Question 1

What are group bonuses and team awards? What are their advantages and disadvantages?

Accepted Answer

Bonuses for group performance tend to be for smaller work groups.These bonuses reward the members of a group for attaining a specific goal,usually measured in terms of physical output.Team awards are similar to group bonuses,but they are more likely to use a broad range of performance measures,such as cost savings,successful completion of a project,or even meeting deadlines.Both types of incentives have the advantage that they encourage group or team members to cooperate so that they can achieve their goal.However,depending on the reward system,competition among individuals may be replaced by competition among groups.Competition may be healthy in some situations,as when groups try to outdo one another in satisfying customers.On the downside,competition may also prevent necessary cooperation among groups.To avoid this,the organization should carefully set the performance goals for these incentives so that concern for costs or sales does not obscure other objectives such as quality,customer service,and ethical behavior.

Question 2

What should employees do to earn bonuses under the Scanlon plan?

Accepted Answer

A)  They should produce products at a rate which is much higher than the standard production time. 
B)  They should create goodwill with customers and close as many sales as possible. 
C)  They should follow a defined set of quality standard to produce the desired outcome. 
D)  They should keep labor costs to a minimum and produce as much as possible with that amount of labor. 
E)  They should improve their performance year after year so that they re-earn the bonus during each performance period. 
A)  They should produce products at a rate which is much higher than the standard production time. 
B)  They should create goodwill with customers and close as many sales as possible. 
C)  They should follow a defined set of quality standard to produce the desired outcome. 
D)  They should keep labor costs to a minimum and produce as much as possible with that amount of labor. 
E)  They should improve their performance year after year so that they re-earn the bonus during each performance period. D

Question 3

Retention bonuses refer to:

Accepted Answer

A)  the special reward programs used to satisfy the lower and middle level managers. 
B)  the bonuses provided to union members to withhold a strike decision. 
C)  the bonuses provided to employees who take long leaves without pay. 
D)  annual incentives paid to daily wage workers to remain in the organization. 
E)  one-time incentives paid in exchange for remaining with the company. 
A)  the special reward programs used to satisfy the lower and middle level managers. 
B)  the bonuses provided to union members to withhold a strike decision. 
C)  the bonuses provided to employees who take long leaves without pay. 
D)  annual incentives paid to daily wage workers to remain in the organization. 
E)  one-time incentives paid in exchange for remaining with the company. E

Question 4

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 5

A piecework rate plan is best suited for:

Accepted Answer

A)  HR professionals. 
B)  executives. 
C)  production workers. 
D)  managers. 
E)  knowledge workers. 
A)  HR professionals. 
B)  executives. 
C)  production workers. 
D)  managers. 
E)  knowledge workers.

Question 6

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 7

Which of the following is true of a balanced scorecard?

Accepted Answer

A)  It encourages employees to compete at the expense of cooperating to achieve organizational goals. 
B)  It allows employees to buy their company when it is experiencing financial problems. 
C)  It combines the advantages of different incentive pay plans and helps employees understand the organization's goals. 
D)  It increases cooperation but does little to motivate day-to-day effort or to attract and retain top individual performers. 
E)  It is the only measure used by top management to measure the performance of HR professionals and managers. 
A)  It encourages employees to compete at the expense of cooperating to achieve organizational goals. 
B)  It allows employees to buy their company when it is experiencing financial problems. 
C)  It combines the advantages of different incentive pay plans and helps employees understand the organization's goals. 
D)  It increases cooperation but does little to motivate day-to-day effort or to attract and retain top individual performers. 
E)  It is the only measure used by top management to measure the performance of HR professionals and managers.

Question 8

An organization uses Scanlon plan to provide incentives to employees.The workers produce parts worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:

Accepted Answer

A)  $0.5 million. 
B)  $1 million. 
C)  $1.5 million. 
D)  $2 million. 
E)  $2.5 million. 
A)  $0.5 million. 
B)  $1 million. 
C)  $1.5 million. 
D)  $2 million. 
E)  $2.5 million.

Question 9

In stock ownership plans,employees may not see a strong link between their actions and the company's stock price.

Accepted Answer

A) True 
 B)False

Question 10

What is the drawback of stock ownership as a form of incentive pay?

Accepted Answer

A)  Financial benefits mostly come when the employee leaves the organization. 
B)  Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer. 
C)  It causes the employers to lose control over their employees. 
D)  The employees will not benefit even if the organization is performing well. 
E)  Stock options do not provide any ownership to employees, instead it offers an equivalent sum. 
A)  Financial benefits mostly come when the employee leaves the organization. 
B)  Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer. 
C)  It causes the employers to lose control over their employees. 
D)  The employees will not benefit even if the organization is performing well. 
E)  Stock options do not provide any ownership to employees, instead it offers an equivalent sum.

Question 11

Which of the following is true about a piece rate plan?

