Question 1

Identify the disadvantage of using profit sharing plans.

Accepted Answer

A)  They cannot be used to improve the organization's performance as a whole. 
B)  The employees may develop a narrow view of their roles in the organization. 
C)  They cost more when the organization experiences financial difficulties. 
D)  Sharing profit with the employees ultimately reduces the organization's profitability. 
E)  Profit sharing is not directly linked to individual behavior. 
A)  They cannot be used to improve the organization's performance as a whole. 
B)  The employees may develop a narrow view of their roles in the organization. 
C)  They cost more when the organization experiences financial difficulties. 
D)  Sharing profit with the employees ultimately reduces the organization's profitability. 
E)  Profit sharing is not directly linked to individual behavior.

Question 2

An effective incentive pay plan should:

Accepted Answer

A)  have performance measures based on employees' requirements. 
B)  not be provided as a direct percentage of employees' performance. 
C)  encourage group performance and dispirit individual achievements. 
D)  be the same for all types of employees in the organization. 
E)  have performance measures linked to the organization's goals. 
A)  have performance measures based on employees' requirements. 
B)  not be provided as a direct percentage of employees' performance. 
C)  encourage group performance and dispirit individual achievements. 
D)  be the same for all types of employees in the organization. 
E)  have performance measures linked to the organization's goals.

Question 3

Standard hour plans are likely to succeed if:

Accepted Answer

A)  most or all of a salesperson's compensation is in the form of commissions. 
B)  employers keep labor costs to a minimum. 
C)  the pay increase is linked to ratings on performance appraisals. 
D)  employees want the extra money more than they want to work at a pace that feels comfortable. 
E)  the organization values employee satisfaction and motivation more than profits. 
A)  most or all of a salesperson's compensation is in the form of commissions. 
B)  employers keep labor costs to a minimum. 
C)  the pay increase is linked to ratings on performance appraisals. 
D)  employees want the extra money more than they want to work at a pace that feels comfortable. 
E)  the organization values employee satisfaction and motivation more than profits.

Question 4

How can gainsharing be successful as a form of group incentive?

Accepted Answer

Gainsharing is most likely to succeed wh

Question 5

What are the implications of designing pay for organizational performance?

Accepted Answer

Many organizations offer incentive pay t

Question 6

Straight commission plans:

Accepted Answer

A)  imply that the employees receive a straight salary. 
B)  are useful when the organization wants salespeople to concentrate on listening to customers. 
C)  help to attract employees risk-averse employees. 
D)  are common among insurance and real estate agents. 
E)  are not common among car salespeople. 
A)  imply that the employees receive a straight salary. 
B)  are useful when the organization wants salespeople to concentrate on listening to customers. 
C)  help to attract employees risk-averse employees. 
D)  are common among insurance and real estate agents. 
E)  are not common among car salespeople.

Question 7

If employee participation in making pay-related decisions is encouraged in an organization,then:

Accepted Answer

A)  administering the plans become simple. 
B)  the organization's interests can be best protected. 
C)  the cost borne by the organization decreases. 
D)  monitoring performance becomes difficult. 
E)  the incentive plan has more chances of being successful. 
A)  administering the plans become simple. 
B)  the organization's interests can be best protected. 
C)  the cost borne by the organization decreases. 
D)  monitoring performance becomes difficult. 
E)  the incentive plan has more chances of being successful.

Question 8

Under profit sharing,payments are a percentage of the organization's profits and become part of the employees' base salary.

Accepted Answer

A) True 
 B)False

Question 9

Profit sharing costs more when the organization experiences financial difficulties.

Accepted Answer

A) True 
 B)False

Question 10

Merit pay incentive system is usually used to attract employees who are more team-oriented.

Accepted Answer

A) True 
 B)False

Question 11

What is profit sharing?

Accepted Answer

A)  A gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. 
B)  An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary. 
C)  A group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees. 
D)  A combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay. 
E)  An incentive plan where a percentage of the previous year's profits is provided to employees as a part of salary. 
A)  A gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. 
B)  An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary. 
C)  A group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees. 
D)  A combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay. 
E)  An incentive plan where a percentage of the previous year's profits is provided to employees as a part of salary.

Question 12

Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of each profit to employees?

Accepted Answer

A)  Merit pay 
B)  Team award 
C)  Commission 
D)  Profit sharing 
E)  Gainsharing 
A)  Merit pay 
B)  Team award 
C)  Commission 
D)  Profit sharing 
E)  Gainsharing

Question 13

Differential piece rates system refers to:

Accepted Answer

A)  an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. 
B)  a wage system designed for salespeople who earn a differential pay for every piece sold. 
C)  an incentive pay in which the piece rate is higher when a greater amount is produced. 
D)  a system of linking pay increases to ratings on performance appraisals. 
E)  an incentive pay plan where every employee is paid different wages based on the skills they possess. 
A)  an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. 
B)  a wage system designed for salespeople who earn a differential pay for every piece sold. 
C)  an incentive pay in which the piece rate is higher when a greater amount is produced. 
D)  a system of linking pay increases to ratings on performance appraisals. 
E)  an incentive pay plan where every employee is paid different wages based on the skills they possess.

Question 14

What are the different types of piecework rates? Explain each of them.

