Question 1

_____ are special benefits:usually noncash items:for executives.

Accepted Answer

A)  Executive salaries 
B)  Base salaries 
C)  Perquisites 
D)  Golden parachutes 
A)  Executive salaries 
B)  Base salaries 
C)  Perquisites 
D)  Golden parachutes C

Question 2

Hikoma LLC, a toy manufacturer, provides employees with incentives depending on their individual performances. This best exemplifies _____.

Accepted Answer

A)  an employee stock plan 
B)  a commission 
C)  an executive stock option 
D)  a deferred compensation 
A)  an employee stock plan 
B)  a commission 
C)  an executive stock option 
D)  a deferred compensation B

Question 3

Which of the following is true of spot bonuses?

Accepted Answer

A)  They are only given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can be given for extra time worked. 
D)  They are given to a team and not to individual employees. 
A)  They are only given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can be given for extra time worked. 
D)  They are given to a team and not to individual employees. C

Question 4

Which of the following statements is true of the salary-only approach?

Accepted Answer

A)  The salary-only approach is useful when an organization emphasizes serving and retaining existing accounts. 
B)  The salary-only approach is useful when an organization emphasizes on generating new sales and accounts. 
C)  The salary-only approach is useful only when an organization is compensating experienced sales executives. 
D)  The salary-only approach is not useful in compensating sales representatives who are new to a job. 
A)  The salary-only approach is useful when an organization emphasizes serving and retaining existing accounts. 
B)  The salary-only approach is useful when an organization emphasizes on generating new sales and accounts. 
C)  The salary-only approach is useful only when an organization is compensating experienced sales executives. 
D)  The salary-only approach is not useful in compensating sales representatives who are new to a job.

Question 5

Team Spark LLC, a producer of consumer goods, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

Accepted Answer

A)  It provided group incentives; now it provides individual incentives. 
B)  It provided individual incentives; now it provides group incentives. 
C)  It provided group incentives; now it provides organizational incentives. 
D)  It provided individual incentives; now it provides organizational incentives. 
A)  It provided group incentives; now it provides individual incentives. 
B)  It provided individual incentives; now it provides group incentives. 
C)  It provided group incentives; now it provides organizational incentives. 
D)  It provided individual incentives; now it provides organizational incentives.

Question 6

To avoid conflict when team members determine the reward for other team members, they often_____.

Accepted Answer

A)  distribute the reward equally 
B)  give themselves a larger reward than other team members 
C)  give the team leader a larger reward than the team members 
D)  reward team membersbased on the amount of work performed by each person 
A)  distribute the reward equally 
B)  give themselves a larger reward than other team members 
C)  give the team leader a larger reward than the team members 
D)  reward team membersbased on the amount of work performed by each person

Question 7

An example ofgainsharingis_____.

Accepted Answer

A)  using employee committees to calculate and pass on savings to the employees 
B)  setting group piece-rate standards and paying weekly bonuses when those standardsare exceeded 
C)  identifying favorable employee behavior and rewarding employees who adhere to the set standards 
D)  using employee unions to encourage and promote a positive environment in an organization 
A)  using employee committees to calculate and pass on savings to the employees 
B)  setting group piece-rate standards and paying weekly bonuses when those standardsare exceeded 
C)  identifying favorable employee behavior and rewarding employees who adhere to the set standards 
D)  using employee unions to encourage and promote a positive environment in an organization

Question 8

Define gainsharing.

Accepted Answer

The system of sharing with emp

Question 9

Which of the following is a disadvantage associated with spot bonuses?

Accepted Answer

A)  They are typically given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can fuel jealousy among employees. 
D)  They are given to a team and not to individual employees. 
A)  They are typically given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can fuel jealousy among employees. 
D)  They are given to a team and not to individual employees.

Question 10

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

Accepted Answer

A) True 
 B)False

Question 11

A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.

Accepted Answer

A) True 
 B)False

Question 12

Describe the primary objectives of profit sharing plans.

Accepted Answer

The primary objectives of profit sharing

Question 13

The salary-only approach is useful only when an organization emphasizes generating new sales and accounts.

