Question 1

Incentive plans can create an organizational environment of "shared commitment," since individuals contribute to organizational success.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT a reason that team incentive plans have grown more popular?

Accepted Answer

A)  there is emphasis on cost-reduction 
B)  teamwork is important 
C)  coordination among workers is important 
D)  unions have demanded team incentive plans 
A)  there is emphasis on cost-reduction 
B)  teamwork is important 
C)  coordination among workers is important 
D)  unions have demanded team incentive plans

Question 3

Sales incentives can be affected by external factors beyond the salesperson's control.

Accepted Answer

A) True 
 B)False

Question 4

Straight commission plans may induce salespeople to grant price concessions.

Accepted Answer

A) True 
 B)False

Question 5

When setting performance measures for incentive systems, what can we say about the best measures?

Accepted Answer

A)  They are quantitative, simple to understand, and show a clear relationship to improved performance. 
B)  They are qualitative, flexible, and create competition between employees. 
C)  They are those measures that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D)  They are unattainable in order to inspire increased levels of performance. 
A)  They are quantitative, simple to understand, and show a clear relationship to improved performance. 
B)  They are qualitative, flexible, and create competition between employees. 
C)  They are those measures that allow employers to "ratchet up" standards and base rewards on qualitative standards. 
D)  They are unattainable in order to inspire increased levels of performance.

Question 6

Merit raises may be perpetuated year after year even if performance declines.

Accepted Answer

A) True 
 B)False

Question 7

Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

Accepted Answer

A)  the comparative low executive base pay 
B)  the amount of the options granted and exercised 
C)  the fact that mainly males are CEOs and that they get these options 
D)  the stock prices in competitive firms 
A)  the comparative low executive base pay 
B)  the amount of the options granted and exercised 
C)  the fact that mainly males are CEOs and that they get these options 
D)  the stock prices in competitive firms

Question 8

The idea behind the Scanlon Plan is that employees not only should offer ideas to improve productivity, but also should be rewarded for those ideas.

Accepted Answer

A) True 
 B)False

Question 9

Differential piece rate plans guarantee employees at least a base pay.

Accepted Answer

A) True 
 B)False

Question 10

A salesperson with a sales volume of $275,000 earning a straight commission of 3 percent would receive $8,250.

Accepted Answer

A) True 
 B)False

Question 11

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT a weakness of profit-sharing plans?

Accepted Answer

A)  They cause intense competition at the individual employee level. 
B)  Profits shared may be affected by external economic factors. 
C)  The line of sight between reward and individual performance is weak. 
D)  The performance of other firms on the stock market may affect profits. 
A)  They cause intense competition at the individual employee level. 
B)  Profits shared may be affected by external economic factors. 
C)  The line of sight between reward and individual performance is weak. 
D)  The performance of other firms on the stock market may affect profits.

Question 13

Which of the following often applies to professional employees?

Accepted Answer

A)  They cannot advance in salary beyond a point without taking on administrative duties. 
B)  They cannot participate in profit-sharing plans. 
C)  They cannot own stock due to conflict of interest. 
D)  They can fully utilize their professional skills only after being promoted. 
A)  They cannot advance in salary beyond a point without taking on administrative duties. 
B)  They cannot participate in profit-sharing plans. 
C)  They cannot own stock due to conflict of interest. 
D)  They can fully utilize their professional skills only after being promoted.

Question 14

Aren received a $500 pay bonus as a result of his job performance last year; however, this extra money was not added to his base pay. This is an example of which of the following?

Accepted Answer

A)  annual merit raise 
B)  group incentive plan 
C)  lump-sum merit pay 
D)  percentage wage increase 
A)  annual merit raise 
B)  group incentive plan 
C)  lump-sum merit pay 
D)  percentage wage increase

Question 15

Employees receive a specified payment for each unit produced under a straight piecework program.

Accepted Answer

A) True 
 B)False

Question 16

Performance measures are rather simple to develop and standardize, as sales volume is an objective measure of performance that is not dependent upon external factors.

Accepted Answer

A) True 
 B)False

Question 17

If the standard time for producing one unit of work in a job paying $5.00 per hour were set at 6 minutes, what would the piece rate be?

Accepted Answer

A)  $1.00 per unit 
B)  $1.50 per unit 
C)  $0.50 per unit 
D)  $0.75 per unit 
A)  $1.00 per unit 
B)  $1.50 per unit 
C)  $0.50 per unit 
D)  $0.75 per unit

Question 18

Team incentive plans reward team members when performance standards are met or exceeded; however, they tend to foster a psychological climate that negatively impacts team cooperation.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT an advantage of ESOPs?

Accepted Answer

A)  Firms can reward employees with shares. 
B)  The employees' pensions are less vulnerable due to diversification. 
C)  ESOPs can increase employees' pride of ownership. 
D)  ESOPs can provide an incentive for employees to increase productivity. 
A)  Firms can reward employees with shares. 
B)  The employees' pensions are less vulnerable due to diversification. 
C)  ESOPs can increase employees' pride of ownership. 
D)  ESOPs can provide an incentive for employees to increase productivity.

Question 20

Which of the following is the most widely used sales incentive program?

Accepted Answer

A)  straight salary 
B)  straight commission 
C)  combined salary and commission 
D)  commission plus bonus 
A)  straight salary 
B)  straight commission 
C)  combined salary and commission 
D)  commission plus bonus

Incentive plans can create an organizational environment of "shared commitment," since individuals contribute to organizational success.

Which of the following is NOT a reason that team incentive plans have grown more popular?

Sales incentives can be affected by external factors beyond the salesperson's control.

Straight commission plans may induce salespeople to grant price concessions.

When setting performance measures for incentive systems, what can we say about the best measures?

Merit raises may be perpetuated year after year even if performance declines.

Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

The idea behind the Scanlon Plan is that employees not only should offer ideas to improve productivity, but also should be rewarded for those ideas.

Differential piece rate plans guarantee employees at least a base pay.

A salesperson with a sales volume of $275,000 earning a straight commission of 3 percent would receive $8,250.

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Which of the following is NOT a weakness of profit-sharing plans?

Which of the following often applies to professional employees?

Aren received a $500 pay bonus as a result of his job performance last year; however, this extra money was not added to his base pay. This is an example of which of the following?

Employees receive a specified payment for each unit produced under a straight piecework program.

Performance measures are rather simple to develop and standardize, as sales volume is an objective measure of performance that is not dependent upon external factors.

If the standard time for producing one unit of work in a job paying $5.00 per hour were set at 6 minutes, what would the piece rate be?

Team incentive plans reward team members when performance standards are met or exceeded; however, they tend to foster a psychological climate that negatively impacts team cooperation.

Which of the following is NOT an advantage of ESOPs?

Which of the following is the most widely used sales incentive program?

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Branding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management and the Employee Appraisal Process

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Filters

Exam 10: Pay for Performance: Incentive Rewards

Incentive plans can create an organizational environment of "shared commitment," since individuals contribute to organizational success.

Which of the following is NOT a reason that team incentive plans have grown more popular?

Sales incentives can be affected by external factors beyond the salesperson's control.

Straight commission plans may induce salespeople to grant price concessions.

When setting performance measures for incentive systems, what can we say about the best measures?

Merit raises may be perpetuated year after year even if performance declines.

Recently, stock options have been strongly criticized in the press following controversies at several companies. What has this criticism focused on?

The idea behind the Scanlon Plan is that employees not only should offer ideas to improve productivity, but also should be rewarded for those ideas.

Differential piece rate plans guarantee employees at least a base pay.

A salesperson with a sales volume of $275,000 earning a straight commission of 3 percent would receive $8,250.

A merit raise is a form of bonus that is given to an employee beyond their base wage.

Which of the following is NOT a weakness of profit-sharing plans?

Which of the following often applies to professional employees?

Aren received a $500 pay bonus as a result of his job performance last year; however, this extra money was not added to his base pay. This is an example of which of the following?

Employees receive a specified payment for each unit produced under a straight piecework program.

Performance measures are rather simple to develop and standardize, as sales volume is an objective measure of performance that is not dependent upon external factors.

If the standard time for producing one unit of work in a job paying $5.00 per hour were set at 6 minutes, what would the piece rate be?

Team incentive plans reward team members when performance standards are met or exceeded; however, they tend to foster a psychological climate that negatively impacts team cooperation.

Which of the following is NOT an advantage of ESOPs?

Which of the following is the most widely used sales incentive program?

The World of Human Resources Management

Strategy and Human Resources Planning

Equity and Diversity in Human Resources Management

Job Analysis and Work Design

Branding the Talent Pool: Recruitment and Careers

Employee Selection

Training and Development

Performance Management and the Employee Appraisal Process

Managing Compensation

Employee Benefits

Promoting Safety and Health

Employee Rights and Discipline

The Dynamics of Labour Relations

International Human Resources Management

Filters