Question 1

Employers use stock ownership incentive plans to increase employee "ownership" in the company.

Accepted Answer

A) True 
 B)False

Question 2

The most important lesson learned from Scanlon and Improshare plans is that if management wants to gain the cooperation of its employees in improving efficiency,they must permit the employees to become involved psychologically as well as financially in the organization.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the problems identified with merit raises.As a manager,what would you do to ensure that merit raises fulfilled their intended value?

Accepted Answer

There are number of problems identified

Question 4

What is a potential consequence of "rate busting"?

Accepted Answer

A) production targets not being achieved 
B) increase in group incentives 
C) disapproval from fellow workers 
D) improved cooperation among workers 
A) production targets not being achieved 
B) increase in group incentives 
C) disapproval from fellow workers 
D) improved cooperation among workers

Question 5

What is a consequence of lump-sum merit raises?

Accepted Answer

A) higher costs versus merit raises 
B) lower budgets 
C) increased performance standards 
D) no merit-based increase in base pay 
A) higher costs versus merit raises 
B) lower budgets 
C) increased performance standards 
D) no merit-based increase in base pay

Question 6

What's the first step in the three-step approach in deciding on team incentives?

Accepted Answer

A) performance measures are decided 
B) the size of the incentive is decided 
C) a payout formula is determined 
D) a survey is conducted 
A) performance measures are decided 
B) the size of the incentive is decided 
C) a payout formula is determined 
D) a survey is conducted

Question 7

Incentive plans based on productivity can reduce labour costs.

Accepted Answer

A) True 
 B)False

Question 8

Several organizations have an incentive that managers can give to their employees for outstanding singular effort not tied to any planned performance standard.What is such an incentive usually called?

Accepted Answer

A) a stock option 
B) a spot bonus 
C) merit pay 
D) a differential piece rate 
A) a stock option 
B) a spot bonus 
C) merit pay 
D) a differential piece rate

Question 9

Sales incentives can be affected by external factors beyond the salesperson's control.

Accepted Answer

A) True 
 B)False

Question 10

Enterprise incentive plans allow all organizational members to participate in the plan's payout.

Accepted Answer

A) True 
 B)False

Question 11

What is the purpose of a profit-sharing plan?

Accepted Answer

A) to allow workers to contribute ideas and suggestions 
B) to motivate a total commitment to the organization as a whole 
C) to enable workers to share in labour cost savings 
D) to instil commitment to the employee's immediate work group 
A) to allow workers to contribute ideas and suggestions 
B) to motivate a total commitment to the organization as a whole 
C) to enable workers to share in labour cost savings 
D) to instil commitment to the employee's immediate work group

Question 12

Which of the following is a key condition for the success of merit pay raises?

Accepted Answer

A) The amount must be fairly substantial. 
B) Employees must work in teams. 
C) The performance goals must be tough to achieve. 
D) The raise should be awarded every two months. 
A) The amount must be fairly substantial. 
B) Employees must work in teams. 
C) The performance goals must be tough to achieve. 
D) The raise should be awarded every two months.

Question 13

Many potential errors,as well as discrimination,can occur in the performance appraisal process.Which of the following can such errors lead to?

Accepted Answer

A) problematic stock options 
B) problematic merit pay 
C) problematic job evaluations 
D) problematic market pay rates 
A) problematic stock options 
B) problematic merit pay 
C) problematic job evaluations 
D) problematic market pay rates

Question 14

Merit pay plans have been criticized because the merit increase may not be sufficient to raise the employee's base pay.

Accepted Answer

A) True 
 B)False

Question 15

A potential difficulty with pay-for-performance programs is how to measure employee performance.

Accepted Answer

A) True 
 B)False

Question 16

According to research,which of the following best describes incentive plans?

Accepted Answer

A) They can contribute to organizational performance if certain conditions are met. 
B) They usually improve organizational performance by at least 10 percent. 
C) They usually lead to negative outcomes such as confusion and competition. 
D) They tend to drive up organizational costs and decrease profits because more pay has to be given to employees. 
A) They can contribute to organizational performance if certain conditions are met. 
B) They usually improve organizational performance by at least 10 percent. 
C) They usually lead to negative outcomes such as confusion and competition. 
D) They tend to drive up organizational costs and decrease profits because more pay has to be given to employees.

