Question 1

What is a balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

Accepted Answer

The balanced scorecard is a combination

Question 2

In a company's merit pay program,an individual's compa-ratio represents

Accepted Answer

A)  the individual's pay relative to the individual's performance rating. 
B)  the individual's pay relative to company's average pay for that position. 
C)  the individual's worth versus that of others in the organization. 
D)  the ratio of the individual's pay to benefits. 
E)  the average worth of the skills possessed by the individual. 
A)  the individual's pay relative to the individual's performance rating. 
B)  the individual's pay relative to company's average pay for that position. 
C)  the individual's worth versus that of others in the organization. 
D)  the ratio of the individual's pay to benefits. 
E)  the average worth of the skills possessed by the individual.

Question 3

When an employee's pay is calculated as a percentage of sales,it is referred to as

Accepted Answer

A)  commissions. 
B)  gainsharing. 
C)  a merit plan. 
D)  a variable wage plan. 
E)  profit sharing. 
A)  commissions. 
B)  gainsharing. 
C)  a merit plan. 
D)  a variable wage plan. 
E)  profit sharing.

Question 4

Jules & Co. ,a smartphone manufacturing company,provides wages to its employees based on the number of smartphones the workers assemble.The more the employees assemble,the more they earn.This type of plan is called a

Accepted Answer

A)  piecework rate plan. 
B)  merit pay plan. 
C)  Scanlon plan. 
D)  profit-sharing plan. 
E)  rapid hour plan. 
A)  piecework rate plan. 
B)  merit pay plan. 
C)  Scanlon plan. 
D)  profit-sharing plan. 
E)  rapid hour plan.

Question 5

Piecework rate plans are most suited for _____.

Accepted Answer

A)  innovative tasks 
B)  non-standard jobs 
C)  managerial jobs 
D)  jobs with difficult-to-measure output 
E)  routine jobs 
A)  innovative tasks 
B)  non-standard jobs 
C)  managerial jobs 
D)  jobs with difficult-to-measure output 
E)  routine jobs

Question 6

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish.It is planning to implement an incentive plan that helps employees understand the organization's goals.Which of the following should be used by this organization?

Accepted Answer

A)  a retention bonus 
B)  a piecework rate system 
C)  a merit pay system 
D)  the Scanlon plan 
E)  a balanced scorecard 
A)  a retention bonus 
B)  a piecework rate system 
C)  a merit pay system 
D)  the Scanlon plan 
E)  a balanced scorecard

Question 7

How does the balanced scorecard help organizations deal with unethical behaviors of executives?

Accepted Answer

A)  It allows companies to deduct executive pay that exceeds $1 million. 
B)  It ensures that by rewarding the achievement of a variety of goals,temptation on the executive's part to gain bonuses by manipulating data are reduced. 
C)  It encourages executives to hold on to their stock options when the company is undergoing financial problems. 
D)  It forces executives to focus on the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation. 
E)  It mandates that an ESOP invest at least 51% of its assets in the company's own stock. 
A)  It allows companies to deduct executive pay that exceeds $1 million. 
B)  It ensures that by rewarding the achievement of a variety of goals,temptation on the executive's part to gain bonuses by manipulating data are reduced. 
C)  It encourages executives to hold on to their stock options when the company is undergoing financial problems. 
D)  It forces executives to focus on the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation. 
E)  It mandates that an ESOP invest at least 51% of its assets in the company's own stock.

Question 8

Vactin Motors,an automobile company,ties individual performance,profits,and other measures of employees' success to a particular form of pay.This form of pay is influential because the amount paid is linked to certain predefined behaviors or outcomes.Which of the following is exemplified in this scenario?

Accepted Answer

A)  minimum wage 
B)  overtime pay 
C)  incentive pay 
D)  piecework rates 
E)  salary 
A)  minimum wage 
B)  overtime pay 
C)  incentive pay 
D)  piecework rates 
E)  salary

Question 9

By law,what is the minimum percentage of assets that an ESOP must invest in its company's stock?

Accepted Answer

A)  10 
B)  26 
C)  51 
D)  60 
E)  76 
A)  10 
B)  26 
C)  51 
D)  60 
E)  76

Question 10

Employees who receive stock options as incentive pay must exercise the stock options even if the stock price decreases.

