Question 1

Which of the following is a disadvantage of profit-sharing plans?

Accepted Answer

A)  Employees must trust that management will accurately disclose financial and profit information. 
B)  Employees are taxed heavily on the income that they generate from profit sharing plans. 
C)  Employees cannot access the funds that they receive from profit sharing plans for up to three years. 
D)  Employers get little or no rebate on income tax for choosing profit-sharing plans. 
A)  Employees must trust that management will accurately disclose financial and profit information. 
B)  Employees are taxed heavily on the income that they generate from profit sharing plans. 
C)  Employees cannot access the funds that they receive from profit sharing plans for up to three years. 
D)  Employers get little or no rebate on income tax for choosing profit-sharing plans.

Question 2

The most common means of providing individual variable pay are profitsharing plans and employee stock plans.

Accepted Answer

A) True 
 B)False

Question 3

Describe piece-rate systems.

Accepted Answer

The most basic individual incentive syst

Question 4

A free rider is a _____.

Accepted Answer

A)  member of a group who contributes a lot 
B)  member of a group who contributes little 
C)  member of a group who contributes on par with other team members 
D)  member of a group who contributes only during the time of a need 
A)  member of a group who contributes a lot 
B)  member of a group who contributes little 
C)  member of a group who contributes on par with other team members 
D)  member of a group who contributes only during the time of a need

Question 5

Profit sharinguses employee committees to calculate and pass on profits to the employees.

Accepted Answer

A) True 
 B)False

Question 6

The compensation committee is a_____.

Accepted Answer

A)  subgroup of the board of directors that is composed of directors who are not officers of the firm 
B)  subgroup of the management that is composed of managers who are currently the officers of the firm 
C)  subgroup of the union that is composed of employees who are not officers of the firm 
D)  subgroup of the shareholders that is composed of investors who are currently the officers of the firm 
A)  subgroup of the board of directors that is composed of directors who are not officers of the firm 
B)  subgroup of the management that is composed of managers who are currently the officers of the firm 
C)  subgroup of the union that is composed of employees who are not officers of the firm 
D)  subgroup of the shareholders that is composed of investors who are currently the officers of the firm

Question 7

AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

Accepted Answer

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

Question 8

Which of the following is typically classified as a supplemental benefit plan?

Accepted Answer

A)  Health insurance 
B)  Financial planning 
C)  Retirement insurance 
D)  Basic salary 
A)  Health insurance 
B)  Financial planning 
C)  Retirement insurance 
D)  Basic salary

Question 9

Explain nonmonetary incentives.

Accepted Answer

Numerous nonmonetary incentive programs

Question 10

Which of the following is the most commonly used frequency of distributing team/group incentives?

Accepted Answer

A)  Monthly 
B)  Semiannually 
C)  Annually 
D)  Quarterly 
A)  Monthly 
B)  Semiannually 
C)  Annually 
D)  Quarterly

Question 11

Which of the following statements is true of group/team incentives?

Accepted Answer

A)  They ensure that members of a group are not put under social pressure. 
B)  They are always distributed equally among team members. 
C)  They can foster cohesiveness among team members. 
D)  They are in the form of cash bonuses and cannot be given in the form of nonmonetary incentives. 
A)  They ensure that members of a group are not put under social pressure. 
B)  They are always distributed equally among team members. 
C)  They can foster cohesiveness among team members. 
D)  They are in the form of cash bonuses and cannot be given in the form of nonmonetary incentives.

Question 12

_____ is a compensation typically computed as a percentage of sales in units or dollars.

Accepted Answer

A)  Severance pay 
B)  Wage 
C)  Basic salary 
D)  Commission 
A)  Severance pay 
B)  Wage 
C)  Basic salary 
D)  Commission

Question 13

Employee stock ownership plan is a plan designed to give employees significant stock ownership by their employers.

Accepted Answer

A) True 
 B)False

Question 14

Entitlement culture is the idea that _____.

