Question 1

Because profit-sharing plans often fail to pay off for several years in a row,they can have limited motivational value.

Accepted Answer

A) True 
 B)False

Question 2

Common output measures for productivity include:

Accepted Answer

A)  sales 
B)  materials 
C)  labor 
D)  total costs 
A)  sales 
B)  materials 
C)  labor 
D)  total costs

Question 3

A study of 20,000 employees found that ____ of "high potential" employees planned to leave their company by the end of 2010 due to perceived pay inequity.

Accepted Answer

A)  27 percent 
B)  38 percent 
C)  47 percent 
D)  58 percent 
A)  27 percent 
B)  38 percent 
C)  47 percent 
D)  58 percent

Question 4

An incentive given for a special employee contribution not directly tied to a performance standard is:

Accepted Answer

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

Question 5

Under a straight commission plan sales people may be allowed a salary draw.

Accepted Answer

A) True 
 B)False

Question 6

Rate busting refers to:

Accepted Answer

A)  increased productivity 
B)  an increase in output that results in the disapproval of fellow employees 
C)  setting incentive performance standards 
D)  decreased productivity 
A)  increased productivity 
B)  an increase in output that results in the disapproval of fellow employees 
C)  setting incentive performance standards 
D)  decreased productivity

Question 7

An analysis of executive salaries shows that the largest portion of executive pay is received in long-term incentive rewards and bonuses.

Accepted Answer

A) True 
 B)False

Question 8

Annual bonuses represent the main element of executive short-term incentives.

Accepted Answer

A) True 
 B)False

Question 9

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

Accepted Answer

A) True 
 B)False

Question 10

Executive base salaries represent between ____ percent of the total annual compensation.

Accepted Answer

A)  10 to 20 
B)  20 to 30 
C)  30 to 40 
D)  40 to 50 
A)  10 to 20 
B)  20 to 30 
C)  30 to 40 
D)  40 to 50

Question 11

The most widely used sales incentive program is the ____________________ plan.

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

Question 12

Generally,a bonus plan does NOT become part of base pay.

Accepted Answer

A) True 
 B)False

Question 13

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

Accepted Answer

A) True 
 B)False

Question 14

A major problem of ESOPs is that:

Accepted Answer

A)  motivation of employees is rarely achieved with ESOPs. 
B)  employees view the ESOP as a form of management control. 
C)  ESOPs place employees' pensions at risk because they are tied to the market performance of the organization. 
D)  because of the cash involved,ESOPs can be damaging to the financial well-being of the organization. 
A)  motivation of employees is rarely achieved with ESOPs. 
B)  employees view the ESOP as a form of management control. 
C)  ESOPs place employees' pensions at risk because they are tied to the market performance of the organization. 
D)  because of the cash involved,ESOPs can be damaging to the financial well-being of the organization.

Question 15

Organizational goals can impact choice of incentive plans.

Accepted Answer

A) True 
 B)False

Question 16

When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output,they are working under which 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 17

Briefly discuss three individual incentive plans.

Accepted Answer

(Students should discuss three of the fo

Question 18

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 19

Performance of sales people can be affected by all of the following external factors except:

Accepted Answer

A)  the sales territory 
B)  changes in demand 
C)  change in the sales volume standard 
D)  seasonal fluctuations 
A)  the sales territory 
B)  changes in demand 
C)  change in the sales volume standard 
D)  seasonal fluctuations

Question 20

An advantage of using a straight salary plan to compensate sales employees is that employees can be paid for performing only sales effort.

Accepted Answer

A) True 
 B)False

Because profit-sharing plans often fail to pay off for several years in a row,they can have limited motivational value.

Common output measures for productivity include:

A study of 20,000 employees found that ____ of "high potential" employees planned to leave their company by the end of 2010 due to perceived pay inequity.

An incentive given for a special employee contribution not directly tied to a performance standard is:

Under a straight commission plan sales people may be allowed a salary draw.

Rate busting refers to:

An analysis of executive salaries shows that the largest portion of executive pay is received in long-term incentive rewards and bonuses.

Annual bonuses represent the main element of executive short-term incentives.

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

Executive base salaries represent between ____ percent of the total annual compensation.

The most widely used sales incentive program is the ____________________ plan.

Generally,a bonus plan does NOT become part of base pay.

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

A major problem of ESOPs is that:

Organizational goals can impact choice of incentive plans.

When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output,they are working under which incentive plan?

Briefly discuss three individual incentive plans.

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

Performance of sales people can be affected by all of the following external factors except:

An advantage of using a straight salary plan to compensate sales employees is that employees can be paid for performing only sales effort.

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

Because profit-sharing plans often fail to pay off for several years in a row,they can have limited motivational value.

Common output measures for productivity include:

A study of 20,000 employees found that ____ of "high potential" employees planned to leave their company by the end of 2010 due to perceived pay inequity.

An incentive given for a special employee contribution not directly tied to a performance standard is:

Under a straight commission plan sales people may be allowed a salary draw.

Rate busting refers to:

An analysis of executive salaries shows that the largest portion of executive pay is received in long-term incentive rewards and bonuses.

Annual bonuses represent the main element of executive short-term incentives.

Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.

Executive base salaries represent between ____ percent of the total annual compensation.

The most widely used sales incentive program is the ____________________ plan.

Generally,a bonus plan does NOT become part of base pay.

Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

A major problem of ESOPs is that:

Organizational goals can impact choice of incentive plans.

When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output,they are working under which incentive plan?

Briefly discuss three individual incentive plans.

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

Performance of sales people can be affected by all of the following external factors except:

An advantage of using a straight salary plan to compensate sales employees is that employees can be paid for performing only sales effort.

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