Question 1

The idea behind the Scanlon Plan is that employees not only should offer ideas to improve productivity,but also should be rewarded for those ideas.

Accepted Answer

A) True 
 B)False

Question 2

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Accepted Answer

A) True 
 B)False

Question 3

Merit raises may be perpetuated year after year even if performance declines.

Accepted Answer

A) True 
 B)False

Question 4

Perquisites are special benefits given to executive employees.

Accepted Answer

A) True 
 B)False

Question 5

At Steelcase,an office furniture maker,employees can earn more than their base pay if they produce more units,such as upholstering more chairs.This part of their pay is determined on units produced.Which of the following plans is being used here?

Accepted Answer

A) piece rate plan 
B) completion pay plan 
C) time division plan 
D) standard hour plan 
A) piece rate plan 
B) completion pay plan 
C) time division plan 
D) standard hour plan

Question 6

Which of the following is NOT a reason that merit raises may fail to achieve their intended purpose?

Accepted Answer

A) Merit raises may be based on seniority or favouritism. 
B) The performance appraisal system is deficient. 
C) Employees are unable to differentiate between merit and other pay increases. 
D) Incentive rewards are linked to organizational goals. 
A) Merit raises may be based on seniority or favouritism. 
B) The performance appraisal system is deficient. 
C) Employees are unable to differentiate between merit and other pay increases. 
D) Incentive rewards are linked to organizational goals.

Question 7

What is the philosophy behind the Scanlon Plan?

Accepted Answer

A) Rewards are shared with employees based on improved profits. 
B) Employees should offer ideas and suggestions to improve productivity and,in turn,be rewarded for their constructive efforts. 
C) Organizational profits should improve through sales efforts. 
D) Managers and employees should establish quality and quantity goals for optimum organizational performance. 
A) Rewards are shared with employees based on improved profits. 
B) Employees should offer ideas and suggestions to improve productivity and,in turn,be rewarded for their constructive efforts. 
C) Organizational profits should improve through sales efforts. 
D) Managers and employees should establish quality and quantity goals for optimum organizational performance.

Question 8

One clear trend in strategic compensation management is the growth of incentive programs for employees throughout the organization.

Accepted Answer

A) True 
 B)False

Question 9

What is a major problem with profit sharing plans?

Accepted Answer

A) They increase the fixed costs of organizations. 
B) The line of sight between employee performance and organizational profits is blurred. 
C) The profits distributed to employees can be too much. 
D) There is no agreed upon procedure to determine profits. 
A) They increase the fixed costs of organizations. 
B) The line of sight between employee performance and organizational profits is blurred. 
C) The profits distributed to employees can be too much. 
D) There is no agreed upon procedure to determine profits.

Question 10

Malo is an engineer.Her salary range was extended to the range used for administrative employees.What is this type of pay system?

Accepted Answer

A) a hybrid wage system 
B) broadbanding 
C) extended range pay system 
D) a double-track wage system 
A) a hybrid wage system 
B) broadbanding 
C) extended range pay system 
D) a double-track wage system

Question 11

What's the overarching philosophy of gainsharing plans?

Accepted Answer

A) Gains that are shared with employees will multiply over time. 
B) Involved employees will improve productivity through more effective use of organizational resources. 
C) Organizations need to pay employees more. 
D) Individual incentives are motivational. 
A) Gains that are shared with employees will multiply over time. 
B) Involved employees will improve productivity through more effective use of organizational resources. 
C) Organizations need to pay employees more. 
D) Individual incentives are motivational.

Question 12

The level of incentives given to executives may depend on their level in the firm.

Accepted Answer

A) True 
 B)False

Question 13

Stock options are rights attached to the achievement of specific organizational objectives.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a major concern about executive compensation?

Accepted Answer

A) the timing of the stock awards 
B) the lack of objective performance data 
C) the lack of perquisites 
D) the growing gap between leaders and the company's lowest-paid employees 
A) the timing of the stock awards 
B) the lack of objective performance data 
C) the lack of perquisites 
D) the growing gap between leaders and the company's lowest-paid employees

Question 15

In most profit-sharing plans,about 20 to 25 percent of net profits are shared with employees.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT a type of stock plan?

