Question 1

A manager might decide to move from measuring performance on an individual basis to a team basis if:

Accepted Answer

A) individual performance can only be evaluated by subjective supervisory ratings 
B) the tie of pay to individual performance is not critical 
C) in order to be productive,employees cooperate 
D) competition among employees is dysfunctional 
E) any or all of the above conditions exist 
A) individual performance can only be evaluated by subjective supervisory ratings 
B) the tie of pay to individual performance is not critical 
C) in order to be productive,employees cooperate 
D) competition among employees is dysfunctional 
E) any or all of the above conditions exist

Question 2

With _____,high performers earn more but no permanent adjustment is made to an employee's base pay.

Accepted Answer

A) incentive pay 
B) equity pay 
C) fixed earnings 
D) retained earnings 
E) merit pay 
A) incentive pay 
B) equity pay 
C) fixed earnings 
D) retained earnings 
E) merit pay

Question 3

Todd's grandmother makes quilts for a gallery in New York City.For each completed full-size quilt she completes and delivers to the gallery buyer,she earns $350.What payment plan is used by the gallery to pay Todd's grandmother for her work?

Accepted Answer

A) the differential piece rate plan 
B) the standard hour plan 
C) the merit pay plan 
D) the base rate plus standard output plan 
E) the straight piecework plan 
A) the differential piece rate plan 
B) the standard hour plan 
C) the merit pay plan 
D) the base rate plus standard output plan 
E) the straight piecework plan

Question 4

With incentive pay,there is substantial downside risk for employees and there is less upside potential.

Accepted Answer

A) True 
 B)False

Question 5

Current distribution plans:

Accepted Answer

A) place earnings in an escrow account for distribution upon termination,disability,or death 
B) create retirement funds 
C) are the fastest growing type of profit sharing plan 
D) provide a percentage of profits to be distributed quarterly or annually to employees 
E) are devised to relate short-term profitability to top management performance 
A) place earnings in an escrow account for distribution upon termination,disability,or death 
B) create retirement funds 
C) are the fastest growing type of profit sharing plan 
D) provide a percentage of profits to be distributed quarterly or annually to employees 
E) are devised to relate short-term profitability to top management performance

Question 6

List four types of performance-based pay.

Accepted Answer

Four types of performance-base

Question 7

The Scanlon and Rucker plans for gain sharing are based on the principle that:

Accepted Answer

A) individuals can evaluate ideas better than committees 
B) employees are more likely to make suggestions when the suggestion system is informal 
C) management should adopt a philosophy of employee participation 
D) employees should not be made to participate in gain sharing unless they want to 
E) management takes responsibility for implementing all change and employees do the actual implementation;that way both are rewarded through gain sharing 
A) individuals can evaluate ideas better than committees 
B) employees are more likely to make suggestions when the suggestion system is informal 
C) management should adopt a philosophy of employee participation 
D) employees should not be made to participate in gain sharing unless they want to 
E) management takes responsibility for implementing all change and employees do the actual implementation;that way both are rewarded through gain sharing

Question 8

When compared to merit pay,incentive pay:

Accepted Answer

A) can be more subjectively based 
B) is a permanent increase in pay 
C) is not as useful in tying rewards to outcomes as merit pay 
D) can take the form of profit sharing and gain sharing 
E) is accurately described by all of the above 
A) can be more subjectively based 
B) is a permanent increase in pay 
C) is not as useful in tying rewards to outcomes as merit pay 
D) can take the form of profit sharing and gain sharing 
E) is accurately described by all of the above

Question 9

What criticism can be leveled against merit pay?

Accepted Answer

Critics of merit pay contend t

Question 10

Which of the following statements about earnings-at-risk pay plans is true?

