Question 1

In setting up a combined payment plan for salespeople,the most critical question for an organization to answer is,"

Accepted Answer

A) "What percentage of total compensation should be salary and what percentage should be commission?" 
B) "How much of the salesperson's time should be spent selling and how much in nonselling activities?" 
C) "How can the sales program compensation plan be devised so as not to cause other employees to become unmotivated?" 
D) "How long will the plan be operational before it needs to be evaluated?" 
E) "What is the strategic basis for the plan and how will its implementation be monitored?" 
A) "What percentage of total compensation should be salary and what percentage should be commission?" 
B) "How much of the salesperson's time should be spent selling and how much in nonselling activities?" 
C) "How can the sales program compensation plan be devised so as not to cause other employees to become unmotivated?" 
D) "How long will the plan be operational before it needs to be evaluated?" 
E) "What is the strategic basis for the plan and how will its implementation be monitored?"

Question 2

A _____ plan is an award of shares with restrictions that require a predetermined length of service to elapse before vesting occurs.

Accepted Answer

A) premium-priced stock option 
B) performance-vested restricted stock 
C) time-based restricted stock 
D) time-restricted stock option 
E) indexed stock option 
A) premium-priced stock option 
B) performance-vested restricted stock 
C) time-based restricted stock 
D) time-restricted stock option 
E) indexed stock option

Question 3

_____ are among the oldest and most popular forms of incentive pay.

Accepted Answer

A) Earnings at risk 
B) Profit sharing 
C) Individual incentives 
D) Team stock options 
E) Gain sharing 
A) Earnings at risk 
B) Profit sharing 
C) Individual incentives 
D) Team stock options 
E) Gain sharing

Question 4

Generally speaking,the more quickly rewards follow desirable behavior,the more effective the rewards are in evoking subsequent desirable behavior by the employee.

Accepted Answer

A) True 
 B)False

Question 5

Kiely's mother is paying her to read this summer.For every chapter of David Copperfield that she reads and prepares a written synopsis of in one and one-half hours or less,she receives $3.If she completes the task in more then the allotted time she receives only $2.What payment plan is Kiely's mother using to encourage Kiely to read at the faster rate?

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 commission 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 commission plan

Question 6

Which of the following questions need to be answered when an organization is establishing a commission pay program?

Accepted Answer

A) Can the company afford to do this? 
B) How do we guarantee everyone receives the same commission payout? 
C) Are the methods to be used to measure performance flexible enough to allow for any possible sales event? 
D) To what measures should commissions be tied to curb salespersons' behaviors that could negatively affect the organization? 
E) Does each salesperson have the same number of accounts? 
A) Can the company afford to do this? 
B) How do we guarantee everyone receives the same commission payout? 
C) Are the methods to be used to measure performance flexible enough to allow for any possible sales event? 
D) To what measures should commissions be tied to curb salespersons' behaviors that could negatively affect the organization? 
E) Does each salesperson have the same number of accounts?

Question 7

Which of the following statements about incentive pay plans is true?

Accepted Answer

A) Unlike merit pay plans,base pay is set at the market rate for incentive plans. 
B) With incentive pay,high performers earn more but no permanent adjustment is made to an employee's base pay. 
C) Once earned,the incentive pay becomes a part of the employee's base pay. 
D) Caps are used to keep incentive pay levels even with the industry pay level. 
E) There is no difference between how merit pay plans and how incentive pay plans are used to reward employee performance 
A) Unlike merit pay plans,base pay is set at the market rate for incentive plans. 
B) With incentive pay,high performers earn more but no permanent adjustment is made to an employee's base pay. 
C) Once earned,the incentive pay becomes a part of the employee's base pay. 
D) Caps are used to keep incentive pay levels even with the industry pay level. 
E) There is no difference between how merit pay plans and how incentive pay plans are used to reward employee performance

Question 8

Deferred distribution plans:

Accepted Answer

A) are types of gain-sharing plans 
B) are devised to relate long-term profitability to top management performance 
C) place earnings in an escrow account for distribution upon retirement,termination,disability,or death 
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) place earnings in an escrow account for distribution upon retirement,termination,disability,or death 
D) are not as popular as current distribution plans because they lack immediacy 
E) are accurately described by all of the above

In setting up a combined payment plan for salespeople,the most critical question for an organization to answer is,"

A _____ plan is an award of shares with restrictions that require a predetermined length of service to elapse before vesting occurs.

_____ are among the oldest and most popular forms of incentive pay.

Generally speaking,the more quickly rewards follow desirable behavior,the more effective the rewards are in evoking subsequent desirable behavior by the employee.

Which of the following questions need to be answered when an organization is establishing a commission pay program?

Which of the following statements about incentive pay plans is true?

Deferred distribution plans:

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

In setting up a combined payment plan for salespeople,the most critical question for an organization to answer is,"

A _____ plan is an award of shares with restrictions that require a predetermined length of service to elapse before vesting occurs.

_____ are among the oldest and most popular forms of incentive pay.

Generally speaking,the more quickly rewards follow desirable behavior,the more effective the rewards are in evoking subsequent desirable behavior by the employee.

Which of the following questions need to be answered when an organization is establishing a commission pay program?

Which of the following statements about incentive pay plans is true?

Deferred distribution plans:

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