Question 1

What are the pros and cons of high executive pay?

Accepted Answer

Pros: Large financial incentives reward

Question 2

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is a:

Accepted Answer

A) piece rate. 
B) differential piece rate. 
C) merit pay. 
D) spot bonus. 
A) piece rate. 
B) differential piece rate. 
C) merit pay. 
D) spot bonus.

Question 3

Which of the following is an individual type of incentive plan?

Accepted Answer

A) Improshare 
B) Lump sum merit pay 
C) Stock options 
D) Employee stock ownership plans 
A) Improshare 
B) Lump sum merit pay 
C) Stock options 
D) Employee stock ownership plans

Question 4

Executive-base salaries represent between 10 and 20 percent of total annual compensation.

Accepted Answer

A) True 
 B)False

Question 5

When employees receive a higher rate of pay for all of their work and production exceeds a standard level of output,they are working under the _____ incentive plan.

Accepted Answer

A) differential piece rate 
B) standard piece rate 
C) exception bonus rate 
D) individual rate pay 
A) differential piece rate 
B) standard piece rate 
C) exception bonus rate 
D) individual rate pay

Question 6

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Accepted Answer

A) 3 to 5 percent 
B) 7 to 9 percent 
C) 11 to 13 percent 
D) 15 to 17 percent 
A) 3 to 5 percent 
B) 7 to 9 percent 
C) 11 to 13 percent 
D) 15 to 17 percent

Question 7

Merit pay plans have been criticized because the merit increase may not be sufficient to raise all employees' base pay.

Accepted Answer

A) True 
 B)False

Question 8

Research clearly shows that noncash incentive awards are most effective as motivators when the award is combined with a meaningful employee recognition program.

Accepted Answer

A) True 
 B)False

Question 9

More than _____ of companies globally are offering variable pay programs.

Accepted Answer

A) 20 percent 
B) 40 percent 
C) 60 percent 
D) 80 percent 
A) 20 percent 
B) 40 percent 
C) 60 percent 
D) 80 percent

Question 10

The philosophy behind the Scanlon Plan is that:

Accepted Answer

A) employees should make suggestions to improve performance and be rewarded for their contributions. 
B) organizational profits should improve through sales efforts. 
C) managers and employees should establish quality and quantity goals for optimum organizational performance. 
D) rewards should be shared with employees based on improved profits. 
A) employees should make suggestions to improve performance and be rewarded for their contributions. 
B) organizational profits should improve through sales efforts. 
C) managers and employees should establish quality and quantity goals for optimum organizational performance. 
D) rewards should be shared with employees based on improved profits.

Question 11

ESOPs can qualify as tax-exempt employee trusts under section _____ of the Internal Revenue Code.

Accepted Answer

A) 402(a) 
B) 457(k) 
C) 401(a) 
D) 407(k) 
A) 402(a) 
B) 457(k) 
C) 401(a) 
D) 407(k)

Question 12

Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price?

Accepted Answer

A) Stock options 
B) Stock appreciation rights 
C) Stock purchase 
D) Phantom stock 
A) Stock options 
B) Stock appreciation rights 
C) Stock purchase 
D) Phantom stock

Question 13

The straight commission plan is limited by all of the following disadvantages EXCEPT that:

Accepted Answer

A) salespeople will stress low-priced products. 
B) customer service after the sale is likely to be neglected. 
C) earnings tend to fluctuate widely between good and poor periods of business. 
D) salespeople are tempted to grant price concessions. 
A) salespeople will stress low-priced products. 
B) customer service after the sale is likely to be neglected. 
C) earnings tend to fluctuate widely between good and poor periods of business. 
D) salespeople are tempted to grant price concessions.

Question 14

A major problem of employee stock ownership plans is that:

Accepted Answer

A) motivation of employees is rarely achieved. 
B) employees view it as a form of management control. 
C) it places employees' pensions at risk. 
D) it can be damaging to the financial well-being of an organization. 
A) motivation of employees is rarely achieved. 
B) employees view it as a form of management control. 
C) it places employees' pensions at risk. 
D) it can be damaging to the financial well-being of an organization.

