Question 1

A straight salary is most appropriate when a salesperson's primary duties involve ________.

Accepted Answer

A) finding new clients 
B) meeting sales quotas 
C) pushing hard-to-sell items 
D) fostering relationships with customers 
A) finding new clients 
B) meeting sales quotas 
C) pushing hard-to-sell items 
D) fostering relationships with customers A

Question 2

Which of the following is NOT a type of gainsharing plan?

Accepted Answer

A) Improshare 
B) Lincoln 
C) Rucker 
D) Roth 
A) Improshare 
B) Lincoln 
C) Rucker 
D) Roth D

Question 3

In order for a firm to have an effective incentive plan,there should be a clear relationship between employee effort and quantity or quality of output.

Accepted Answer

A) True 
 B)False  True

Question 4

When developing the involvement system for a gainsharing plan,which of the following is NOT a commonly used element?

Accepted Answer

A) update meetings 
B) employee mediations 
C) suggestion systems 
D) problem-solving teams 
A) update meetings 
B) employee mediations 
C) suggestion systems 
D) problem-solving teams

Question 5

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability?

Accepted Answer

A) piecework 
B) variable pay 
C) pay-for-performance 
D) merit pay 
A) piecework 
B) variable pay 
C) pay-for-performance 
D) merit pay

Question 7

If an employee earns an incentive in the form of a prize or cash award,the value of the award is not included when calculating the employee's overtime pay.

Accepted Answer

A) True 
 B)False

Question 8

In Vroom's theory of motivation,motivation is equal to E * I * V,where E represents ________.

Accepted Answer

A) existence 
B) expectancy 
C) esteem 
D) energy 
A) existence 
B) expectancy 
C) esteem 
D) energy

Question 9

Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard.

Accepted Answer

A) True 
 B)False

Question 10

Hanover Publications has a large sales staff.Over the last two years,the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics.Which of the following most likely explains the reason for these changes at Hanover?

Accepted Answer

A) increased globalization 
B) new federal legislation 
C) recent economic recession 
D) employee stock option plans 
A) increased globalization 
B) new federal legislation 
C) recent economic recession 
D) employee stock option plans

Question 11

What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the legislation? Why or why not?

Accepted Answer

The Sarbanes-Oxley Act of 2002 affects h

Question 12

All of the following are essential in order for incentive plans to be effective EXCEPT ________.

Accepted Answer

A) incentives appear to be logical 
B) incentives are linked to behaviors 
C) rewards are attractive to employees 
D) standards are clear and complete 
A) incentives appear to be logical 
B) incentives are linked to behaviors 
C) rewards are attractive to employees 
D) standards are clear and complete

Question 13

Using a straight salary to compensate salespeople is most likely ineffective because it ________.

Accepted Answer

A) discourages sales flexibility 
B) lacks connection to performance 
C) makes it hard to switch territories 
D) depends on annual corporate profits 
A) discourages sales flexibility 
B) lacks connection to performance 
C) makes it hard to switch territories 
D) depends on annual corporate profits

Question 14

Which of the following is NOT a basic tenet of behavior modification?

Accepted Answer

A) Behavior that leads to rewards tends to be repeated. 
B) Properly scheduled rewards can be used to encourage some behaviors. 
C) Properly scheduled punishments can be used to minimize some behaviors. 
D) Employees must understand the link between rewards,punishments, and behavior. 
A) Behavior that leads to rewards tends to be repeated. 
B) Properly scheduled rewards can be used to encourage some behaviors. 
C) Properly scheduled punishments can be used to minimize some behaviors. 
D) Employees must understand the link between rewards,punishments, and behavior.

Question 15

Which term refers to payments companies make in connection with a change in ownership or control of a company?

Accepted Answer

A) pension 
B) golden parachute 
C) retirement bonus 
D) stock option 
A) pension 
B) golden parachute 
C) retirement bonus 
D) stock option

Question 16

An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

Accepted Answer

A) True 
 B)False

Question 17

What type of pay plan is being used when workers are paid a sum for each unit they produce?

Accepted Answer

A) competency-based pay 
B) job-based pay 
C) piecework 
D) bonus 
A) competency-based pay 
B) job-based pay 
C) piecework 
D) bonus

Question 18

The Scanlon plan includes all of the following features EXCEPT ________.

Accepted Answer

A) identity 
B) competence 
C) a philosophy of cooperation 
D) a focus on individual achievement 
A) identity 
B) competence 
C) a philosophy of cooperation 
D) a focus on individual achievement

Question 19

According to Herzberg's Hygiene-Motivator theory,which of the following factors will most likely satisfy employees' higher-level needs?

