Question 1

From an employer's point of view,what is the most attractive feature of properly designed gain-sharing plans?

Accepted Answer

A)  The plans are self-funding. 
B)  Positive work group norms develop. 
C)  The need for supervisory control is reduced. 
D)  Employees monitor each other's performance. 
A)  The plans are self-funding. 
B)  Positive work group norms develop. 
C)  The need for supervisory control is reduced. 
D)  Employees monitor each other's performance. A

Question 2

Your employer is considering tying the bonus pool to the firm's profitability and then allocating this amount to employees based on individual merit.With reference to expectancy theory,which component of the merit system will be weakened and thus make it less motivational for you as an employee?

Accepted Answer

A)  valence 
B)  expectancy 
C)  instrumentality 
D)  effort 
A)  valence 
B)  expectancy 
C)  instrumentality 
D)  effort C

Question 3

Which plans are set up so that a payout is contingent on the achievement of three- to five-year performance goals?

Accepted Answer

A)  pension plans 
B)  long-term incentives 
C)  deferred profit-sharing plans 
D)  goal-sharing plans 
A)  pension plans 
B)  long-term incentives 
C)  deferred profit-sharing plans 
D)  goal-sharing plans B

Question 4

Which of the following is an organizational-level pay performance plan?

Accepted Answer

A)  goal-sharing plans 
B)  merit-pay plans 
C)  special-purpose incentive pay plans 
D)  profit-sharing plans 
A)  goal-sharing plans 
B)  merit-pay plans 
C)  special-purpose incentive pay plans 
D)  profit-sharing plans

Question 5

Which of the following is normally seen as an advantage associated with long-term incentives plans?

Accepted Answer

A)  They may encourage a better understanding of the business. 
B)  They tie rewards to the company's ability to pay. 
C)  They usually dilute shareholder equity for existing shareholders. 
D)  Goals are easy to determine,particularly in dynamic industries. 
A)  They may encourage a better understanding of the business. 
B)  They tie rewards to the company's ability to pay. 
C)  They usually dilute shareholder equity for existing shareholders. 
D)  Goals are easy to determine,particularly in dynamic industries.

Question 6

What is the most common form of performance pay used by medium to large Canadian firms?

Accepted Answer

A)  merit raises 
B)  profit sharing 
C)  merit bonuses 
D)  commissions 
A)  merit raises 
B)  profit sharing 
C)  merit bonuses 
D)  commissions

Question 7

According to the textbook,what is the main drawback associated with attendance plans?

Accepted Answer

A)  There are costs associated with administering the program. 
B)  Both intended and unintended behaviours are not easy to observe. 
C)  It is difficult to deal with the so-called "legitimate" absences. 
D)  They do not deal with the underlying cause of the issue. 
A)  There are costs associated with administering the program. 
B)  Both intended and unintended behaviours are not easy to observe. 
C)  It is difficult to deal with the so-called "legitimate" absences. 
D)  They do not deal with the underlying cause of the issue.

Question 8

Which of the following is a group level organizational pay performance system?

Accepted Answer

A)  gain sharing 
B)  piece rates 
C)  merit raises 
D)  commissions 
A)  gain sharing 
B)  piece rates 
C)  merit raises 
D)  commissions

Question 9

What is a key difference between gain-sharing and organizational performance pay plans?

Accepted Answer

A)  Unlike organizational level plans,gain sharing can be applied to not-for-profit and government organizations. 
B)  Gain sharing results in more pay for employees. 
C)  Unions support organizational level pay plans but not gain sharing. 
D)  There are more free riders in gain-sharing plans. 
A)  Unlike organizational level plans,gain sharing can be applied to not-for-profit and government organizations. 
B)  Gain sharing results in more pay for employees. 
C)  Unions support organizational level pay plans but not gain sharing. 
D)  There are more free riders in gain-sharing plans.

Question 10

The central issue associated with attendance incentives is the notion that these programs treat only the symptoms while ignoring the underlying issues that cause absenteeism in the first place.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would NOT be an ideal scenario in which to consider using a piece rate plan?

Accepted Answer

A)  Quality standards can be monitored effectively. 
B)  Significant teamwork is needed to complete a particular task. 
C)  Each unit of production can be easily measured. 
D)  Tasks tend to be fairly static over time. 
A)  Quality standards can be monitored effectively. 
B)  Significant teamwork is needed to complete a particular task. 
C)  Each unit of production can be easily measured. 
D)  Tasks tend to be fairly static over time.

Question 12

Piece rates have experienced high discontinuation rates.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a suitable condition for merit pay?

Accepted Answer

A)  Individual performance varies. 
B)  Performance is not controllable by the individual. 
C)  Individual performance can be separated out. 
D)  Undesirable side effects are readily manageable. 
A)  Individual performance varies. 
B)  Performance is not controllable by the individual. 
C)  Individual performance can be separated out. 
D)  Undesirable side effects are readily manageable.

Question 14

Identify and briefly define each of the three types of employee stock plans.

