Question 1

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

Accepted Answer

A) True 
 B)False

Question 2

It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package.Which of the following best describes these benefits?

Accepted Answer

A) They are illegal,but executives usually get away without being caught. 
B) They are known as perquisites. 
C) They are known as golden parachutes. 
D) They are unusual for top executives. 
A) They are illegal,but executives usually get away without being caught. 
B) They are known as perquisites. 
C) They are known as golden parachutes. 
D) They are unusual for top executives.

Question 3

A straight salary plan is the most frequently used type of sales incentive plan.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an advantage of merit increases on a lump-sum basis?

Accepted Answer

A) They do not contribute to escalating base salary levels. 
B) They add a permanent sum to the base salary. 
C) They are done in conjunction with promotions. 
D) They reflect annual adjustments in base salary. 
A) They do not contribute to escalating base salary levels. 
B) They add a permanent sum to the base salary. 
C) They are done in conjunction with promotions. 
D) They reflect annual adjustments in base salary.

Question 5

Identify and briefly describe one gainsharing plan that encourages maximum effort and cooperation but is not tied to profit fluctuations,as are profit-sharing plans.

Accepted Answer

Scanlon Plan.The Scanlon Plan enables em

Question 6

Incentive plans are not effective in service and government organizations because of the difficulty in measuring productivity.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a major problem of ESOPs?

Accepted Answer

A) Employees may become demotivated and frustrated if the share price falls,even though they have worked productively. 
B) ESOPs place employees' pensions at risk because they are tied to the market performance of the organization. 
C) Because of the cash involved,ESOPs can be damaging to the financial well-being of the organization. 
D) Employees view the ESOP as a form of management control. 
A) Employees may become demotivated and frustrated if the share price falls,even though they have worked productively. 
B) ESOPs place employees' pensions at risk because they are tied to the market performance of the organization. 
C) Because of the cash involved,ESOPs can be damaging to the financial well-being of the organization. 
D) Employees view the ESOP as a form of management control.

Question 8

Team incentive plans reward team members when performance standards are met or exceeded; however,they tend to foster a psychological climate that negatively impacts team cooperation.

Accepted Answer

A) True 
 B)False

Question 9

Identify the principal methods for compensating salespeople and the advantages of each method.

Accepted Answer

Compensation plans for sales personnel m

Question 10

A key advantage of incentive plans is that they represent variable costs that are linked to the realization of goals as opposed to a fixed cost such as salary that may be largely unrelated to true performance (i.e.,output).

Accepted Answer

A) True 
 B)False

Question 11

Under a differential piece rate plan,employees whose performance (i.e.,production)exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who have not exceeded the standard amount.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the most widely used sales incentive program?

Accepted Answer

A) straight salary 
B) straight commission 
C) combined salary and commission 
D) commission plus bonus 
A) straight salary 
B) straight commission 
C) combined salary and commission 
D) commission plus bonus

Question 13

Employees working under a standard hour plan are paid on the basis of a predetermined time allowed to finish the job.

Accepted Answer

A) True 
 B)False

Question 14

When is employee compensation referred to as variable pay?

Accepted Answer

A) when employee pay is linked to performance 
B) when employer costs vary with the incentives offered 
C) when employee pay varies with market pay 
D) when employee pay is comprised of varying components 
A) when employee pay is linked to performance 
B) when employer costs vary with the incentives offered 
C) when employee pay varies with market pay 
D) when employee pay is comprised of varying components

Question 15

One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance.

Accepted Answer

A) True 
 B)False

Question 16

What's the range of net profits generally shared with employees in profit-sharing plans?

Accepted Answer

A) 5?0?25% 
B) 5?0?50% 
C) 10?0?25% 
D) 10?0?50% 
A) 5?0?25% 
B) 5?0?50% 
C) 10?0?25% 
D) 10?0?50%

Question 17

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Accepted Answer

A) True 
 B)False

Question 18

Who normally decides the compensation package for the Chief Executive Officer in a Fortune 500 firm?

Accepted Answer

A) the vice-presidents or the second level of executives 
B) members of the Board of Directors 
C) the unions through collective bargaining 
D) the shareholders of the firm 
A) the vice-presidents or the second level of executives 
B) members of the Board of Directors 
C) the unions through collective bargaining 
D) the shareholders of the firm

Question 19

Standard hour plans are popular in service departments in automobile dealerships.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a key factor that contributes to the success of incentive plans?

Accepted Answer

A) employee entitlements 
B) management support 
C) high employee expectations for pay gains 
D) undefined performance measures 
A) employee entitlements 
B) management support 
C) high employee expectations for pay gains 
D) undefined performance measures

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package.Which of the following best describes these benefits?

A straight salary plan is the most frequently used type of sales incentive plan.

Which of the following is an advantage of merit increases on a lump-sum basis?

Identify and briefly describe one gainsharing plan that encourages maximum effort and cooperation but is not tied to profit fluctuations,as are profit-sharing plans.

Incentive plans are not effective in service and government organizations because of the difficulty in measuring productivity.

Which of the following is a major problem of ESOPs?

Team incentive plans reward team members when performance standards are met or exceeded; however,they tend to foster a psychological climate that negatively impacts team cooperation.

Identify the principal methods for compensating salespeople and the advantages of each method.

A key advantage of incentive plans is that they represent variable costs that are linked to the realization of goals as opposed to a fixed cost such as salary that may be largely unrelated to true performance (i.e.,output).

Under a differential piece rate plan,employees whose performance (i.e.,production)exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who have not exceeded the standard amount.

Which of the following is the most widely used sales incentive program?

Employees working under a standard hour plan are paid on the basis of a predetermined time allowed to finish the job.

When is employee compensation referred to as variable pay?

One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance.

What's the range of net profits generally shared with employees in profit-sharing plans?

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Who normally decides the compensation package for the Chief Executive Officer in a Fortune 500 firm?

Standard hour plans are popular in service departments in automobile dealerships.

Which of the following is a key factor that contributes to the success of incentive plans?

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

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Exam 10: Pay for Performance: Incentive Rewards

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

It was revealed in the press that the former CEO of a Fortune 100 firm enjoyed special use of the company plane and a country club membership as a part of his reward package.Which of the following best describes these benefits?

A straight salary plan is the most frequently used type of sales incentive plan.

Which of the following is an advantage of merit increases on a lump-sum basis?

Identify and briefly describe one gainsharing plan that encourages maximum effort and cooperation but is not tied to profit fluctuations,as are profit-sharing plans.

Incentive plans are not effective in service and government organizations because of the difficulty in measuring productivity.

Which of the following is a major problem of ESOPs?

Team incentive plans reward team members when performance standards are met or exceeded; however,they tend to foster a psychological climate that negatively impacts team cooperation.

Identify the principal methods for compensating salespeople and the advantages of each method.

A key advantage of incentive plans is that they represent variable costs that are linked to the realization of goals as opposed to a fixed cost such as salary that may be largely unrelated to true performance (i.e.,output).

Under a differential piece rate plan,employees whose performance (i.e.,production)exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who have not exceeded the standard amount.

Which of the following is the most widely used sales incentive program?

Employees working under a standard hour plan are paid on the basis of a predetermined time allowed to finish the job.

When is employee compensation referred to as variable pay?

One philosophy of incentive systems is that tying compensation to employee effort will improve employee performance.

What's the range of net profits generally shared with employees in profit-sharing plans?

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Who normally decides the compensation package for the Chief Executive Officer in a Fortune 500 firm?

Standard hour plans are popular in service departments in automobile dealerships.

Which of the following is a key factor that contributes to the success of incentive plans?

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Filters