Question 1

The most common group or team incentives are gainsharing or goalsharing goals.

Accepted Answer

A) True 
 B)False

Question 2

It is not always appropriate to link pay to performance.

Accepted Answer

A) True 
 B)False

Question 3

At its annual awards banquet, a company gave all employees who had been with it 20 years or more their choice of a cruise or a week at a resort. How is the award most associated with this type of special incentive program best described?

Accepted Answer

A) golden handshake 
B) recognition 
C) service 
D) performance 
A) golden handshake 
B) recognition 
C) service 
D) performance

Question 4

The addition of e-sales to sales generated by traditional personal-selling techniques has simplified the compensation of organizational sales staff.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following terms is most associated with use of the company helicopter, country club memberships, first-class air travel, and a chauffeured limousine?

Accepted Answer

A) perquisites 
B) golden handcuffs 
C) motivators 
D) executive mandates 
A) perquisites 
B) golden handcuffs 
C) motivators 
D) executive mandates

Question 6

Which of the following statements is TRUE about sales incentive plans?

Accepted Answer

A) Sales targets are effective in generating sales productivity over targets in most cases. 
B) Sales incentive plans are frequently changed in most firms. 
C) Sales staff are most satisfied when they are paid on straight commission plans because they are simple to calculate and result in high payouts. 
D) Most companies are satisfied with their sales incentive plans. 
A) Sales targets are effective in generating sales productivity over targets in most cases. 
B) Sales incentive plans are frequently changed in most firms. 
C) Sales staff are most satisfied when they are paid on straight commission plans because they are simple to calculate and result in high payouts. 
D) Most companies are satisfied with their sales incentive plans.

Question 7

The board of directors of Clementine Minerals and Mining (CMM) has been challenged by shareholders about the total compensation of the CEO. In order to examine whether the CEO's pay is reasonable, the board of directors is addressing all of the following questions but one. Which question has it most likely chosen to ignore?

Accepted Answer

A) Would another company hire this CEO? 
B) How does the CEO's compensation compare with that of CEOs in other companies in the same industry? 
C) What would an investor pay for the CEO's level of performance? 
D) Is the CEO's pay more than 20 times higher than the pay of the average employee at CMM? 
A) Would another company hire this CEO? 
B) How does the CEO's compensation compare with that of CEOs in other companies in the same industry? 
C) What would an investor pay for the CEO's level of performance? 
D) Is the CEO's pay more than 20 times higher than the pay of the average employee at CMM?

Question 8

Which of the following statements best describes the Rucker plan's approach to gainsharing?

Accepted Answer

A) The ratio measuring the gain compares labour costs to the value added in production. 
B) The gain is the decrease in labour hours needed to produce a unit of product. 
C) Employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. 
D) Base wage dissatisfaction is created that, in turn, triggers greater effort directed toward performance. 
A) The ratio measuring the gain compares labour costs to the value added in production. 
B) The gain is the decrease in labour hours needed to produce a unit of product. 
C) Employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. 
D) Base wage dissatisfaction is created that, in turn, triggers greater effort directed toward performance.

Question 9

Piece-rate pay systems encourage work-safe practices.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following criteria does NOT provide a reliable base for allocating profits among employees?

Accepted Answer

A) each employee's earnings 
B) the union status of each employee 
C) the performance level of each employee 
D) each employee's years of service with the company 
A) each employee's earnings 
B) the union status of each employee 
C) the performance level of each employee 
D) each employee's years of service with the company

Question 11

In designing the company's new team incentive plan, the vice president of HR wishes to make a strong link between the team's efforts and their effective performance. Which of the following periods is the way incentive payouts should be timed to achieve this?

Accepted Answer

A) quarterly 
B) annually 
C) semi-annually 
D) monthly 
A) quarterly 
B) annually 
C) semi-annually 
D) monthly

Question 12

Trident Industries sends employees their annual incentive pay in separate cheques rather than in their regular paycheques. Although this practice requires extra expense, which of the following is it intended to achieve?

Accepted Answer

A) to make clear to the employees that they have to re-earn their bonus every year 
B) to ease employee income tax preparation 
C) to highlight the difference in pay among employees 
D) to pay a large bonus at the end of the year when employees most need it 
A) to make clear to the employees that they have to re-earn their bonus every year 
B) to ease employee income tax preparation 
C) to highlight the difference in pay among employees 
D) to pay a large bonus at the end of the year when employees most need it

Question 13

A consultant presenting a group/team incentive plan proposal stresses that the money to be used as incentive rewards will be generated by improved organizational performance. Which of the following principles is at work in such a plan?

Accepted Answer

A) zero investment 
B) pay-as-you-go 
C) financial independence 
D) self-funding 
A) zero investment 
B) pay-as-you-go 
C) financial independence 
D) self-funding

Question 14

Describe the various methods of compensating sales employees.

Accepted Answer

Compensation paid to sales or marketing

Question 15

From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?

Accepted Answer

A) favourable tax treatment on earnings earmarked for use in the ESOP 
B) reduction of financial risk for employees and consequent reduction in employee turnover rate 
C) increased protection against union-organizing attempts 
D) increased employee productivity 
A) favourable tax treatment on earnings earmarked for use in the ESOP 
B) reduction of financial risk for employees and consequent reduction in employee turnover rate 
C) increased protection against union-organizing attempts 
D) increased employee productivity

Question 16

One effect of variable pay plans is to increase the competition among individuals. Which type of incentive is at work?

