Question 1

Research shows that a merit increase in the range of __________ is necessary to serve as a pay motivator.

Accepted Answer

A) 3 to 5 percent 
B) 7 to 9 percent 
C) 11 to 13 percent 
D) 15 to 17 percent 
A) 3 to 5 percent 
B) 7 to 9 percent 
C) 11 to 13 percent 
D) 15 to 17 percent

Question 2

Perquisites are special nonmonetary benefits given to executive employees.

Accepted Answer

A) True 
 B)False

Question 3

Group incentive plans include

Accepted Answer

A) straight salary plan. 
B) improshare. 
C) straight commission plan. 
D) profit sharing. 
A) straight salary plan. 
B) improshare. 
C) straight commission plan. 
D) profit sharing.

Question 4

Some of the benefits that Robix gives to its CEO and other top executives as a way to attract and retain talented individuals include chauffeurs, country club memberships, and special vacation policies. These are known as

Accepted Answer

A) executive rewards. 
B) perquisites. 
C) golden parachutes. 
D) assigned benefits. 
A) executive rewards. 
B) perquisites. 
C) golden parachutes. 
D) assigned benefits.

Question 5

ESOPs can qualify as tax-exempt employee trusts under section __________ of the Internal Revenue Code.

Accepted Answer

A) 402(a) 
B) 457(k) 
C) 401(a) 
D) 407(k) 
A) 402(a) 
B) 457(k) 
C) 401(a) 
D) 407(k)

Question 6

When setting performance measures for incentive systems, we can say that the best measures are those that

Accepted Answer

A) are quantitative, simple to understand, and show a clear relationship to improved performance. 
B) are qualitative, flexible, and create competition between employees. 
C) allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D) reduce administrative costs, determine rewards based only on quantity, and reward only exceptional employees. 
A) are quantitative, simple to understand, and show a clear relationship to improved performance. 
B) are qualitative, flexible, and create competition between employees. 
C) allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D) reduce administrative costs, determine rewards based only on quantity, and reward only exceptional employees.

Question 7

Identify the principal methods for compensating salespersons and the advantages of each method.

Accepted Answer

Compensation plans for sales personnel m

Question 8

__________ is the single word that best describes the design of individual incentive plans.

Accepted Answer

A) Motivation 
B) Comprehensiveness 
C) Flexibility 
D) Consistency 
A) Motivation 
B) Comprehensiveness 
C) Flexibility 
D) Consistency

Question 9

The CFO at Robix has been incentivized with a stock option that can only be exercised after a three-year vesting period. This is known as

Accepted Answer

A) competitive benchmarking. 
B) a golden handcuff. 
C) the free-rider effect. 
D) rate busting. 
A) competitive benchmarking. 
B) a golden handcuff. 
C) the free-rider effect. 
D) rate busting.

Question 10

Robix just developed a complex incentive system in which the rewards provide purpose, as well as give autonomy to the workers and offer them the opportunity to master a skill. This new system was most likely designed to

Accepted Answer

A) be an enterprise system. 
B) incentivize groups. 
C) attract manufacturing workers. 
D) reward professionals. 
A) be an enterprise system. 
B) incentivize groups. 
C) attract manufacturing workers. 
D) reward professionals.

Question 11

Enterprise incentive plans include

Accepted Answer

A) the Scanlon plan. 
B) improshare. 
C) stock options. 
D) sales incentives. 
A) the Scanlon plan. 
B) improshare. 
C) stock options. 
D) sales incentives.

Question 12

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Accepted Answer

A) True 
 B)False

Question 13

Discuss the problems identified with merit raises. As a manager, what could you do to ensure that merit raises fulfill their intended value?

Accepted Answer

Money available for merit increases may

Question 14

Employees are comfortable with the employee stock ownership plan because the federally established Pension Benefit Guaranty Corporation guarantees them their contribution to the plan.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an individual type of incentive plan?

Accepted Answer

A) Improshare 
B) Lump sum merit pay 
C) Stock options 
D) Employee stock ownership plans 
A) Improshare 
B) Lump sum merit pay 
C) Stock options 
D) Employee stock ownership plans

Question 16

In order to make sure that the pay they give their executives is similar to that of similar companies, Robix can use competitive benchmarking.

Accepted Answer

A) True 
 B)False

Question 17

According to Sammer, which of the following is NOT a characteristic of a successful incentive plan?