Accepted Answer

A) Earnings-at-risk plans involve upside risk for the employer. 
B) Earnings-at-risk plans set base pay at or above the market rate. 
C) Salespeople who work on straight commissions are paid through at earnings-at-risk plan. 
D) Earnings-at-risk plans all have caps that prevent the employer from having to pay above a certain predetermined level. 
E) Employees prefer earnings-at-risk plans to all other performance-based pay plans 
A) Earnings-at-risk plans involve upside risk for the employer. 
B) Earnings-at-risk plans set base pay at or above the market rate. 
C) Salespeople who work on straight commissions are paid through at earnings-at-risk plan. 
D) Earnings-at-risk plans all have caps that prevent the employer from having to pay above a certain predetermined level. 
E) Employees prefer earnings-at-risk plans to all other performance-based pay plans

Question 11

Employee stock ownership plans (ESOPs):

Accepted Answer

A) are types of broad-based stock ownership plans 
B) grant shares of stock to employees as a means of long-term savings and retirement 
C) usually do not link stocks that can be purchased to individual or group performance indicators 
D) vary in when payments are made 
E) are accurately described by all of the above 
A) are types of broad-based stock ownership plans 
B) grant shares of stock to employees as a means of long-term savings and retirement 
C) usually do not link stocks that can be purchased to individual or group performance indicators 
D) vary in when payments are made 
E) are accurately described by all of the above

Question 12

ESOP-funded pensions are less risky for employees,because of their lack of diversification.

Accepted Answer

A) True 
 B)False

Question 13

What are the advantages and disadvantages of delaying payout of performance-based pay,rather than paying the reward immediately?

Accepted Answer

The main advantage of delaying payouts i

Question 14

Dakota stopped by the alteration shop yesterday.In the shop was posted a sign that said,"Buttons put on for $3,zippers repaired for $8,dresses hemmed for $10,pants hemmed for $8.50,all other prices based on job." From this information,you should be able to tell that the alteration shop uses a:

Accepted Answer

A) differential piece rate plan 
B) standard hour plan 
C) merit pay plan 
D) base rate plus standard output plan 
E) straight piecework plan 
A) differential piece rate plan 
B) standard hour plan 
C) merit pay plan 
D) base rate plus standard output plan 
E) straight piecework plan

Question 15

Comment on the following statement: "Pay discrimination is an inevitable and appropriate outcome of a properly administered performance-based pay system."

Accepted Answer

Performance-based pay systems are intend

Question 16

Incentive pay pegs base pay near the market average and employees earn additional monetary compensation for excellent performance.

Accepted Answer

A) True 
 B)False

Question 17

Under a merit pay system with a small merit pool,it is likely that _____ will be dissatisfied with their raises.

Accepted Answer

A) poor performers 
B) average performers 
C) high performers 
D) new employees making the entry level rate 
E) employees being paid at market rate 
A) poor performers 
B) average performers 
C) high performers 
D) new employees making the entry level rate 
E) employees being paid at market rate

Question 18

_____ have spurred many organizations to reevaluate their use of merit raises.

Accepted Answer

A) Value analyses 
B) Cost considerations 
C) Governmental inquiries 
D) Legislative changes 
E) Social audits 
A) Value analyses 
B) Cost considerations 
C) Governmental inquiries 
D) Legislative changes 
E) Social audits

Question 19

Whereas merit pay plans typically rely on objective performance appraisal ratings,incentive pay is often paid based on qualitative performance measures.

Accepted Answer

A) True 
 B)False

Question 20

Profit-sharing plans are designed to pay out incentives whenever the employee wants to receive them.

Accepted Answer

A) True 
 B)False

A manager might decide to move from measuring performance on an individual basis to a team basis if:

With _____,high performers earn more but no permanent adjustment is made to an employee's base pay.

Todd's grandmother makes quilts for a gallery in New York City.For each completed full-size quilt she completes and delivers to the gallery buyer,she earns $350.What payment plan is used by the gallery to pay Todd's grandmother for her work?

With incentive pay,there is substantial downside risk for employees and there is less upside potential.

Current distribution plans:

List four types of performance-based pay.

