Accepted Answer

A) Employees share in pre-established cost savings based on employee effort. 
B) Research results indicate that productivity and quality are increased and costs are reduced. 
C) Formal employee participation is necessary. 
D) The norm is that worker bonuses are all paid out each time. 
A) Employees share in pre-established cost savings based on employee effort. 
B) Research results indicate that productivity and quality are increased and costs are reduced. 
C) Formal employee participation is necessary. 
D) The norm is that worker bonuses are all paid out each time.

Question 6

Give two examples of organizational incentives and explain how they link individual and firm performance.

Accepted Answer

Profit-sharing plans and ESOPs are two t

Question 7

A company wishes to evaluate the effectiveness of a pay-for-performance plan. In which of the following elements is it unnecessary to measure change?

Accepted Answer

A) return on investment 
B) sales productivity 
C) employee turnover 
D) total compensation costs 
A) return on investment 
B) sales productivity 
C) employee turnover 
D) total compensation costs

Question 8

Research shows that pay-for-performance works best when it is accompanied by something else. Which of these factors strengthens how well employees do?

Accepted Answer

A) directive supervision and strong central leadership 
B) an entrepreneurial and individualistic culture 
C) strong peer relationships among co-workers 
D) social recognition and performance feedback 
A) directive supervision and strong central leadership 
B) an entrepreneurial and individualistic culture 
C) strong peer relationships among co-workers 
D) social recognition and performance feedback

Question 9

Jessica is an employee for one of the largest corporations in Canada. She makes the average pay of workers in this organization. The CEO of Jessica's company earns many times more than what she earns. Which of the following numbers is the closest multiplier?

Accepted Answer

A) 200 
B) 10 
C) 50 
D) 100 
A) 200 
B) 10 
C) 50 
D) 100

Question 10

Arnold sells oil field equipment. He is paid 10 percent of the amount of the sales he has completed each quarter. This compensation is all that Arnold receives. Which type of pay system is he on?

Accepted Answer

A) retainer 
B) straight commission 
C) pay-as-you-go 
D) deferred compensation 
A) retainer 
B) straight commission 
C) pay-as-you-go 
D) deferred compensation

Question 11

Which of the following is the main reason executives value perks?

Accepted Answer

A) visible symbols of status 
B) linked to corporate performance 
C) deferrable until retirement 
D) low cost to the company 
A) visible symbols of status 
B) linked to corporate performance 
C) deferrable until retirement 
D) low cost to the company

Question 12

In order to motivate top corporate executives to focus on long-term organizational performance, which kinds of financial targets should incentives be based on?

Accepted Answer

A) monthly 
B) annual 
C) multiple year 
D) quarterly 
A) monthly 
B) annual 
C) multiple year 
D) quarterly

Question 13

CEO performance can be measured against non-financial objectives, such as customer satisfaction and market share.

Accepted Answer

A) True 
 B)False

Question 14

Enterprise incentive management systems are most useful for small firms that have difficulties in calculating complex sales commissions for their staff.

Accepted Answer

A) True 
 B)False

Question 15

When quality concerns are paramount, a piece-rate system of compensation is inappropriate.

Accepted Answer

A) True 
 B)False

Question 16

The ratio of executive pay to average employee pay in the United States is comparable to that of executives in other developed nations.

Accepted Answer

A) True 
 B)False

Question 17

What factors will contribute to a successful variable pay plan?

Accepted Answer

The variable pay plan is clear and under

Question 18

Which of the following is the main purpose of organizational incentives?

Accepted Answer

A) to aid in recruiting individualistic and entrepreneurial employees 
B) to create an organizational culture of ethical behaviour 
C) to reward each employee for the performance of the whole company 
D) to motivate functional competition among employees to increase total performance 
A) to aid in recruiting individualistic and entrepreneurial employees 
B) to create an organizational culture of ethical behaviour 
C) to reward each employee for the performance of the whole company 
D) to motivate functional competition among employees to increase total performance

Question 19

According to research, which of the following do managers who adopt an earnings-at-risk incentive plan NOT need to be aware of?

Accepted Answer

A) the importance of employee participation in developing the plan 
B) the need for an environment that does not put newer employees at a disadvantage 
C) the level of personal control employees have over targeted performance behaviours 
D) the negative reactions employees may have 
A) the importance of employee participation in developing the plan 
B) the need for an environment that does not put newer employees at a disadvantage 
C) the level of personal control employees have over targeted performance behaviours 
D) the negative reactions employees may have

Question 20

In the most common type of group or team incentive plan used by organizations, how are team members paid?

Accepted Answer

A) all team members paid the same base pay with varying bonuses based on individual contribution to the team's performance 
B) team members paid different base pay with varying bonuses based on individual contribution to the team's performance 
C) team members paid different base pay with equal bonuses based on team performance 
D) all team members paid the same base pay with equal bonuses based on team performance 
A) all team members paid the same base pay with varying bonuses based on individual contribution to the team's performance 
B) team members paid different base pay with varying bonuses based on individual contribution to the team's performance 
C) team members paid different base pay with equal bonuses based on team performance 
D) all team members paid the same base pay with equal bonuses based on team performance

Which of the following statements explains what it means to distribute team incentives equitably?

