Question 1

_____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

Accepted Answer

A)  Differential piece rate 
B)  Standard hour plan 
C)  Merit pay 
D)  Piece rate 
E)  Commission 
A)  Differential piece rate 
B)  Standard hour plan 
C)  Merit pay 
D)  Piece rate 
E)  Commission

Question 2

Which of the following statements is true about a balanced scorecard?

Accepted Answer

A)  It encourages employees to compete at the expense of cooperating to achieve organizational goals. 
B)  It allows employees to buy their company when it is experiencing financial problems. 
C)  It combines the advantages of different incentive pay plans and helps employees understand the organization's goals. 
D)  It increases cooperation,but does little to motivate day-to-day effort or to attract and retain top individual performers. 
E)  It is the only measure used by top management to measure the performance of HR professionals and managers. 
A)  It encourages employees to compete at the expense of cooperating to achieve organizational goals. 
B)  It allows employees to buy their company when it is experiencing financial problems. 
C)  It combines the advantages of different incentive pay plans and helps employees understand the organization's goals. 
D)  It increases cooperation,but does little to motivate day-to-day effort or to attract and retain top individual performers. 
E)  It is the only measure used by top management to measure the performance of HR professionals and managers.

Question 3

In 2017,a company employee received an option to purchase the company's stock at $45 per share.If the stock is trading at $40 a share in 2019,the employee will most likely

Accepted Answer

A)  exercise the option,receiving a gain of $5. 
B)  exercise the option,receiving a gain of $40. 
C)  not bother to exercise the options. 
D)  buy the stock at $45 per share. 
E)  sell the shares to a third party slightly above the market price. 
A)  exercise the option,receiving a gain of $5. 
B)  exercise the option,receiving a gain of $40. 
C)  not bother to exercise the options. 
D)  buy the stock at $45 per share. 
E)  sell the shares to a third party slightly above the market price.

Question 4

Which of the following is a drawback of a standard hour plan?

Accepted Answer

A)  It does not focus on quality or customer service. 
B)  It escalates costs for an employer in the long term. 
C)  It is applicable only in team-based work environments. 
D)  It helps employees work at a comfortable pace. 
E)  It does not pay workers extra for work done in less than the standard time. 
A)  It does not focus on quality or customer service. 
B)  It escalates costs for an employer in the long term. 
C)  It is applicable only in team-based work environments. 
D)  It helps employees work at a comfortable pace. 
E)  It does not pay workers extra for work done in less than the standard time.

Question 5

A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.This incentive plan is referred to as

Accepted Answer

A)  a group bonus. 
B)  merit pay. 
C)  the Scanlon plan. 
D)  a piecework rate. 
E)  a team award. 
A)  a group bonus. 
B)  merit pay. 
C)  the Scanlon plan. 
D)  a piecework rate. 
E)  a team award.

Question 6

What are the different types of piecework rates? Explain each of them.

Accepted Answer

The two types of piecework rates are the

Question 7

A piecework rate plan is best suited for

Accepted Answer

A)  HR professionals. 
B)  executives. 
C)  production workers. 
D)  managers. 
E)  knowledge workers. 
A)  HR professionals. 
B)  executives. 
C)  production workers. 
D)  managers. 
E)  knowledge workers.

Question 8

In which of the following conditions is an advantage when group incentives encourage competition between groups of employees?

Accepted Answer

A)  when concern for costs obscures customer service 
B)  when groups try to outdo one another in satisfying customers 
C)  when competition replaces cooperation to meet company goals 
D)  when competition for sales obscures the importance of ethical behavior 
E)  when performance goals consider only one objective,such as sales growth 
A)  when concern for costs obscures customer service 
B)  when groups try to outdo one another in satisfying customers 
C)  when competition replaces cooperation to meet company goals 
D)  when competition for sales obscures the importance of ethical behavior 
E)  when performance goals consider only one objective,such as sales growth

Question 9

From employers' perspective,an advantage of merit pay is that it is cheap.

Accepted Answer

A) True 
 B)False

Question 10

Employees should participate in pay-related decisions.This will most likely help in the success of incentive plans,and the plans are more likely to influence employee behavior as desired.Which of the following statements weakens this argument?

Accepted Answer

A)  Employees will make decisions that are in their best interests at the expense of the organization's interests. 
B)  It is difficult to monitor an employee's work output when decisions are made by the employee. 
C)  When employees become more involved in pay decisions,they neglect the work assigned to them. 
D)  Employees should be a part of the human resource department to be involved in pay-related decisions. 
E)  It will have a negative impact on the top-level management of the company. 
A)  Employees will make decisions that are in their best interests at the expense of the organization's interests. 
B)  It is difficult to monitor an employee's work output when decisions are made by the employee. 
C)  When employees become more involved in pay decisions,they neglect the work assigned to them. 
D)  Employees should be a part of the human resource department to be involved in pay-related decisions. 
E)  It will have a negative impact on the top-level management of the company.

