Question 1

Which of the following types of incentive plans are specifically designed to promote group performance?

Accepted Answer

A)  Performance bonuses 
B)  Gainsharing 
C)  Standard hour plans 
D)  Merit pay 
E)  Commissions 
A)  Performance bonuses 
B)  Gainsharing 
C)  Standard hour plans 
D)  Merit pay 
E)  Commissions

Question 2

As an incentive to work efficiently,some organizations pay production workers a ____,a wage based on the amount they produce.

Accepted Answer

A)  merit pay 
B)  commission 
C)  standard hour pay 
D)  piecework rate 
E)  special bonus 
A)  merit pay 
B)  commission 
C)  standard hour pay 
D)  piecework rate 
E)  special bonus

Question 3

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

Accepted Answer

A)  Merit pay 
B)  Profit sharing 
C)  Gainsharing 
D)  Balanced scorecard 
E)  Scanlon plan 
A)  Merit pay 
B)  Profit sharing 
C)  Gainsharing 
D)  Balanced scorecard 
E)  Scanlon plan

Question 5

What is meant by backdating a stock option?

Accepted Answer

A)  Reaping windfall in the stock market by selling stock based on company's nonpublic information 
B)  Falsifying numbers in the company's annual report to hide losses and inflate the stock prices 
C)  Buying company's stock just before the date of key product launch 
D)  Changing the price in the original option agreement so that the option holder can buy stock at a bargain price 
E)  Re-evaluating a company's stocks to adjust it to a previous date so that the shareholders and employees minimize the losses 
A)  Reaping windfall in the stock market by selling stock based on company's nonpublic information 
B)  Falsifying numbers in the company's annual report to hide losses and inflate the stock prices 
C)  Buying company's stock just before the date of key product launch 
D)  Changing the price in the original option agreement so that the option holder can buy stock at a bargain price 
E)  Re-evaluating a company's stocks to adjust it to a previous date so that the shareholders and employees minimize the losses

Question 6

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Accepted Answer

A)  Stock options 
B)  Employee stock ownership plan 
C)  Scanlon plan 
D)  Collective stock options 
E)  Profit sharing plan 
A)  Stock options 
B)  Employee stock ownership plan 
C)  Scanlon plan 
D)  Collective stock options 
E)  Profit sharing plan

Question 7

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Accepted Answer

A) True 
 B)False

Question 8

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals.

Accepted Answer

A) True 
 B)False

Question 9

Why do organizations use profit sharing?

Accepted Answer

A)  It has been established that profit sharing helps organizations perform better. 
B)  It makes employees feel that they have control over the company's profits. 
C)  It costs less when the organization is experiencing financial difficulties. 
D)  It helps employees find a direct relation between their performance and gain. 
E)  It motivates employees more than individual incentives. 
A)  It has been established that profit sharing helps organizations perform better. 
B)  It makes employees feel that they have control over the company's profits. 
C)  It costs less when the organization is experiencing financial difficulties. 
D)  It helps employees find a direct relation between their performance and gain. 
E)  It motivates employees more than individual incentives.

Question 10

When designing incentives,managers should make sure that:

Accepted Answer

A)  all the employees are paid equal amounts. 
B)  even the lowest performing employees get some rewards. 
C)  employees focus only completing the task quickly. 
D)  employees think that the pay plan is fair. 
E)  they focus on hiring employees for whom earning money is the only reason to do a good job. 
A)  all the employees are paid equal amounts. 
B)  even the lowest performing employees get some rewards. 
C)  employees focus only completing the task quickly. 
D)  employees think that the pay plan is fair. 
E)  they focus on hiring employees for whom earning money is the only reason to do a good job.

Question 11

Which of the following is a reason for ESOPs' popularity?

Accepted Answer

A)  Earnings of the trust holdings are exempt from income taxes. 
B)  ESOPs provide very high risk-free retirement income. 
C)  Employees can use ESOPs to buy their company during financial crises. 
D)  ESOPs require companies to invest 51 percent in the company's own stocks. 
E)  The employees are provided with many more stocks than they actually own. 
A)  Earnings of the trust holdings are exempt from income taxes. 
B)  ESOPs provide very high risk-free retirement income. 
C)  Employees can use ESOPs to buy their company during financial crises. 
D)  ESOPs require companies to invest 51 percent in the company's own stocks. 
E)  The employees are provided with many more stocks than they actually own.

Question 12

How does allowing employees to participate in pay-related decisions affect the incentive process?

Accepted Answer

Employee participation in pay-related de

Question 13

The Scanlon plan is a variation of:

Accepted Answer

A)  profit sharing plans. 
B)  gainsharing plans. 
C)  merit pay plans. 
D)  individual bonus plans. 
E)  commission plans. 
A)  profit sharing plans. 
B)  gainsharing plans. 
C)  merit pay plans. 
D)  individual bonus plans. 
E)  commission plans.

