Question 1

Which of the following is typically classified as an organizational incentive?

Accepted Answer

A)  Commissions 
B)  Group team results 
C)  Executive stock options 
D)  Cost reductions 
A)  Commissions 
B)  Group team results 
C)  Executive stock options 
D)  Cost reductions

Question 2

Recognition awards ensure that the award winners are determined objectively.

Accepted Answer

A) True 
 B)False

Question 3

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

Accepted Answer

The philosophical foundation of variable

Question 4

Which of the following is a metric of sales programs in variable pay plans?

Accepted Answer

A)  Return on investment 
B)  Turnover costs 
C)  Accident rates 
D)  Increase in market share 
A)  Return on investment 
B)  Turnover costs 
C)  Accident rates 
D)  Increase in market share

Question 5

Describe the two primary ways of distributing work unit/team incentives.

Accepted Answer

The two primary ways for distributing th

Question 6

Explain profit sharing.

Accepted Answer

As the name implies, profit sharing dist

Question 7

Which of the following statements is true of discretionary efforts?

Accepted Answer

A)  It is the difference between the amount of effort a person has exerted and the minimum amount of effort that he or she needs to exert to keep from being fired. 
B)  It is the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired. 
C)  It is the difference between the maximum amount of effort a person can exert and the amount of effort a person has exerted while on-the-job. 
D)  It is the difference between the amount of effort a person has exerted and the maximum amount of effort that a person can exert while on-the-job. 
A)  It is the difference between the amount of effort a person has exerted and the minimum amount of effort that he or she needs to exert to keep from being fired. 
B)  It is the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired. 
C)  It is the difference between the maximum amount of effort a person can exert and the amount of effort a person has exerted while on-the-job. 
D)  It is the difference between the amount of effort a person has exerted and the maximum amount of effort that a person can exert while on-the-job.

Question 8

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Accepted Answer

A) True 
 B)False

Question 9

Compensation is given in the form of incentivesbecause it isan effectiveway tomotivate employees,improve corporate performance, and increase stock values.

Accepted Answer

A) True 
 B)False

Question 10

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Accepted Answer

A) True 
 B)False

Question 11

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Accepted Answer

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

Question 12

Variable pay is _____.

Accepted Answer

A)  compensation that is tied to the employee's performance 
B)  compensation that is tied to the employee's seniority 
C)  compensation that is tied to the employee's ethnicity 
D)  compensation that is tied to the employee's qualification 
A)  compensation that is tied to the employee's performance 
B)  compensation that is tied to the employee's seniority 
C)  compensation that is tied to the employee's ethnicity 
D)  compensation that is tied to the employee's qualification

Question 13

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Accepted Answer

A) True 
 B)False

Question 14

Describe the different types of sales compensation plans.

Accepted Answer

Sales compensation plans can be of three

Question 15

Explain bonuses.

Accepted Answer

Individual employees may receive additio

Question 16

Why do employers use variable pay?

Accepted Answer

Employers adopt variable pay for many re

Question 17

Which of the following statements is true of commissions and tips?

Accepted Answer

A)  Tips are paid by the employer; commissions are paid by the customer. 
B)  Both tips and commissions are paid by the customer. 
C)  Both tips and commissions are paid by the employer. 
D)  Tips are paid by the customer; commissions are paid by the employer. 
A)  Tips are paid by the employer; commissions are paid by the customer. 
B)  Both tips and commissions are paid by the customer. 
C)  Both tips and commissions are paid by the employer. 
D)  Tips are paid by the customer; commissions are paid by the employer.

Question 18

What are employee stock ownership plans?

Accepted Answer

Employee stock ownership plans

Question 19

Group incentives is least likely to work if _____.

Accepted Answer

A)  most of the members are free riders 
B)  cooperation is necessary to do the job 
C)  the reward is distributed equally among the members 
D)  the reward involved is in the form of cash 
A)  most of the members are free riders 
B)  cooperation is necessary to do the job 
C)  the reward is distributed equally among the members 
D)  the reward involved is in the form of cash

Question 20

Explain perquisites.

Accepted Answer

Perquisites (Perks) are special benefits

Which of the following is typically classified as an organizational incentive?

Recognition awards ensure that the award winners are determined objectively.

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

Which of the following is a metric of sales programs in variable pay plans?

Describe the two primary ways of distributing work unit/team incentives.

Explain profit sharing.

Which of the following statements is true of discretionary efforts?

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Compensation is given in the form of incentivesbecause it isan effectiveway tomotivate employees,improve corporate performance, and increase stock values.

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Variable pay is _____.

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Describe the different types of sales compensation plans.

Explain bonuses.

Why do employers use variable pay?

Which of the following statements is true of commissions and tips?

What are employee stock ownership plans?

Group incentives is least likely to work if _____.

Explain perquisites.

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

Which of the following is typically classified as an organizational incentive?

Recognition awards ensure that the award winners are determined objectively.

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

Which of the following is a metric of sales programs in variable pay plans?

Describe the two primary ways of distributing work unit/team incentives.

Explain profit sharing.

Which of the following statements is true of discretionary efforts?

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Compensation is given in the form of incentivesbecause it isan effectiveway tomotivate employees,improve corporate performance, and increase stock values.

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Variable pay is _____.

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Describe the different types of sales compensation plans.

Explain bonuses.

Why do employers use variable pay?

Which of the following statements is true of commissions and tips?

What are employee stock ownership plans?

Group incentives is least likely to work if _____.

Explain perquisites.

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