Accepted Answer

A)  It can be used for all types of jobs and in all types of industries. 
B)  It is best suited for complex jobs and tasks. 
C)  It can be used to encourage team work and collaboration. 
D)  It has a direct link between the work and how much the employee earns. 
E)  It encourages peers to perform as well as the co-workers and reduce conflicts. 
A)  It can be used for all types of jobs and in all types of industries. 
B)  It is best suited for complex jobs and tasks. 
C)  It can be used to encourage team work and collaboration. 
D)  It has a direct link between the work and how much the employee earns. 
E)  It encourages peers to perform as well as the co-workers and reduce conflicts.

Question 12

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 13

Which of the following is a disadvantage of a merit pay system?

Accepted Answer

A)  It does not relate the rewards to economic conditions. 
B)  It cannot be used effectively in performance appraisals. 
C)  Comparative pay is not considered in its evaluation. 
D)  It is not consistent with performance management's dimensions. 
E)  It can quickly become expensive for the company. 
A)  It does not relate the rewards to economic conditions. 
B)  It cannot be used effectively in performance appraisals. 
C)  Comparative pay is not considered in its evaluation. 
D)  It is not consistent with performance management's dimensions. 
E)  It can quickly become expensive for the company.

Question 14

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 15

Employee participation in pay-related decisions can be part of a general move toward:

Accepted Answer

A)  employee empowerment. 
B)  centralized decision making. 
C)  self ownership. 
D)  power system approach. 
E)  federalism. 
A)  employee empowerment. 
B)  centralized decision making. 
C)  self ownership. 
D)  power system approach. 
E)  federalism.

Question 16

An advantage of merit pay is that:

Accepted Answer

A)  it makes the reward more valuable by relating it to economic conditions. 
B)  it promotes group performance instead of promoting individual behavior. 
C)  it provides merit increases to employees only on the basis of performance. 
D)  it would never become costly for the employers. 
E)  it results in a bigger short-term reward for the best performers. 
A)  it makes the reward more valuable by relating it to economic conditions. 
B)  it promotes group performance instead of promoting individual behavior. 
C)  it provides merit increases to employees only on the basis of performance. 
D)  it would never become costly for the employers. 
E)  it results in a bigger short-term reward for the best performers.

Question 17

Which of the following is an advantage of group incentives?

Accepted Answer

A)  Group incentives always use a broad range of performance measures. 
B)  Groups try to outdo one another in satisfying customers and therefore create healthy competition. 
C)  They encourage employees to achieve their goals irrespective of the cooperation of team members. 
D)  They reward the performance of all the employees at a facility. 
E)  They always result in cooperation among team members without any competition. 
A)  Group incentives always use a broad range of performance measures. 
B)  Groups try to outdo one another in satisfying customers and therefore create healthy competition. 
C)  They encourage employees to achieve their goals irrespective of the cooperation of team members. 
D)  They reward the performance of all the employees at a facility. 
E)  They always result in cooperation among team members without any competition.

Question 18

Which of the following is true about standard hour plans?

Accepted Answer

A)  They always encourage employees to focus on customer service. 
B)  They succeed only for employees who are not motivated by money. 
C)  They encourage employees to focus mainly on quality. 
D)  In terms of their pros and cons, they are very different from piecework plans. 
E)  They encourage employees to work as fast as they can. 
A)  They always encourage employees to focus on customer service. 
B)  They succeed only for employees who are not motivated by money. 
C)  They encourage employees to focus mainly on quality. 
D)  In terms of their pros and cons, they are very different from piecework plans. 
E)  They encourage employees to work as fast as they can.

Question 19

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 20

What are the different types of pay for rewarding individual performance?

Accepted Answer

Another quantity-oriented incentive for

What are group bonuses and team awards? What are their advantages and disadvantages?

What should employees do to earn bonuses under the Scanlon plan?

Retention bonuses refer to:

Which of the following is a short-term incentive?

A piecework rate plan is best suited for:

Which of the following is true of a performance bonus?

Which of the following is true of a balanced scorecard?

An organization uses Scanlon plan to provide incentives to employees.The workers produce parts worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:

In stock ownership plans,employees may not see a strong link between their actions and the company's stock price.

What is the drawback of stock ownership as a form of incentive pay?

Which of the following is true about a piece rate plan?

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

Which of the following is a disadvantage of a merit pay system?

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:

Employee participation in pay-related decisions can be part of a general move toward:

An advantage of merit pay is that:

Which of the following is an advantage of group incentives?

Which of the following is true about standard hour plans?

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

What are the different types of pay for rewarding individual performance?

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

What are group bonuses and team awards? What are their advantages and disadvantages?

What should employees do to earn bonuses under the Scanlon plan?

Retention bonuses refer to:

Which of the following is a short-term incentive?

A piecework rate plan is best suited for:

Which of the following is true of a performance bonus?

Which of the following is true of a balanced scorecard?

An organization uses Scanlon plan to provide incentives to employees.The workers produce parts worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:

In stock ownership plans,employees may not see a strong link between their actions and the company's stock price.

What is the drawback of stock ownership as a form of incentive pay?

Which of the following is true about a piece rate plan?

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

Which of the following is a disadvantage of a merit pay system?

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:

Employee participation in pay-related decisions can be part of a general move toward:

An advantage of merit pay is that:

Which of the following is an advantage of group incentives?

Which of the following is true about standard hour plans?

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

What are the different types of pay for rewarding individual performance?

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