Deck 10: Incentives

Question 1

Giving clocks and watches as rewards in Asian countries is well received by employees.

Answer 1

False

Question 2

Intrinsic motivation comes from outside the individual,including performance bonuses.

Answer 2

False

Question 3

When Meg Whitman became CEO of Hewlett-Packard,she received an annual salary of just $1 but could earn over $8 million if the company hit certain performance goals.

Answer 3

True

Question 4

Focusing employees on either long-term or short-term goals best aligns employees' goals with organizational objectives.

Question 5

Short-term incentives are one-time variable rewards used to motivate short-term employee behavior and performance.

Question 6

Effective spot reward programs depend on discretion,timely acknowledgements,and obvious links between employee actions and recognition.

Question 7

Motivating and rewarding high performance improves organizational performance and helps to retain top talent.

Question 8

Spot awards are awards given monthly for desired behavior.

Question 9

Avoid giving Chinese employee anything green,as the color is associated with an adulterous spouse.

Question 10

The most frequently used long-term performance incentives are stock options

Question 11

Pay-for-performance programs reward employees based on some specific measure of their performance.

Question 12

When we are motivated to do a task because doing so will lead to a valued reward,we are intrinsically motivated.

Question 13

Most incentive plans succeed even if they are poorly implemented because employees are motivated by the rewards.

Question 14

Pay for performance is also called retro pay.

Question 15

In India,certificates and awards containing the company's logo are highly valued.

Question 16

Critics of stock option plans believe that they compensate employees for reasons unrelated to employee performance.

Question 17

A poorly designed incentive plan can motivate the wrong behaviors and create anger and indifference.

Question 18

Vesting is the point at which employees can no longer sell or transfer their stock options.

Question 19

It is better to have no bonus system at all than to have a bad one.

Question 20

Variable pay plans are a type of pay for performance that put a small amount of base pay at risk.

Question 21

Clocks and watches are taboo in _______ because timepieces are reminders of mortality.

A) China
B) India
C) France
D) Asia

Question 22

__________ are one-time variable rewards used to motivate short-term employee behavior and performance.

A) Long-term incentives
B) Short-term incentives
C) Profit-sharing certificates
D) Stock options

Question 23

Extrinsic motivation is derived from an interest in or enjoyment from doing a task.

Question 24

__________ rewards are "at risk" meaning that they are not guaranteed like base salary but have to be earned by reaching set behavior or performance targets.

A) Fixed
B) Variable
C) Total
D) Benefit

Question 25

_________only rewards employees when the organization is profitable,providing financial flexibility.

A) A long-term incentive
B) A short-term incentive
C) Profit sharing
D) A stock option

Question 26

In __________,employees often find public recognition awkward.

A) China
B) India
C) South Korea
D) Asia

Question 27

Nonmaterial rewards are valued in _______where employees tend to consider reputation to be more important than financial possessions.

A) China
B) India
C) France
D) Asia

Question 28

In _________,where wages are low,household items including toasters and microwaves are highly valued.

A) China
B) India
C) France
D) Asia

Question 29

Gift certificates or gift cards for merchandise or services are among the most common incentive programs for companies in __________.

A) the United States
B) South America
C) Sweden
D) Asia

Question 30

Competency-based pay is used to evaluate the skills and knowledge of professional workers.

Question 31

Nonmaterial rewards such as public praise make employees in ________ feel acknowledged by their organizations,reinforcing their reputation.

A) China
B) India
C) France
D) Asia

Question 32

Avoid giving employee in _________anything green,as the color is associated with an adulterous spouse.

A) China
B) India
C) France
D) Asia

Question 33

__________ rewards are predetermined compensation including salary and benefits.

A) Fixed
B) Variable
C) Talent
D) Benefit

Question 34

Skill-based pay rewards employees for the range and depth of their knowledge.

Question 35

In ________,certificates and awards containing the company's logo are highly valued.

A) China
B) India
C) France
D) Asia

Question 36

Workers in _________ tend to scoff at effusive gratitude and view thank-you notes with skepticism.

A) China
B) India
C) France
D) Asia

Question 37

__________ rewards link rewards to factors determined as valuable including performance,skills,competence,and contribution.

A) Fixed
B) Variable
C) Talent
D) Benefit

Question 38

__________is when organizational profits are distributed to all employees.

A) Long-term incentive dividends
B) Short-term incentive dividends
C) Profit sharing
D) Stock options

Question 39

The golden rule with pay-for-performance plans is that you get what you reward.

Question 40

Multicrafting is most important for organizations requiring high levels of employee skills.

Question 41

__________ motivation is derived from an interest in or enjoyment from doing a task.

A) Extrinsic
B) Intrinsic
C) Incentive
D) Stimulus

Question 42

Critics of __________ plans believe that they compensate employees for reasons unrelated to employee performance.

A) incentive
B) vesting
C) profit sharing
D) stock option

Question 43

Effective __________ depend on discretion,timely acknowledgements,and obvious links between employee actions and recognition.

A) pay-for-performance programs
B) variable pay plans
C) spot awards programs
D) fixed pay plans

Question 44

__________ are pay-for-performance programs that puts a small amount of base pay at risk.

A) Stock option programs
B) Variable pay plans
C) Spot awards
D) Fixed pay plans

Question 45

A __________ allows employees to work a 40-hour week in less than five days.

A) compressed workweek
B) job sharing plan
C) flextime block
D) telecommuting matrix

Question 46

__________ are given immediately when a desired behavior is seen.

A) Pay-for-performance programs
B) Variable pay plans
C) Spot awards
D) Fixed pay plans

Question 47

During difficult economic times,poor __________ distributions can be demotivating.