Question 15

The purpose of a profit-sharing plan is to:

Accepted Answer

A) allow workers to contribute specific knowledge to improving the organization. 
B) give employees the opportunity to increase their earnings. 
C) enable workers to share in labor cost savings. 
D) instill commitment to the employee's immediate work group. 
A) allow workers to contribute specific knowledge to improving the organization. 
B) give employees the opportunity to increase their earnings. 
C) enable workers to share in labor cost savings. 
D) instill commitment to the employee's immediate work group.

Question 16

Compensation committees justify large executive salaries and bonuses in part because good executive talent is in high demand.

Accepted Answer

A) True 
 B)False

Question 17

Stock options have become popular in service organizations but have lost favor in manufacturing firms.

Accepted Answer

A) True 
 B)False

Question 18

When computing executive pay,many organizations are tying _____ to traditional financial gauges.

Accepted Answer

A) performance markers 
B) global standards 
C) application rewards 
D) balanced scorecards 
A) performance markers 
B) global standards 
C) application rewards 
D) balanced scorecards

Question 19

The use of _____ is a popular and prevalent method used in different industries for motivating and compensating hourly,salaried,and executive personnel.

Accepted Answer

A) bonuses 
B) stock options 
C) benefits 
D) perquisites 
A) bonuses 
B) stock options 
C) benefits 
D) perquisites

Question 20

Under a straight piecework plan,if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50.The piece rate is $1.50 per unit.

Accepted Answer

A) True 
 B)False

What are the pros and cons of high executive pay?

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is a:

Which of the following is an individual type of incentive plan?

Executive-base salaries represent between 10 and 20 percent of total annual compensation.

When employees receive a higher rate of pay for all of their work and production exceeds a standard level of output,they are working under the _____ incentive plan.

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Merit pay plans have been criticized because the merit increase may not be sufficient to raise all employees' base pay.

Research clearly shows that noncash incentive awards are most effective as motivators when the award is combined with a meaningful employee recognition program.

More than _____ of companies globally are offering variable pay programs.

The philosophy behind the Scanlon Plan is that:

ESOPs can qualify as tax-exempt employee trusts under section _____ of the Internal Revenue Code.

Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price?

The straight commission plan is limited by all of the following disadvantages EXCEPT that:

A major problem of employee stock ownership plans is that:

The purpose of a profit-sharing plan is to:

Compensation committees justify large executive salaries and bonuses in part because good executive talent is in high demand.

Stock options have become popular in service organizations but have lost favor in manufacturing firms.

When computing executive pay,many organizations are tying _____ to traditional financial gauges.

The use of _____ is a popular and prevalent method used in different industries for motivating and compensating hourly,salaried,and executive personnel.

Under a straight piecework plan,if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50.The piece rate is $1.50 per unit.

The Challenge of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding 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 Labor Relations

International Human Resources Management

Creating High-Performance Work Systems

Filters

Exam 10: Pay-For-Performance: Incentive Rewards

What are the pros and cons of high executive pay?

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is a:

Which of the following is an individual type of incentive plan?

Executive-base salaries represent between 10 and 20 percent of total annual compensation.

When employees receive a higher rate of pay for all of their work and production exceeds a standard level of output,they are working under the _____ incentive plan.

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Merit pay plans have been criticized because the merit increase may not be sufficient to raise all employees' base pay.

Research clearly shows that noncash incentive awards are most effective as motivators when the award is combined with a meaningful employee recognition program.

More than _____ of companies globally are offering variable pay programs.

The philosophy behind the Scanlon Plan is that:

ESOPs can qualify as tax-exempt employee trusts under section _____ of the Internal Revenue Code.

Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price?

The straight commission plan is limited by all of the following disadvantages EXCEPT that:

A major problem of employee stock ownership plans is that:

The purpose of a profit-sharing plan is to:

Compensation committees justify large executive salaries and bonuses in part because good executive talent is in high demand.

Stock options have become popular in service organizations but have lost favor in manufacturing firms.

When computing executive pay,many organizations are tying _____ to traditional financial gauges.

The use of _____ is a popular and prevalent method used in different industries for motivating and compensating hourly,salaried,and executive personnel.

Under a straight piecework plan,if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50.The piece rate is $1.50 per unit.

The Challenge of Human Resources Management

Strategy and Human Resources Planning

Equal Employment Opportunity and Human Resources Management

Job Analysis and Job Design

Expanding 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 Labor Relations

International Human Resources Management

Creating High-Performance Work Systems

Filters