Question 1

Piecework may be inappropriate where technology changes are frequent.

Accepted Answer

A) True 
 B)False

Question 2

Robix has a robust incentive program that rewards employees generously for completing tasks ahead of schedule and/or under budget. They have found, however, that this plan does not motivate certain employees. Of the following groups, the employees not motivated by this plan are most likely

Accepted Answer

A) engineers. 
B) order-fulfillment specialists. 
C) clerical workers. 
D) assembly-line workers.

Question 3

Robix senior management has as one of its goals to promote interaction and support between management and employees, as they feel that this would improve productivity and, ultimately, company profitability. Robix should consider an Improshare plan.

Accepted Answer

A) True 
 B)False

Question 4

What are the pros and cons of high executive pay?

Accepted Answer

The answer of What are the pros and cons of...

Question 5

A problem with creating team incentive plans is that

Accepted Answer

A) they encourage negativity rather than cooperative behavior. 
B) not all teams that are created are alike. 
C) they don't enable employees to share efficiency gains. 
D) they pay only when agreed-upon standards are met or exceeded.

Question 6

Generally, an employee stock ownership plan is more likely to serve its intended purposes in privately held companies than in publicly held ones.

Accepted Answer

A) True 
 B)False

Question 7

Robix is investigating ways to incentivize professional employees who engage in more complex tasks. The most effective incentives will include all of the following EXCEPT

Accepted Answer

A) autonomy to the employee. 
B) the opportunity to master a new skill. 
C) purpose. 
D) reward for completing a task.

Question 8

Under a straight piecework plan, if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50. The piece rate is $1.50 per unit.

Accepted Answer

A) True 
 B)False

Question 9

Annual bonuses represent the main element of executive short-term incentives.

Accepted Answer

A) True 
 B)False

Question 10

When computing executive pay, many organizations are tying __________ to traditional financial gauges.

Accepted Answer

A) performance markers 
B) global standards 
C) application rewards 
D) balanced scorecards

Question 11

In most profit-sharing plans, about 20 to 25 percent of net profits are shared with employees.

Accepted Answer

A) True 
 B)False

Question 12

The pay for employees on the KRX line at Robix is not based on the actual amount of time it takes them to complete a job. Rather, they are paid based on a predetermined amount of time for completing the job. These employees are working under the

Accepted Answer

A) piece rate plan. 
B) standard hour plan. 
C) time division plan. 
D) completion pay system.

Question 13

Incentive plans may fail because employees have little ability to affect performance standards.

Accepted Answer

A) True 
 B)False

Question 14

Twice a year, Robix pays all of its regular employees a bonus that is based on the firm's profits in the previous six months. This is an example of a profit sharing plan.

Accepted Answer

A) True 
 B)False

Question 15

In an effort to increase employee productivity, Robix has initiated a stock option program. This means that for a limited period of time, employees will be able to purchase some shares of stock in Robix as a set price.

Accepted Answer

A) True 
 B)False

Question 16

Profit sharing refers to any procedure by which an employer pays employees

Accepted Answer

A) an incentive based on their merit. 
B) an incentive based on labor cost savings. 
C) a bonus based on the overall productivity of their particular work group. 
D) current or deferred sums based on the organization's financial performance.

Question 17

A study on bonus versus actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by __________ percent.

Accepted Answer

A) 2 
B) 5 
C) 8 
D) 10

Question 18

A major criticism of short-term incentives for executives is that they place too much emphasis on monthly or quarterly performance, which may lead to negligence of long-term survival and growth objectives.

Accepted Answer

A) True 
 B)False

Question 19

Profit-sharing plans have limited motivational value as payments are only made once a year or deferred until retirement.

Accepted Answer

A) True 
 B)False

Question 20

By using employee stock ownership plans, employers can provide retirement benefits for their employees at a relatively low cost.

Accepted Answer

A) True 
 B)False

Exam 10: Pay-For-Performance: Incentive Rewards

Piecework may be inappropriate where technology changes are frequent.

Robix has a robust incentive program that rewards employees generously for completing tasks ahead of schedule and/or under budget. They have found, however, that this plan does not motivate certain employees. Of the following groups, the employees not motivated by this plan are most likely

Robix senior management has as one of its goals to promote interaction and support between management and employees, as they feel that this would improve productivity and, ultimately, company profitability. Robix should consider an Improshare plan.

What are the pros and cons of high executive pay?

A problem with creating team incentive plans is that

Generally, an employee stock ownership plan is more likely to serve its intended purposes in privately held companies than in publicly held ones.

Robix is investigating ways to incentivize professional employees who engage in more complex tasks. The most effective incentives will include all of the following EXCEPT

Under a straight piecework plan, if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50. The piece rate is $1.50 per unit.

Annual bonuses represent the main element of executive short-term incentives.

When computing executive pay, many organizations are tying __________ to traditional financial gauges.

In most profit-sharing plans, about 20 to 25 percent of net profits are shared with employees.

The pay for employees on the KRX line at Robix is not based on the actual amount of time it takes them to complete a job. Rather, they are paid based on a predetermined amount of time for completing the job. These employees are working under the

Incentive plans may fail because employees have little ability to affect performance standards.

Twice a year, Robix pays all of its regular employees a bonus that is based on the firm's profits in the previous six months. This is an example of a profit sharing plan.

In an effort to increase employee productivity, Robix has initiated a stock option program. This means that for a limited period of time, employees will be able to purchase some shares of stock in Robix as a set price.

Profit sharing refers to any procedure by which an employer pays employees

A study on bonus versus actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by __________ percent.

A major criticism of short-term incentives for executives is that they place too much emphasis on monthly or quarterly performance, which may lead to negligence of long-term survival and growth objectives.

Profit-sharing plans have limited motivational value as payments are only made once a year or deferred until retirement.

By using employee stock ownership plans, employers can provide retirement benefits for their employees at a relatively low cost.