The Scanlon and Rucker plans for gain sharing are based on the principle that:

When compared to merit pay,incentive pay:

What criticism can be leveled against merit pay?

Which of the following statements about earnings-at-risk pay plans is true?

Employee stock ownership plans (ESOPs):

ESOP-funded pensions are less risky for employees,because of their lack of diversification.

What are the advantages and disadvantages of delaying payout of performance-based pay,rather than paying the reward immediately?

Dakota stopped by the alteration shop yesterday.In the shop was posted a sign that said,"Buttons put on for $3,zippers repaired for $8,dresses hemmed for $10,pants hemmed for $8.50,all other prices based on job." From this information,you should be able to tell that the alteration shop uses a:

Comment on the following statement: "Pay discrimination is an inevitable and appropriate outcome of a properly administered performance-based pay system."

Incentive pay pegs base pay near the market average and employees earn additional monetary compensation for excellent performance.

Under a merit pay system with a small merit pool,it is likely that _____ will be dissatisfied with their raises.

_____ have spurred many organizations to reevaluate their use of merit raises.

Whereas merit pay plans typically rely on objective performance appraisal ratings,incentive pay is often paid based on qualitative performance measures.

Profit-sharing plans are designed to pay out incentives whenever the employee wants to receive them.

Managing Human Resources

Understanding the External and Organizational Environments

Hr Planning for Alignment and Change

Ensuring Fair Treatment and Legal Compliance

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Developing an Approach to Total Compensation

Providing Benefits and Services

Promoting Workplace Safety and Health

Understanding Unionization and Collective Bargaining

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Exam 11: Using Performance-Based Pay to Achieve Strategic Objectives

A manager might decide to move from measuring performance on an individual basis to a team basis if:

With _____,high performers earn more but no permanent adjustment is made to an employee's base pay.

Todd's grandmother makes quilts for a gallery in New York City.For each completed full-size quilt she completes and delivers to the gallery buyer,she earns $350.What payment plan is used by the gallery to pay Todd's grandmother for her work?

With incentive pay,there is substantial downside risk for employees and there is less upside potential.

Current distribution plans:

List four types of performance-based pay.

The Scanlon and Rucker plans for gain sharing are based on the principle that:

When compared to merit pay,incentive pay:

What criticism can be leveled against merit pay?

Which of the following statements about earnings-at-risk pay plans is true?

Employee stock ownership plans (ESOPs):

ESOP-funded pensions are less risky for employees,because of their lack of diversification.

What are the advantages and disadvantages of delaying payout of performance-based pay,rather than paying the reward immediately?

Dakota stopped by the alteration shop yesterday.In the shop was posted a sign that said,"Buttons put on for $3,zippers repaired for $8,dresses hemmed for $10,pants hemmed for $8.50,all other prices based on job." From this information,you should be able to tell that the alteration shop uses a:

Comment on the following statement: "Pay discrimination is an inevitable and appropriate outcome of a properly administered performance-based pay system."

Incentive pay pegs base pay near the market average and employees earn additional monetary compensation for excellent performance.

Under a merit pay system with a small merit pool,it is likely that _____ will be dissatisfied with their raises.

_____ have spurred many organizations to reevaluate their use of merit raises.

Whereas merit pay plans typically rely on objective performance appraisal ratings,incentive pay is often paid based on qualitative performance measures.

Profit-sharing plans are designed to pay out incentives whenever the employee wants to receive them.

Managing Human Resources

Understanding the External and Organizational Environments

Hr Planning for Alignment and Change

Ensuring Fair Treatment and Legal Compliance

Using Job Analysis and Competency Modeling

Recruiting and Retaining Qualified Employees

Selecting Employees to Fit the Job and the Organization

Training and Developing a Competitive Workforce

Conducting Performance Management

Developing an Approach to Total Compensation

Providing Benefits and Services

Promoting Workplace Safety and Health

Understanding Unionization and Collective Bargaining

Filters