Question 1

Which of the following is an example of a long-term incentive in an executive compensation package?

Accepted Answer

A)  pension plans 
B)  base pay 
C)  stock grants 
D)  low-cost loans 
E)  bonuses 
A)  pension plans 
B)  base pay 
C)  stock grants 
D)  low-cost loans 
E)  bonuses C

Question 2

To align the interest of the directors and the organizations, publicly traded companies are moving away from mandatory or recommended share ownership guidelines.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is true about broad-based option plans?

Accepted Answer

A)  They are applicable only to senior executives. 
B)  They are unable to inspire commitment and retention. 
C)  They are capable of reinforcing either performance or retention and commitment. 
D)  They maximize distinctions between employee groups. 
E)  They have only short-term effects on employee performance. 
A)  They are applicable only to senior executives. 
B)  They are unable to inspire commitment and retention. 
C)  They are capable of reinforcing either performance or retention and commitment. 
D)  They maximize distinctions between employee groups. 
E)  They have only short-term effects on employee performance. C

Question 4

List the major factors that influence the design of sales compensation plans?

Accepted Answer

There are several major factors that inf

Question 5

Which of the following is one of the three Cs that are problems with team compensation?

Accepted Answer

A)  control 
B)  conflict 
C)  coordination 
D)  culture 
E)  confidentiality 
A)  control 
B)  conflict 
C)  coordination 
D)  culture 
E)  confidentiality

Question 6

Describe the three types of incentive plans based on time.

Accepted Answer

The three types of incentive plans based

Question 7

What is the purpose behind each of the four variable pay plans?

Accepted Answer

The purpose behind each of the four vari

Question 8

Which of the following is a customer-focused performance measure?

Accepted Answer

A)  economic value added 
B)  cycle time 
C)  distribution systems 
D)  return on sales 
E)  service / quality index 
A)  economic value added 
B)  cycle time 
C)  distribution systems 
D)  return on sales 
E)  service / quality index

Question 9

Which of the following is a disadvantage of profit sharing?

Accepted Answer

A)  Most profit sharing plans are highly sophisticated and hence not easily understood by employees. 
B)  Most employees are not concerned about the profitability of their organizations. 
C)  Most employees are unwilling to learn about financial measures and the business factors that influence them. 
D)  There is no guarantee that profits will increase. 
E)  Most profit sharing plans involve high administrative costs. 
A)  Most profit sharing plans are highly sophisticated and hence not easily understood by employees. 
B)  Most employees are not concerned about the profitability of their organizations. 
C)  Most employees are unwilling to learn about financial measures and the business factors that influence them. 
D)  There is no guarantee that profits will increase. 
E)  Most profit sharing plans involve high administrative costs.

Question 10

Which of the following plans would an organization use if they had a highly uncertain future?

Accepted Answer

A)  gain sharing 
B)  team incentives 
C)  quality incentives 
D)  stock ownership or options 
E)  cash profit sharing 
A)  gain sharing 
B)  team incentives 
C)  quality incentives 
D)  stock ownership or options 
E)  cash profit sharing

Question 11

Broad-based option plans create an ownership culture based on a strong emphasis on performance.

Accepted Answer

A) True 
 B)False

Question 12

A contingent worker sacrifices ____ in exchange for _____.

Accepted Answer

A)  benefits, flexibility 
B)  income, skills 
C)  stability, benefits 
D)  knowledge acquisition, flexibility 
E)  loyalty, stability 
A)  benefits, flexibility 
B)  income, skills 
C)  stability, benefits 
D)  knowledge acquisition, flexibility 
E)  loyalty, stability

Question 13

The major focus of individual spot awards is on:

Accepted Answer

A)  linking increases in base pay to employee ratings on performance evaluations 
B)  rewarding group or team performance 
C)  promising pay for some objective, pre-established level of performance 
D)  awarding employees for performance that exceeds expectations 
E)  rewarding employees with monthly increments to keep up their motivation 
A)  linking increases in base pay to employee ratings on performance evaluations 
B)  rewarding group or team performance 
C)  promising pay for some objective, pre-established level of performance 
D)  awarding employees for performance that exceeds expectations 
E)  rewarding employees with monthly increments to keep up their motivation

Question 14

Deferred share units are stock awards earned when specific performance goals achieved.

Accepted Answer

A) True 
 B)False

Which of the following is an example of a long-term incentive in an executive compensation package?

To align the interest of the directors and the organizations, publicly traded companies are moving away from mandatory or recommended share ownership guidelines.

Which of the following is true about broad-based option plans?

List the major factors that influence the design of sales compensation plans?

Which of the following is one of the three Cs that are problems with team compensation?

Describe the three types of incentive plans based on time.

What is the purpose behind each of the four variable pay plans?

Which of the following is a customer-focused performance measure?

Which of the following is a disadvantage of profit sharing?

Which of the following plans would an organization use if they had a highly uncertain future?

Broad-based option plans create an ownership culture based on a strong emphasis on performance.

A contingent worker sacrifices in exchange for _.

The major focus of individual spot awards is on:

Deferred share units are stock awards earned when specific performance goals achieved.

The Pay Model

Strategy-The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Pay Structures and Job Evaluation

Person-Based Pay Structures

Defining External Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

The Roles of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

Exam 11: Pay-For-Performance Plans

Which of the following is an example of a long-term incentive in an executive compensation package?

To align the interest of the directors and the organizations, publicly traded companies are moving away from mandatory or recommended share ownership guidelines.

Which of the following is true about broad-based option plans?

List the major factors that influence the design of sales compensation plans?

Which of the following is one of the three Cs that are problems with team compensation?

Describe the three types of incentive plans based on time.

What is the purpose behind each of the four variable pay plans?

Which of the following is a customer-focused performance measure?

Which of the following is a disadvantage of profit sharing?

Which of the following plans would an organization use if they had a highly uncertain future?

Broad-based option plans create an ownership culture based on a strong emphasis on performance.

A contingent worker sacrifices ____ in exchange for _____.

The major focus of individual spot awards is on:

Deferred share units are stock awards earned when specific performance goals achieved.

The Pay Model

Strategy-The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Pay Structures and Job Evaluation

Person-Based Pay Structures

Defining External Competitiveness

Designing Pay Levels, Pay Mix, and Pay Structures

Employee Benefits

Pay for Performance: Performance Appraisal and Plan Design

The Roles of Governments and Unions in Compensation

Compensation Budgets and Administration

Filters

A contingent worker sacrifices in exchange for _.