Question 1

The salary-only approach is useful only when an organization emphasizes generating new sales and accounts.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is an example of massive kinked bonus?

Accepted Answer

A)  A sponsor rewarding an athlete only in the case of victory at an event 
B)  An organization that gives a one piece-rate wage for all units produced irrespective of employee productivity 
C)  A sponsor rewarding an athlete for participation in an event 
D)  An organization rewarding an employee for referring someone who is later hired 
A)  A sponsor rewarding an athlete only in the case of victory at an event 
B)  An organization that gives a one piece-rate wage for all units produced irrespective of employee productivity 
C)  A sponsor rewarding an athlete for participation in an event 
D)  An organization rewarding an employee for referring someone who is later hired

Question 3

Group incentives are most likely to work efficiently if _____.

Accepted Answer

A)  the social pressure on members of the group is high 
B)  the individual performance level is clear 
C)  the incentive plan is imposed in the absence of employee input 
D)  individual performance cannot be identified 
A)  the social pressure on members of the group is high 
B)  the individual performance level is clear 
C)  the incentive plan is imposed in the absence of employee input 
D)  individual performance cannot be identified

Question 4

Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

Accepted Answer

A) True 
 B)False

Question 5

The reason for giving compensation in the form of incentives is that it is thought to be effective in motivating employees and increasing corporate performance and stock values.

Accepted Answer

A) True 
 B)False

Question 6

A free rider is a _____.

Accepted Answer

A)  member of a group who contributes a lot 
B)  member of a group who contributes little 
C)  member of a group who contributes on par with other team members 
D)  member of a group who contributes only during the time of a need 
A)  member of a group who contributes a lot 
B)  member of a group who contributes little 
C)  member of a group who contributes on par with other team members 
D)  member of a group who contributes only during the time of a need

Question 7

Which of the following statements is true of the salary-only approach?

Accepted Answer

A)  The salary-only approach is useful when an organization emphasizes serving and retaining existing accounts. 
B)  The salary-only approach is useful when an organization emphasizes on generating new sales and accounts. 
C)  The salary-only approach is useful only when an organization is compensating experienced sales executives. 
D)  The salary-only approach is not useful in compensating sales representatives who are new to a job. 
A)  The salary-only approach is useful when an organization emphasizes serving and retaining existing accounts. 
B)  The salary-only approach is useful when an organization emphasizes on generating new sales and accounts. 
C)  The salary-only approach is useful only when an organization is compensating experienced sales executives. 
D)  The salary-only approach is not useful in compensating sales representatives who are new to a job.

Question 8

Which of the following is the most commonly used frequency of distributing team/group incentives?

Accepted Answer

A)  Monthly 
B)  Semiannually 
C)  Annually 
D)  Quarterly 
A)  Monthly 
B)  Semiannually 
C)  Annually 
D)  Quarterly

Question 9

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

Accepted Answer

The philosophical foundation of variable

Question 10

AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

Accepted Answer

A)  It provided group incentives; now it provides organizational incentives. 
B)  It provided individual incentives; now it provides group incentives. 
C)  It provided individual incentives; now it provides organizational incentives. 
D)  It provided organizational incentives; now it provides individual incentives. 
A)  It provided group incentives; now it provides organizational incentives. 
B)  It provided individual incentives; now it provides group incentives. 
C)  It provided individual incentives; now it provides organizational incentives. 
D)  It provided organizational incentives; now it provides individual incentives.

Question 11

A free rider is a member of the group who contributes the most in a group venture.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an advantage of perquisites?

Accepted Answer

A)  Perks offer substantial tax savings because some of them are not taxed as income. 
B)  Perks offer substantial tax savings because some of them are not taxed as an expenditure. 
C)  Perks ensure a source of regular additional income for the employees apart from the salary. 
D)  Perks help in reducing the total cost of benefits provided by the organization. 
A)  Perks offer substantial tax savings because some of them are not taxed as income. 
B)  Perks offer substantial tax savings because some of them are not taxed as an expenditure. 
C)  Perks ensure a source of regular additional income for the employees apart from the salary. 
D)  Perks help in reducing the total cost of benefits provided by the organization.

Question 13

Which of the following is a metric of sales programs in variable pay plans?

Accepted Answer

A)  Return on investment 
B)  Turnover costs 
C)  Accident rates 
D)  Increase in market share 
A)  Return on investment 
B)  Turnover costs 
C)  Accident rates 
D)  Increase in market share

Question 14

Which of the following is a disadvantage associated with spot bonuses?

Accepted Answer

A)  They are typically given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can fuel jealousy among employees. 
D)  They are given to a team and not to individual employees. 
A)  They are typically given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can fuel jealousy among employees. 
D)  They are given to a team and not to individual employees.

Question 15

Which of the following is typically classified as an organizational incentive?

Accepted Answer

A)  Commissions 
B)  Group team results 
C)  Executive stock options 
D)  Cost reductions 
A)  Commissions 
B)  Group team results 
C)  Executive stock options 
D)  Cost reductions

Question 16

Which of the following is true of spot bonuses?

Accepted Answer

A)  They are only given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can be given for extra time worked. 
D)  They are given to a team and not to individual employees. 
A)  They are only given in the form of nonmonetary incentives. 
B)  They can be awarded only during appraisals. 
C)  They can be given for extra time worked. 
D)  They are given to a team and not to individual employees.

Question 17

Nonfinancial rewards cannot be used as incentives in pay-for-performance plans.

Accepted Answer

A) True 
 B)False

Question 18

RedCat LLC, a footwear manufacturing company, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing with profit sharing. Which of the following is true of RedCat LLC?

Accepted Answer

A)  It provided individual incentives; now it provides group incentives. 
B)  It provided organizational incentives; now it provides individual incentives. 
C)  It provided individual incentives; now it provides organizational incentives. 
D)  It provided group incentives; now it provides organizational incentives. 
A)  It provided individual incentives; now it provides group incentives. 
B)  It provided organizational incentives; now it provides individual incentives. 
C)  It provided individual incentives; now it provides organizational incentives. 
D)  It provided group incentives; now it provides organizational incentives.

Question 19

A straight salary has no additional commission incentive, while a straight commission has all compensation tied to the incentive.

Accepted Answer

A) True 
 B)False

Question 20

Team Spark LLC, a producer of consumer goods, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

Accepted Answer

A)  It provided group incentives; now it provides individual incentives. 
B)  It provided individual incentives; now it provides group incentives. 
C)  It provided group incentives; now it provides organizational incentives. 
D)  It provided individual incentives; now it provides organizational incentives. 
A)  It provided group incentives; now it provides individual incentives. 
B)  It provided individual incentives; now it provides group incentives. 
C)  It provided group incentives; now it provides organizational incentives. 
D)  It provided individual incentives; now it provides organizational incentives.

The salary-only approach is useful only when an organization emphasizes generating new sales and accounts.

Which of the following is an example of massive kinked bonus?

Group incentives are most likely to work efficiently if _____.

Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

The reason for giving compensation in the form of incentives is that it is thought to be effective in motivating employees and increasing corporate performance and stock values.

A free rider is a _____.

Which of the following statements is true of the salary-only approach?

Which of the following is the most commonly used frequency of distributing team/group incentives?

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

A free rider is a member of the group who contributes the most in a group venture.

Which of the following is an advantage of perquisites?

Which of the following is a metric of sales programs in variable pay plans?

Which of the following is a disadvantage associated with spot bonuses?

Which of the following is typically classified as an organizational incentive?

Which of the following is true of spot bonuses?

Nonfinancial rewards cannot be used as incentives in pay-for-performance plans.

RedCat LLC, a footwear manufacturing company, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing with profit sharing. Which of the following is true of RedCat LLC?

A straight salary has no additional commission incentive, while a straight commission has all compensation tied to the incentive.

Team Spark LLC, a producer of consumer goods, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individualorganization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Unionmanagement Relations

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Exam 12: Variable Pay and Executive Compensation

The salary-only approach is useful only when an organization emphasizes generating new sales and accounts.

Which of the following is an example of massive kinked bonus?

Group incentives are most likely to work efficiently if _____.

Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

The reason for giving compensation in the form of incentives is that it is thought to be effective in motivating employees and increasing corporate performance and stock values.

A free rider is a _____.

Which of the following statements is true of the salary-only approach?

Which of the following is the most commonly used frequency of distributing team/group incentives?

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

A free rider is a member of the group who contributes the most in a group venture.

Which of the following is an advantage of perquisites?

Which of the following is a metric of sales programs in variable pay plans?

Which of the following is a disadvantage associated with spot bonuses?

Which of the following is typically classified as an organizational incentive?

Which of the following is true of spot bonuses?

Nonfinancial rewards cannot be used as incentives in pay-for-performance plans.

RedCat LLC, a footwear manufacturing company, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing with profit sharing. Which of the following is true of RedCat LLC?

A straight salary has no additional commission incentive, while a straight commission has all compensation tied to the incentive.

Team Spark LLC, a producer of consumer goods, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individualorganization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Unionmanagement Relations

Filters