Accepted Answer

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

Question 17

Which of the following is classified as an individual variable pay plan?

Accepted Answer

A) cost reduction 
B) profit sharing 
C) employee stock options 
D) piece-rate 
A) cost reduction 
B) profit sharing 
C) employee stock options 
D) piece-rate

Question 18

Which of the following is the most frequently used form of sales compensation?

Accepted Answer

A) salary plus commission 
B) straight commission 
C) draw 
D) differential commission 
A) salary plus commission 
B) straight commission 
C) draw 
D) differential commission

Question 19

In a TV interview, the CEO of Trevelyan, Inc., observed that the pay-for-performance system was working extremely well at her company. She explained it this way: "Now everyone is pulling in the same direction." Which of the following statements best clarifies what the CEO meant?

Accepted Answer

A) Important HR objectives, such as reduction in turnover and better attendance, have been achieved. 
B) Employees are receiving higher total compensation. 
C) The system is linking employee performance with the organization's strategic goals. 
D) Employees are better aware of when their performance is outstanding. 
A) Important HR objectives, such as reduction in turnover and better attendance, have been achieved. 
B) Employees are receiving higher total compensation. 
C) The system is linking employee performance with the organization's strategic goals. 
D) Employees are better aware of when their performance is outstanding.

Question 20

In one kind of gainsharing program, the employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. Which of the following is the name of the program?

Accepted Answer

A) Scanlon plan 
B) Improshare 
C) earnings-at-risk 
D) Rucker plan 
A) Scanlon plan 
B) Improshare 
C) earnings-at-risk 
D) Rucker plan

The most common group or team incentives are gainsharing or goalsharing goals.

It is not always appropriate to link pay to performance.

At its annual awards banquet, a company gave all employees who had been with it 20 years or more their choice of a cruise or a week at a resort. How is the award most associated with this type of special incentive program best described?

The addition of e-sales to sales generated by traditional personal-selling techniques has simplified the compensation of organizational sales staff.

Which of the following terms is most associated with use of the company helicopter, country club memberships, first-class air travel, and a chauffeured limousine?

Which of the following statements is TRUE about sales incentive plans?

Which of the following statements best describes the Rucker plan's approach to gainsharing?

Piece-rate pay systems encourage work-safe practices.

Which of the following criteria does NOT provide a reliable base for allocating profits among employees?

In designing the company's new team incentive plan, the vice president of HR wishes to make a strong link between the team's efforts and their effective performance. Which of the following periods is the way incentive payouts should be timed to achieve this?

Trident Industries sends employees their annual incentive pay in separate cheques rather than in their regular paycheques. Although this practice requires extra expense, which of the following is it intended to achieve?

A consultant presenting a group/team incentive plan proposal stresses that the money to be used as incentive rewards will be generated by improved organizational performance. Which of the following principles is at work in such a plan?

Describe the various methods of compensating sales employees.

From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?

One effect of variable pay plans is to increase the competition among individuals. Which type of incentive is at work?

Which of the following is classified as an individual variable pay plan?

Which of the following is the most frequently used form of sales compensation?

In a TV interview, the CEO of Trevelyan, Inc., observed that the pay-for-performance system was working extremely well at her company. She explained it this way: "Now everyone is pulling in the same direction." Which of the following statements best clarifies what the CEO meant?

In one kind of gainsharing program, the employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. Which of the following is the name of the program?

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

The most common group or team incentives are gainsharing or goalsharing goals.

It is not always appropriate to link pay to performance.

At its annual awards banquet, a company gave all employees who had been with it 20 years or more their choice of a cruise or a week at a resort. How is the award most associated with this type of special incentive program best described?

The addition of e-sales to sales generated by traditional personal-selling techniques has simplified the compensation of organizational sales staff.

Which of the following terms is most associated with use of the company helicopter, country club memberships, first-class air travel, and a chauffeured limousine?

Which of the following statements is TRUE about sales incentive plans?

Which of the following statements best describes the Rucker plan's approach to gainsharing?

Piece-rate pay systems encourage work-safe practices.

Which of the following criteria does NOT provide a reliable base for allocating profits among employees?

In designing the company's new team incentive plan, the vice president of HR wishes to make a strong link between the team's efforts and their effective performance. Which of the following periods is the way incentive payouts should be timed to achieve this?

Trident Industries sends employees their annual incentive pay in separate cheques rather than in their regular paycheques. Although this practice requires extra expense, which of the following is it intended to achieve?

A consultant presenting a group/team incentive plan proposal stresses that the money to be used as incentive rewards will be generated by improved organizational performance. Which of the following principles is at work in such a plan?

Describe the various methods of compensating sales employees.

From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?

One effect of variable pay plans is to increase the competition among individuals. Which type of incentive is at work?

Which of the following is classified as an individual variable pay plan?

Which of the following is the most frequently used form of sales compensation?

In a TV interview, the CEO of Trevelyan, Inc., observed that the pay-for-performance system was working extremely well at her company. She explained it this way: "Now everyone is pulling in the same direction." Which of the following statements best clarifies what the CEO meant?

In one kind of gainsharing program, the employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. Which of the following is the name of the program?

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