Accepted Answer

An employee stock plan is any type of pl

Question 15

What is a key advantage of piece rate pay systems?

Accepted Answer

A)  They reduce the need for external control of employees through supervision. 
B)  They create team work. 
C)  They link pay to group effort. 
D)  They encourage "rate busters." 
A)  They reduce the need for external control of employees through supervision. 
B)  They create team work. 
C)  They link pay to group effort. 
D)  They encourage "rate busters."

Question 16

In the public sector,what is one factor that should be considered when designing merit pay?

Accepted Answer

A)  role of consultants 
B)  role of unions 
C)  pay mix with profit sharing 
D)  pay mix with stock options 
A)  role of consultants 
B)  role of unions 
C)  pay mix with profit sharing 
D)  pay mix with stock options

Question 17

In what way are piece rates and commissions similar to each other?

Accepted Answer

A)  Employees don't have to worry about working themselves out of a job. 
B)  They reduce the need for external control of employees through supervision. 
C)  Both types are commonly used in conjunction with base pay. 
D)  Both are popular systems widely used in the service sector. 
A)  Employees don't have to worry about working themselves out of a job. 
B)  They reduce the need for external control of employees through supervision. 
C)  Both types are commonly used in conjunction with base pay. 
D)  Both are popular systems widely used in the service sector.

Question 18

Which statement best describes how North American employees view merit raises?

Accepted Answer

A)  They are viewed as not promoting employee-employer relationships. 
B)  They are viewed with significant scepticism by employees. 
C)  They are not viewed in a positive light because of the objective nature of performance reviews. 
D)  They are viewed in a positive light by unionized employees. 
A)  They are viewed as not promoting employee-employer relationships. 
B)  They are viewed with significant scepticism by employees. 
C)  They are not viewed in a positive light because of the objective nature of performance reviews. 
D)  They are viewed in a positive light by unionized employees.

Question 19

Employee stock plans are often used by companies using a classical management strategy

Accepted Answer

A) True 
 B)False

Question 20

Profit-sharing plans can reduce the need for employee supervision.

Accepted Answer

A) True 
 B)False

From an employer's point of view,what is the most attractive feature of properly designed gain-sharing plans?

Your employer is considering tying the bonus pool to the firm's profitability and then allocating this amount to employees based on individual merit.With reference to expectancy theory,which component of the merit system will be weakened and thus make it less motivational for you as an employee?

Which plans are set up so that a payout is contingent on the achievement of three- to five-year performance goals?

Which of the following is an organizational-level pay performance plan?

Which of the following is normally seen as an advantage associated with long-term incentives plans?

What is the most common form of performance pay used by medium to large Canadian firms?

According to the textbook,what is the main drawback associated with attendance plans?

Which of the following is a group level organizational pay performance system?

What is a key difference between gain-sharing and organizational performance pay plans?

The central issue associated with attendance incentives is the notion that these programs treat only the symptoms while ignoring the underlying issues that cause absenteeism in the first place.

Which of the following would NOT be an ideal scenario in which to consider using a piece rate plan?

Piece rates have experienced high discontinuation rates.

Which of the following is NOT a suitable condition for merit pay?

Identify and briefly define each of the three types of employee stock plans.

What is a key advantage of piece rate pay systems?

In the public sector,what is one factor that should be considered when designing merit pay?

In what way are piece rates and commissions similar to each other?

Which statement best describes how North American employees view merit raises?

Employee stock plans are often used by companies using a classical management strategy

Profit-sharing plans can reduce the need for employee supervision.

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 5: Performance Pay Choices

From an employer's point of view,what is the most attractive feature of properly designed gain-sharing plans?

Your employer is considering tying the bonus pool to the firm's profitability and then allocating this amount to employees based on individual merit.With reference to expectancy theory,which component of the merit system will be weakened and thus make it less motivational for you as an employee?

Which plans are set up so that a payout is contingent on the achievement of three- to five-year performance goals?

Which of the following is an organizational-level pay performance plan?

Which of the following is normally seen as an advantage associated with long-term incentives plans?

What is the most common form of performance pay used by medium to large Canadian firms?

According to the textbook,what is the main drawback associated with attendance plans?

Which of the following is a group level organizational pay performance system?

What is a key difference between gain-sharing and organizational performance pay plans?

The central issue associated with attendance incentives is the notion that these programs treat only the symptoms while ignoring the underlying issues that cause absenteeism in the first place.

Which of the following would NOT be an ideal scenario in which to consider using a piece rate plan?

Piece rates have experienced high discontinuation rates.

Which of the following is NOT a suitable condition for merit pay?

Identify and briefly define each of the three types of employee stock plans.

What is a key advantage of piece rate pay systems?

In the public sector,what is one factor that should be considered when designing merit pay?

In what way are piece rates and commissions similar to each other?

Which statement best describes how North American employees view merit raises?

Employee stock plans are often used by companies using a classical management strategy

Profit-sharing plans can reduce the need for employee supervision.

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters