Question 1

Piecework is inappropriate where technology changes are frequent.

Accepted Answer

A) True 
 B)False

Question 2

A bonus is supplemental to base wages.

Accepted Answer

A) True 
 B)False

Question 3

Meshing compensation and organizational objectives helps employees assume ownership of their jobs,improve effort,and improve performance.

Accepted Answer

A) True 
 B)False

Question 4

All of following are reasons for earning a merit raise,EXCEPT which one?

Accepted Answer

A) a profit merit decision 
B) successfully performing the job 
C) achieving an objective performance standard 
D) a superior's subjective evaluation 
A) a profit merit decision 
B) successfully performing the job 
C) achieving an objective performance standard 
D) a superior's subjective evaluation

Question 5

The operation of a merit pay plan depends on the effectiveness of the performance appraisal system.

Accepted Answer

A) True 
 B)False

Question 6

As part of her compensation package,Mariana was granted the rights to purchase shares of her organization's stock at an established price for a fixed period of time.What type of compensation is this?

Accepted Answer

A) Executive perks 
B) Share appreciation rights 
C) Stock options 
D) Phantom stock 
A) Executive perks 
B) Share appreciation rights 
C) Stock options 
D) Phantom stock

Question 7

As an incentive,Ahmed was offered the opportunity to buy shares of their organization's stock at a discount price.What type of compensation is this?

Accepted Answer

A) share bonus 
B) stock bonus 
C) stock options 
D) stock purchase 
A) share bonus 
B) stock bonus 
C) stock options 
D) stock purchase

Question 8

Why are performance measures vital in incentive plan design?

Accepted Answer

A) because they drive profitability 
B) because they ensure management support 
C) because they communicate the importance of the organizational goals 
D) because they are fair and equitable 
A) because they drive profitability 
B) because they ensure management support 
C) because they communicate the importance of the organizational goals 
D) because they are fair and equitable

Question 9

Under a straight commission plan,compensation is based entirely on a percentage of sales.

Accepted Answer

A) True 
 B)False

Question 10

Performance measures are rather simple to develop and standardize,as sales volume is an objective measure of performance that is not dependent upon external factors.

Accepted Answer

A) True 
 B)False

Question 11

Under which of the following conditions can incentive plans fail to achieve their objectives?

Accepted Answer

A) when the goals are based on organizational performance 
B) when employees are too motivated 
C) when employees have little ability to affect performance standards 
D) when the objectives are too focused 
A) when the goals are based on organizational performance 
B) when employees are too motivated 
C) when employees have little ability to affect performance standards 
D) when the objectives are too focused

Question 12

Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure.

Accepted Answer

A) True 
 B)False

Question 13

ESOPs can increase employees' pride of ownership in the organization,providing an incentive for them to increase productivity and help the organization prosper and grow.

Accepted Answer

A) True 
 B)False

Question 14

When setting performance measures for incentive systems,what can we say about the best measures?

Accepted Answer

A) They are quantitative,simple to understand,and show a clear relationship to improved performance. 
B) They are qualitative,flexible,and create competition between employees. 
C) They are those measures that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D) They are unattainable in order to inspire increased levels of performance. 
A) They are quantitative,simple to understand,and show a clear relationship to improved performance. 
B) They are qualitative,flexible,and create competition between employees. 
C) They are those measures that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D) They are unattainable in order to inspire increased levels of performance.

Question 15

Which of the following is a key objective of enterprise incentive plans?

Accepted Answer

A) to limit "free ridership" 
B) to reward top performers 
C) to support government reward programs 
D) to create a "culture of ownership" 
A) to limit "free ridership" 
B) to reward top performers 
C) to support government reward programs 
D) to create a "culture of ownership"

Question 16

A new start-up firm wants to encourage team behaviours and a "culture of ownership" among all employees in the organization.Which of the following types of pay plans is NOT advisable?

Accepted Answer

A) differential piece rates 
B) employee stock ownership plans 
C) profit sharing 
D) stock options 
A) differential piece rates 
B) employee stock ownership plans 
C) profit sharing 
D) stock options

Question 17

For incentive plans to be successful,one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals,teams,or organizational criteria.

