Exam 13: Recognizing Employee Contributions With Pay

An employee at CellWorks who produces 10 components in an hour earns $9 ($.90 × 10)per hour,while another employee who produces 15 components earns $13.50 ($.90 × 15).This is an example of a

Mike,the CEO of an automobile company,believes that profit sharing has increased the productivity of his organization.He feels that an incentive plan motivates employees to be more productive.Which of the following statements strengthens Mike's argument?

A merit pay incentive system is used to attract employees who are more team-oriented.

Which of the following best describes profit sharing?

The many kinds of incentive pay fall into three broad categories: _____.

What are the implications of designing pay for organizational performance?

Wayan Inc. ,a health insurance company,pays clerks an incentive based on the average amount of work completed per hour.Wayan pays $10 for processing 20 invoices per hour.An employee who processes 30 invoices would earn $15 per hour.Hence,Wayan pays the same rate per invoice no matter how many invoices an employee processes per hour.Which type of incentive pay does this scenario illustrate?

The primary function of a merit increase grid is to

Which of the following is most likely a consequence of paying most or all of a salesperson's compensation in the form of commissions?

The costs associated with profit sharing increase substantially when the organization experiences financial difficulties.

The _____ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals.

A _____ gives the biggest pay increases to the best performers and to those whose pay is relatively low for their job.

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Which of the following is a long-term incentive?

Identify the disadvantage of using profit-sharing plans.