Accepted Answer

A)  basic salaries are extra pay for sales performance rather than deferred bonuses 
B)  basic salaries are deferred bonuses rather than extra pay for extra sales performance 
C)  bonuses are extra pay for sales performance rather than deferred salary 
D)  bonuses are deferred salary rather than extra pay for extra sales performance 
A)  basic salaries are extra pay for sales performance rather than deferred bonuses 
B)  basic salaries are deferred bonuses rather than extra pay for extra sales performance 
C)  bonuses are extra pay for sales performance rather than deferred salary 
D)  bonuses are deferred salary rather than extra pay for extra sales performance

Question 15

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

Accepted Answer

A)  employees can then exercise the option and buy the stock 
B)  employees have to purchase the stock at the new price 
C)  employees have to forfeit their claims to the company shares 
D)  employees will make a loss through stock ownership 
A)  employees can then exercise the option and buy the stock 
B)  employees have to purchase the stock at the new price 
C)  employees have to forfeit their claims to the company shares 
D)  employees will make a loss through stock ownership

Question 16

The straight commission system combines the stability of a salary with the performance aspect of a commission.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a disadvantage of the individual incentive system?

Accepted Answer

A)  The net result is typically less than optimal for the competing individual. 
B)  Employees may primarily focus on what is best for them personally. 
C)  This system can be used only for providing monetary incentives. 
D)  This system does not include any form of bonus. 
A)  The net result is typically less than optimal for the competing individual. 
B)  Employees may primarily focus on what is best for them personally. 
C)  This system can be used only for providing monetary incentives. 
D)  This system does not include any form of bonus.

Question 18

Describe the different types of work unit/team incentives.

Accepted Answer

Work unit or team reward systems may com

Question 19

Group Viewer LLC, a software company, provides profit sharing plans for its employees. After organizational restructuring, the management has decided to replace the profit sharing plan with commissions for each employee. Which of the following is true of Group Viewer LLC?

Accepted Answer

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

Question 20

Which of the following statements is true of a discretionary system of determining bonuses?

Accepted Answer

A)  The federal and state governments decide the bonuses. 
B)  All the shareholders of the company decide the bonuses. 
C)  The labor unions and employees decide the bonuses. 
D)  The CEO and the board of directors decide the bonuses. 
A)  The federal and state governments decide the bonuses. 
B)  All the shareholders of the company decide the bonuses. 
C)  The labor unions and employees decide the bonuses. 
D)  The CEO and the board of directors decide the bonuses.

Which of the following is a disadvantage of profit-sharing plans?

The most common means of providing individual variable pay are profitsharing plans and employee stock plans.

Describe piece-rate systems.

A free rider is a _____.

Profit sharinguses employee committees to calculate and pass on profits to the employees.

The compensation committee is a_____.

AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

Which of the following is typically classified as a supplemental benefit plan?

Explain nonmonetary incentives.

Which of the following is the most commonly used frequency of distributing team/group incentives?

Which of the following statements is true of group/team incentives?

_____ is a compensation typically computed as a percentage of sales in units or dollars.

Employee stock ownership plan is a plan designed to give employees significant stock ownership by their employers.

Entitlement culture is the idea that _____.

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

The straight commission system combines the stability of a salary with the performance aspect of a commission.

Which of the following is a disadvantage of the individual incentive system?

Describe the different types of work unit/team incentives.

Group Viewer LLC, a software company, provides profit sharing plans for its employees. After organizational restructuring, the management has decided to replace the profit sharing plan with commissions for each employee. Which of the following is true of Group Viewer LLC?

Which of the following statements is true of a discretionary system of determining bonuses?

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 a disadvantage of profit-sharing plans?

The most common means of providing individual variable pay are profitsharing plans and employee stock plans.

Describe piece-rate systems.

A free rider is a _____.

Profit sharinguses employee committees to calculate and pass on profits to the employees.

The compensation committee is a_____.

AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

Which of the following is typically classified as a supplemental benefit plan?

Explain nonmonetary incentives.

Which of the following is the most commonly used frequency of distributing team/group incentives?

Which of the following statements is true of group/team incentives?

_____ is a compensation typically computed as a percentage of sales in units or dollars.

Employee stock ownership plan is a plan designed to give employees significant stock ownership by their employers.

Entitlement culture is the idea that _____.

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

The straight commission system combines the stability of a salary with the performance aspect of a commission.

Which of the following is a disadvantage of the individual incentive system?

Describe the different types of work unit/team incentives.

Group Viewer LLC, a software company, provides profit sharing plans for its employees. After organizational restructuring, the management has decided to replace the profit sharing plan with commissions for each employee. Which of the following is true of Group Viewer LLC?

Which of the following statements is true of a discretionary system of determining bonuses?

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