Accepted Answer

A) True 
 B)False

Question 18

Mark recently received an incentive for a special contribution not directly tied to a performance standard.What is this incentive called?

Accepted Answer

A) a piece rate plan 
B) a spot bonus 
C) a special incentive 
D) a differential piece rate 
A) a piece rate plan 
B) a spot bonus 
C) a special incentive 
D) a differential piece rate

Question 19

When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output,what type of incentive plan is the employer using?

Accepted Answer

A) higher piece rate 
B) standard piece rate 
C) exception bonus rate 
D) differential piece rate 
A) higher piece rate 
B) standard piece rate 
C) exception bonus rate 
D) differential piece rate

Question 20

Gainsharing plans are designed to improve productivity through more effective use of organizational resources.

Accepted Answer

A) True 
 B)False

Piecework is inappropriate where technology changes are frequent.

A bonus is supplemental to base wages.

Meshing compensation and organizational objectives helps employees assume ownership of their jobs,improve effort,and improve performance.

All of following are reasons for earning a merit raise,EXCEPT which one?

The operation of a merit pay plan depends on the effectiveness of the performance appraisal system.

As part of her compensation package,Mariana was granted the rights to purchase shares of her organization's stock at an established price for a fixed period of time.What type of compensation is this?

As an incentive,Ahmed was offered the opportunity to buy shares of their organization's stock at a discount price.What type of compensation is this?

Why are performance measures vital in incentive plan design?

Under a straight commission plan,compensation is based entirely on a percentage of sales.

Performance measures are rather simple to develop and standardize,as sales volume is an objective measure of performance that is not dependent upon external factors.

Under which of the following conditions can incentive plans fail to achieve their objectives?

Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure.

ESOPs can increase employees' pride of ownership in the organization,providing an incentive for them to increase productivity and help the organization prosper and grow.

When setting performance measures for incentive systems,what can we say about the best measures?

Which of the following is a key objective of enterprise incentive plans?

A new start-up firm wants to encourage team behaviours and a "culture of ownership" among all employees in the organization.Which of the following types of pay plans is NOT advisable?

For incentive plans to be successful,one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals,teams,or organizational criteria.

Mark recently received an incentive for a special contribution not directly tied to a performance standard.What is this incentive called?

When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output,what type of incentive plan is the employer using?

Gainsharing plans are designed to improve productivity through more effective use of organizational resources.

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

Piecework is inappropriate where technology changes are frequent.

A bonus is supplemental to base wages.

Meshing compensation and organizational objectives helps employees assume ownership of their jobs,improve effort,and improve performance.

All of following are reasons for earning a merit raise,EXCEPT which one?

The operation of a merit pay plan depends on the effectiveness of the performance appraisal system.

As part of her compensation package,Mariana was granted the rights to purchase shares of her organization's stock at an established price for a fixed period of time.What type of compensation is this?

As an incentive,Ahmed was offered the opportunity to buy shares of their organization's stock at a discount price.What type of compensation is this?

Why are performance measures vital in incentive plan design?

Under a straight commission plan,compensation is based entirely on a percentage of sales.

Performance measures are rather simple to develop and standardize,as sales volume is an objective measure of performance that is not dependent upon external factors.

Under which of the following conditions can incentive plans fail to achieve their objectives?

Professional employees are difficult to develop incentive plans for only because their outputs are difficult to measure.

ESOPs can increase employees' pride of ownership in the organization,providing an incentive for them to increase productivity and help the organization prosper and grow.

When setting performance measures for incentive systems,what can we say about the best measures?

Which of the following is a key objective of enterprise incentive plans?

A new start-up firm wants to encourage team behaviours and a "culture of ownership" among all employees in the organization.Which of the following types of pay plans is NOT advisable?

For incentive plans to be successful,one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals,teams,or organizational criteria.

Mark recently received an incentive for a special contribution not directly tied to a performance standard.What is this incentive called?

When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output,what type of incentive plan is the employer using?

Gainsharing plans are designed to improve productivity through more effective use of organizational resources.

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