Question 1

Which of the following is true about gain-sharing pay plans?

Accepted Answer

A) They foster competition among employees, instead of cooperation. 
B) They are simple to administer. 
C) They do not bring about clear performance-reward links. 
D) They ensure that payouts occur only when a company's financial performance is good. 
E) They help increase employees' knowledge of business. 
A) They foster competition among employees, instead of cooperation. 
B) They are simple to administer. 
C) They do not bring about clear performance-reward links. 
D) They ensure that payouts occur only when a company's financial performance is good. 
E) They help increase employees' knowledge of business.

Question 2

Which of the following is NOT a factor that influences the design of sales compensation packages?

Accepted Answer

A) size of the sales force 
B) competitor practices 
C) organizational strategy 
D) the nature of people who enter the sales profession 
E) the product to be sold 
A) size of the sales force 
B) competitor practices 
C) organizational strategy 
D) the nature of people who enter the sales profession 
E) the product to be sold

Question 3

The most frequently implemented individual incentive system is a standard hour plan.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a key element in designing a gain-sharing plan?

Accepted Answer

A) using a historical standard to calculate whether employees will receive an incentive payout 
B) ensuring that administration involves complex calculations which tend to be more accurate 
C) ensuring that all profits or savings generated are paid only to the management 
D) factoring in environmental influences on performance which are not controllable by plan participants 
E) limiting employee involvement in the implementation of the plan in order to avoid complications 
A) using a historical standard to calculate whether employees will receive an incentive payout 
B) ensuring that administration involves complex calculations which tend to be more accurate 
C) ensuring that all profits or savings generated are paid only to the management 
D) factoring in environmental influences on performance which are not controllable by plan participants 
E) limiting employee involvement in the implementation of the plan in order to avoid complications

Question 5

A(n)__________is an incentive plan that includes reductions in base pay in unsuccessful years.

Accepted Answer

A) profit-sharing plan 
B) gain-sharing plan 
C) broad-based option plan 
D) Scanlon plan 
E) earnings-at-risk plan 
A) profit-sharing plan 
B) gain-sharing plan 
C) broad-based option plan 
D) Scanlon plan 
E) earnings-at-risk plan

Question 6

What is the main difference between a Scanlon plan and a Rucker plan?

Accepted Answer

A) A Scanlon plan involves a less complex formula than a Rucker plan for determining worker incentive bonuses. 
B) A Scanlon plan requires worker committees while a Rucker plan does not. 
C) A Scanlon plan is a gain-sharing plan while a Rucker plan is an individualized incentive plan. 
D) A Scanlon plan is dependent on productivity norms while a Rucker plan works better without them. 
E) A Scanlon plan focuses on reducing labour costs, while a Rucker plan focuses on increasing labour costs. 
A) A Scanlon plan involves a less complex formula than a Rucker plan for determining worker incentive bonuses. 
B) A Scanlon plan requires worker committees while a Rucker plan does not. 
C) A Scanlon plan is a gain-sharing plan while a Rucker plan is an individualized incentive plan. 
D) A Scanlon plan is dependent on productivity norms while a Rucker plan works better without them. 
E) A Scanlon plan focuses on reducing labour costs, while a Rucker plan focuses on increasing labour costs.

Question 7

Which of the following is an example of a perquisite for executives?

Accepted Answer

A) Bonuses 
B) Low-cost loans 
C) Life insurance 
D) Executive stock options 
E) Pension plans 
A) Bonuses 
B) Low-cost loans 
C) Life insurance 
D) Executive stock options 
E) Pension plans

Which of the following is true about gain-sharing pay plans?

Which of the following is NOT a factor that influences the design of sales compensation packages?

The most frequently implemented individual incentive system is a standard hour plan.

Which of the following is a key element in designing a gain-sharing plan?

A(n)__________is an incentive plan that includes reductions in base pay in unsuccessful years.

What is the main difference between a Scanlon plan and a Rucker plan?

Which of the following is an example of a perquisite for executives?

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 11: Pay-For-Performance Plans

Which of the following is true about gain-sharing pay plans?

Which of the following is NOT a factor that influences the design of sales compensation packages?

The most frequently implemented individual incentive system is a standard hour plan.

Which of the following is a key element in designing a gain-sharing plan?

A(n)__________is an incentive plan that includes reductions in base pay in unsuccessful years.

What is the main difference between a Scanlon plan and a Rucker plan?

Which of the following is an example of a perquisite for executives?

Strategy: the Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Pay Structures

Defining Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

The Role of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters