Question 1

Which of the following is an incentive plan that is intended to improve the overall performance of an organization?

Accepted Answer

A)  Profit sharing 
B)  Gainsharing 
C)  Merit pay 
D)  Group bonus 
E)  Scanlon plan 
A)  Profit sharing 
B)  Gainsharing 
C)  Merit pay 
D)  Group bonus 
E)  Scanlon plan

Question 2

Successful gainsharing plans include employee stock ownership plans.

Accepted Answer

A) True 
 B)False

Question 3

Paying most or all of a salesperson's compensation in the form of commissions encourages the salesperson to focus on:

Accepted Answer

A)  closing the sale. 
B)  developing customer goodwill. 
C)  working as a team member. 
D)  building a relationship with the customer. 
E)  improving the quality of customer experience. 
A)  closing the sale. 
B)  developing customer goodwill. 
C)  working as a team member. 
D)  building a relationship with the customer. 
E)  improving the quality of customer experience.

Question 4

The balanced-scorecard approach is not particularly useful in designing executive pay.

Accepted Answer

A) True 
 B)False

Question 5

Differential piece rates system refers to:

Accepted Answer

A)  an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. 
B)  a wage system designed for salespeople who earn a differential pay for every piece sold. 
C)  an incentive pay in which the piece rate is higher when a greater amount is produced. 
D)  a system of linking pay increases to ratings on performance appraisals. 
E)  an incentive pay plan where every employee is paid different wages based on the skills they possess. 
A)  an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. 
B)  a wage system designed for salespeople who earn a differential pay for every piece sold. 
C)  an incentive pay in which the piece rate is higher when a greater amount is produced. 
D)  a system of linking pay increases to ratings on performance appraisals. 
E)  an incentive pay plan where every employee is paid different wages based on the skills they possess.

Question 6

Employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Accepted Answer

A) True 
 B)False

Question 7

In merit pay programs,an individual's compa-ratio represents his/her:

Accepted Answer

A)  pay relative to performance of other workers in the industry. 
B)  pay relative to average pay. 
C)  comparable worth versus others. 
D)  ratio of pay to benefits. 
E)  the average worth of the skills possessed by the individual. 
A)  pay relative to performance of other workers in the industry. 
B)  pay relative to average pay. 
C)  comparable worth versus others. 
D)  ratio of pay to benefits. 
E)  the average worth of the skills possessed by the individual.

Question 8

Which of the following is true of a performance bonus?

Accepted Answer

A)  It is designed to reward group performance. 
B)  It should be re-earned by employees during each performance period. 
C)  It is rolled into base pay and provided yearly or monthly. 
D)  It lacks flexibility and hence it is less popular. 
E)  It is not a one time reward in most of the cases. 
A)  It is designed to reward group performance. 
B)  It should be re-earned by employees during each performance period. 
C)  It is rolled into base pay and provided yearly or monthly. 
D)  It lacks flexibility and hence it is less popular. 
E)  It is not a one time reward in most of the cases.

Question 9

A company provides wages to its employees based on the amount workers produce.The more employees produce,the more they earn.This type of plan is called:

Accepted Answer

A)  piecework rate plan. 
B)  merit pay plan. 
C)  Scanlon plan. 
D)  profit sharing plan. 
E)  standard hour plan. 
A)  piecework rate plan. 
B)  merit pay plan. 
C)  Scanlon plan. 
D)  profit sharing plan. 
E)  standard hour plan.

Question 10

What is balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

Accepted Answer

The balanced scorecard is a combination

Question 11

The link between employees' performance and pay is harder to establish in:

Accepted Answer

A)  piece rate plans. 
B)  merit pay plans. 
C)  standard hour plans. 
D)  stock ownership plans. 
E)  Scanlon plans. 
A)  piece rate plans. 
B)  merit pay plans. 
C)  standard hour plans. 
D)  stock ownership plans. 
E)  Scanlon plans.

Question 12

An employee who produces 10 components in an hour earns $9 ($.90 X 10)per hour,while an employee who produces 15 components earns $13.50 ($.90 x 15).This is an example of a:

Accepted Answer

A)  commission plan. 
B)  differential piece rate plan. 
C)  direct commission plan. 
D)  profit sharing plan. 
E)  straight piecework plan. 
A)  commission plan. 
B)  differential piece rate plan. 
C)  direct commission plan. 
D)  profit sharing plan. 
E)  straight piecework plan.

Question 13

As an incentive to work efficiently,some organizations pay production workers a ____,a wage based on the amount they produce.

Accepted Answer

A)  merit pay 
B)  commission 
C)  standard hour pay 
D)  piecework rate 
E)  special bonus 
A)  merit pay 
B)  commission 
C)  standard hour pay 
D)  piecework rate 
E)  special bonus

Question 14

Generally,team awards do not use cost savings as a performance measure.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a short-term incentive?