Question 17

Briefly discuss three individual incentive plans.(Students should discuss three of the four following plans.)

Accepted Answer

Piecework is one of the oldest incentive

Question 18

When is piecework most appropriate?

Accepted Answer

A) when the job is fairly standardized 
B) when quality is more important than quantity 
C) when performance measures are difficult to define 
D) when technology changes are frequent 
A) when the job is fairly standardized 
B) when quality is more important than quantity 
C) when performance measures are difficult to define 
D) when technology changes are frequent

Question 19

A salesperson with a sales volume of $275 000 earning a straight commission of 3 percent would receive $8250.

Accepted Answer

A) True 
 B)False

Question 20

Lana works as a salesperson at Fashion Galore.She is paid on a percentage of her sales only.What type of pay plan is this?

Accepted Answer

A) straight ratio plan 
B) straight salary plan 
C) straight bonus plan 
D) straight commission plan 
A) straight ratio plan 
B) straight salary plan 
C) straight bonus plan 
D) straight commission plan

Employers use stock ownership incentive plans to increase employee "ownership" in the company.

The most important lesson learned from Scanlon and Improshare plans is that if management wants to gain the cooperation of its employees in improving efficiency,they must permit the employees to become involved psychologically as well as financially in the organization.

Discuss the problems identified with merit raises.As a manager,what would you do to ensure that merit raises fulfilled their intended value?

What is a potential consequence of "rate busting"?

What is a consequence of lump-sum merit raises?

What's the first step in the three-step approach in deciding on team incentives?

Incentive plans based on productivity can reduce labour costs.

Several organizations have an incentive that managers can give to their employees for outstanding singular effort not tied to any planned performance standard.What is such an incentive usually called?

Sales incentives can be affected by external factors beyond the salesperson's control.

Enterprise incentive plans allow all organizational members to participate in the plan's payout.

What is the purpose of a profit-sharing plan?

Which of the following is a key condition for the success of merit pay raises?

Many potential errors,as well as discrimination,can occur in the performance appraisal process.Which of the following can such errors lead to?

Merit pay plans have been criticized because the merit increase may not be sufficient to raise the employee's base pay.

A potential difficulty with pay-for-performance programs is how to measure employee performance.

According to research,which of the following best describes incentive plans?

Briefly discuss three individual incentive plans.(Students should discuss three of the four following plans.)

When is piecework most appropriate?

A salesperson with a sales volume of $275 000 earning a straight commission of 3 percent would receive $8250.

Lana works as a salesperson at Fashion Galore.She is paid on a percentage of her sales only.What type of pay plan is this?

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

Employers use stock ownership incentive plans to increase employee "ownership" in the company.

The most important lesson learned from Scanlon and Improshare plans is that if management wants to gain the cooperation of its employees in improving efficiency,they must permit the employees to become involved psychologically as well as financially in the organization.

Discuss the problems identified with merit raises.As a manager,what would you do to ensure that merit raises fulfilled their intended value?

What is a potential consequence of "rate busting"?

What is a consequence of lump-sum merit raises?

What's the first step in the three-step approach in deciding on team incentives?

Incentive plans based on productivity can reduce labour costs.

Several organizations have an incentive that managers can give to their employees for outstanding singular effort not tied to any planned performance standard.What is such an incentive usually called?

Sales incentives can be affected by external factors beyond the salesperson's control.

Enterprise incentive plans allow all organizational members to participate in the plan's payout.

What is the purpose of a profit-sharing plan?

Which of the following is a key condition for the success of merit pay raises?

Many potential errors,as well as discrimination,can occur in the performance appraisal process.Which of the following can such errors lead to?

Merit pay plans have been criticized because the merit increase may not be sufficient to raise the employee's base pay.

A potential difficulty with pay-for-performance programs is how to measure employee performance.

According to research,which of the following best describes incentive plans?

Briefly discuss three individual incentive plans.(Students should discuss three of the four following plans.)

When is piecework most appropriate?

A salesperson with a sales volume of $275 000 earning a straight commission of 3 percent would receive $8250.

Lana works as a salesperson at Fashion Galore.She is paid on a percentage of her sales only.What type of pay plan is this?

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