Question 11

Brendan,the HR manager at Baretta & Co. ,is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees.In this case,Brendan should apply the incentive scheme of _____.

Accepted Answer

A)  piecework rate 
B)  gainsharing 
C)  sales commission 
D)  merit pay 
E)  ESOPs 
A)  piecework rate 
B)  gainsharing 
C)  sales commission 
D)  merit pay 
E)  ESOPs

Question 12

Sheldon,the manager of a manufacturing firm,wants the organization to perform better.He expects his employees to think more like owners,taking a broad view of what they need to do in order to make the organization more effective.In this case,Sheldon should

Accepted Answer

A)  pay his employees per piece that is manufactured. 
B)  create a balanced scorecard. 
C)  reorganize the departments in the organization. 
D)  implement a profit-sharing incentive plan. 
E)  hire new employees and pay them above the market rate. 
A)  pay his employees per piece that is manufactured. 
B)  create a balanced scorecard. 
C)  reorganize the departments in the organization. 
D)  implement a profit-sharing incentive plan. 
E)  hire new employees and pay them above the market rate.

Question 13

How does linking executive pay to stock performance make unethical behavior tempting?

Accepted Answer

A)  Executives can use the advantage of knowing the company's inside information to buy or sell stock and create huge personal gains. 
B)  Executives can roll in the stock price into their base pay to avoid paying a huge tax. 
C)  Executives will lower the stock prices in order to enjoy bonuses. 
D)  Executives can use the employee stock ownership plan to buy their company if it is experiencing financial problems. 
E)  The executives can obtain as many shares as they need at a price that is much lower than the market rate. 
A)  Executives can use the advantage of knowing the company's inside information to buy or sell stock and create huge personal gains. 
B)  Executives can roll in the stock price into their base pay to avoid paying a huge tax. 
C)  Executives will lower the stock prices in order to enjoy bonuses. 
D)  Executives can use the employee stock ownership plan to buy their company if it is experiencing financial problems. 
E)  The executives can obtain as many shares as they need at a price that is much lower than the market rate.

Question 14

If a company distributes stock to employees by granting stock options,employees exercise the option when they

Accepted Answer

A)  purchase the stock. 
B)  sell the stock. 
C)  retain the stock. 
D)  distribute the stock. 
E)  liquidate the stock. 
A)  purchase the stock. 
B)  sell the stock. 
C)  retain the stock. 
D)  distribute the stock. 
E)  liquidate the stock.

Question 15

What is the drawback of stock ownership as a form of incentive pay?

Accepted Answer

A)  Financial benefits mostly come when the employee leaves the organization. 
B)  Employees have the right to participate in votes by shareholders,hence reducing the negotiating power of the employer. 
C)  It causes the employers to lose control over their employees. 
D)  The employees will not benefit even if the organization is performing well. 
E)  Stock options do not provide any ownership to employees,instead offering an equivalent sum. 
A)  Financial benefits mostly come when the employee leaves the organization. 
B)  Employees have the right to participate in votes by shareholders,hence reducing the negotiating power of the employer. 
C)  It causes the employers to lose control over their employees. 
D)  The employees will not benefit even if the organization is performing well. 
E)  Stock options do not provide any ownership to employees,instead offering an equivalent sum.

Question 16

Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees?

Accepted Answer

A)  merit pay 
B)  team award 
C)  commission 
D)  standard hour plans 
E)  gainsharing 
A)  merit pay 
B)  team award 
C)  commission 
D)  standard hour plans 
E)  gainsharing

Question 17

Songreen Inc. ,a firm that manufactures ready-to-eat soups,offers incentives based on an employee's performance rating and the employee's compa-ratio.Which of the following payment plans is exemplified in this scenario?

Accepted Answer

A)  piecework plan 
B)  merit pay 
C)  standard hour plan 
D)  differential plan 
E)  skill-based plan 
A)  piecework plan 
B)  merit pay 
C)  standard hour plan 
D)  differential plan 
E)  skill-based plan

Question 18

Kolese Inc. ,a manufacturing company,includes stock options and stock purchase plans in executive pay.Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow.Which of the following is being exemplified in this scenario?

Accepted Answer

A)  Scanlon plan 
B)  balanced scorecard 
C)  long-term incentive 
D)  merit plan 
E)  short-term incentive 
A)  Scanlon plan 
B)  balanced scorecard 
C)  long-term incentive 
D)  merit plan 
E)  short-term incentive

Question 19

Keytechi and Sons,a marketing company,has implemented a few incentive plans to motivate its employees.The organization encourages employees to learn new skills and cooperate with others.Which of the following will contribute to employees' feeling that the organization's incentive pay plans are fair and something to pursue?

