Exam 12: Pay-for-Performance and Financial Incentives

Today, any plan that ties pay to productivity or profitability is called

Popularized by Frederick Taylor, financial rewards paid to workers whose production exceeds some predetermined standard came into use in the late 1800s.These financial rewards are commonly referred to as

Accurate performance appraisal is a precondition for effective variable pay plans.

To determine eligibility in a short-term incentive program, a job-by-job review is conducted to identify the key jobs (typically only line jobs)that have measurable impact on profitability.This is called the criterion of

Reasons why incentive plans do not work include all of the following except

Professional employees almost always reach their positions through prolonged periods of

A type of incentive plan that is an organization-wide pay plan designed to reward employees for improvements in organizational productivity is

The piecework plan is expressed in monetary terms, whereas the standard hour plan is expressed in

Because of the role managers play in determining divisional and corporate profitability, most employers pay their managers and executives some type of

Research suggests that employee stock ownership plans encourage employees to develop

A type of incentive plan that gives income over and above base salary to individual employees who meet a specific individual performance standard is a(n)

When a target bonus is set for each eligible position and adjustments are then made for greater- or less-than-targeted performance, this is called

Amish is the human resources professional at a software development company that has experienced high employee turnover over the past year.The CEO has asked him to explain the most likely primary cause of the turnover.Amish reports that recent research indicates that the number-one reason that employees leave an organization is

All of the following are ways that employers use team or group incentive plans except

A type of incentive plan that generally is organization-wide and that provides employees with a share of the organization's profits in a specified period is a(n)

Employers have put increasing emphasis on variable pay plans in order to maximize their return on human capital.

A type of organization-wide incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives by sharing the resulting cost savings among employees and the company is referred to as a

One adaptation of merit pay plans is merit raises that are

Aziz is the human resources professional at a consulting engineering company.He has been asked by the executive team to suggest incentives that would most likely motivate the junior engineers who have recently graduated from university and are generally in their mid to late 20's.Which of the following should Aziz suggest?

A plan in which a production standard is set for a specific work group and its members are paid incentives if the group exceeds the production standard, is known as a(n)