Question 1

People tend to produce what is measured and rewarded.

Accepted Answer

A) True 
 B)False

Question 2

Gainsharing is an example of an incentive system that is "self-funding."

Accepted Answer

A) True 
 B)False

Question 3

When the primary goal is to serve and keep existing clients rather than generating new sales and accounts, which of the following approaches to compensating sales staff is useful?

Accepted Answer

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

Question 4

Research shows that social recognition increases employee productivity significantly even when no pay-for-performance system is in place.

Accepted Answer

A) True 
 B)False

Question 5

The Rucker plan offers an incentive to reduce production-related costs.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is associated with variable pay plans?

Accepted Answer

A) psychic satisfaction provided for employees 
B) methods of tying compensation to the Consumer Price Index (CPI) 
C) compensation that reflects the knowledge, skills, and abilities employees bring to the job 
D) additional tangible rewards given for performance beyond normal expectations 
A) psychic satisfaction provided for employees 
B) methods of tying compensation to the Consumer Price Index (CPI) 
C) compensation that reflects the knowledge, skills, and abilities employees bring to the job 
D) additional tangible rewards given for performance beyond normal expectations

Question 7

Which of the following is an example of a group or team variable pay system?

Accepted Answer

A) deferred compensation 
B) piece-rate 
C) goalsharing 
D) employee stock options 
A) deferred compensation 
B) piece-rate 
C) goalsharing 
D) employee stock options

Question 8

How does executive compensation differ from the compensation packages provided for other employees in the organization? Describe some of the incentives available for executives.

Accepted Answer

At the heart of most executive compensat

Question 9

A person who is individualistic with a desire to "win" would be a good match with a company that uses an organizational-level pay-for-performance system.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following provides an explanation of how a differential piece-rate system pays employees?

Accepted Answer

A) one piece-rate wage for standard production, but less if producing below quota 
B) one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard 
C) differential wages depending on the differing responsibilities in the production of each unit 
D) a higher rate per piece for employees with more experience and seniority 
A) one piece-rate wage for standard production, but less if producing below quota 
B) one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard 
C) differential wages depending on the differing responsibilities in the production of each unit 
D) a higher rate per piece for employees with more experience and seniority

Question 11

If a team incentive plan pays out the same bonus for each team member, most employees will be satisfied.

Accepted Answer

A) True 
 B)False

Question 12

Under which of these circumstances will an individual incentive system be counterproductive?

Accepted Answer

A) The organizational culture stresses individualism. 
B) There is a dynamic technological environment. 
C) The system results in competition among the employees. 
D) The organization emphasizes teamwork and cooperation. 
A) The organizational culture stresses individualism. 
B) There is a dynamic technological environment. 
C) The system results in competition among the employees. 
D) The organization emphasizes teamwork and cooperation.

Question 13

Gainsharing encourages employees to increase their discretionary effort because the extra effort will produce financial gains.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following conditions could hamper the successful use of group/team incentives?

Accepted Answer

A) Cooperation is necessary to do the jobs. 
B) Inability to distinguish individual performances. 
C) Perception among employees that the reward system is fair. 
D) The incentive plan is designed by HR with input from top management. 
A) Cooperation is necessary to do the jobs. 
B) Inability to distinguish individual performances. 
C) Perception among employees that the reward system is fair. 
D) The incentive plan is designed by HR with input from top management.

Question 15

Which of the following phrases best explains what a "draw" is?

Accepted Answer

A) a lump-sum payment or bonus at the end of the month 
B) a means of making a sales employee's pay less secure in order to motivate higher performance 
C) an amount advanced to a sales employee and repaid from future commissions 
D) a system by which sales employees "draw down" their sales quotas 
A) a lump-sum payment or bonus at the end of the month 
B) a means of making a sales employee's pay less secure in order to motivate higher performance 
C) an amount advanced to a sales employee and repaid from future commissions 
D) a system by which sales employees "draw down" their sales quotas

Question 16

Which of the following is NOT a typical performance measure used in gainsharing plans?

Accepted Answer

A) overtime hours 
B) raw materials cost 
C) labour costs 
D) quality levels 
A) overtime hours 
B) raw materials cost 
C) labour costs 
D) quality levels

Question 17

The most widely used long-term executive performance incentive is the ESOP.

