Exam 12: Pay-for-Performance and Financial Incentives

Sue, a compensation analyst, found recent research that indicates that there are seven principles that support effective implementation of incentive plans.They include

Many employers have incentive plans in which virtually all employees can participate.They include all of the following except

Why would a company choose to compensate its sales force using a salary plan or a commission plan? Describe the circumstances that would lead a company to choose one or the other type of sales compensation plan.

One approach to using the team incentive plan is to set work standards for each member of the group and maintain a count of the output of each member.

A plan that offers each person a bonus based on the company's results, regardless of the person's actual effort, is called

The right to purchase a specific number of shares of company stock at a specific price during a specified period of time is called a

Traditional merit pay plans have which of the following characteristics?

Frederick Taylor was concerned with the tendency of employees to work at the slowest pace possible and produce at the minimum acceptable level.

Recognition is important for ________, who are driven by internal motivation.

There has been a definite movement away from the extremes of straight commission or fixed salary for salespeople to

Which is the most commonly used and oldest type of incentive plan system of pay based on the number of items processed by each individual worker in a unit of time?

Untac Inc., a consulting engineering firm, has recently implemented a type of organization-wide incentive plan whereby all full time employees share in the company's profits.Untac Inc.has implemented a

Unlike salaries, short-term incentive bonuses never result in plus or minus adjustments of 25% or more in total pay.

The oldest and most commonly used type of incentive plan is the standard hour plan.

Which of the following are criteria to become eligible for a short-term incentive program?

Aziz is the human resources professional at a consulting engineering company.He has been asked by the executive team to implement a short term incentive plan for senior managers.Which of the following is not a basic issues he should consider?

A stock option is the right to purchase a specific number of shares of company stock at a specific price during a period of time.

The chief disadvantage of group plans is that

Future Shop, an electronics retailer, is considering removing commission for its sales staff from their compensation plan and compensating them on a straight salary basis.The following are all advantage of this approach except

Revlex Inc.has implemented a refinement of the salary cutoff approach to short-term incentive eligibility, which assumes that all managers should be eligible for short-term incentives.This is known as