Question 1

____________ occurs when employees perceive too narrow a difference between their own pay and that of their colleagues.

Accepted Answer

A)  Wage restriction 
B)  Pay narrowing 
C)  Pay compression 
D)  System failure 
A)  Wage restriction 
B)  Pay narrowing 
C)  Pay compression 
D)  System failure

Question 2

___________ systems pay an employee an hourly rate plus a bonus when the employee exceeds the standard.

Accepted Answer

A)  Merit 
B)  Production bonus 
C)  Straight piecework 
D)  Scalon 
A)  Merit 
B)  Production bonus 
C)  Straight piecework 
D)  Scalon

Question 3

Winsharing awards are funded by work teams' contributions to _______________.

Accepted Answer

A)  job satisfaction 
B)  productivity 
C)  profitability 
D)  customer satisfaction 
A)  job satisfaction 
B)  productivity 
C)  profitability 
D)  customer satisfaction

Question 4

Average compensation for top executives is now more than _______________ the wage of an average worker.

Accepted Answer

A)  50% higher 
B)  40 times 
C)  340 times 
D)  530 times 
A)  50% higher 
B)  40 times 
C)  340 times 
D)  530 times

Question 5

A sewing mill that has set an hourly standard for machine operators of sewing 25 shirts per hour.Wages are calculated by multiplying the number of shirts completed by the piece rate for one shirt.Employees who exceed the standard of 25 shirts per hour make higher wages based on the additional piece rate per unit completed.The mill is using a __________ play plan.

Accepted Answer

A)  merit 
B)  differential piece rate 
C)  straight piecework 
D)  Deming 
A)  merit 
B)  differential piece rate 
C)  straight piecework 
D)  Deming

Question 6

What is the differential piece rate?

Accepted Answer

Originally developed by Frederick W.Tayl

Question 7

All of the following employee characteristics are associated with successful gainsharing plans except:

Accepted Answer

A)  Technically knowledgeable 
B)  Highly educated 
C)  Motivated by financial incentives 
D)  Motivated by participation 
A)  Technically knowledgeable 
B)  Highly educated 
C)  Motivated by financial incentives 
D)  Motivated by participation

Question 8

Straight commission is the equivalent of _____________.

Accepted Answer

A)  a Taylor plan 
B)  production bonus 
C)  straight piecework 
D)  gainsharing 
A)  a Taylor plan 
B)  production bonus 
C)  straight piecework 
D)  gainsharing

Question 9

Pay compression occurs when employees perceive too large a difference between their own pay and that of their colleagues.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not one of the reasons that many merit pay systems fail to increase performance?

Accepted Answer

A)  Employees fail to make the connection between pay and performance 
B)  The secrecy of the reward is perceived by other employees as inequity 
C)  The awards are too easy to obtain 
D)  The merit award is too small to impact performance 
A)  Employees fail to make the connection between pay and performance 
B)  The secrecy of the reward is perceived by other employees as inequity 
C)  The awards are too easy to obtain 
D)  The merit award is too small to impact performance

Question 11

The Taylor Plan is based on two _______________ rates;one for those who produce below or up to standard,and another for those who produce above standard.

Accepted Answer

A)  commission 
B)  piecework 
C)  efficiency 
D)  bonus 
A)  commission 
B)  piecework 
C)  efficiency 
D)  bonus

Question 12

Identify four of the six elements that are essential for a successful suggestion system.

Accepted Answer

(1)Management commitment.(2)Cl

Question 13

Which of the following is the least likely to contribute to the success of an individual incentive plan?

Accepted Answer

A)  The number of tasks covered by the incentive 
B)  The nature of the tasks covered by the incentive 
C)  Supervisors who reinforce and support the system 
D)  Incentives that are large enough to induce increased output 
A)  The number of tasks covered by the incentive 
B)  The nature of the tasks covered by the incentive 
C)  Supervisors who reinforce and support the system 
D)  Incentives that are large enough to induce increased output

Question 14

Research shows that merit increases above the 6 to 7 percent level are always motivating.

Accepted Answer

A) True 
 B)False

Question 15

Organization-wide incentive payments are usually based on the net profit that is generated in one of two ways.What are these ways?

Accepted Answer

Net profits come from (a)the e

Question 16

Which of the following statement is false?

Accepted Answer

A)  Pay differentials allow firms to recognize employees who make substantially different contributions to meeting organizational goals. 
B)  Pay differentials allow employers to communicate a changed emphasis on job roles,skills,knowledge,and so on. 
C)  Without differentials,the pay system violates the internal equity norms of most employees. 
D)  Pay differentials reduce satisfaction with pay and make it harder to retain employees. 
A)  Pay differentials allow firms to recognize employees who make substantially different contributions to meeting organizational goals. 
B)  Pay differentials allow employers to communicate a changed emphasis on job roles,skills,knowledge,and so on. 
C)  Without differentials,the pay system violates the internal equity norms of most employees. 
D)  Pay differentials reduce satisfaction with pay and make it harder to retain employees.

Question 17

Which among the following is not one of the reasons cited in the text for excessive executive compensation?