Accepted Answer

A) True 
 B)False

Question 14

Describe the conditions necessary for the use of individual incentives.

Accepted Answer

Individual incentive systems tie persona

Question 15

Explain commissions.

Accepted Answer

A commission is a percentage of the reve

Question 16

A draw is a system in which sales representatives can draw advance payments against future commissions.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is the most accurate metric of organizational performance in variable pay plans?

Accepted Answer

A)  Customer satisfaction 
B)  Accident rates 
C)  Revenue growth 
D)  Employee satisfaction 
A)  Customer satisfaction 
B)  Accident rates 
C)  Revenue growth 
D)  Employee satisfaction

Question 18

The "clawback" provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.

Accepted Answer

A)  Sarbanes-Oxley Act 
B)  Dodds-Frank Act 
C)  Lilly Ledbetter Fair Pay Act 
D)  Walsh-Healy Public Contracts Act 
A)  Sarbanes-Oxley Act 
B)  Dodds-Frank Act 
C)  Lilly Ledbetter Fair Pay Act 
D)  Walsh-Healy Public Contracts Act

Question 19

Group incentives are most likely to work efficiently if _____.

Accepted Answer

A)  the social pressure on members of the group is high 
B)  the individual performance level is clear 
C)  the incentive plan is imposed in the absence of employee input 
D)  individual performance cannot be identified 
A)  the social pressure on members of the group is high 
B)  the individual performance level is clear 
C)  the incentive plan is imposed in the absence of employee input 
D)  individual performance cannot be identified

Question 20

According to the provisions of the _____, publically listed companies now must allow shareholders to vote on executive compensation.

Accepted Answer

A)  Sarbanes-Oxley Act 
B)  Dodds-Frank Act 
C)  Lilly Ledbetter Fair Pay Act 
D)  Walsh-Healy Public Contracts Act 
A)  Sarbanes-Oxley Act 
B)  Dodds-Frank Act 
C)  Lilly Ledbetter Fair Pay Act 
D)  Walsh-Healy Public Contracts Act

_____ are special benefits:usually noncash items:for executives.

Hikoma LLC, a toy manufacturer, provides employees with incentives depending on their individual performances. This best exemplifies _____.

Which of the following is true of spot bonuses?

Which of the following statements is true of the salary-only approach?

Team Spark LLC, a producer of consumer goods, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

To avoid conflict when team members determine the reward for other team members, they often_____.

An example ofgainsharingis_____.

Define gainsharing.

Which of the following is a disadvantage associated with spot bonuses?

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.

Describe the primary objectives of profit sharing plans.

The salary-only approach is useful only when an organization emphasizes generating new sales and accounts.

Describe the conditions necessary for the use of individual incentives.

Explain commissions.

A draw is a system in which sales representatives can draw advance payments against future commissions.

Which of the following is the most accurate metric of organizational performance in variable pay plans?

The "clawback" provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.

Group incentives are most likely to work efficiently if _____.

According to the provisions of the _____, publically listed companies now must allow shareholders to vote on executive compensation.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual/Organization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

Filters

Exam 12: Variable Pay and Executive Compensation

_____ are special benefits:usually noncash items:for executives.

Hikoma LLC, a toy manufacturer, provides employees with incentives depending on their individual performances. This best exemplifies _____.

Which of the following is true of spot bonuses?

Which of the following statements is true of the salary-only approach?

Team Spark LLC, a producer of consumer goods, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

To avoid conflict when team members determine the reward for other team members, they often_____.

An example ofgainsharingis_____.

Define gainsharing.

Which of the following is a disadvantage associated with spot bonuses?

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard.

A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.

Describe the primary objectives of profit sharing plans.

The salary-only approach is useful only when an organization emphasizes generating new sales and accounts.

Describe the conditions necessary for the use of individual incentives.

Explain commissions.

A draw is a system in which sales representatives can draw advance payments against future commissions.

Which of the following is the most accurate metric of organizational performance in variable pay plans?

The "clawback" provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.

Group incentives are most likely to work efficiently if _____.

According to the provisions of the _____, publically listed companies now must allow shareholders to vote on executive compensation.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individual/Organization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

Filters