Accepted Answer

A)  Employees must be able to understand the requirements of the incentive pay plan. 
B)  Equal incentives should be offered to all the employees of the organization. 
C)  Employees must be the key decision makers when creating incentive pay plans. 
D)  The company should not inform the employees about incentive plan changes. 
E)  Employees should make decisions that are only in favor of their interests. 
A)  Employees must be able to understand the requirements of the incentive pay plan. 
B)  Equal incentives should be offered to all the employees of the organization. 
C)  Employees must be the key decision makers when creating incentive pay plans. 
D)  The company should not inform the employees about incentive plan changes. 
E)  Employees should make decisions that are only in favor of their interests.

Question 20

The differential piece rate system refers to

Accepted Answer

A)  an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. 
B)  a system that gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. 
C)  an incentive pay in which the piece rate is higher when a greater amount is produced. 
D)  a system of linking pay increases to ratings on performance appraisals. 
E)  an incentive pay plan where employees are paid different wages based on the skills they possess. 
A)  an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees. 
B)  a system that gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard. 
C)  an incentive pay in which the piece rate is higher when a greater amount is produced. 
D)  a system of linking pay increases to ratings on performance appraisals. 
E)  an incentive pay plan where employees are paid different wages based on the skills they possess.

_____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

Which of the following statements is true about a balanced scorecard?

In 2017,a company employee received an option to purchase the company's stock at $45 per share.If the stock is trading at $40 a share in 2019,the employee will most likely

Which of the following is a drawback of a standard hour plan?

A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.This incentive plan is referred to as

What are the different types of piecework rates? Explain each of them.

A piecework rate plan is best suited for

In which of the following conditions is an advantage when group incentives encourage competition between groups of employees?

From employers' perspective,an advantage of merit pay is that it is cheap.

Employees should participate in pay-related decisions.This will most likely help in the success of incentive plans,and the plans are more likely to influence employee behavior as desired.Which of the following statements weakens this argument?

Brendan,the HR manager at Baretta & Co. ,is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees.In this case,Brendan should apply the incentive scheme of _____.

Sheldon,the manager of a manufacturing firm,wants the organization to perform better.He expects his employees to think more like owners,taking a broad view of what they need to do in order to make the organization more effective.In this case,Sheldon should

How does linking executive pay to stock performance make unethical behavior tempting?

If a company distributes stock to employees by granting stock options,employees exercise the option when they

What is the drawback of stock ownership as a form of incentive pay?

Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees?

Songreen Inc. ,a firm that manufactures ready-to-eat soups,offers incentives based on an employee's performance rating and the employee's compa-ratio.Which of the following payment plans is exemplified in this scenario?

Kolese Inc. ,a manufacturing company,includes stock options and stock purchase plans in executive pay.Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow.Which of the following is being exemplified in this scenario?

The differential piece rate system refers to

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

_____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

Which of the following statements is true about a balanced scorecard?

In 2017,a company employee received an option to purchase the company's stock at $45 per share.If the stock is trading at $40 a share in 2019,the employee will most likely

Which of the following is a drawback of a standard hour plan?

A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.This incentive plan is referred to as

What are the different types of piecework rates? Explain each of them.

A piecework rate plan is best suited for

In which of the following conditions is an advantage when group incentives encourage competition between groups of employees?

From employers' perspective,an advantage of merit pay is that it is cheap.

Employees should participate in pay-related decisions.This will most likely help in the success of incentive plans,and the plans are more likely to influence employee behavior as desired.Which of the following statements weakens this argument?

Brendan,the HR manager at Baretta & Co. ,is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees.In this case,Brendan should apply the incentive scheme of _____.

Sheldon,the manager of a manufacturing firm,wants the organization to perform better.He expects his employees to think more like owners,taking a broad view of what they need to do in order to make the organization more effective.In this case,Sheldon should

How does linking executive pay to stock performance make unethical behavior tempting?

If a company distributes stock to employees by granting stock options,employees exercise the option when they

What is the drawback of stock ownership as a form of incentive pay?

Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees?

Songreen Inc. ,a firm that manufactures ready-to-eat soups,offers incentives based on an employee's performance rating and the employee's compa-ratio.Which of the following payment plans is exemplified in this scenario?

Kolese Inc. ,a manufacturing company,includes stock options and stock purchase plans in executive pay.Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow.Which of the following is being exemplified in this scenario?

The differential piece rate system refers to

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