Accepted Answer

A)  Many boards of directors are passive 
B)  Thorough and intense arm's length bargaining is missing 
C)  Incentives that align managers' and shareholders' interests are missing 
D)  CEOs are often allowed to formulate their own compensation packages 
A)  Many boards of directors are passive 
B)  Thorough and intense arm's length bargaining is missing 
C)  Incentives that align managers' and shareholders' interests are missing 
D)  CEOs are often allowed to formulate their own compensation packages

Question 18

Which of the following plans has the most impact on management style?

Accepted Answer

A)  Lincoln Electric 
B)  Scanlon 
C)  Rucker 
D)  Improshare 
A)  Lincoln Electric 
B)  Scanlon 
C)  Rucker 
D)  Improshare

Question 19

Which among the following is not a variant of people-based pay?

Accepted Answer

A)  Productivity-based 
B)  Skill-based 
C)  Knowledge-based 
D)  Credential-based 
A)  Productivity-based 
B)  Skill-based 
C)  Knowledge-based 
D)  Credential-based

Question 20

_______________ plans offer two distinct advantages: They do not require elaborate cost-accounting systems to calculate awards,and they are easily implemented by companies of any size.

Accepted Answer

A)  Gainsharing 
B)  Spot gainsharing 
C)  Profit-sharing 
D)  Winsharing 
A)  Gainsharing 
B)  Spot gainsharing 
C)  Profit-sharing 
D)  Winsharing

____________ occurs when employees perceive too narrow a difference between their own pay and that of their colleagues.

___________ systems pay an employee an hourly rate plus a bonus when the employee exceeds the standard.

Winsharing awards are funded by work teams' contributions to _______________.

Average compensation for top executives is now more than _______________ the wage of an average worker.

What is the differential piece rate?

All of the following employee characteristics are associated with successful gainsharing plans except:

Straight commission is the equivalent of _____________.

Pay compression occurs when employees perceive too large a difference between their own pay and that of their colleagues.

Which of the following is not one of the reasons that many merit pay systems fail to increase performance?

The Taylor Plan is based on two _______________ rates;one for those who produce below or up to standard,and another for those who produce above standard.

Identify four of the six elements that are essential for a successful suggestion system.

Which of the following is the least likely to contribute to the success of an individual incentive plan?

Research shows that merit increases above the 6 to 7 percent level are always motivating.

Organization-wide incentive payments are usually based on the net profit that is generated in one of two ways.What are these ways?

Which of the following statement is false?

Which among the following is not one of the reasons cited in the text for excessive executive compensation?

Which of the following plans has the most impact on management style?

Which among the following is not a variant of people-based pay?

_______________ plans offer two distinct advantages: They do not require elaborate cost-accounting systems to calculate awards,and they are easily implemented by companies of any size.

Human Resource Management

A Strategic Management Approach to Human Resource Management

Legal Environment of Human Resource Management Equal Employment Opportunity

Global Human Resource Management

Human Resource Planning

Job Analysis and Design

Recruitment

Selecting Effective Employees

Performance Evaluation and Management

Compensation: An Overview

Employee Benefits and Services

Training and Development

Career Planning and Development

Labor Relations and Collective Bargaining

Managing Employee Discipline

Promoting Safety and Health

Filters

Exam 11: Compensation: Methods and Policies

____________ occurs when employees perceive too narrow a difference between their own pay and that of their colleagues.

___________ systems pay an employee an hourly rate plus a bonus when the employee exceeds the standard.

Winsharing awards are funded by work teams' contributions to _______________.

Average compensation for top executives is now more than _______________ the wage of an average worker.

What is the differential piece rate?

All of the following employee characteristics are associated with successful gainsharing plans except:

Straight commission is the equivalent of _____________.

Pay compression occurs when employees perceive too large a difference between their own pay and that of their colleagues.

Which of the following is not one of the reasons that many merit pay systems fail to increase performance?

The Taylor Plan is based on two _______________ rates;one for those who produce below or up to standard,and another for those who produce above standard.

Identify four of the six elements that are essential for a successful suggestion system.

Which of the following is the least likely to contribute to the success of an individual incentive plan?

Research shows that merit increases above the 6 to 7 percent level are always motivating.

Organization-wide incentive payments are usually based on the net profit that is generated in one of two ways.What are these ways?

Which of the following statement is false?

Which among the following is not one of the reasons cited in the text for excessive executive compensation?

Which of the following plans has the most impact on management style?

Which among the following is not a variant of people-based pay?

_______________ plans offer two distinct advantages: They do not require elaborate cost-accounting systems to calculate awards,and they are easily implemented by companies of any size.

Human Resource Management

A Strategic Management Approach to Human Resource Management

Legal Environment of Human Resource Management Equal Employment Opportunity

Global Human Resource Management

Human Resource Planning

Job Analysis and Design

Recruitment

Selecting Effective Employees

Performance Evaluation and Management

Compensation: An Overview

Employee Benefits and Services

Training and Development

Career Planning and Development

Labor Relations and Collective Bargaining

Managing Employee Discipline

Promoting Safety and Health

Filters