Exam 9: Pay-For-Performance: the Evidence

Company X pays for performance.Allan,an employee of the company,is not in favor of this reward system and,therefore,leaves Company X in search of another company with different rules for getting rewards.This is an example of the:

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

When pay raises are based on events over which employees lack significant control,they are likely to regard the system as unfair.

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(True/False)

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Question 2

Correct Answer:

Verified

True

Compare risk sharing and success-sharing plans.

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(Essay)

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Question 3

Correct Answer:

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A success-sharing plan is a generic category of pay add-on (variable pay)which is tied to some measure of group performance,not individual performance.It is not a part of an employee's base pay.In these plans,employees share in any success-performance above standard-but are not penalized for performance below standard.
A risk sharing plan is also a generic category of pay add-on (variable pay).It differs from success sharing in that an employee not only shares in successes but is also penalized during poor performance years.Penalty is in form of lower total compensation in poor corporate performance years.Rewards,though,are typically higher than that for success-sharing programs in high performance years.These plans pose greater risk than success-sharing
plans.

An individual incentive pay system is associated with high turnover of high performers.

(True/False)

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Question 4

Risk-sharing plans include a provision for cuts in base pay that are only recaptured in years when the organization meets performance objectives.

(True/False)

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Question 5

In today's organizations,socialization,the culture and training rather than compensation packages are typically used to direct employees to desired behaviors.

(True/False)

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Question 6

Generally,team-based incentives are more attractive than individual incentives.

(True/False)

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Question 7

Which theories would support a higher minimum wage?

(Multiple Choice)

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Question 8

The most obvious sorting factor is _____.

(Multiple Choice)

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Question 9

In _____ theory,incentive pay is motivating if it helps an employee gain a sense of achievement,recognition or approval.

(Multiple Choice)

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Question 10

A business has a centralized structure and a compensation system that rewards sales volume.However,sales volumes are low compared to competitors who respond more quickly to changes in consumer demand.Which of the following is the most likely source of the low sales performance?

(Multiple Choice)

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Question 11

Turnover tends to be highest among _____.

(Multiple Choice)

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Question 12

Compared to other incentive plans,line of sight is lowest in _____.

(Multiple Choice)

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Question 13

An important implication of reinforcement theory is that when employees receive pay is important.

(True/False)

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Question 14

Incentive pay systems are an effective way to motivate workers to perform a variety of tasks in changing situations.

(True/False)

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Question 15

Compensation should reinforce all but which of the following behaviors?

(Multiple Choice)

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Question 16

There is evidence that every 10 percent increase in the bonus paid to employees yields a _____ percent increase in ROA to the firm.

(Multiple Choice)

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Question 17

The ability triangle includes _____.

(Multiple Choice)

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Question 18

Which of the following best supports a culture of flexibility and innovation?

(Multiple Choice)

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Question 19

_____ is an individual level form of performance pay.

(Multiple Choice)

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Question 20

Showing 1 - 20 of 80

Company X pays for performance.Allan,an employee of the company,is not in favor of this reward system and,therefore,leaves Company X in search of another company with different rules for getting rewards.This is an example of the:

When pay raises are based on events over which employees lack significant control,they are likely to regard the system as unfair.

Compare risk sharing and success-sharing plans.

An individual incentive pay system is associated with high turnover of high performers.

Risk-sharing plans include a provision for cuts in base pay that are only recaptured in years when the organization meets performance objectives.

In today's organizations,socialization,the culture and training rather than compensation packages are typically used to direct employees to desired behaviors.

Generally,team-based incentives are more attractive than individual incentives.

Which theories would support a higher minimum wage?

The most obvious sorting factor is _____.

In _____ theory,incentive pay is motivating if it helps an employee gain a sense of achievement,recognition or approval.

A business has a centralized structure and a compensation system that rewards sales volume.However,sales volumes are low compared to competitors who respond more quickly to changes in consumer demand.Which of the following is the most likely source of the low sales performance?

Turnover tends to be highest among _____.

Compared to other incentive plans,line of sight is lowest in _____.

An important implication of reinforcement theory is that when employees receive pay is important.

Incentive pay systems are an effective way to motivate workers to perform a variety of tasks in changing situations.

Compensation should reinforce all but which of the following behaviors?

There is evidence that every 10 percent increase in the bonus paid to employees yields a _____ percent increase in ROA to the firm.

The ability triangle includes _____.

Which of the following best supports a culture of flexibility and innovation?

_____ is an individual level form of performance pay.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, mix, and Pay Structures

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

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