Accepted Answer

A) base salary 
B) achievement 
C) incentive pay 
D) co-worker relationships 
A) base salary 
B) achievement 
C) incentive pay 
D) co-worker relationships

Question 20

Ryobi is a large,international power tool manufacturer that develops affordable,high-quality products,such as drills,circular saws,and routers,for both homeowners and craftspeople.As the company continues to grow,its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective.Currently,the firm provides merit raises based on performance appraisals; however,executives are considering changing the current incentive plan. Which of the following,if true,undermines the argument that Ryobi should discontinue all merit raises?

Accepted Answer

A) Ryobi employees have expressed that they would prefer stock options to merit raises. 
B) Ryobi managers have not received significant training about conducting performance appraisals. 
C) Ryobi managers have noticed significant productivity improvements among employees who receive merit raises. 
D) Ryobi's top executives receive a combination of base salary and stock options to encourage them to focus on the firm's strategic goals. 
A) Ryobi employees have expressed that they would prefer stock options to merit raises. 
B) Ryobi managers have not received significant training about conducting performance appraisals. 
C) Ryobi managers have noticed significant productivity improvements among employees who receive merit raises. 
D) Ryobi's top executives receive a combination of base salary and stock options to encourage them to focus on the firm's strategic goals.

A straight salary is most appropriate when a salesperson's primary duties involve ________.

Which of the following is NOT a type of gainsharing plan?

In order for a firm to have an effective incentive plan,there should be a clear relationship between employee effort and quantity or quality of output.

When developing the involvement system for a gainsharing plan,which of the following is NOT a commonly used element?

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

Which of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability?

If an employee earns an incentive in the form of a prize or cash award,the value of the award is not included when calculating the employee's overtime pay.

In Vroom's theory of motivation,motivation is equal to E * I * V,where E represents ________.

Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard.

Hanover Publications has a large sales staff.Over the last two years,the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics.Which of the following most likely explains the reason for these changes at Hanover?

What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the legislation? Why or why not?

All of the following are essential in order for incentive plans to be effective EXCEPT ________.

Using a straight salary to compensate salespeople is most likely ineffective because it ________.

Which of the following is NOT a basic tenet of behavior modification?

Which term refers to payments companies make in connection with a change in ownership or control of a company?

An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

What type of pay plan is being used when workers are paid a sum for each unit they produce?

The Scanlon plan includes all of the following features EXCEPT ________.

According to Herzberg's Hygiene-Motivator theory,which of the following factors will most likely satisfy employees' higher-level needs?

Introduction to Human Resource Management

Equal Opportunity and the Law

Human Resource Management Strategy and Analysis

Job Analysis and the Talent Management Process

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Employee Retention, Engagement, and Careers

Establishing Strategic Pay Plans

Benefits and Services

Ethics and Employee Rights and Discipline

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

Managing Human Resources in Entrepreneurial Firms

Filters

Exam 12: Pay for Performance and Financial Incentives

A straight salary is most appropriate when a salesperson's primary duties involve ________.

Which of the following is NOT a type of gainsharing plan?

In order for a firm to have an effective incentive plan,there should be a clear relationship between employee effort and quantity or quality of output.

When developing the involvement system for a gainsharing plan,which of the following is NOT a commonly used element?

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

Which of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability?

If an employee earns an incentive in the form of a prize or cash award,the value of the award is not included when calculating the employee's overtime pay.

In Vroom's theory of motivation,motivation is equal to E * I * V,where E represents ________.

Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard.

Hanover Publications has a large sales staff.Over the last two years,the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics.Which of the following most likely explains the reason for these changes at Hanover?

What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the legislation? Why or why not?

All of the following are essential in order for incentive plans to be effective EXCEPT ________.

Using a straight salary to compensate salespeople is most likely ineffective because it ________.

Which of the following is NOT a basic tenet of behavior modification?

Which term refers to payments companies make in connection with a change in ownership or control of a company?

An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

What type of pay plan is being used when workers are paid a sum for each unit they produce?

The Scanlon plan includes all of the following features EXCEPT ________.

According to Herzberg's Hygiene-Motivator theory,which of the following factors will most likely satisfy employees' higher-level needs?

Introduction to Human Resource Management

Equal Opportunity and the Law

Human Resource Management Strategy and Analysis

Job Analysis and the Talent Management Process

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Employee Retention, Engagement, and Careers

Establishing Strategic Pay Plans

Benefits and Services

Ethics and Employee Rights and Discipline

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

Managing Human Resources in Entrepreneurial Firms

Filters