Accepted Answer

A) True 
 B)False

Question 18

In one kind of gainsharing program, savings from productivity improvement in the number of work hours for a given number of units produced are shared between the company and the employees. Which of the following is the name of the program?

Accepted Answer

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

Question 19

The CEO of FiberMaster Textiles spoke with the CEO of Golden Fleece Manufacturing while at a conference. There, he learned that Golden Fleece has had great success in implementing an individual pay-for-performance system. The CEO of FiberMaster has directed the vice president of HR to implement the Golden Fleece method at FiberMaster. Which of the following questions should be the first that the HR vice president addresses?

Accepted Answer

A) Can the plan be administered properly? 
B) Does the plan fit with the business strategies and culture? 
C) Does the plan reward the appropriate employee actions? 
D) Can the company afford the plan? 
A) Can the plan be administered properly? 
B) Does the plan fit with the business strategies and culture? 
C) Does the plan reward the appropriate employee actions? 
D) Can the company afford the plan?

Question 20

Members of the board of directors who are also officers of the firm cannot serve on the firm's compensation committee.

Accepted Answer

A) True 
 B)False

People tend to produce what is measured and rewarded.

Gainsharing is an example of an incentive system that is "self-funding."

When the primary goal is to serve and keep existing clients rather than generating new sales and accounts, which of the following approaches to compensating sales staff is useful?

Research shows that social recognition increases employee productivity significantly even when no pay-for-performance system is in place.

The Rucker plan offers an incentive to reduce production-related costs.

Which of the following is associated with variable pay plans?

Which of the following is an example of a group or team variable pay system?

How does executive compensation differ from the compensation packages provided for other employees in the organization? Describe some of the incentives available for executives.

A person who is individualistic with a desire to "win" would be a good match with a company that uses an organizational-level pay-for-performance system.

Which of the following provides an explanation of how a differential piece-rate system pays employees?

If a team incentive plan pays out the same bonus for each team member, most employees will be satisfied.

Under which of these circumstances will an individual incentive system be counterproductive?

Gainsharing encourages employees to increase their discretionary effort because the extra effort will produce financial gains.

Which of the following conditions could hamper the successful use of group/team incentives?

Which of the following phrases best explains what a "draw" is?

Which of the following is NOT a typical performance measure used in gainsharing plans?

The most widely used long-term executive performance incentive is the ESOP.

In one kind of gainsharing program, savings from productivity improvement in the number of work hours for a given number of units produced are shared between the company and the employees. Which of the following is the name of the program?

Members of the board of directors who are also officers of the firm cannot serve on the firm's compensation committee.

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

People tend to produce what is measured and rewarded.

Gainsharing is an example of an incentive system that is "self-funding."

When the primary goal is to serve and keep existing clients rather than generating new sales and accounts, which of the following approaches to compensating sales staff is useful?

Research shows that social recognition increases employee productivity significantly even when no pay-for-performance system is in place.

The Rucker plan offers an incentive to reduce production-related costs.

Which of the following is associated with variable pay plans?

Which of the following is an example of a group or team variable pay system?

How does executive compensation differ from the compensation packages provided for other employees in the organization? Describe some of the incentives available for executives.

A person who is individualistic with a desire to "win" would be a good match with a company that uses an organizational-level pay-for-performance system.

Which of the following provides an explanation of how a differential piece-rate system pays employees?

If a team incentive plan pays out the same bonus for each team member, most employees will be satisfied.

Under which of these circumstances will an individual incentive system be counterproductive?

Gainsharing encourages employees to increase their discretionary effort because the extra effort will produce financial gains.

Which of the following conditions could hamper the successful use of group/team incentives?

Which of the following phrases best explains what a "draw" is?

Which of the following is NOT a typical performance measure used in gainsharing plans?

The most widely used long-term executive performance incentive is the ESOP.

In one kind of gainsharing program, savings from productivity improvement in the number of work hours for a given number of units produced are shared between the company and the employees. Which of the following is the name of the program?

Members of the board of directors who are also officers of the firm cannot serve on the firm's compensation committee.

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