Question 1

For any task completed in standard time or less,earnings are pegged at 120 percent of the time saved under the _____ plan.

Accepted Answer

A)  Halsey 50-50 
B)  Gantt 
C)  Taylor 
D)  Rowan 
A)  Halsey 50-50 
B)  Gantt 
C)  Taylor 
D)  Rowan B

Question 2

Individual incentives yield higher productivity gains than group incentives.

Accepted Answer

A) True 
 B)False  True

Question 3

The percentage of companies using some form of variable pay is declining because many employees prefer base wages.

Accepted Answer

A) True 
 B)False  False

Question 4

Discuss the trends that are leading to the increased interest in variable pay.

Accepted Answer

The greater interest in variable pay pro

Question 5

The most frequently used incentive system is the:

Accepted Answer

A)  standard hour plan. 
B)  straight piecework system. 
C)  Merrick system. 
D)  Taylor differential piece-rate plan. 
A)  standard hour plan. 
B)  straight piecework system. 
C)  Merrick system. 
D)  Taylor differential piece-rate plan.

Question 6

Which of the following is an advantage of providing stock ownership options as variable pay to employees?

Accepted Answer

A)  It reinforces team identity. 
B)  It is the simplest type of variable-pay plan. 
C)  It defers a portion of taxes to employees. 
D)  It provides a direct pay-performance link. 
A)  It reinforces team identity. 
B)  It is the simplest type of variable-pay plan. 
C)  It defers a portion of taxes to employees. 
D)  It provides a direct pay-performance link.

Question 7

Which of the following is NOT an advantage of team incentives?

Accepted Answer

A)  Stimulates problem solving 
B)  May better reflect how work is performed 
C)  Easy to set equitable targets for all teams 
D)  Minimizes distinctions between team members 
A)  Stimulates problem solving 
B)  May better reflect how work is performed 
C)  Easy to set equitable targets for all teams 
D)  Minimizes distinctions between team members

Question 8

Which of the following statements about merit pay is NOT true?

Accepted Answer

A)  It has a small but significant effect on performance. 
B)  Removal of merit pay lowers satisfaction but not performance. 
C)  Departments and units with merit pay show higher performance. 
D)  Merit pay has a sorting effect. 
A)  It has a small but significant effect on performance. 
B)  Removal of merit pay lowers satisfaction but not performance. 
C)  Departments and units with merit pay show higher performance. 
D)  Merit pay has a sorting effect.

Question 9

In the long run,merit bonuses cost employers less than merit pay.

Accepted Answer

A) True 
 B)False

Question 10

_____ have the disadvantage of requiring employees to spend money to obtain their incentive.

Accepted Answer

A)  Cash profit sharing plans 
B)  Balanced scorecard plans 
C)  Stock options plans 
D)  Deferred profit sharing plans 
A)  Cash profit sharing plans 
B)  Balanced scorecard plans 
C)  Stock options plans 
D)  Deferred profit sharing plans

Question 11

High performance ratings are nearly always statistically related to high merit increases.

Accepted Answer

A) True 
 B)False

Question 12

A group performance-based pay plan is superior to an individual plan when production methods and labor mix must change to meet changing pressures.

Accepted Answer

A) True 
 B)False

Question 13

Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the most commonly used team incentive performance standard?

Accepted Answer

A)  Quality of goods 
B)  Customer satisfaction measures 
C)  Financial performance 
D)  Quality of services 
A)  Quality of goods 
B)  Customer satisfaction measures 
C)  Financial performance 
D)  Quality of services

Question 15

The Rowan plan uses a standard that is purposefully set high requiring high performance levels.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT true about individual spot awards?

Accepted Answer

A)  Smaller companies may be more casual about recognition for spot awards. 
B)  Someone in an organization alerts top management about performances deserving of an award. 
C)  A majority of companies do not feel that these awards are effective. 
D)  Smaller companies are more subjective about deciding the size of the award. 
A)  Smaller companies may be more casual about recognition for spot awards. 
B)  Someone in an organization alerts top management about performances deserving of an award. 
C)  A majority of companies do not feel that these awards are effective. 
D)  Smaller companies are more subjective about deciding the size of the award.

Question 17

Discuss the plans that provide for variable incentives linked to a standard expressed as a time period per unit of production.

Accepted Answer

In the Halsey 50-50 plan,an allowed time

Question 18

Which of the following is a disadvantage of gain-sharing plans?

Accepted Answer

A)  Payouts can occur even if a company's financial performance is poor. 
B)  Pay-performance link is indirect. 
C)  Employees are required to put up money to exercise grants. 
D)  Mandatory stock ownership required by gain-sharing plans can increase turnover rates. 
A)  Payouts can occur even if a company's financial performance is poor. 
B)  Pay-performance link is indirect. 
C)  Employees are required to put up money to exercise grants. 
D)  Mandatory stock ownership required by gain-sharing plans can increase turnover rates.

Question 19

A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

Accepted Answer

A) True 
 B)False

Question 20

Why do companies prefer merit bonuses over merit pay increases?

Accepted Answer

Merit bonuses can be considerably less e

For any task completed in standard time or less,earnings are pegged at 120 percent of the time saved under the _____ plan.

Individual incentives yield higher productivity gains than group incentives.

The percentage of companies using some form of variable pay is declining because many employees prefer base wages.

Discuss the trends that are leading to the increased interest in variable pay.

The most frequently used incentive system is the:

Which of the following is an advantage of providing stock ownership options as variable pay to employees?

Which of the following is NOT an advantage of team incentives?

Which of the following statements about merit pay is NOT true?

In the long run,merit bonuses cost employers less than merit pay.

_____ have the disadvantage of requiring employees to spend money to obtain their incentive.

High performance ratings are nearly always statistically related to high merit increases.

A group performance-based pay plan is superior to an individual plan when production methods and labor mix must change to meet changing pressures.

Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.

Which of the following is the most commonly used team incentive performance standard?

The Rowan plan uses a standard that is purposefully set high requiring high performance levels.

Which of the following is NOT true about individual spot awards?

Discuss the plans that provide for variable incentives linked to a standard expressed as a time period per unit of production.

Which of the following is a disadvantage of gain-sharing plans?

A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

Why do companies prefer merit bonuses over merit pay increases?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 10: Pay-For-Performance Plans

For any task completed in standard time or less,earnings are pegged at 120 percent of the time saved under the _____ plan.

Individual incentives yield higher productivity gains than group incentives.

The percentage of companies using some form of variable pay is declining because many employees prefer base wages.

Discuss the trends that are leading to the increased interest in variable pay.

The most frequently used incentive system is the:

Which of the following is an advantage of providing stock ownership options as variable pay to employees?

Which of the following is NOT an advantage of team incentives?

Which of the following statements about merit pay is NOT true?

In the long run,merit bonuses cost employers less than merit pay.

_____ have the disadvantage of requiring employees to spend money to obtain their incentive.

High performance ratings are nearly always statistically related to high merit increases.

A group performance-based pay plan is superior to an individual plan when production methods and labor mix must change to meet changing pressures.

Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.

Which of the following is the most commonly used team incentive performance standard?

The Rowan plan uses a standard that is purposefully set high requiring high performance levels.

Which of the following is NOT true about individual spot awards?

Discuss the plans that provide for variable incentives linked to a standard expressed as a time period per unit of production.

Which of the following is a disadvantage of gain-sharing plans?

A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

Why do companies prefer merit bonuses over merit pay increases?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters