Question 1

Which of the following statements is true about a piecework rate plan?

Accepted Answer

A)  It can be used for all types of jobs and in all types of industries. 
B)  It is best suited for complex jobs and tasks. 
C)  It can be used to encourage teamwork and collaboration. 
D)  It has a direct link between the work done by the employee and the amount earned. 
E)  It encourages the employee's peers to perform and reduces conflicts. 
A)  It can be used for all types of jobs and in all types of industries. 
B)  It is best suited for complex jobs and tasks. 
C)  It can be used to encourage teamwork and collaboration. 
D)  It has a direct link between the work done by the employee and the amount earned. 
E)  It encourages the employee's peers to perform and reduces conflicts. D

Question 2

Which of the following statements is true of using stock options as incentive pay?

Accepted Answer

A)  The use of stock options ensures that managers add value in terms of efficiency and customer satisfaction. 
B)  Stock options require an option holder to purchase the organization's stocks at its present market rate. 
C)  Stock options are rewarding for employees who exercise their option when the company's stock value has risen. 
D)  Low-level employees with stock options are more likely to think like owners than executives who have stock options. 
E)  A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options. 
A)  The use of stock options ensures that managers add value in terms of efficiency and customer satisfaction. 
B)  Stock options require an option holder to purchase the organization's stocks at its present market rate. 
C)  Stock options are rewarding for employees who exercise their option when the company's stock value has risen. 
D)  Low-level employees with stock options are more likely to think like owners than executives who have stock options. 
E)  A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options. C

Question 3

In larger organizations that have stock ownership plans,the employees may not see a strong link between their actions and the company's stock price.

Accepted Answer

A) True 
 B)False  True

Question 4

Executive pay at Ashance Inc. ,a manufacturing company,includes bonuses based on the year's profits or other measures related to the organization's goals.Sometimes,to gain tax advantages,the bonus is made part of executives' retirement plans.Which of the following is being exemplified in this scenario?

Accepted Answer

A)  long-term incentives 
B)  balanced scorecards 
C)  piecework plans 
D)  employee stock ownership plans 
E)  short-term incentives 
A)  long-term incentives 
B)  balanced scorecards 
C)  piecework plans 
D)  employee stock ownership plans 
E)  short-term incentives

Question 5

If employee participation in making pay-related decisions is encouraged in an organization,then

Accepted Answer

A)  administering the plans become simple. 
B)  the organization's interests can be best protected. 
C)  the cost borne by the organization decreases. 
D)  monitoring performance becomes difficult. 
E)  the incentive plan has more chances of being successful. 
A)  administering the plans become simple. 
B)  the organization's interests can be best protected. 
C)  the cost borne by the organization decreases. 
D)  monitoring performance becomes difficult. 
E)  the incentive plan has more chances of being successful.

Question 6

Which of the following is a disadvantage of using group bonuses?

Accepted Answer

A)  Physical outputs are not rewarded. 
B)  It reduces the level of cooperation between the members of the group. 
C)  The performance measures used are narrow. 
D)  It could result in competition among groups. 
E)  It cannot be used to promote specific goals. 
A)  Physical outputs are not rewarded. 
B)  It reduces the level of cooperation between the members of the group. 
C)  The performance measures used are narrow. 
D)  It could result in competition among groups. 
E)  It cannot be used to promote specific goals.

Question 7

_____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Accepted Answer

A)  Profit rate 
B)  Gainsharing 
C)  Commission sharing 
D)  Merit rate 
E)  Group bonus 
A)  Profit rate 
B)  Gainsharing 
C)  Commission sharing 
D)  Merit rate 
E)  Group bonus

Question 8

Julianna,the HR manager at Hudson Corp. ,wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set.She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios.In this scenario,Julianna would be applying the system of

Accepted Answer

A)  merit pay. 
B)  piecework pay. 
C)  standard hour pay. 
D)  commissions. 
E)  attendance bonus. 
A)  merit pay. 
B)  piecework pay. 
C)  standard hour pay. 
D)  commissions. 
E)  attendance bonus.

Question 9

Developed in the 1930s,the Scanlon plan is a variation of a(n)

Accepted Answer

A)  profit-sharing plan. 
B)  gainsharing plan. 
C)  merit pay plan. 
D)  individual bonus. 
E)  commission plan. 
A)  profit-sharing plan. 
B)  gainsharing plan. 
C)  merit pay plan. 
D)  individual bonus. 
E)  commission plan.

Question 10

Jupiter Systems,an information technology company,determines that most problems handled by employees at its help desk can be resolved within 20 minutes.The company sets 20 minutes as the standard time for resolving a customer problem.If an employee solves a customer's problem in less than 20 minutes,the employee still earns 20 minutes' worth of wages.Which of the following payment methods does this scenario illustrate?