A) long-term incentive
B) short-term incentive
C) profit sharing
D) stock option

Question 48

Critics believe that __________can motivate executives to manage the company for the short term rather than the long term.

A) incentives
B) vesting
C) profit sharing
D) stock options

Question 49

When we engage in a hobby,we are experiencing __________ motivation.

A) extrinsic
B) intrinsic
C) incentive
D) stimulus

Question 50

__________ pay is one of the most frequently used forms of incentive compensation to motivate specific goals.

A) Long-term incentive
B) Short-term incentive
C) Profit sharing
D) Stock option

Question 51

__________ reward employees based on some specific measure of their performance.

A) Pay-for-performance programs
B) Variable pay plans
C) Spot awards
D) Fixed pay plans

Question 52

__________ rewards are often used to reward specific achievements like safety or wellness behaviors.

A) Extrinsic
B) Intrinsic
C) Alternative
D) Recognition

Question 53

The most frequently used long-term performance incentives are __________.

A) long-term incentives
B) short-term incentives
C) profit sharing plans
D) stock options

Question 54

__________ rewards include a personal thank-you note,a preferred parking space,a unique award,or some form of personal acknowledgement from management.

A) Extrinsic
B) Intrinsic
C) Alternative
D) Recognition

Question 55

When we are motivated to do a task because doing so will lead to a valued reward,we are experiencing __________ motivation.

A) extrinsic
B) intrinsic
C) incentive
D) stimulus

Question 56

__________ motivation comes from trying to earn a performance bonus.

A) Extrinsic
B) Intrinsic
C) Incentive
D) Stimulus

Question 57

__________ are usually based on cycles of at least one year.

A) Long-term incentives
B) Short-term incentives
C) Profit sharing plans
D) Stock options

Question 58

__________ give an employee the right to buy shares of the company's stock at a certain price.

A) Long-term incentives
B) Short-term incentives
C) Profit sharing plans
D) Stock options

Question 59

The point at which employees can sell or transfer the stock option is called_________.

A) incentives
B) vesting
C) profit sharing
D) stock options

Question 60

__________ are used motivate behaviors and performance that support company value and long-term organizational health.

A) Long-term incentives
B) Short-term incentives
C) Profit sharing plans
D) Stock options

Question 61

__________ plans can increase teamwork and cooperation by focusing employees' attention on lowering cost and improving productivity.

A) Group incentive
B) Gainsharing
C) Scanlon
D) Improshare

Question 62

__________ plans are special compensation plans used to align executives' goals with organizational and stakeholder goals.

A) incentive
B) improshare
C) gainsharing
D) motivation

Question 63

__________ plans are based on implementing employee suggestions for lowering the cost per unit produced.

A) Group incentive
B) Gainsharing
C) Scanlon
D) Improshare

Question 64

__________ are particularly popular incentive plans among publicly traded companies.

A) Vacation shares
B) Job shares
C) Gainsharing plans
D) Stock options

Question 65

__________ plans can put a portion of group members' pay at risk in exchange for the opportunity to earn additional pay if the group's performance meets or exceeds a certain goal.

A) Group incentive
B) Gainsharing
C) Scanlon
D) Improshare

Question 66

__________ plans are most appropriate when employees work interdependently and it is difficult to identify the contributions of individual group or team members.

A) Group incentive
B) Gainsharing
C) Scanlon
D) Improshare

Question 67

The goal of __________ is to motivate teams to accomplish group goals and align the group's objectives with organizational goals.

A) group incentive
B) gainsharing
C) Scanlon
D) improshare

Question 68

__________ is a scheduling option that lets employees decide,within certain parameters,when to work.

A) A compressed workweek
B) Job sharing
C) Flextime
D) Telecommuting

Question 69

__________ is a way employers can reward high-performing employees and facilitate their work-life balance.

A) A compressed workweek
B) Job sharing
C) Flextime
D) Telecommuting

Question 70

__________ allows employees to work from home and link to the company's offices via computers.

A) A compressed workweek
B) Job sharing
C) Flextime
D) Telecommuting

Question 71

The __________ implemented regulations regarding more open disclosure of executive pay and incentive compensation.

A) Executive Tax Act
B) Pay Disclosure Act
C) Dodd-Frank Act
D) Work-Family Act

Question 72

Executive bonuses for smaller companies typically range from _________ of base salary .

A) 10 percent to 20 percent
B) 25 percent to 35 percent
C) 40 percent to 60 percent
D) 50 percent to 75 percent

Question 73

__________ plans focus on reducing production time.

A) Group incentive
B) Gainsharing
C) Scanlon
D) Improshare

Question 74

A(n) __________ plan is based on a mathematical formula that compares a performance baseline with actual productivity during a given period with the goal of reducing production time.

A) group incentive
B) gainsharing
C) Scanlon
D) improshare

Question 75

__________ plans are tax-exempt,employer-established employee trusts that hold company stock for employees.

A) Group stock incentive
B) Employee stock ownership
C) Employee gainsharing
D) Group improshare

Question 76

Out-of-the-money options can motivate CEOs to engage in __________ behaviors.

A) principled
B) unethical
C) lazy
D) ethical

Question 77

The two most common types of ________ plans are Scanlon plans and improshare systems.

A) group incentive
B) gainsharing
C) cross training
D) imposition goal

Question 78

Because __________ plans are self-funding,the financial risks are minimal.

A) group incentive
B) gainsharing
C) Scanlon
D) improshare

Question 79

__________ allows two or more people to split a single job.

A) A compressed workweek
B) Job sharing
C) Flextime
D) Telecommuting

Question 80

Under a __________ plan,the firm shares the value of productivity gains with employees.

A) group incentive
B) gainsharing
C) Scanlon
D) improshare