Exam 12: Pay for Performance and Financial Incentives

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What percentage of employers track sales performance using spreadsheets?

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With a standard hour plan, employers do not need to recalculate piece rates when changes are made to the hourly pay rate.

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In ________, employees agree to put some portion of their normal pay at risk if they don't meet their goals, in return for a much larger bonus if they exceed their goals.

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Which of the following is NOT a basic tenet of behavior modification?

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In Herzberg's Hygiene-Motivator theory, working conditions are motivator factors, and challenging assignments are hygiene factors.

(True/False)
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Employees at GameTime Software participate in a gainsharing plan. Employee bonuses are calculated by dividing payroll expenses by total sales. GameTime Software most likely uses which of the following plans?

(Multiple Choice)
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Dual-career ladders are effective tools for managing the professional pay of working mothers who desire a work-life balance.

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Elaine, the HR manager at Western Enterprises, will get stock distributed to her from a trust when she retires. This is known as a(n):

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Using a straight salary to compensate salespeople is most likely ineffective because it ________.

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You are the manager of large used car retailer, and sales are sluggish. What incentive plan would be best for motivating your sales team?

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Behavior modification is based on the idea that people will repeat behavior for which they are punished.

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The standard hour plan is like the piece rate plan except instead of getting a rate per piece, the employee gets a premium equal to the percent by which his or her performance exceeds the standard.

(True/False)
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What type of pay plan is being used when workers are paid a sum for each unit they produce?

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Cash, stock, stock options, stock appreciation rights, and phantom stock are known as "golden handcuffs" because they are long-term incentives for executives.

(True/False)
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According to Herzberg's Hygiene-Motivator theory, which of the following factors will most likely satisfy employees' higher-level needs?

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According to Herzberg's motivation theory, good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.

(True/False)
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Behavior modification principles can be useful to managers who seek to change employee behavior through rewards or punishments linked to performance.

(True/False)
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Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.

(True/False)
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Describe what a Scanlon Plan is and its 5 major elements.

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Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

(True/False)
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