Question 1

Commission refers to incentive pay based on a percentage of the cost of the product.

Accepted Answer

A) True 
 B)False

Question 2

Combined distribution plans:

Accepted Answer

A) are types of gain-sharing plans 
B) are devised to relate long-term profitability to top management performance 
C) distribute a portion of profits immediately to employees,setting the remaining amount aside in a designated account. 
D) are not as popular as current distribution plans because they lack immediacy 
E) are accurately described by all of the above 
A) are types of gain-sharing plans 
B) are devised to relate long-term profitability to top management performance 
C) distribute a portion of profits immediately to employees,setting the remaining amount aside in a designated account. 
D) are not as popular as current distribution plans because they lack immediacy 
E) are accurately described by all of the above

Question 3

Gain-sharing plans are premised on the assumption that:

Accepted Answer

A) all employees deserve to be rewarded 
B) it is possible to reduce costs by eliminating wasted materials and labor,developing new or better products,or working smarter 
C) if top management is highly motivated to succeed,then the organization will naturally follow suit 
D) performance-based pay must be closely linked with organizational strategy for the pay system to be effective 
E) positive reinforcement is superior to negative reinforcement 
A) all employees deserve to be rewarded 
B) it is possible to reduce costs by eliminating wasted materials and labor,developing new or better products,or working smarter 
C) if top management is highly motivated to succeed,then the organization will naturally follow suit 
D) performance-based pay must be closely linked with organizational strategy for the pay system to be effective 
E) positive reinforcement is superior to negative reinforcement

Question 4

To gain employee support for the implementation of a performance-base pay plan,the implementing organization can:

Accepted Answer

A) make sure the plan is understood,and bonuses are easy to calculate 
B) provide methods for employees to lodge an appeal if they feel they were treated unfairly 
C) let the employees have a hand in establishing and administering the plan 
D) gain the employees' trust and make them believe they have job security 
E) do all of the above 
A) make sure the plan is understood,and bonuses are easy to calculate 
B) provide methods for employees to lodge an appeal if they feel they were treated unfairly 
C) let the employees have a hand in establishing and administering the plan 
D) gain the employees' trust and make them believe they have job security 
E) do all of the above

Question 5

Underwater stock options have an exercise price that is well below the market value of a company's stocks.

Accepted Answer

A) True 
 B)False

Question 6

Profit-sharing plans:

Accepted Answer

A) typically have clear strategic objectives 
B) have a proven motivational impact on employees,even in the deferred version 
C) are designed to pay out incentives when the organization is most able to afford them 
D) often include employees in their administration 
E) are accurately described by all of the above 
A) typically have clear strategic objectives 
B) have a proven motivational impact on employees,even in the deferred version 
C) are designed to pay out incentives when the organization is most able to afford them 
D) often include employees in their administration 
E) are accurately described by all of the above

Question 7

As a compensation expert in the HR department,you have been assigned the responsibility for reviewing the company's reward system developing a performance-based pay (PBP)system.All of the following are your responsibilities,except:

Accepted Answer

A) working with line managers to establish the strategic objectives of the PBP 
B) fairly implementing the PBP 
C) monitoring the effects of the PBP on employees and organizational outcomes 
D) develop and deliver training about PBP to line managers and employees 
E) ensure the PBP is consistent with other areas of HR 
A) working with line managers to establish the strategic objectives of the PBP 
B) fairly implementing the PBP 
C) monitoring the effects of the PBP on employees and organizational outcomes 
D) develop and deliver training about PBP to line managers and employees 
E) ensure the PBP is consistent with other areas of HR

Question 8

By definition,there will be discrimination between employees in performance based pay plans.Rewards awarded contingently cause low performers to improve and high performers to be more satisfied.The question becomes,"How can you do this fairly?"

Accepted Answer

A) Make sure performance measures are subjective 
B) You can not be fair and discriminate at the same time 
C) Let the person closest to the performance - the immediate supervisor - make the reward size decision 
D) Apply the same reward decision rules to all employees 
E) As long as you do not reward on the basis of gender,you are being fair. 
A) Make sure performance measures are subjective 
B) You can not be fair and discriminate at the same time 
C) Let the person closest to the performance - the immediate supervisor - make the reward size decision 
D) Apply the same reward decision rules to all employees 
E) As long as you do not reward on the basis of gender,you are being fair.

Question 9

When performance measures are deficient or contaminated,employees are less likely to feel that their efforts directly influence the performance measures used to determine performance-based pay.

Accepted Answer

A) True 
 B)False

Question 10

How does merit pay differ from incentive pay?

Accepted Answer

A) Merit pay is awarded to salaried employees while incentive pay is a reward for those who are wage-employees. 
B) Merit pay typically relies on subjective performance appraisal ratings,and incentive pay is often based on the achievement of performance that can be quantified. 
C) Incentive pay is a permanent increase,and merit pay is a one-time increase in pay. 
D) Merit pay plans give managers more latitude in determining large distributions of rewards 
E) Merit pay is more closely tied to the organizational vision,strategy,and culture than incentive pay. 
A) Merit pay is awarded to salaried employees while incentive pay is a reward for those who are wage-employees. 
B) Merit pay typically relies on subjective performance appraisal ratings,and incentive pay is often based on the achievement of performance that can be quantified. 
C) Incentive pay is a permanent increase,and merit pay is a one-time increase in pay. 
D) Merit pay plans give managers more latitude in determining large distributions of rewards 
E) Merit pay is more closely tied to the organizational vision,strategy,and culture than incentive pay.

