Question 1

Which of the following statements is true about standard hour plans?

Accepted Answer

A)  They encourage employees to focus exclusively on customer service. 
B)  They succeed only for employees who are not motivated by money. 
C)  They encourage employees to focus mainly on quality. 
D)  In terms of their pros and cons,they are very different from piecework plans. 
E)  They encourage employees to work as fast as they can. 
A)  They encourage employees to focus exclusively on customer service. 
B)  They succeed only for employees who are not motivated by money. 
C)  They encourage employees to focus mainly on quality. 
D)  In terms of their pros and cons,they are very different from piecework plans. 
E)  They encourage employees to work as fast as they can.

Question 2

What are group bonuses and team awards? What are their advantages and disadvantages?

Accepted Answer

Bonuses for group performance tend to be

Question 3

Incentive pay is specifically designed to energize,direct,or control employees' behavior and is influential because the amount paid is linked to certain predefined behaviors or outcomes.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a disadvantage of a merit pay system?

Accepted Answer

A)  It does not relate the rewards to economic conditions. 
B)  It cannot be used effectively with performance appraisals. 
C)  Comparative pay is not considered in its evaluation. 
D)  It does not provide rewards for performance in all the dimensions measured in the organization's performance management system. 
E)  It can quickly become expensive for the company. 
A)  It does not relate the rewards to economic conditions. 
B)  It cannot be used effectively with performance appraisals. 
C)  Comparative pay is not considered in its evaluation. 
D)  It does not provide rewards for performance in all the dimensions measured in the organization's performance management system. 
E)  It can quickly become expensive for the company.

Question 5

Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers.

Accepted Answer

A) True 
 B)False

Question 6

Under profit sharing,payments are a percentage of the organization's profits and become part of the employees' base salary.

Accepted Answer

A) True 
 B)False

Question 7

A major problem with ESOPs is that

Accepted Answer

A)  they carry a significant risk for employees. 
B)  employees are not allowed to participate in votes by shareholders. 
C)  the stocks within the trust are too widely diversified to earn high returns. 
D)  any earnings from the trust holdings are taxed at an extremely high rate. 
E)  they result in reduced profitability for the employees. 
A)  they carry a significant risk for employees. 
B)  employees are not allowed to participate in votes by shareholders. 
C)  the stocks within the trust are too widely diversified to earn high returns. 
D)  any earnings from the trust holdings are taxed at an extremely high rate. 
E)  they result in reduced profitability for the employees.

Question 8

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees.The workers produce electrical components worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than

Accepted Answer

A)  $0.5 million. 
B)  $1 million. 
C)  $1.5 million. 
D)  $2 million. 
E)  $2.5 million. 
A)  $0.5 million. 
B)  $1 million. 
C)  $1.5 million. 
D)  $2 million. 
E)  $2.5 million.

Question 9

Team awards differ from group bonuses in that they

Accepted Answer

A)  are typically plant-wide group incentive programs. 
B)  make payments in company stock rather than in cash. 
C)  are more likely to use a broad range of performance measures. 
D)  encourage competition among individual employees to achieve higher bonuses. 
E)  give more importance to organizational performance than small groups' performances. 
A)  are typically plant-wide group incentive programs. 
B)  make payments in company stock rather than in cash. 
C)  are more likely to use a broad range of performance measures. 
D)  encourage competition among individual employees to achieve higher bonuses. 
E)  give more importance to organizational performance than small groups' performances.

Question 10

For incentive pay to motivate employees to contribute to the organization's success,the pay plans must be well designed.Which of the following statements describes a characteristic of a well-designed plan?

Accepted Answer

A)  Performance measures are to be linked to the individual's goals. 
B)  Employees are given unattainable performance standards. 
C)  Employees value the rewards or incentives that are being offered. 
D)  Employees are given limited resources to meet their goals. 
E)  The pay plan takes into account that employees will accept all goals irrespective of their rewards. 
A)  Performance measures are to be linked to the individual's goals. 
B)  Employees are given unattainable performance standards. 
C)  Employees value the rewards or incentives that are being offered. 
D)  Employees are given limited resources to meet their goals. 
E)  The pay plan takes into account that employees will accept all goals irrespective of their rewards.

Question 11

_____ refers to incentive pay in which the wage paid is higher when a greater amount is produced.

Accepted Answer

A)  Profit sharing 
B)  Differential piece rate 
C)  Gainsharing 
D)  Scanlon pay 
E)  Merit pay 
A)  Profit sharing 
B)  Differential piece rate 
C)  Gainsharing 
D)  Scanlon pay 
E)  Merit pay

Question 12

Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

Accepted Answer

A)  gainsharing 
B)  standard hour 
C)  bonus 
D)  commission 
E)  piece rate pay 
A)  gainsharing 
B)  standard hour 
C)  bonus 
D)  commission 
E)  piece rate pay

Question 13

Which of the following is an advantage of the merit pay incentive system?

Accepted Answer

A)  It makes the reward more valuable by relating it to economic conditions. 
B)  It promotes group performance instead of promoting individual behavior. 
C)  It provides merit increases to employees solely on the basis of performance. 
D)  It is the most economical incentive system for the employers. 
E)  It provides a direct link between the work done by the employee and the amount earned. 
A)  It makes the reward more valuable by relating it to economic conditions. 
B)  It promotes group performance instead of promoting individual behavior. 
C)  It provides merit increases to employees solely on the basis of performance. 
D)  It is the most economical incentive system for the employers. 
E)  It provides a direct link between the work done by the employee and the amount earned.