Accepted Answer

A)  Return on investment 
B)  Base salary 
C)  Stock options 
D)  Stock purchase plans 
E)  Company shares 
A)  Return on investment 
B)  Base salary 
C)  Stock options 
D)  Stock purchase plans 
E)  Company shares

Question 16

Merit pay incentive system is usually used to attract employees who are more team-oriented.

Accepted Answer

A) True 
 B)False

Question 17

Why do organizations use profit sharing?

Accepted Answer

A)  It has been established that profit sharing helps organizations perform better. 
B)  It makes employees feel that they have control over the company's profits. 
C)  It costs less when the organization is experiencing financial difficulties. 
D)  It helps employees find a direct relation between their performance and gain. 
E)  It motivates employees more than individual incentives. 
A)  It has been established that profit sharing helps organizations perform better. 
B)  It makes employees feel that they have control over the company's profits. 
C)  It costs less when the organization is experiencing financial difficulties. 
D)  It helps employees find a direct relation between their performance and gain. 
E)  It motivates employees more than individual incentives.

Question 18

An effective incentive pay plan should:

Accepted Answer

A)  have performance measures based on employees' requirements. 
B)  not be provided as a direct percentage of employees' performance. 
C)  encourage group performance and dispirit individual achievements. 
D)  be the same for all types of employees in the organization. 
E)  have performance measures linked to the organization's goals. 
A)  have performance measures based on employees' requirements. 
B)  not be provided as a direct percentage of employees' performance. 
C)  encourage group performance and dispirit individual achievements. 
D)  be the same for all types of employees in the organization. 
E)  have performance measures linked to the organization's goals.

Question 19

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish.It is planning to implement an incentive plan that helps employees understand the organization's goals.Which of the following should be used by this organization?

Accepted Answer

A)  Profit sharing plan 
B)  Piecework rates 
C)  Merit pay system 
D)  Scanlon plan 
E)  Balanced scorecard 
A)  Profit sharing plan 
B)  Piecework rates 
C)  Merit pay system 
D)  Scanlon plan 
E)  Balanced scorecard

Question 20

An organization should always communicate with employees when changing an incentive plan.

Accepted Answer

A) True 
 B)False

Which of the following is an incentive plan that is intended to improve the overall performance of an organization?

Successful gainsharing plans include employee stock ownership plans.

Paying most or all of a salesperson's compensation in the form of commissions encourages the salesperson to focus on:

The balanced-scorecard approach is not particularly useful in designing executive pay.

Differential piece rates system refers to:

Employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

In merit pay programs,an individual's compa-ratio represents his/her:

Which of the following is true of a performance bonus?

A company provides wages to its employees based on the amount workers produce.The more employees produce,the more they earn.This type of plan is called:

What is balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

The link between employees' performance and pay is harder to establish in:

An employee who produces 10 components in an hour earns $9 ($.90 X 10)per hour,while an employee who produces 15 components earns $13.50 ($.90 x 15).This is an example of a:

As an incentive to work efficiently,some organizations pay production workers a ____,a wage based on the amount they produce.

Generally,team awards do not use cost savings as a performance measure.

Which of the following is a short-term incentive?

Merit pay incentive system is usually used to attract employees who are more team-oriented.

Why do organizations use profit sharing?

An effective incentive pay plan should:

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish.It is planning to implement an incentive plan that helps employees understand the organization's goals.Which of the following should be used by this organization?

An organization should always communicate with employees when changing an incentive plan.

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Managing Employees Performance

Developing Employees for Future Success

Separating and Retaining Employees

Establishing a Pay Structure

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Creating and Maintaining High-Performance Organizations

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Exam 12: Recognizing Employee Contributions With Pay

Which of the following is an incentive plan that is intended to improve the overall performance of an organization?

Successful gainsharing plans include employee stock ownership plans.

Paying most or all of a salesperson's compensation in the form of commissions encourages the salesperson to focus on:

The balanced-scorecard approach is not particularly useful in designing executive pay.

Differential piece rates system refers to:

Employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

In merit pay programs,an individual's compa-ratio represents his/her:

Which of the following is true of a performance bonus?

A company provides wages to its employees based on the amount workers produce.The more employees produce,the more they earn.This type of plan is called:

What is balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

The link between employees' performance and pay is harder to establish in:

An employee who produces 10 components in an hour earns $9 ($.90 X 10)per hour,while an employee who produces 15 components earns $13.50 ($.90 x 15).This is an example of a:

As an incentive to work efficiently,some organizations pay production workers a ____,a wage based on the amount they produce.

Generally,team awards do not use cost savings as a performance measure.

Which of the following is a short-term incentive?

Merit pay incentive system is usually used to attract employees who are more team-oriented.

Why do organizations use profit sharing?

An effective incentive pay plan should:

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish.It is planning to implement an incentive plan that helps employees understand the organization's goals.Which of the following should be used by this organization?

An organization should always communicate with employees when changing an incentive plan.

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Managing Employees Performance

Developing Employees for Future Success

Separating and Retaining Employees

Establishing a Pay Structure

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Creating and Maintaining High-Performance Organizations

Filters