Question 1

A standard hour incentive plan is likely to be successful if

Accepted Answer

A)   most or all of a salesperson's compensation is in the form of commissions.
B)   employers keep labor costs to a minimum.
C)   the pay increase is linked to ratings on performance appraisals.
D)   employees want the extra money more than they want to work at a pace that feels comfortable.
E)   the organization values employee satisfaction,product quality,and customer service more than profits.F) D) and E)
G) C) and D)

Question 2

Electrix Inc.is an electrical appliances manufacturing company.It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf.Which of the following has been implemented by Electrix in this scenario?

Accepted Answer

A)   Scanlon plan
B)   balanced scorecard
C)   piecework stock plan
D)   employee stock ownership plan
E)   differential piece stock planF) A) and D)
G) None of the above

Question 3

As in the case of merit pay,performance bonuses for rewarding individual performance are rolled into an employee's base pay.

Accepted Answer

A) True 
 B)False

Question 4

In the process of designing incentives,managers should make sure that

Accepted Answer

A)   all the employees are paid the same amount.
B)   even the lowest performing employees are rewarded.
C)   employees focus only on completing the task quickly.
D)   employees believe that the pay plan is fair.
E)   they hire employees who consider earning money as the sole reason to perform well.F) D) and E)
G) A) and C)

Question 5

The link between employees' performance and pay is hardest to establish in

Accepted Answer

A)   piece rate plans.
B)   merit pay plans.
C)   standard hour plans.
D)   stock ownership plans.
E)   Scanlon plans.F) A) and B)
G) All of the above

Question 6

In the context of stock ownership,what is meant by "backdating" a stock option?

Accepted Answer

A)   reaping windfall in the stock market by selling stock based on company's nonpublic information
B)   falsifying numbers in the company's annual report to hide losses and inflate the stock prices
C)   buying a company's stock just before the date of key product launch
D)   changing the date or price in an option agreement so that the option holder can buy stock at a bargain price
E)   hiding losses and inflating the recorded value of revenues to boost the price of the company's stockF) C) and E)
G) A) and C)

Question 7

What are the advantages and disadvantages of a merit pay system?

Accepted Answer

Almost all organizations have establishe...

Question 8

Employee participation in pay-related decisions can be part of a general move toward

Accepted Answer

A)   employee empowerment.
B)   centralized decision making.
C)   self ownership.
D)   high power distance.
E)   federalism.F) A) and E)
G) B) and C)

Question 9

Successful gainsharing plans include employee stock ownership plans.

Accepted Answer

A) True 
 B)False

Question 10

The human resource,accounting,and legal departments of GloryB Software,a company with locations in seven states plus Australia,are working together on developing a profit-sharing plan.Of the following options for communicating with employees about the plan,which would be the most practical and effective?

Accepted Answer

A)   Call a meeting of all the employees to discuss the plan face-to-face.
B)   Set up a balanced scorecard to measure opinions about the plan.
C)   Ask employees not to engage in rumors.
D)   Post descriptions and videos on the company's intranet.
E)   Hold off on any communications until all employees can be brought together.F) A) and B)
G) C) and D)

Question 11

To make merit increases consistent,administrators of merit pay programs must closely monitor the compa-ratio and the

Accepted Answer

A)   number of grades in the pay structure.
B)   individual's performance ratings.
C)   number of new hires in the company.
D)   company's stock price in the current financial year.
E)   average pay of the area where the organization is based.F) A) and C)
G) B) and E)

Question 12

Group bonuses typically reward the performance of all employees in an organization.

Accepted Answer

A) True 
 B)False

Question 13

_____ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

Accepted Answer

A)   Merit pay
B)   Gainsharing
C)   Group bonus
D)   Profit sharing
E)   CommissionF) A) and E)
G) A) and B)

Question 14

An ESOP denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best describes a balanced scorecard?

Accepted Answer

A)   a combination of performance measures directed toward the company's long and short-term goals and used as the basis for awarding incentive pay
B)   a performance review process where the organization collects feedback from customers,managers,and subordinates,assigns ratings,and lists them on the company's performance card
C)   an arrangement in which the organization distributes shares of stock to all its employees by placing the stock into a trust
D)   a type of incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary
E)   a system designed to measure the performance of HR personnel based on the quality of recruitmentF) A) and D)
G) B) and C)

Question 16

Merit pay system decisions are based on two factors: an individual's performance rating and their

Accepted Answer

A)   compa-ratio.
B)   seniority.
C)   pay grade.
D)   educational qualifications.
E)   experience.F) C) and D)
G) B) and E)

Question 17

Under the team awards type of group incentive,cost savings is excluded as a performance measure.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following incentive plans would enable its employees to think like owners,taking a broad view of what they need to do in order to make the organization more effective?