Question 14

Pay specifically designed to energize,direct,or control employees' behavior is known as:

Accepted Answer

A)  monthly salary. 
B)  wage. 
C)  incentive pay. 
D)  annual salary. 
E)  fixed pay. 
A)  monthly salary. 
B)  wage. 
C)  incentive pay. 
D)  annual salary. 
E)  fixed pay.

Question 15

What are the advantages and disadvantages of a merit pay system?

Accepted Answer

Almost all organizations have establishe

Question 16

Piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

Accepted Answer

A) True 
 B)False

Question 17

What is the difference between stock options and employee stock ownership plan (ESOP)?

Accepted Answer

A)  Stock options carry significant risk whereas ESOPs are risk-free. 
B)  Stock options are usually used with top management whereas ESOPs are provided to all employees. 
C)  In stock options, stocks are placed into a trust whereas ESOPs give employees the right to buy a certain number of shares of stock. 
D)  Under stock options, employees can sell their stocks whereas ESOPs do not allow employees to sell their stocks. 
E)  Earnings from stock options are exempt from income taxes whereas earnings from ESOPs are taxable. 
A)  Stock options carry significant risk whereas ESOPs are risk-free. 
B)  Stock options are usually used with top management whereas ESOPs are provided to all employees. 
C)  In stock options, stocks are placed into a trust whereas ESOPs give employees the right to buy a certain number of shares of stock. 
D)  Under stock options, employees can sell their stocks whereas ESOPs do not allow employees to sell their stocks. 
E)  Earnings from stock options are exempt from income taxes whereas earnings from ESOPs are taxable.

Question 18

What is a balanced scorecard?

Accepted Answer

A)  A combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay 
B)  A performance review process where the organization collects feedback from customers, managers, and subordinates, assigns ratings, and lists them on the company's performance card 
C)  An arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust 
D)  An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary 
E)  It is a system designed to measure the performance of HR personnel based on the quality of recruitment 
A)  A combination of performance measures directed toward the company's long- and short-term goals and used as the basis for awarding incentive pay 
B)  A performance review process where the organization collects feedback from customers, managers, and subordinates, assigns ratings, and lists them on the company's performance card 
C)  An arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust 
D)  An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary 
E)  It is a system designed to measure the performance of HR personnel based on the quality of recruitment

Question 19

Like merit pay,performance bonuses for individual performance are rolled into an employee's base pay.

Accepted Answer

A) True 
 B)False

Question 20

A major problem with ESOPs is that:

Accepted Answer

A)  they carry a significant risk for employees. 
B)  employees are not allowed to participate in votes by shareholders. 
C)  the stocks within the trust are too widely diversified to earn high returns. 
D)  any earnings from the trust holdings are taxed at an extremely high rate. 
E)  they result in reduced profitability for the employees. 
A)  they carry a significant risk for employees. 
B)  employees are not allowed to participate in votes by shareholders. 
C)  the stocks within the trust are too widely diversified to earn high returns. 
D)  any earnings from the trust holdings are taxed at an extremely high rate. 
E)  they result in reduced profitability for the employees.

Which of the following types of incentive plans are specifically designed to promote group performance?

As an incentive to work efficiently,some organizations pay production workers a ____,a wage based on the amount they produce.

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals.

Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

What is meant by backdating a stock option?

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals.

Why do organizations use profit sharing?

When designing incentives,managers should make sure that:

Which of the following is a reason for ESOPs' popularity?

How does allowing employees to participate in pay-related decisions affect the incentive process?

The Scanlon plan is a variation of:

Pay specifically designed to energize,direct,or control employees' behavior is known as:

What are the advantages and disadvantages of a merit pay system?

Piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

What is the difference between stock options and employee stock ownership plan (ESOP)?

What is a balanced scorecard?

Like merit pay,performance bonuses for individual performance are rolled into an employee's base pay.

A major problem with ESOPs is that:

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

Which of the following types of incentive plans are specifically designed to promote group performance?

As an incentive to work efficiently,some organizations pay production workers a ____,a wage based on the amount they produce.

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals.

Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

What is meant by backdating a stock option?

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals.

Why do organizations use profit sharing?

When designing incentives,managers should make sure that:

Which of the following is a reason for ESOPs' popularity?

How does allowing employees to participate in pay-related decisions affect the incentive process?

The Scanlon plan is a variation of:

Pay specifically designed to energize,direct,or control employees' behavior is known as:

What are the advantages and disadvantages of a merit pay system?

Piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

What is the difference between stock options and employee stock ownership plan (ESOP)?

What is a balanced scorecard?

Like merit pay,performance bonuses for individual performance are rolled into an employee's base pay.

A major problem with ESOPs is that:

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