Accepted Answer

The two types of piecework rates are the

Question 15

Employees should exercise the stock options even if the stock price has decreased.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a disadvantage of using incentive plans?

Accepted Answer

A)  The goals of an incentive plan may interfere with other management goals. 
B)  The goals of incentive plans cannot be linked to particular outcomes or behaviors. 
C)  Incentive plans cannot be used to promote group and organizational performance. 
D)  Incentive plans cause dissatisfaction among the non-performing employees in the organization. 
E)  Incentive plans are not very effective for jobs other than sales and service. 
A)  The goals of an incentive plan may interfere with other management goals. 
B)  The goals of incentive plans cannot be linked to particular outcomes or behaviors. 
C)  Incentive plans cannot be used to promote group and organizational performance. 
D)  Incentive plans cause dissatisfaction among the non-performing employees in the organization. 
E)  Incentive plans are not very effective for jobs other than sales and service.

Question 17

The decisions about merit pay are based on two factors: the individual's performance rating and the individual's:

Accepted Answer

A)  compa-ratio. 
B)  seniority. 
C)  pay grade. 
D)  longevity. 
E)  emotional quotient. 
A)  compa-ratio. 
B)  seniority. 
C)  pay grade. 
D)  longevity. 
E)  emotional quotient.

Question 18

_____ refers to an incentive pay in which the wage paid is higher when a greater amount is produced.

Accepted Answer

A)  Profit sharing 
B)  Differential piece rate 
C)  Gain sharing 
D)  Scanlon pay 
E)  Merit pay 
A)  Profit sharing 
B)  Differential piece rate 
C)  Gain sharing 
D)  Scanlon pay 
E)  Merit pay

Question 19

In merit pay programs,an individual's compa-ratio represents his/her:

Accepted Answer

A)  pay relative to performance of other workers in the industry. 
B)  pay relative to average pay. 
C)  comparable worth versus others. 
D)  ratio of pay to benefits. 
E)  the average worth of the skills possessed by the individual. 
A)  pay relative to performance of other workers in the industry. 
B)  pay relative to average pay. 
C)  comparable worth versus others. 
D)  ratio of pay to benefits. 
E)  the average worth of the skills possessed by the individual.

Question 20

How does linking executive pay to stock performance lead to unethical behavior?

Accepted Answer

A)  Executives can use the advantage of knowing the company's inside information to buy or sell stock and create huge personal gains. 
B)  Executives can roll in the stock price into their base pay to avoid paying a huge tax. 
C)  Executives do not inflate the stock price in order to enjoy bonuses. 
D)  Executives can use the employee stock ownership plan to buy their company if it is experiencing financial problems. 
E)  The executives can obtain as many shares as they need at a price that is much lower than the market rate. 
A)  Executives can use the advantage of knowing the company's inside information to buy or sell stock and create huge personal gains. 
B)  Executives can roll in the stock price into their base pay to avoid paying a huge tax. 
C)  Executives do not inflate the stock price in order to enjoy bonuses. 
D)  Executives can use the employee stock ownership plan to buy their company if it is experiencing financial problems. 
E)  The executives can obtain as many shares as they need at a price that is much lower than the market rate.

Identify the disadvantage of using profit sharing plans.

An effective incentive pay plan should:

Standard hour plans are likely to succeed if:

How can gainsharing be successful as a form of group incentive?

What are the implications of designing pay for organizational performance?

Straight commission plans:

If employee participation in making pay-related decisions is encouraged in an organization,then:

Under profit sharing,payments are a percentage of the organization's profits and become part of the employees' base salary.

Profit sharing costs more when the organization experiences financial difficulties.

Merit pay incentive system is usually used to attract employees who are more team-oriented.

What is profit sharing?

Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of each profit to employees?

Differential piece rates system refers to:

What are the different types of piecework rates? Explain each of them.

Employees should exercise the stock options even if the stock price has decreased.

Which of the following is a disadvantage of using incentive plans?

The decisions about merit pay are based on two factors: the individual's performance rating and the individual's:

_____ refers to an incentive pay in which the wage paid is higher when a greater amount is produced.

In merit pay programs,an individual's compa-ratio represents his/her:

How does linking executive pay to stock performance lead to unethical behavior?

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

Identify the disadvantage of using profit sharing plans.

An effective incentive pay plan should:

Standard hour plans are likely to succeed if:

How can gainsharing be successful as a form of group incentive?

What are the implications of designing pay for organizational performance?

Straight commission plans:

If employee participation in making pay-related decisions is encouraged in an organization,then:

Under profit sharing,payments are a percentage of the organization's profits and become part of the employees' base salary.

Profit sharing costs more when the organization experiences financial difficulties.

Merit pay incentive system is usually used to attract employees who are more team-oriented.

What is profit sharing?

Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of each profit to employees?

Differential piece rates system refers to:

What are the different types of piecework rates? Explain each of them.

Employees should exercise the stock options even if the stock price has decreased.

Which of the following is a disadvantage of using incentive plans?

The decisions about merit pay are based on two factors: the individual's performance rating and the individual's:

_____ refers to an incentive pay in which the wage paid is higher when a greater amount is produced.

In merit pay programs,an individual's compa-ratio represents his/her:

How does linking executive pay to stock performance lead to unethical behavior?

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