Accepted Answer

A)   merit pay
B)   gainsharing
C)   the Scanlon plan
D)   performance bonuses
E)   profit sharingF) A) and C)
G) A) and E)

Question 19

Retention bonuses are one-time incentives paid to top managers,engineers,top-performing salespeople,and information technology specialists in exchange for remaining with the company.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a disadvantage of using incentive plans?

Accepted Answer

A)   The goals of an incentive plan may interfere with other management goals.
B)   The goals of incentive plans can seldom be linked to particular outcomes or behaviors.
C)   Incentive plans cannot be used to promote group and organizational performance.
D)   Incentive plans cause dissatisfaction among the non-performing employees in the organization.
E)   Incentive plans are not very effective for jobs other than sales and service.F) A) and D)
G) A) and E)

Exam 13: Recognizing Employee Contributions With Pay

Successful gainsharing plans include employee stock ownership plans.

Correct Answer
verified

Correct Answer
verified

In the process of designing incentives,managers should make sure that

Correct Answer
verified

As in the case of merit pay,performance bonuses for rewarding individual performance are rolled into an employee's base pay.

Correct Answer
verified

An ESOP denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Correct Answer
verified

In the context of stock ownership,what is meant by "backdating" a stock option?

Correct Answer
verified

Which of the following incentive plans would enable its employees to think like owners,taking a broad view of what they need to do in order to make the organization more effective?

Correct Answer
verified

To make merit increases consistent,administrators of merit pay programs must closely monitor the compa-ratio and the

Correct Answer
verified

What are the advantages and disadvantages of a merit pay system?

Correct Answer
verified
Almost all organizations have establishe...
View Answer

Under the team awards type of group incentive,cost savings is excluded as a performance measure.

Correct Answer
verified

_____ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

Correct Answer
verified

Electrix Inc.is an electrical appliances manufacturing company.It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf.Which of the following has been implemented by Electrix in this scenario?

Correct Answer
verified

A standard hour incentive plan is likely to be successful if

Correct Answer
verified

The link between employees' performance and pay is hardest to establish in

Correct Answer
verified

Group bonuses typically reward the performance of all employees in an organization.

Correct Answer
verified

Which of the following best describes a balanced scorecard?

Correct Answer
verified

Retention bonuses are one-time incentives paid to top managers,engineers,top-performing salespeople,and information technology specialists in exchange for remaining with the company.

Correct Answer
verified

Which of the following is a disadvantage of using incentive plans?

Correct Answer
verified

Merit pay system decisions are based on two factors: an individual's performance rating and their

Correct Answer
verified

Employee participation in pay-related decisions can be part of a general move toward

Correct Answer
verified

Exam 13: Recognizing Employee Contributions With Pay

Successful gainsharing plans include employee stock ownership plans.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the process of designing incentives,managers should make sure that

Correct AnswerverifiedShow Answer

As in the case of merit pay,performance bonuses for rewarding individual performance are rolled into an employee's base pay.

Correct AnswerverifiedShow Answer

An ESOP denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Correct AnswerverifiedShow Answer

In the context of stock ownership,what is meant by "backdating" a stock option?

Correct AnswerverifiedShow Answer

Which of the following incentive plans would enable its employees to think like owners,taking a broad view of what they need to do in order to make the organization more effective?

Correct AnswerverifiedShow Answer

To make merit increases consistent,administrators of merit pay programs must closely monitor the compa-ratio and the

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages of a merit pay system?

Correct AnswerverifiedAlmost all organizations have establishe...View AnswerShow Answer

Under the team awards type of group incentive,cost savings is excluded as a performance measure.

Correct AnswerverifiedShow Answer

_____ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

Correct AnswerverifiedShow Answer

Electrix Inc.is an electrical appliances manufacturing company.It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf.Which of the following has been implemented by Electrix in this scenario?

Correct AnswerverifiedShow Answer

A standard hour incentive plan is likely to be successful if

Correct AnswerverifiedShow Answer

The link between employees' performance and pay is hardest to establish in

Correct AnswerverifiedShow Answer

Group bonuses typically reward the performance of all employees in an organization.

Correct AnswerverifiedShow Answer

Which of the following best describes a balanced scorecard?

Correct AnswerverifiedShow Answer

Retention bonuses are one-time incentives paid to top managers,engineers,top-performing salespeople,and information technology specialists in exchange for remaining with the company.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of using incentive plans?

Correct AnswerverifiedShow Answer

Merit pay system decisions are based on two factors: an individual's performance rating and their

Correct AnswerverifiedShow Answer

Employee participation in pay-related decisions can be part of a general move toward

Correct AnswerverifiedShow Answer

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Almost all organizations have establishe...
View Answer

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