Accepted Answer

A) Identify important organizational metrics that encourage employee behavior. 
B) Involve employees and have incentive programs that seem fair to employees. 
C) Find technically detailed, quantitative, and extremely thorough payout formulas. 
D) Establish a clear link between performance and payout. 
A) Identify important organizational metrics that encourage employee behavior. 
B) Involve employees and have incentive programs that seem fair to employees. 
C) Find technically detailed, quantitative, and extremely thorough payout formulas. 
D) Establish a clear link between performance and payout.

Question 18

Group incentive plans do all of the following EXCEPT

Accepted Answer

A) enable employees to share the benefits of improved efficiency. 
B) encourage cooperation. 
C) reduce free-ride effect. 
D) reward employees for total contribution to organizational performance. 
A) enable employees to share the benefits of improved efficiency. 
B) encourage cooperation. 
C) reduce free-ride effect. 
D) reward employees for total contribution to organizational performance.

Question 19

A major concern of executive compensation involves

Accepted Answer

A) timing of the bonus. 
B) the amount of compensation. 
C) lack of perquisites. 
D) lack of objective market data. 
A) timing of the bonus. 
B) the amount of compensation. 
C) lack of perquisites. 
D) lack of objective market data.

Question 20

Generally, a bonus plan does not become part of an employee's base pay.

Accepted Answer

A) True 
 B)False

Research shows that a merit increase in the range of __________ is necessary to serve as a pay motivator.

Perquisites are special nonmonetary benefits given to executive employees.

Group incentive plans include

Some of the benefits that Robix gives to its CEO and other top executives as a way to attract and retain talented individuals include chauffeurs, country club memberships, and special vacation policies. These are known as

ESOPs can qualify as tax-exempt employee trusts under section __________ of the Internal Revenue Code.

When setting performance measures for incentive systems, we can say that the best measures are those that

Identify the principal methods for compensating salespersons and the advantages of each method.

__________ is the single word that best describes the design of individual incentive plans.

The CFO at Robix has been incentivized with a stock option that can only be exercised after a three-year vesting period. This is known as

Robix just developed a complex incentive system in which the rewards provide purpose, as well as give autonomy to the workers and offer them the opportunity to master a skill. This new system was most likely designed to

Enterprise incentive plans include

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Discuss the problems identified with merit raises. As a manager, what could you do to ensure that merit raises fulfill their intended value?

Employees are comfortable with the employee stock ownership plan because the federally established Pension Benefit Guaranty Corporation guarantees them their contribution to the plan.

Which of the following is an individual type of incentive plan?

In order to make sure that the pay they give their executives is similar to that of similar companies, Robix can use competitive benchmarking.

According to Sammer, which of the following is NOT a characteristic of a successful incentive plan?

Group incentive plans do all of the following EXCEPT

A major concern of executive compensation involves

Generally, a bonus plan does not become part of an employee's base pay.

The Rewards and Challenges of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employees Rights and Discipline

The Dynamics of Labor Relations

International Human Resources Management

Implementing HR Strategy: High-Performance Work Systems

Filters

Exam 10: Pay-For-Performance: Incentive Rewards

Research shows that a merit increase in the range of __________ is necessary to serve as a pay motivator.

Perquisites are special nonmonetary benefits given to executive employees.

Group incentive plans include

Some of the benefits that Robix gives to its CEO and other top executives as a way to attract and retain talented individuals include chauffeurs, country club memberships, and special vacation policies. These are known as

ESOPs can qualify as tax-exempt employee trusts under section __________ of the Internal Revenue Code.

When setting performance measures for incentive systems, we can say that the best measures are those that

Identify the principal methods for compensating salespersons and the advantages of each method.

__________ is the single word that best describes the design of individual incentive plans.

The CFO at Robix has been incentivized with a stock option that can only be exercised after a three-year vesting period. This is known as

Robix just developed a complex incentive system in which the rewards provide purpose, as well as give autonomy to the workers and offer them the opportunity to master a skill. This new system was most likely designed to

Enterprise incentive plans include

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Discuss the problems identified with merit raises. As a manager, what could you do to ensure that merit raises fulfill their intended value?

Employees are comfortable with the employee stock ownership plan because the federally established Pension Benefit Guaranty Corporation guarantees them their contribution to the plan.

Which of the following is an individual type of incentive plan?

In order to make sure that the pay they give their executives is similar to that of similar companies, Robix can use competitive benchmarking.

According to Sammer, which of the following is NOT a characteristic of a successful incentive plan?

Group incentive plans do all of the following EXCEPT

A major concern of executive compensation involves

Generally, a bonus plan does not become part of an employee's base pay.

The Rewards and Challenges of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employees Rights and Discipline

The Dynamics of Labor Relations

International Human Resources Management

Implementing HR Strategy: High-Performance Work Systems

Filters