Question 11

Improshare

Accepted Answer

A) requires the full involvement of all employees 
B) focuses on labor hours saved,rather than labor costs saved 
C) ties all incentives to savings plans 
D) does not include non-production workers in the measurement of the organization's productivity 
E) is not appropriate for service-providers like schools and hospitals 
A) requires the full involvement of all employees 
B) focuses on labor hours saved,rather than labor costs saved 
C) ties all incentives to savings plans 
D) does not include non-production workers in the measurement of the organization's productivity 
E) is not appropriate for service-providers like schools and hospitals

Question 12

What three factors have reduced the use of stock options as incentives?

Accepted Answer

Options that went underwater w

Question 13

In what four domains do proponents of balanced scorecards argue that organizations should monitor their performance?

Accepted Answer

Proponents of balanced scorecards argue

Question 14

Performance-based systems can only use monetary rewards as incentives.

Accepted Answer

A) True 
 B)False

Question 15

Critics of profit sharing argue that tying pay to achieving more specific strategic objectives is preferable to tying pay directly to profitability.

Accepted Answer

A) True 
 B)False

Question 16

By paying for performance,a company signals that it's interested in employees who want to be paid for good performance.

Accepted Answer

A) True 
 B)False

Question 17

Compared to merit pay,incentive pay often gives managers less latitude to make large distinctions in the rewards given to employees.

Accepted Answer

A) True 
 B)False

Question 18

As one approach to implementing performance-based pay plans,indexed stock options:

Accepted Answer

A) allow employees to buy stock at a premium price 
B) are also called premium-priced options 
C) are used more often than any other plan 
D) are designed to ensure that employees are not punished with the economy takes a downturn 
E) are accurately described by all of the above 
A) allow employees to buy stock at a premium price 
B) are also called premium-priced options 
C) are used more often than any other plan 
D) are designed to ensure that employees are not punished with the economy takes a downturn 
E) are accurately described by all of the above

Question 19

Research shows that under some conditions,performance-based pay has no effects or even has detrimental effects.

Accepted Answer

A) True 
 B)False

Question 20

There is less complexity in pay for performance when dealing with international pay practices.

Accepted Answer

A) True 
 B)False

Commission refers to incentive pay based on a percentage of the cost of the product.

Combined distribution plans:

Gain-sharing plans are premised on the assumption that:

To gain employee support for the implementation of a performance-base pay plan,the implementing organization can:

Underwater stock options have an exercise price that is well below the market value of a company's stocks.

Profit-sharing plans:

As a compensation expert in the HR department,you have been assigned the responsibility for reviewing the company's reward system developing a performance-based pay (PBP)system.All of the following are your responsibilities,except:

By definition,there will be discrimination between employees in performance based pay plans.Rewards awarded contingently cause low performers to improve and high performers to be more satisfied.The question becomes,"How can you do this fairly?"

When performance measures are deficient or contaminated,employees are less likely to feel that their efforts directly influence the performance measures used to determine performance-based pay.

How does merit pay differ from incentive pay?

Improshare

What three factors have reduced the use of stock options as incentives?

In what four domains do proponents of balanced scorecards argue that organizations should monitor their performance?

Performance-based systems can only use monetary rewards as incentives.

Critics of profit sharing argue that tying pay to achieving more specific strategic objectives is preferable to tying pay directly to profitability.

By paying for performance,a company signals that it's interested in employees who want to be paid for good performance.

Compared to merit pay,incentive pay often gives managers less latitude to make large distinctions in the rewards given to employees.

As one approach to implementing performance-based pay plans,indexed stock options:

Research shows that under some conditions,performance-based pay has no effects or even has detrimental effects.

There is less complexity in pay for performance when dealing with international pay practices.

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

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

Commission refers to incentive pay based on a percentage of the cost of the product.

Combined distribution plans:

Gain-sharing plans are premised on the assumption that:

To gain employee support for the implementation of a performance-base pay plan,the implementing organization can:

Underwater stock options have an exercise price that is well below the market value of a company's stocks.

Profit-sharing plans:

As a compensation expert in the HR department,you have been assigned the responsibility for reviewing the company's reward system developing a performance-based pay (PBP)system.All of the following are your responsibilities,except:

By definition,there will be discrimination between employees in performance based pay plans.Rewards awarded contingently cause low performers to improve and high performers to be more satisfied.The question becomes,"How can you do this fairly?"

When performance measures are deficient or contaminated,employees are less likely to feel that their efforts directly influence the performance measures used to determine performance-based pay.

How does merit pay differ from incentive pay?

Improshare

What three factors have reduced the use of stock options as incentives?

In what four domains do proponents of balanced scorecards argue that organizations should monitor their performance?

Performance-based systems can only use monetary rewards as incentives.

Critics of profit sharing argue that tying pay to achieving more specific strategic objectives is preferable to tying pay directly to profitability.

By paying for performance,a company signals that it's interested in employees who want to be paid for good performance.

Compared to merit pay,incentive pay often gives managers less latitude to make large distinctions in the rewards given to employees.

As one approach to implementing performance-based pay plans,indexed stock options:

Research shows that under some conditions,performance-based pay has no effects or even has detrimental effects.

There is less complexity in pay for performance when dealing with international pay practices.

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