Exam 12: Pay for Performance and Financial Incentives

The Scanlon plan is an early version of a ________ plan,an incentive plan that engages employees in a common effort to achieve productivity objectives.

McDonald Manufacturing contributes cash to a trust established to purchase shares of McDonald stock for employees.Which of the following is most likely offered by McDonald Manufacturing?

Annual bonus plans are long-term incentives,and stock options are short-term incentives.

In which of the following do workers receive a basic hourly rate plus a premium equal to the percent by which their performance exceeds the standard?

Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals.

Under the Fair Labor Standards Act,which of the following would NOT be included in overtime pay computations?

Employers may award merit pay as traditional merit increases that increase an employee's base pay or as a lump sum merit raise.Explain the pros and cons of these two choices.

Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?

Jack is in the process of implementing a gainsharing plan for his firm.He has already determined that the plan's objectives will be to lower labor costs.What is the next step that Jack needs to take?

Employers are shifting away from piecework in many industries due to the incentive plan's poor reputation.

Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so.Identify at least five positive reinforcement rewards that a manager could use on a day-to-day basis to reward employees.What does research suggest about the impact of financial and nonfinancial incentives on employees?

In Herzberg's Hygiene-Motivator theory,working conditions are motivator factors,and challenging assignments are hygiene factors.

In a brief essay,discuss the difference between annual bonuses for employees and gainsharing plans.

What is the most common form of payment in gainsharing plans?

Which of the following is the primary advantage of piecework plans?

According to Herzberg's motivation theory,good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.

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,supports the argument that Ryobi should eliminate all merit raises?

Which of the following terms refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future?

Briefly describe Vroom's theory and its three components.How can managers use Vroom's theory as they develop effective incentive plans?

Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction?