Question 1

Accurate ________ are a precondition for effective variable pay plans.

Accepted Answer

A) job evaluation 
B) job specifications 
C) performance appraisals 
D) salary curves 
E) job descriptions 
A) job evaluation 
B) job specifications 
C) performance appraisals 
D) salary curves 
E) job descriptions

Question 2

Under this pay system, each worker receives a set payment for each piece produced or processed in a factory or shop.This system is known as a

Accepted Answer

A) process plan. 
B) straight piecework plan. 
C) gainsharing plan. 
D) guaranteed piecework plan. 
E) piecework plan. 
A) process plan. 
B) straight piecework plan. 
C) gainsharing plan. 
D) guaranteed piecework plan. 
E) piecework plan.

Question 3

One drawback to the split-award approach is that it pays too much to the marginal performer, who, even if his or her own performance is mediocre, at least gets the second, company-based bonus.One way to get around this would be to use the

Accepted Answer

A) lump-sum bonus method. 
B) individual award system. 
C) group incentive plan. 
D) individual bonus method. 
E) multiplier method. 
A) lump-sum bonus method. 
B) individual award system. 
C) group incentive plan. 
D) individual bonus method. 
E) multiplier method.

Question 4

Amy is part of a team of 4 software developers.Upon completion of a major client project, she and each of her team members received a set amount in addition to their base salary.All received the same additional amount.Amy received this payment as part of a

Accepted Answer

A) group incentive program. 
B) gain-sharing program. 
C) individual incentive plan. 
D) spot bonus plan. 
E) profit-sharing plan. 
A) group incentive program. 
B) gain-sharing program. 
C) individual incentive plan. 
D) spot bonus plan. 
E) profit-sharing plan.

Question 5

Studies in industries like pharmaceuticals and aerospace consistently show that firms with the most productive research and development groups have incentive pay plans for their professionals, usually in the form of

Accepted Answer

A) piece-rate incentives. 
B) bonuses. 
C) retirement income. 
D) hourly wages. 
E) merit pay. 
A) piece-rate incentives. 
B) bonuses. 
C) retirement income. 
D) hourly wages. 
E) merit pay.

Question 6

A short-term incentive plan that is designed to motivate the short-term performance of managers and is tied to company profitability is called a(n)

Accepted Answer

A) gainsharing. 
B) annual bonus. 
C) eligibility plan. 
D) capital accumulation program. 
E) commission plan. 
A) gainsharing. 
B) annual bonus. 
C) eligibility plan. 
D) capital accumulation program. 
E) commission plan.

Question 7

Merit pay plans are effective regardless of the validity of the performance appraisal system.

Accepted Answer

A) True 
 B)False

Question 8

In a profit-sharing plan, each participant gets a bonus based on the company's results

Accepted Answer

A) factored together with the participant's actual effort. 
B) regardless of the participant's actual effort. 
C) combined with no other hard-and-fast rules. 
D) adjusted for their department's results. 
E) combined with the individual effort and performance of each manager. 
A) factored together with the participant's actual effort. 
B) regardless of the participant's actual effort. 
C) combined with no other hard-and-fast rules. 
D) adjusted for their department's results. 
E) combined with the individual effort and performance of each manager.

Question 9

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

Accepted Answer

A) True 
 B)False

Question 10

Sales compensation plans have typically relied heavily on incentives (sales commissions), although this varies by

Accepted Answer

A) human resource plan. 
B) domestic policy. 
C) labour contract. 
D) industry. 
E) geographic location. 
A) human resource plan. 
B) domestic policy. 
C) labour contract. 
D) industry. 
E) geographic location.

Question 11

Under the differential piece-rate plan, a worker is rewarded by a percent premium that equals the percent by which his/her performance is above standard.

Accepted Answer

A) True 
 B)False

Question 12

The most prevalent approach to compensating salespeople is to use a combination of

Accepted Answer

A) salary and stock options. 
B) commission and stock options. 
C) salary and commissions. 
D) commissions and profit sharing. 
E) salary, commission, stock options, and profit sharing. 
A) salary and stock options. 
B) commission and stock options. 
C) salary and commissions. 
D) commissions and profit sharing. 
E) salary, commission, stock options, and profit sharing.

Question 13

Long-term incentives most often reserved for senior executives are called

Accepted Answer

A) performance achievement plans. 
B) book value plans. 
C) capital accumulation programs. 
D) stock option programs. 
E) stock appreciation rights programs. 
A) performance achievement plans. 
B) book value plans. 
C) capital accumulation programs. 
D) stock option programs. 
E) stock appreciation rights programs.

Question 14

Ira, the manager of a woodworking business, is considering implementing a piecework incentive plan for the woodworkers reporting to him.You are an HR consultant he has asked for advice as to the benefits of implementing such a plan.You advise him of all of the following except that

Accepted Answer

A) piecework plans are simple and easily understood. 
B) the incentive value of piece-rate plans can be powerful since rewards are directly tied to performance. 
C) piece-rate plans appear equitable in principle. 
D) since the piece rate is quoted on a per-piece basis, in workers' minds, production standards become tied inseparably to the amount of money earned. 
E) they are easily understood by employees. 
A) piecework plans are simple and easily understood. 
B) the incentive value of piece-rate plans can be powerful since rewards are directly tied to performance. 
C) piece-rate plans appear equitable in principle. 
D) since the piece rate is quoted on a per-piece basis, in workers' minds, production standards become tied inseparably to the amount of money earned. 
E) they are easily understood by employees.

Accurate ________ are a precondition for effective variable pay plans.

Under this pay system, each worker receives a set payment for each piece produced or processed in a factory or shop.This system is known as a

One drawback to the split-award approach is that it pays too much to the marginal performer, who, even if his or her own performance is mediocre, at least gets the second, company-based bonus.One way to get around this would be to use the

Amy is part of a team of 4 software developers.Upon completion of a major client project, she and each of her team members received a set amount in addition to their base salary.All received the same additional amount.Amy received this payment as part of a

Studies in industries like pharmaceuticals and aerospace consistently show that firms with the most productive research and development groups have incentive pay plans for their professionals, usually in the form of

A short-term incentive plan that is designed to motivate the short-term performance of managers and is tied to company profitability is called a(n)

Merit pay plans are effective regardless of the validity of the performance appraisal system.

In a profit-sharing plan, each participant gets a bonus based on the company's results

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

Sales compensation plans have typically relied heavily on incentives (sales commissions), although this varies by

Under the differential piece-rate plan, a worker is rewarded by a percent premium that equals the percent by which his/her performance is above standard.

The most prevalent approach to compensating salespeople is to use a combination of

Long-term incentives most often reserved for senior executives are called

Ira, the manager of a woodworking business, is considering implementing a piecework incentive plan for the woodworkers reporting to him.You are an HR consultant he has asked for advice as to the benefits of implementing such a plan.You advise him of all of the following except that

The Strategic Role of Human Resources Management

The Changing Legal Emphasis: Compliance and Impact on Canadian Workplaces

Human Resources Management and Technology

Designing and Analyzing Jobs

Human Resources Planning

Recruitment

Selection

Orientation and Training

Career Development

Performance Management

Strategic Pay Plans

Employee Benefits and Services

Occupational Health and Safety

Managing Employee Separations: Foundations of Employee Engagement, Communication, and Turnover Management

Labour Relations

Managing Human Resources in a Global Business

Filters

Exam 12: Pay-for-Performance and Financial Incentives

Accurate ________ are a precondition for effective variable pay plans.

Under this pay system, each worker receives a set payment for each piece produced or processed in a factory or shop.This system is known as a

One drawback to the split-award approach is that it pays too much to the marginal performer, who, even if his or her own performance is mediocre, at least gets the second, company-based bonus.One way to get around this would be to use the

Amy is part of a team of 4 software developers.Upon completion of a major client project, she and each of her team members received a set amount in addition to their base salary.All received the same additional amount.Amy received this payment as part of a

Studies in industries like pharmaceuticals and aerospace consistently show that firms with the most productive research and development groups have incentive pay plans for their professionals, usually in the form of

A short-term incentive plan that is designed to motivate the short-term performance of managers and is tied to company profitability is called a(n)

Merit pay plans are effective regardless of the validity of the performance appraisal system.

In a profit-sharing plan, each participant gets a bonus based on the company's results

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

Sales compensation plans have typically relied heavily on incentives (sales commissions), although this varies by

Under the differential piece-rate plan, a worker is rewarded by a percent premium that equals the percent by which his/her performance is above standard.

The most prevalent approach to compensating salespeople is to use a combination of

Long-term incentives most often reserved for senior executives are called

Ira, the manager of a woodworking business, is considering implementing a piecework incentive plan for the woodworkers reporting to him.You are an HR consultant he has asked for advice as to the benefits of implementing such a plan.You advise him of all of the following except that

The Strategic Role of Human Resources Management

The Changing Legal Emphasis: Compliance and Impact on Canadian Workplaces

Human Resources Management and Technology

Designing and Analyzing Jobs

Human Resources Planning

Recruitment

Selection

Orientation and Training

Career Development

Performance Management

Strategic Pay Plans

Employee Benefits and Services

Occupational Health and Safety

Managing Employee Separations: Foundations of Employee Engagement, Communication, and Turnover Management

Labour Relations

Managing Human Resources in a Global Business

Filters