Question 14

How does allowing employees to participate in pay-related decisions affect the incentive process?

Accepted Answer

Employee participation in pay-related de

Question 15

Straight commission plans are plans which

Accepted Answer

A)  provide a straight salary to employees. 
B)  are useful when the organization wants salespeople to concentrate on listening to customers. 
C)  help to attract risk-averse employees. 
D)  are common among insurance and real estate agents. 
E)  are uncommon among car salespeople. 
A)  provide a straight salary to employees. 
B)  are useful when the organization wants salespeople to concentrate on listening to customers. 
C)  help to attract risk-averse employees. 
D)  are common among insurance and real estate agents. 
E)  are uncommon among car salespeople.

Question 16

What should employees typically do to earn bonuses under the Scanlon plan?

Accepted Answer

A)  They should produce products at a rate that is much higher than the standard production time. 
B)  They should create goodwill with customers and close as many sales as possible. 
C)  They should follow a defined set of quality standard to produce the desired outcome. 
D)  They should keep labor costs to a minimum and produce as much as possible with that amount of labor. 
E)  They should improve their performance year after year so that they re-earn the bonus during each performance period. 
A)  They should produce products at a rate that is much higher than the standard production time. 
B)  They should create goodwill with customers and close as many sales as possible. 
C)  They should follow a defined set of quality standard to produce the desired outcome. 
D)  They should keep labor costs to a minimum and produce as much as possible with that amount of labor. 
E)  They should improve their performance year after year so that they re-earn the bonus during each performance period.

Question 17

Global Solutions Corp.pays its executives short-term incentives for meeting financial targets.Which of the following could be included in this incentive pay?

Accepted Answer

A)  bonus for meeting the return on investment goal for last year 
B)  bonus for meeting a target for greater customer satisfaction 
C)  stock options 
D)  stock purchase plans 
E)  merit pay 
A)  bonus for meeting the return on investment goal for last year 
B)  bonus for meeting a target for greater customer satisfaction 
C)  stock options 
D)  stock purchase plans 
E)  merit pay

Question 18

When Greater Aircraft acquired Middling Aircraft,the executives of the two companies identified key employees they needed for the combined companies' success.One of them was Michael,the vice president of engineering.The executives offered Michael a one-time bonus of $25,000 if he stayed with Greater Middling for 12 months following the acquisition.In this scenario,Michael's the $25,000 represents _____.

Accepted Answer

A)  a commission 
B)  a retention bonus 
C)  stock options 
D)  merit pay 
E)  a differential piece rate 
A)  a commission 
B)  a retention bonus 
C)  stock options 
D)  merit pay 
E)  a differential piece rate

Question 19

Organizations customize their balanced scorecards according to their

Accepted Answer

A)  earnings. 
B)  profits,benefits,and incentives. 
C)  markets,products,and objectives. 
D)  objectives as set by the organization's CEO and board of directors. 
E)  research on what drives employee motivation. 
A)  earnings. 
B)  profits,benefits,and incentives. 
C)  markets,products,and objectives. 
D)  objectives as set by the organization's CEO and board of directors. 
E)  research on what drives employee motivation.

Question 20

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals.

Accepted Answer

A) True 
 B)False

Which of the following statements is true about standard hour plans?

What are group bonuses and team awards? What are their advantages and disadvantages?

Incentive pay is specifically designed to energize,direct,or control employees' behavior and is influential because the amount paid is linked to certain predefined behaviors or outcomes.

Which of the following is a disadvantage of a merit pay system?

Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers.

Under profit sharing,payments are a percentage of the organization's profits and become part of the employees' base salary.

A major problem with ESOPs is that

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees.The workers produce electrical components worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than

Team awards differ from group bonuses in that they

For incentive pay to motivate employees to contribute to the organization's success,the pay plans must be well designed.Which of the following statements describes a characteristic of a well-designed plan?

_____ refers to incentive pay in which the wage paid is higher when a greater amount is produced.

Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

Which of the following is an advantage of the merit pay incentive system?

How does allowing employees to participate in pay-related decisions affect the incentive process?

Straight commission plans are plans which

What should employees typically do to earn bonuses under the Scanlon plan?

Global Solutions Corp.pays its executives short-term incentives for meeting financial targets.Which of the following could be included in this incentive pay?

Organizations customize their balanced scorecards according to their

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals.

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 standard hour plans?

What are group bonuses and team awards? What are their advantages and disadvantages?

Incentive pay is specifically designed to energize,direct,or control employees' behavior and is influential because the amount paid is linked to certain predefined behaviors or outcomes.

Which of the following is a disadvantage of a merit pay system?

Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers.

Under profit sharing,payments are a percentage of the organization's profits and become part of the employees' base salary.

A major problem with ESOPs is that

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees.The workers produce electrical components worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than

Team awards differ from group bonuses in that they

For incentive pay to motivate employees to contribute to the organization's success,the pay plans must be well designed.Which of the following statements describes a characteristic of a well-designed plan?

_____ refers to incentive pay in which the wage paid is higher when a greater amount is produced.

Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

Which of the following is an advantage of the merit pay incentive system?

How does allowing employees to participate in pay-related decisions affect the incentive process?

Straight commission plans are plans which

What should employees typically do to earn bonuses under the Scanlon plan?

Global Solutions Corp.pays its executives short-term incentives for meeting financial targets.Which of the following could be included in this incentive pay?

Organizations customize their balanced scorecards according to their

A balanced scorecard is a combination of performance measures directed toward the company's long- and short-term goals.

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