Question 1

Under a straight commission plan,compensation is based entirely on a percentage of sales.

Accepted Answer

A) True 
 B)False  True

Question 2

Enterprise incentive plans include:

Accepted Answer

A)  Scanlon Plan 
B)  Rucker Plan 
C)  Stock options 
D)  Sales incentives 
A)  Scanlon Plan 
B)  Rucker Plan 
C)  Stock options 
D)  Sales incentives C

Question 3

The principal reason guiding executive stock options as an incentive is for senior managers to have a significant stake in the success of the business.

Accepted Answer

A) True 
 B)False  True

Question 4

Employees are comfortable with ESOPs because the federally established Pension Benefit Guaranty Corporation guarantees them.

Accepted Answer

A) True 
 B)False

Question 5

Because of failing popularity and media scandal,most experts advocate abolition of stock options.

Accepted Answer

A) True 
 B)False

Question 6

A major criticism of short-term incentives for executives is that they place too much emphasis on short-term performance,which may lead to neglect of longer-term considerations such as research and development.

Accepted Answer

A) True 
 B)False

Question 7

According to Sammer,which of the following is NOT a characteristic of a successful incentive plan?

Accepted Answer

A)  Identify important organizational metrics that encourage employee behavior. 
B)  Involve employees.Incentive programs should seem fair to employees. 
C)  Payout formulas should be technically detailed,quantitative and extremely thorough to prove that management took significant effort to create the plan 
D)  Establish a clear link between performance and payout. 
A)  Identify important organizational metrics that encourage employee behavior. 
B)  Involve employees.Incentive programs should seem fair to employees. 
C)  Payout formulas should be technically detailed,quantitative and extremely thorough to prove that management took significant effort to create the plan 
D)  Establish a clear link between performance and payout.

Question 8

A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization.

Accepted Answer

A) True 
 B)False

Question 9

Generally,ESOPs are more likely to serve their intended purposes in privately held
companies than in publicly held ones.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

When employees receive a certain rate for each unit produced,they are working under which incentive plan?

Accepted Answer

A)  differential piece rate 
B)  standard piece rate 
C)  straight piecework 
D)  individual rate pay 
A)  differential piece rate 
B)  standard piece rate 
C)  straight piecework 
D)  individual rate pay

Question 12

Unlike a bonus,a merit raise may be perpetuated year after year even when performance declines.

Accepted Answer

A) True 
 B)False

Question 13

This group is between the ages of 25 and 41 and values a balanced lifestyle of work and play.

Accepted Answer

A)  Generation X 
B)  Generation Y 
C)  Traditionalists 
D)  Baby Boomers 
A)  Generation X 
B)  Generation Y 
C)  Traditionalists 
D)  Baby Boomers

Question 14

Profit sharing refers to any procedure by which an employer pays employees:

Accepted Answer

A)  an incentive based on their merit. 
B)  an incentive based on labor cost savings. 
C)  a bonus based on the overall productivity of their particular work group. 
D)  current or deferred sums based on the organization's financial performance. 
A)  an incentive based on their merit. 
B)  an incentive based on labor cost savings. 
C)  a bonus based on the overall productivity of their particular work group. 
D)  current or deferred sums based on the organization's financial performance.

Question 15

Enterprise incentive plans include:

Accepted Answer

A)  Scanlon plans 
B)  stock options 
C)  executive incentive plans 
D)  bonuses 
A)  Scanlon plans 
B)  stock options 
C)  executive incentive plans 
D)  bonuses

Question 16

Piecework may be inappropriate where technology changes are frequent.

Accepted Answer

A) True 
 B)False

Question 17

For incentive plans to work effectively,employees must see a clear connection between the incentive payments they receive and their performance.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  3 to 5 
B)  5 to 7 
C)  7 to 9 
D)  9 to 11 
A)  3 to 5 
B)  5 to 7 
C)  7 to 9 
D)  9 to 11

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The standard hour plan provides a monetary bonus for completing work in less than the specified time.

Accepted Answer

A) True 
 B)False

Under a straight commission plan,compensation is based entirely on a percentage of sales.

Enterprise incentive plans include:

The principal reason guiding executive stock options as an incentive is for senior managers to have a significant stake in the success of the business.

Employees are comfortable with ESOPs because the federally established Pension Benefit Guaranty Corporation guarantees them.

Because of failing popularity and media scandal,most experts advocate abolition of stock options.

A major criticism of short-term incentives for executives is that they place too much emphasis on short-term performance,which may lead to neglect of longer-term considerations such as research and development.

According to Sammer,which of the following is NOT a characteristic of a successful incentive plan?

A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization.

Generally,ESOPs are more likely to serve their intended purposes in privately held companies than in publicly held ones.

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

When employees receive a certain rate for each unit produced,they are working under which incentive plan?

Unlike a bonus,a merit raise may be perpetuated year after year even when performance declines.

This group is between the ages of 25 and 41 and values a balanced lifestyle of work and play.

Profit sharing refers to any procedure by which an employer pays employees:

Enterprise incentive plans include:

Piecework may be inappropriate where technology changes are frequent.

For incentive plans to work effectively,employees must see a clear connection between the incentive payments they receive and their performance.

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

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

The standard hour plan provides a monetary bonus for completing work in less than the specified time.

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

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Exam 10: Pay-For-Performance: Incentive Rewards

Under a straight commission plan,compensation is based entirely on a percentage of sales.

Enterprise incentive plans include:

The principal reason guiding executive stock options as an incentive is for senior managers to have a significant stake in the success of the business.

Employees are comfortable with ESOPs because the federally established Pension Benefit Guaranty Corporation guarantees them.

Because of failing popularity and media scandal,most experts advocate abolition of stock options.

A major criticism of short-term incentives for executives is that they place too much emphasis on short-term performance,which may lead to neglect of longer-term considerations such as research and development.

According to Sammer,which of the following is NOT a characteristic of a successful incentive plan?

A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization.

Generally,ESOPs are more likely to serve their intended purposes in privately held companies than in publicly held ones.

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

When employees receive a certain rate for each unit produced,they are working under which incentive plan?

Unlike a bonus,a merit raise may be perpetuated year after year even when performance declines.

This group is between the ages of 25 and 41 and values a balanced lifestyle of work and play.

Profit sharing refers to any procedure by which an employer pays employees:

Enterprise incentive plans include:

Piecework may be inappropriate where technology changes are frequent.

For incentive plans to work effectively,employees must see a clear connection between the incentive payments they receive and their performance.

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

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

The standard hour plan provides a monetary bonus for completing work in less than the specified time.

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