Question 1

The owner of a hardware store decides to pay an incentive to his salespeople based on their ability to sell products to industrial buyers.Each salesperson would receive a share of the amount earned from his or her sales.Which of the following incentive systems is being offered to the salespeople in this scenario?

Accepted Answer

A)  Gainsharingplan 
B)  Profit-sharing system 
C)  Piece-rate plan 
D)  Commission 
E)  Tucker-Davison plan

Question 2

Which of the following is the basis for an individual's compensation under a commission incentive system?

Accepted Answer

A)  Diverse work experience 
B)  Sales volume 
C)  Educational qualification 
D)  Age of the employee 
E)  Technical skills

Question 3

Which of the following is NOT a beneficial approach while providing performance feedback to an employee?

Accepted Answer

A)  Asking an employee to rate his or her own performance 
B)  Providing regular feedback to an employee 
C)  Avoiding discussion on future in formal feedback sessions 
D)  Focusing on developmental aspects of performance 
E)  Balancing positive and negative feedback

Question 4

Flexible work hour plans allow employees to plan when they report to and leave work.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a prerequisite for the effective execution of a merit-pay plan in an organization?

Accepted Answer

A)  The employees participating in a merit-pay program must mandatorily possess a stock-option plan. 
B)  The organization must have valid and reliable measures of what merit entails. 
C)  The performance measurement system must not differentiate too greatly among employees. 
D)  The criteria for reward should be the knowledge level of employees. 
E)  The evaluation of individual merit should be performed based on an employee's behavior and conduct.

Exam 14: Managing & Enhancing Performance: The Big Picture

Which of the following is the basis for an individual's compensation under a commission incentive system?

Which of the following is NOT a beneficial approach while providing performance feedback to an employee?

Flexible work hour plans allow employees to plan when they report to and leave work.

Which of the following is a prerequisite for the effective execution of a merit-pay plan in an organization?