Larry has moved from being a top executive of a large corporation in the private sector to being CEO of a regional non-profit organization. He should expect little variable compensation.

Lucerne Manufacturing is investigating the use of team incentives in its production plant. Each work group is composed of about 25 individuals. Given that you are the manager of HR, which of the following responses is the most appropriate for you to give?

Which of the following statements does NOT accurately characterize the Scanlon plan?

Give two examples of organizational incentives and explain how they link individual and firm performance.

A company wishes to evaluate the effectiveness of a pay-for-performance plan. In which of the following elements is it unnecessary to measure change?

Research shows that pay-for-performance works best when it is accompanied by something else. Which of these factors strengthens how well employees do?

Jessica is an employee for one of the largest corporations in Canada. She makes the average pay of workers in this organization. The CEO of Jessica's company earns many times more than what she earns. Which of the following numbers is the closest multiplier?

Arnold sells oil field equipment. He is paid 10 percent of the amount of the sales he has completed each quarter. This compensation is all that Arnold receives. Which type of pay system is he on?

Which of the following is the main reason executives value perks?

In order to motivate top corporate executives to focus on long-term organizational performance, which kinds of financial targets should incentives be based on?

CEO performance can be measured against non-financial objectives, such as customer satisfaction and market share.

Enterprise incentive management systems are most useful for small firms that have difficulties in calculating complex sales commissions for their staff.

When quality concerns are paramount, a piece-rate system of compensation is inappropriate.

The ratio of executive pay to average employee pay in the United States is comparable to that of executives in other developed nations.

What factors will contribute to a successful variable pay plan?

Which of the following is the main purpose of organizational incentives?

According to research, which of the following do managers who adopt an earnings-at-risk incentive plan NOT need to be aware of?

In the most common type of group or team incentive plan used by organizations, how are team members paid?

Changing Nature of Human Resources Management

Strategic HR Management and Planning

Legal Environment of Equal Employment and Diversity

Redefining Jobs and Job Analysis

Recruiting in Labour Markets

Selection of Human Resources

Training Human Resources

Talent Management and Development

Performance Management and Appraisal

Compensation Strategies and Practices

Managing Employee Benefits

Health, Safety, and Security and Risk Management

Employee Rights and Discipline

Unionmanagement Relations

Filters

Exam 11: Variable Pay and Executive Compensation

Which of the following statements explains what it means to distribute team incentives equitably?

Larry has moved from being a top executive of a large corporation in the private sector to being CEO of a regional non-profit organization. He should expect little variable compensation.

Lucerne Manufacturing is investigating the use of team incentives in its production plant. Each work group is composed of about 25 individuals. Given that you are the manager of HR, which of the following responses is the most appropriate for you to give?

Which of the following statements does NOT accurately characterize the Scanlon plan?

Give two examples of organizational incentives and explain how they link individual and firm performance.

A company wishes to evaluate the effectiveness of a pay-for-performance plan. In which of the following elements is it unnecessary to measure change?

Research shows that pay-for-performance works best when it is accompanied by something else. Which of these factors strengthens how well employees do?

Jessica is an employee for one of the largest corporations in Canada. She makes the average pay of workers in this organization. The CEO of Jessica's company earns many times more than what she earns. Which of the following numbers is the closest multiplier?

Arnold sells oil field equipment. He is paid 10 percent of the amount of the sales he has completed each quarter. This compensation is all that Arnold receives. Which type of pay system is he on?

Which of the following is the main reason executives value perks?

In order to motivate top corporate executives to focus on long-term organizational performance, which kinds of financial targets should incentives be based on?

CEO performance can be measured against non-financial objectives, such as customer satisfaction and market share.

Enterprise incentive management systems are most useful for small firms that have difficulties in calculating complex sales commissions for their staff.

When quality concerns are paramount, a piece-rate system of compensation is inappropriate.

The ratio of executive pay to average employee pay in the United States is comparable to that of executives in other developed nations.

What factors will contribute to a successful variable pay plan?

Which of the following is the main purpose of organizational incentives?

According to research, which of the following do managers who adopt an earnings-at-risk incentive plan NOT need to be aware of?

In the most common type of group or team incentive plan used by organizations, how are team members paid?

Changing Nature of Human Resources Management

Strategic HR Management and Planning

Legal Environment of Equal Employment and Diversity

Redefining Jobs and Job Analysis

Recruiting in Labour Markets

Selection of Human Resources

Training Human Resources

Talent Management and Development

Performance Management and Appraisal

Compensation Strategies and Practices

Managing Employee Benefits

Health, Safety, and Security and Risk Management

Employee Rights and Discipline

Unionmanagement Relations

Filters