Accepted Answer

A) stock option plan 
B) stock bonus plan 
C) stock purchase plan 
D) stock incentive plan 
A) stock option plan 
B) stock bonus plan 
C) stock purchase plan 
D) stock incentive plan

Question 17

Because of failing popularity and media scandals,the number of Canadian companies granting stock options to nonexecutive personnel has been decreasing in recent years.

Accepted Answer

A) True 
 B)False

Question 18

ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume.What type of pay plan does this exemplify?

Accepted Answer

A) a straight salary plan 
B) a merit plan 
C) lump-sum merit pay 
D) a standard hour plan 
A) a straight salary plan 
B) a merit plan 
C) lump-sum merit pay 
D) a standard hour plan

Question 19

Employees receive a specified payment for each unit produced under a straight piecework program.

Accepted Answer

A) True 
 B)False

Question 20

Last year,many CEOs of Canada's largest companies earned less than $500,000 base pay,yet their overall compensation was on average more than $9 million.What was the major source for the large total pay?

Accepted Answer

A) stock options 
B) executive perquisites 
C) bonuses 
D) benefits 
A) stock options 
B) executive perquisites 
C) bonuses 
D) benefits

The idea behind the Scanlon Plan is that employees not only should offer ideas to improve productivity,but also should be rewarded for those ideas.

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Merit raises may be perpetuated year after year even if performance declines.

Perquisites are special benefits given to executive employees.

At Steelcase,an office furniture maker,employees can earn more than their base pay if they produce more units,such as upholstering more chairs.This part of their pay is determined on units produced.Which of the following plans is being used here?

Which of the following is NOT a reason that merit raises may fail to achieve their intended purpose?

What is the philosophy behind the Scanlon Plan?

One clear trend in strategic compensation management is the growth of incentive programs for employees throughout the organization.

What is a major problem with profit sharing plans?

Malo is an engineer.Her salary range was extended to the range used for administrative employees.What is this type of pay system?

What's the overarching philosophy of gainsharing plans?

The level of incentives given to executives may depend on their level in the firm.

Stock options are rights attached to the achievement of specific organizational objectives.

Which of the following is a major concern about executive compensation?

In most profit-sharing plans,about 20 to 25 percent of net profits are shared with employees.

Which of the following is NOT a type of stock plan?

Because of failing popularity and media scandals,the number of Canadian companies granting stock options to nonexecutive personnel has been decreasing in recent years.

ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume.What type of pay plan does this exemplify?

Employees receive a specified payment for each unit produced under a straight piecework program.

Last year,many CEOs of Canada's largest companies earned less than $500,000 base pay,yet their overall compensation was on average more than $9 million.What was the major source for the large total pay?

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

The idea behind the Scanlon Plan is that employees not only should offer ideas to improve productivity,but also should be rewarded for those ideas.

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Merit raises may be perpetuated year after year even if performance declines.

Perquisites are special benefits given to executive employees.

At Steelcase,an office furniture maker,employees can earn more than their base pay if they produce more units,such as upholstering more chairs.This part of their pay is determined on units produced.Which of the following plans is being used here?

Which of the following is NOT a reason that merit raises may fail to achieve their intended purpose?

What is the philosophy behind the Scanlon Plan?

One clear trend in strategic compensation management is the growth of incentive programs for employees throughout the organization.

What is a major problem with profit sharing plans?

Malo is an engineer.Her salary range was extended to the range used for administrative employees.What is this type of pay system?

What's the overarching philosophy of gainsharing plans?

The level of incentives given to executives may depend on their level in the firm.

Stock options are rights attached to the achievement of specific organizational objectives.

Which of the following is a major concern about executive compensation?

In most profit-sharing plans,about 20 to 25 percent of net profits are shared with employees.

Which of the following is NOT a type of stock plan?

Because of failing popularity and media scandals,the number of Canadian companies granting stock options to nonexecutive personnel has been decreasing in recent years.

ABC Corporation has a sales compensation plan that requires salespeople to be paid for performing various duties not reflected in their sales volume.What type of pay plan does this exemplify?

Employees receive a specified payment for each unit produced under a straight piecework program.

Last year,many CEOs of Canada's largest companies earned less than $500,000 base pay,yet their overall compensation was on average more than $9 million.What was the major source for the large total pay?

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