Accepted Answer

A) True 
 B)False

Question 11

What is the difference between stock options and an employee stock ownership plan (ESOP)?

Accepted Answer

A)  Stock options carry significant risk,whereas ESOPs are risk-free. 
B)  Stock options are usually granted to company executives,whereas ESOPs are provided to all employees. 
C)  In stock options,stocks are placed into a trust,whereas ESOPs give employees the right to buy a certain number of shares of stock. 
D)  Under stock options,employees can sell their stocks,whereas ESOPs do not allow employees to sell their stocks. 
E)  Earnings from stock options are exempt from income taxes,whereas earnings from ESOPs are taxable. 
A)  Stock options carry significant risk,whereas ESOPs are risk-free. 
B)  Stock options are usually granted to company executives,whereas ESOPs are provided to all employees. 
C)  In stock options,stocks are placed into a trust,whereas ESOPs give employees the right to buy a certain number of shares of stock. 
D)  Under stock options,employees can sell their stocks,whereas ESOPs do not allow employees to sell their stocks. 
E)  Earnings from stock options are exempt from income taxes,whereas earnings from ESOPs are taxable.

Question 12

What are the different types of incentive pay? How should organizations choose the right type of incentive pay?

Accepted Answer

The kinds of incentive pay fall into thr

Question 13

Merit pay is a system of linking pay increases to ratings on performance appraisals.

Accepted Answer

A) True 
 B)False

Question 14

For five years,Speed-All Production Systems offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year.In the first year of that incentive program,23 employees earned the bonus,but last year,only 7 submitted ideas,and only two of the ideas would actually save more than a few dollars.The company's HR director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan.Which of the following statements best supports this argument?

Accepted Answer

A)  Gainsharing succeeds regardless of whether employees understand how performance is measured. 
B)  Gainsharing is likely to succeed under almost any organizational conditions. 
C)  Gainsharing broadens employees' horizons beyond the range of activities they can influence. 
D)  Gainsharing measures oversimplify the complex responsibilities of production work. 
E)  Gainsharing expands employees' thinking beyond their individual interests. 
A)  Gainsharing succeeds regardless of whether employees understand how performance is measured. 
B)  Gainsharing is likely to succeed under almost any organizational conditions. 
C)  Gainsharing broadens employees' horizons beyond the range of activities they can influence. 
D)  Gainsharing measures oversimplify the complex responsibilities of production work. 
E)  Gainsharing expands employees' thinking beyond their individual interests.

Question 15

What is the difference between bonuses and team awards?

Accepted Answer

A)  Bonuses are for bigger work groups,whereas team awards are for small teams. 
B)  Unlike bonuses,team awards encourage cooperation. 
C)  Bonuses are usually given to employees who meet deadlines,whereas team awards are given only when the team as a whole meets the targets. 
D)  Unlike team awards,bonuses encourage competition among individuals. 
E)  Bonuses reward attainment of a specific goal,whereas team awards reward performance measured more broadly. 
A)  Bonuses are for bigger work groups,whereas team awards are for small teams. 
B)  Unlike bonuses,team awards encourage cooperation. 
C)  Bonuses are usually given to employees who meet deadlines,whereas team awards are given only when the team as a whole meets the targets. 
D)  Unlike team awards,bonuses encourage competition among individuals. 
E)  Bonuses reward attainment of a specific goal,whereas team awards reward performance measured more broadly.

Question 16

Standard hour plans are quality-oriented incentives for professional employees.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an advantage of using balanced scorecard?

Accepted Answer

A)  It eliminates the need to communicate the details of an incentive plan to the employees. 
B)  It eliminates managerial effort when providing incentives to employees. 
C)  It increases the pay for all employees in the organization regardless of their performances. 
D)  It reduces employee stress because it does not focus on financial targets. 
E)  It helps employees understand the organization's goals. 
A)  It eliminates the need to communicate the details of an incentive plan to the employees. 
B)  It eliminates managerial effort when providing incentives to employees. 
C)  It increases the pay for all employees in the organization regardless of their performances. 
D)  It reduces employee stress because it does not focus on financial targets. 
E)  It helps employees understand the organization's goals.