Accepted Answer

A)  piecework plan 
B)  differential plan 
C)  standard hour plan 
D)  merit pay 
E)  performance bonus 
A)  piecework plan 
B)  differential plan 
C)  standard hour plan 
D)  merit pay 
E)  performance bonus

Question 11

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

Accepted Answer

A) True 
 B)False

Question 12

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

Accepted Answer

A)  commissions 
B)  the Scanlon plan 
C)  merit pay 
D)  gainsharing 
E)  profit sharing 
A)  commissions 
B)  the Scanlon plan 
C)  merit pay 
D)  gainsharing 
E)  profit sharing

Question 13

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Accepted Answer

A) True 
 B)False

Question 14

Jeff owns and manages a small electronics repair store.He determines the time required by his employees to complete each task assigned by him.When employees complete the repairs in less time,they receive an amount of pay equal to that time determined by him.In this scenario,Jeff is using a

Accepted Answer

A)  standard hour plan. 
B)  differential piecework plan. 
C)  merit pay plan. 
D)  straight piecework plan. 
E)  Scanlon plan. 
A)  standard hour plan. 
B)  differential piecework plan. 
C)  merit pay plan. 
D)  straight piecework plan. 
E)  Scanlon plan.

Question 15

Which of the following is a common condition for gainsharing to be a success in an organization?

Accepted Answer

A)  employees who value working in groups 
B)  employers who do not set short-term goals for employees 
C)  work environment with minimum management commitment 
D)  employees who prefer minimum interaction and cooperation 
E)  low levels of cooperation and interaction 
A)  employees who value working in groups 
B)  employers who do not set short-term goals for employees 
C)  work environment with minimum management commitment 
D)  employees who prefer minimum interaction and cooperation 
E)  low levels of cooperation and interaction

Question 16

Incentive pay for executives lays the groundwork for significant ethical issues.

Accepted Answer

A) True 
 B)False

Question 17

What are the different types of pay for rewarding individual performance?

Accepted Answer

Another quantity-oriented incentive for

Question 18

An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Accepted Answer

A) True 
 B)False

Question 19

Elaborate on how gainsharing can be successful as a form of group incentive.

Accepted Answer

Gainsharing is most likely to succeed wh

Question 20

East Bay Hospital was concerned about rising costs for patients who have surgery for joint replacement.It tried rewarding staff in any quarter they met targets for lower use of supplies,but costs continued to rise.An investigation showed that one source of costs was the readmission of patients who experienced infections after surgery.The human resource department proposed setting up a gainsharing program with an effectiveness measure related to reducing infections.Which statement about gainsharing best supports this recommendation?

Accepted Answer

A)  With gainsharing,employees are freed to collaborate on how to improve performance. 
B)  Gainsharing creates a competitive environment,so employees will try to outdo one another. 
C)  Gainsharing is appropriate because the jobs in this case are simple,and so are the performance standards. 
D)  Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards. 
E)  The success of gainsharing requires management acceptance of employee input. 
A)  With gainsharing,employees are freed to collaborate on how to improve performance. 
B)  Gainsharing creates a competitive environment,so employees will try to outdo one another. 
C)  Gainsharing is appropriate because the jobs in this case are simple,and so are the performance standards. 
D)  Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards. 
E)  The success of gainsharing requires management acceptance of employee input.

Which of the following statements is true about a piecework rate plan?

Which of the following statements is true of using stock options as incentive pay?

In larger organizations that have stock ownership plans,the employees may not see a strong link between their actions and the company's stock price.

If employee participation in making pay-related decisions is encouraged in an organization,then

Which of the following is a disadvantage of using group bonuses?

_____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Developed in the 1930s,the Scanlon plan is a variation of a(n)

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Jeff owns and manages a small electronics repair store.He determines the time required by his employees to complete each task assigned by him.When employees complete the repairs in less time,they receive an amount of pay equal to that time determined by him.In this scenario,Jeff is using a

Which of the following is a common condition for gainsharing to be a success in an organization?

Incentive pay for executives lays the groundwork for significant ethical issues.

What are the different types of pay for rewarding individual performance?

An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Elaborate on how gainsharing can be successful as a form of group incentive.

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Establishing a Pay Structure

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

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Exam 13: Recognizing Employee Contributions With Pay

Which of the following statements is true about a piecework rate plan?

Which of the following statements is true of using stock options as incentive pay?

In larger organizations that have stock ownership plans,the employees may not see a strong link between their actions and the company's stock price.

If employee participation in making pay-related decisions is encouraged in an organization,then

Which of the following is a disadvantage of using group bonuses?

_____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Developed in the 1930s,the Scanlon plan is a variation of a(n)

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Jeff owns and manages a small electronics repair store.He determines the time required by his employees to complete each task assigned by him.When employees complete the repairs in less time,they receive an amount of pay equal to that time determined by him.In this scenario,Jeff is using a

Which of the following is a common condition for gainsharing to be a success in an organization?

Incentive pay for executives lays the groundwork for significant ethical issues.

What are the different types of pay for rewarding individual performance?

An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Elaborate on how gainsharing can be successful as a form of group incentive.

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Establishing a Pay Structure

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Filters