Question 1

Which of the following is NOT a long-term incentive plan?

Accepted Answer

A)  ESOPs 
B)  Broad-based option plans (BBOPs) 
C)  Improshares 
D)  Performance plans 
A)  ESOPs 
B)  Broad-based option plans (BBOPs) 
C)  Improshares 
D)  Performance plans

Question 2

The trend in recent variable-pay design is to combine the best of _____ and _____ plans.

Accepted Answer

A)  individual;group 
B)  gain-sharing;profit-sharing 
C)  Halsey 50-50;Rowan 
D)  balanced scorecard;cash profit sharing 
A)  individual;group 
B)  gain-sharing;profit-sharing 
C)  Halsey 50-50;Rowan 
D)  balanced scorecard;cash profit sharing

Question 3

Unions prefer individual incentive pay plans to group incentive pay plans since members can earn more money.

Accepted Answer

A) True 
 B)False

Question 4

A major problem in group incentive plans is that performance targets are not correctly set.

Accepted Answer

A) True 
 B)False

Question 5

Many variable-pay plans have some form of profit trigger linked to revenue growth or profit margins.

Accepted Answer

A) True 
 B)False

Question 6

Merit pay is a pay-for-performance plan used for more than three-quarters of all exempt,clerical,and administrative employees.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an advantage of gain-sharing plans?

Accepted Answer

A)  They are the simplest type of variable-pay plan. 
B)  They allow payouts to occur even if a company's financial performance is poor. 
C)  They are administratively easy to implement. 
D)  They increase employees' knowledge of business. 
A)  They are the simplest type of variable-pay plan. 
B)  They allow payouts to occur even if a company's financial performance is poor. 
C)  They are administratively easy to implement. 
D)  They increase employees' knowledge of business.

Question 8

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:

Accepted Answer

A)  instructing them to do their best. 
B)  specifying performance levels and due dates. 
C)  assigning tasks only to the top performers in the team. 
D)  punishing free riders who fail to meet standards. 
A)  instructing them to do their best. 
B)  specifying performance levels and due dates. 
C)  assigning tasks only to the top performers in the team. 
D)  punishing free riders who fail to meet standards.

Question 9

Paying a dime for every bottle collected and turned into a collection center is an example of a:

Accepted Answer

A)  standard hour plan. 
B)  Merrick system. 
C)  straight piecework system. 
D)  Rowan plan. 
A)  standard hour plan. 
B)  Merrick system. 
C)  straight piecework system. 
D)  Rowan plan.

Question 10

Gain-sharing plans do not to use a historical standard to set productivity standards since environmental conditions can change quickly.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true of individual spot awards?

Accepted Answer

A)  They are an example of long-term incentives. 
B)  They are more expensive than merit pay increases. 
C)  They are given to employees for exceptional performance as an add-on bonus. 
D)  They are given to all employees as a one-time cost-of-living adjustment. 
A)  They are an example of long-term incentives. 
B)  They are more expensive than merit pay increases. 
C)  They are given to employees for exceptional performance as an add-on bonus. 
D)  They are given to all employees as a one-time cost-of-living adjustment.

Question 12

One common feature of all types of incentive plans is:

Accepted Answer

A)  an established standard of performance that is used to determine the magnitude of the incentive pay. 
B)  a sharing contract between the employees and employers,which stipulates that the losses incurred by the companies will be shared by both employees and employers. 
C)  the established formula that specifies the maximum percentage of base pay allocated as incentives. 
D)  a risk-sharing plan that increases pay depending upon the turnover rate of a company. 
A)  an established standard of performance that is used to determine the magnitude of the incentive pay. 
B)  a sharing contract between the employees and employers,which stipulates that the losses incurred by the companies will be shared by both employees and employers. 
C)  the established formula that specifies the maximum percentage of base pay allocated as incentives. 
D)  a risk-sharing plan that increases pay depending upon the turnover rate of a company.

Question 13

Which of the following is NOT true of merit bonuses?

Accepted Answer

A)  They are viewed as less of an entitlement than merit pay. 
B)  They are more expensive than merit pay in the long run. 
C)  Employees dislike them. 
D)  They are thought to be a substitute for merit pay. 
A)  They are viewed as less of an entitlement than merit pay. 
B)  They are more expensive than merit pay in the long run. 
C)  Employees dislike them. 
D)  They are thought to be a substitute for merit pay.

Question 14

When a firm is _____ on business risk,and its outcomes are _____,its performance is more likely to be higher without any incentive plans.

Accepted Answer

A)  variable;certain 
B)  high;uncertain 
C)  low;certain 
D)  low;invariable 
A)  variable;certain 
B)  high;uncertain 
C)  low;certain 
D)  low;invariable

Question 15

The free-rider problem is common in firms using individual incentive plans.

Accepted Answer

A) True 
 B)False

Which of the following is NOT a long-term incentive plan?

The trend in recent variable-pay design is to combine the best of _ and _ plans.

Unions prefer individual incentive pay plans to group incentive pay plans since members can earn more money.

A major problem in group incentive plans is that performance targets are not correctly set.

Many variable-pay plans have some form of profit trigger linked to revenue growth or profit margins.

Merit pay is a pay-for-performance plan used for more than three-quarters of all exempt,clerical,and administrative employees.

Which of the following is an advantage of gain-sharing plans?

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:

Paying a dime for every bottle collected and turned into a collection center is an example of a:

Gain-sharing plans do not to use a historical standard to set productivity standards since environmental conditions can change quickly.

Which of the following statements is true of individual spot awards?

One common feature of all types of incentive plans is:

Which of the following is NOT true of merit bonuses?

When a firm is _ on business risk,and its outcomes are _,its performance is more likely to be higher without any incentive plans.

The free-rider problem is common in firms using individual incentive plans.

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

Which of the following is NOT a long-term incentive plan?

The trend in recent variable-pay design is to combine the best of _____ and _____ plans.

Unions prefer individual incentive pay plans to group incentive pay plans since members can earn more money.

A major problem in group incentive plans is that performance targets are not correctly set.

Many variable-pay plans have some form of profit trigger linked to revenue growth or profit margins.

Merit pay is a pay-for-performance plan used for more than three-quarters of all exempt,clerical,and administrative employees.

Which of the following is an advantage of gain-sharing plans?

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:

Paying a dime for every bottle collected and turned into a collection center is an example of a:

Gain-sharing plans do not to use a historical standard to set productivity standards since environmental conditions can change quickly.

Which of the following statements is true of individual spot awards?

One common feature of all types of incentive plans is:

Which of the following is NOT true of merit bonuses?

When a firm is _____ on business risk,and its outcomes are _____,its performance is more likely to be higher without any incentive plans.

The free-rider problem is common in firms using individual incentive plans.

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

The trend in recent variable-pay design is to combine the best of _ and _ plans.

When a firm is _ on business risk,and its outcomes are _,its performance is more likely to be higher without any incentive plans.