Question 1

A plan in which a production standard is set for a specific work group and its members are paid extra if the group exceeds the production standard,is known as a team or group

Accepted Answer

A)   incentive plan.
B)   standard hour plan.
C)   gainsharing plan.
D)   indirect pay plan.
E)   merit plan. A

Question 2

Which incentive for operations employees includes a premium that equals the percentage by which the employee's performance exceeds the standard?

Accepted Answer

A)   Process piecework plan
B)   Straight piecework plan
C)   Gainsharing piecework plan
D)   Guaranteed piecework plan
E)   Differential piece-rate plan E

Question 3

What is the term used to refer to a target bonus that is set for each eligible position and then adjustments are made for greater or less than targeted performance?

Accepted Answer

A)   A lump-sum bonus
B)   Retirement income
C)   Team or group incentive plan
D)   An individual award
E)   Gainsharing D

Question 4

Victor Vroom says an employee must value the reward from higher performance in order to be motivated.If valence is zero,then there will be no motivation.

Accepted Answer

A) True 
 B)False

Question 5

Which type of incentive plan engages many or all employees in a common effort and is designed to reward those employees for improvements in productivity?

Accepted Answer

A)   An employee share purchase plan
B)   An employee stock ownership plan
C)   A profit-sharing plan
D)   A performance bonus plan
E)   A gainsharing plan

Question 6

Which of the following are the three criteria mentioned in the textbook for determining eligibility for a short-term incentive program for senior managers and executives?

Accepted Answer

A)   Key position, professional membership, and salary grade
B)   Length of service, key position, and professional membership
C)   Key position, salary grade, and length of service
D)   Salary grade, professional membership, and salary level
E)   Key position, salary level, and salary grade

Question 7

What is Victor Vroom's term for the perceived value that a person attaches to the reward?

Accepted Answer

A)   Motivation
B)   Valence
C)   Hygiene
D)   Expectancy
E)   Instrumentality

Question 8

What does Frederick Herzberg call factors that satisfy lower-level needs?

Accepted Answer

A)   Hygienes
B)   Satisfiers
C)   Motivators
D)   Basics
E)   Incentives

Question 9

High performers are driven by internal motivation and look to reward programs to add fuel to their achievements.

Accepted Answer

A) True 
 B)False

Question 10

Which plan rewards a worker by a premium that equals the percentage by which his or her performance exceeds the standard per hour or per day?

Accepted Answer

A)   The differential piece-rate plan
B)   The gainsharing plan
C)   The percent incentive plan
D)   The premium plan
E)   The guaranteed piecework plan

Question 11

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

Accepted Answer

A) True 
 B)False

Question 12

According to the textbook,which of the following is the cornerstone of executive compensation because it is the element on which the other compensation package elements are based?

Accepted Answer

A)   Benefits
B)   Gainsharing
C)   Salary
D)   Profit-sharing
E)   Incentives

Question 13

According to the textbook,sales compensation plans have typically relied heavily on which form of incentive for salespeople?

Accepted Answer

A)   Profit-sharing
B)   Stock appreciation rights
C)   Gainsharing
D)   Sales commissions
E)   Stock options

Question 14

In some long-term incentive plans,shares are promised to the executive,but are forfeited if the executive leaves the company before a vesting period; what are these plans called?

Accepted Answer

A)   Stock appreciation rights plans
B)   Restricted share unit plans
C)   Book value plans
D)   Stock option plans
E)   Phantom stock plans

Question 15

Under this pay system,each worker receives the minimum hourly wage plus an incentive for each unit produced above a set number of units per hour; this system is known as a

Accepted Answer

A)   process piecework plan.
B)   straight piecework plan.
C)   gainsharing piecework plan.
D)   guaranteed piecework plan.
E)   differential piecework plan.

Question 16

According to the textbook,what is the fundamental premise of variable pay plans?

Accepted Answer

A)   Workers should only be paid for the work that they complete.
B)   Top performers must get top pay to secure their commitment to the organization.
C)   Create incentives for customers to purchase the company's products.
D)   Enable the organization to reduce labour costs when profits decline.
E)   Accommodate the different needs of workers.

Question 17

The study of extroverted salespeople discussed in the textbook found that extroverts only sold more than those less extroverted when what occurred?

Accepted Answer

A)   Selling included a presentation in front of groups of buyers
B)   Their total compensation was in the form of guaranteed payouts
C)   Their compensation was all salary based
D)   Their rewards were contingent on their performance
E)   They were given a listing of high potential buyers

Question 18

Describe how Frederick Herzberg defined motivation.

Accepted Answer

The answer of Describe how Frederick Herzberg defined motivation....

Question 19

According to the textbook,what long-term incentive is most often reserved for senior executives but has more recently begun to be extended to employees at lower organizational levels?

Accepted Answer

A)   Performance achievement plans
B)   Book value plans
C)   Capital accumulation programs
D)   Stock value programs
E)   Stock rights programs

Question 20

According to the textbook,the chief disadvantage of group incentive plans is that

Accepted Answer

A)   each worker's rewards are no longer based just on his or her own effort.
B)   group incentive plans usually lead to conflict between group members.
C)   group incentive plans do not facilitate on-the-job training.
D)   team plans do not help with ensuring that collaboration takes place.
E)   project team jobs are rarely interrelated.

Exam 12: Pay-For-Performance and Financial Incentives

A plan in which a production standard is set for a specific work group and its members are paid extra if the group exceeds the production standard,is known as a team or group

Which incentive for operations employees includes a premium that equals the percentage by which the employee's performance exceeds the standard?

What is the term used to refer to a target bonus that is set for each eligible position and then adjustments are made for greater or less than targeted performance?

Victor Vroom says an employee must value the reward from higher performance in order to be motivated.If valence is zero,then there will be no motivation.

Which type of incentive plan engages many or all employees in a common effort and is designed to reward those employees for improvements in productivity?

Which of the following are the three criteria mentioned in the textbook for determining eligibility for a short-term incentive program for senior managers and executives?

What is Victor Vroom's term for the perceived value that a person attaches to the reward?

What does Frederick Herzberg call factors that satisfy lower-level needs?

High performers are driven by internal motivation and look to reward programs to add fuel to their achievements.

Which plan rewards a worker by a premium that equals the percentage by which his or her performance exceeds the standard per hour or per day?

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

According to the textbook,which of the following is the cornerstone of executive compensation because it is the element on which the other compensation package elements are based?

According to the textbook,sales compensation plans have typically relied heavily on which form of incentive for salespeople?

In some long-term incentive plans,shares are promised to the executive,but are forfeited if the executive leaves the company before a vesting period; what are these plans called?

Under this pay system,each worker receives the minimum hourly wage plus an incentive for each unit produced above a set number of units per hour; this system is known as a

According to the textbook,what is the fundamental premise of variable pay plans?

The study of extroverted salespeople discussed in the textbook found that extroverts only sold more than those less extroverted when what occurred?

Describe how Frederick Herzberg defined motivation.

According to the textbook,what long-term incentive is most often reserved for senior executives but has more recently begun to be extended to employees at lower organizational levels?

According to the textbook,the chief disadvantage of group incentive plans is that