Question 18

Retention bonuses refer to

Accepted Answer

A)  the special reward programs used to satisfy the lower and middle-level managers. 
B)  the bonuses provided to union members to withhold a strike. 
C)  the bonuses provided to employees who take long leaves without pay. 
D)  annual incentives paid to daily wage workers to remain in the organization. 
E)  one-time incentives paid in exchange for remaining with the company. 
A)  the special reward programs used to satisfy the lower and middle-level managers. 
B)  the bonuses provided to union members to withhold a strike. 
C)  the bonuses provided to employees who take long leaves without pay. 
D)  annual incentives paid to daily wage workers to remain in the organization. 
E)  one-time incentives paid in exchange for remaining with the company.

Question 19

Which of the following is a reason for the popularity of employee stock ownership plans (ESOPs)?

Accepted Answer

A)  ESOPs provide tax advantages to employers. 
B)  ESOPs provide very high risk-free retirement income. 
C)  Employees can use ESOPs to buy their company during financial crises. 
D)  ESOPs must invest at least 51 percent of their assets in the company's own stocks. 
E)  The employees are provided with many more shares of stock than they actually own. 
A)  ESOPs provide tax advantages to employers. 
B)  ESOPs provide very high risk-free retirement income. 
C)  Employees can use ESOPs to buy their company during financial crises. 
D)  ESOPs must invest at least 51 percent of their assets in the company's own stocks. 
E)  The employees are provided with many more shares of stock than they actually own.

Question 20

Explain how employee stock ownership plans differ from stock options.

Accepted Answer

Stock options give employees the right t

What is a balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

In a company's merit pay program,an individual's compa-ratio represents

When an employee's pay is calculated as a percentage of sales,it is referred to as

Jules & Co. ,a smartphone manufacturing company,provides wages to its employees based on the number of smartphones the workers assemble.The more the employees assemble,the more they earn.This type of plan is called a

Piecework rate plans are most suited for _____.

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish.It is planning to implement an incentive plan that helps employees understand the organization's goals.Which of the following should be used by this organization?

How does the balanced scorecard help organizations deal with unethical behaviors of executives?

By law,what is the minimum percentage of assets that an ESOP must invest in its company's stock?

Employees who receive stock options as incentive pay must exercise the stock options even if the stock price decreases.

What is the difference between stock options and an employee stock ownership plan (ESOP)?

What are the different types of incentive pay? How should organizations choose the right type of incentive pay?

Merit pay is a system of linking pay increases to ratings on performance appraisals.

What is the difference between bonuses and team awards?

Standard hour plans are quality-oriented incentives for professional employees.

Which of the following is an advantage of using balanced scorecard?

Retention bonuses refer to

Which of the following is a reason for the popularity of employee stock ownership plans (ESOPs)?

Explain how employee stock ownership plans differ from stock options.

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

What is a balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

In a company's merit pay program,an individual's compa-ratio represents

When an employee's pay is calculated as a percentage of sales,it is referred to as

Jules & Co. ,a smartphone manufacturing company,provides wages to its employees based on the number of smartphones the workers assemble.The more the employees assemble,the more they earn.This type of plan is called a

Piecework rate plans are most suited for _____.

An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish.It is planning to implement an incentive plan that helps employees understand the organization's goals.Which of the following should be used by this organization?

How does the balanced scorecard help organizations deal with unethical behaviors of executives?

By law,what is the minimum percentage of assets that an ESOP must invest in its company's stock?

Employees who receive stock options as incentive pay must exercise the stock options even if the stock price decreases.

What is the difference between stock options and an employee stock ownership plan (ESOP)?

What are the different types of incentive pay? How should organizations choose the right type of incentive pay?

Merit pay is a system of linking pay increases to ratings on performance appraisals.

What is the difference between bonuses and team awards?

Standard hour plans are quality-oriented incentives for professional employees.

Which of the following is an advantage of using balanced scorecard?

Retention bonuses refer to

Which of the following is a reason for the popularity of employee stock ownership plans (ESOPs)?

Explain how employee stock ownership plans differ from stock options.

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