Question 1

Which profit-sharing plan provides tax advantages for employees by postponing income taxes, often until the employee retires?

Accepted Answer

A) cash plan 
B) Lincoln incentive system 
C) deferred profit-sharing plan 
D) employee stock ownership plan 
A) cash plan 
B) Lincoln incentive system 
C) deferred profit-sharing plan 
D) employee stock ownership plan

Question 2

Which of the following best explains identity in regards to the Scanlon plan?

Accepted Answer

A) philosophy of cooperation among employees 
B) clear articulation of the company mission 
C) high level of competency from all employees 
D) corporate-wide benefits and savings 
A) philosophy of cooperation among employees 
B) clear articulation of the company mission 
C) high level of competency from all employees 
D) corporate-wide benefits and savings

Question 3

Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________.

Accepted Answer

A) social loafing 
B) systematic soldiering 
C) work shifting 
D) group logrolling 
A) social loafing 
B) systematic soldiering 
C) work shifting 
D) group logrolling

Question 4

Under the Fair Labor Standards Act, which of the following would NOT be included in overtime pay computations?

Accepted Answer

A) bonus for new hires 
B) Christmas bonus 
C) efficiency bonus 
D) union contract bonus 
A) bonus for new hires 
B) Christmas bonus 
C) efficiency bonus 
D) union contract bonus

Question 5

Top executives at DYS Enterprises are considering the idea of implementing an employee incentive plan. Which of the following suggests that an incentive plan would NOT be appropriate at DYS Enterprises?

Accepted Answer

A) Delays rarely occur. 
B) The job is standardized. 
C) Employees are unskilled but motivated. 
D) A link exists between employee effort and output. 
A) Delays rarely occur. 
B) The job is standardized. 
C) Employees are unskilled but motivated. 
D) A link exists between employee effort and output.

Question 6

Which of the following terms refers to an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards?

Accepted Answer

A) variable pay 
B) straight piecework 
C) straight hourly pay 
D) standard hour plan 
A) variable pay 
B) straight piecework 
C) straight hourly pay 
D) standard hour plan

Question 7

In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans.

Accepted Answer

Most firms have annual bonus plans aimed

Question 8

According to Vroom's theory, when managers design incentive plans they should do all of the following EXCEPT ________.

Accepted Answer

A) focus on behavior modification methods 
B) make incentive plans easy to understand 
C) provide training and support to employees 
D) boost the confidence level of employees 
A) focus on behavior modification methods 
B) make incentive plans easy to understand 
C) provide training and support to employees 
D) boost the confidence level of employees

Question 9

The main feature of broad-based stock option plans is:

Accepted Answer

A) monthly stock options 
B) option to buy as many shares as desired 
C) restricted to closely held organizations 
D) all or most employees can participate 
A) monthly stock options 
B) option to buy as many shares as desired 
C) restricted to closely held organizations 
D) all or most employees can participate

Question 10

Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?

Accepted Answer

A) provides a guaranteed minimum salary 
B) allows freedom to choose own work activities 
C) completely links to performance 
D) offers simple administration 
A) provides a guaranteed minimum salary 
B) allows freedom to choose own work activities 
C) completely links to performance 
D) offers simple administration

Question 11

Which of the following is a true statement about Herzberg's Hygiene-Motivator theory?

Accepted Answer

A) Highly motivated workers rely equally on lower-level and higher-level needs. 
B) Assigning workers to teams can eliminate job-associated stress and frustration. 
C) Providing employees with feedback and challenge satisfies their lower-level needs. 
D) Managers can create a self-motivated workforce by providing feedback and recognition. 
A) Highly motivated workers rely equally on lower-level and higher-level needs. 
B) Assigning workers to teams can eliminate job-associated stress and frustration. 
C) Providing employees with feedback and challenge satisfies their lower-level needs. 
D) Managers can create a self-motivated workforce by providing feedback and recognition.

Question 12

The perceived relationship between successful performance and obtaining the reward is referred to by Vroom as ________.

Accepted Answer

A) instrumentality 
B) valence 
C) expectancy 
D) optimism 
A) instrumentality 
B) valence 
C) expectancy 
D) optimism

Question 13

When hired by Delmar Designs, Shane agreed to forego 6% of his normal pay if he didn't meet his goals in return for a 12% bonus if he exceeded his goals. In which type of plan does Shane most likely participate?

Accepted Answer

A) earnings-at-risk pay plan 
B) variable risk sharing plan 
C) at-risk gainsharing plan 
D) employee at-risk plan 
A) earnings-at-risk pay plan 
B) variable risk sharing plan 
C) at-risk gainsharing plan 
D) employee at-risk plan

Question 14

Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction?

Accepted Answer

A) Frederick Taylor 
B) Abraham Maslow 
C) Frederick Herzberg 
D) David McClelland 
A) Frederick Taylor 
B) Abraham Maslow 
C) Frederick Herzberg 
D) David McClelland

Question 15

Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement. Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?

Accepted Answer

A) deferred profit-sharing plan 
B) Lincoln incentive system 
C) Jefferson incentive system 
D) gainsharing plan 
A) deferred profit-sharing plan 
B) Lincoln incentive system 
C) Jefferson incentive system 
D) gainsharing plan

Question 16

Edward is the new sales manager at Wilson Auto Mart. The previous sales manager set commission rates informally without considering how much each sale covered expenses. As a result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid. Edward wants to motivate his sales force but avoid having excessive commissions. Which of the following, if true, supports the argument that Edward should pay his sales team a combination of salary plus commission?

Accepted Answer

A) Wilson Auto Mart's sales team consists of high-performing, experienced salespeople. 
B) Wilson Auto Mart has a sales force that has a significant desire for a floor to their earnings. 
C) Each Wilson Auto Mart salesperson is encouraged to sell at least ten vehicles each month. 
D) Wilson Auto Mart salespeople are primarily asked to find new clients and service current accounts. 
A) Wilson Auto Mart's sales team consists of high-performing, experienced salespeople. 
B) Wilson Auto Mart has a sales force that has a significant desire for a floor to their earnings. 
C) Each Wilson Auto Mart salesperson is encouraged to sell at least ten vehicles each month. 
D) Wilson Auto Mart salespeople are primarily asked to find new clients and service current accounts.

Question 17

Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals.

Accepted Answer

A) True 
 B)False

Question 18

Straight commission plans are attractive to high-performing salespeople.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following was shown by the Harvard Business School to have the greatest impact on employee engagement?

Accepted Answer

A) feedback 
B) job design 
C) responsibility 
D) challenging work 
A) feedback 
B) job design 
C) responsibility 
D) challenging work

Question 20

Briefly describe Vroom's theory and its three components. How can managers use Vroom's theory as they develop effective incentive plans?

Accepted Answer

Vroom states that a person's motivation

Which profit-sharing plan provides tax advantages for employees by postponing income taxes, often until the employee retires?

Which of the following best explains identity in regards to the Scanlon plan?

Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________.

Under the Fair Labor Standards Act, which of the following would NOT be included in overtime pay computations?

Top executives at DYS Enterprises are considering the idea of implementing an employee incentive plan. Which of the following suggests that an incentive plan would NOT be appropriate at DYS Enterprises?

Which of the following terms refers to an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards?

In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans.

According to Vroom's theory, when managers design incentive plans they should do all of the following EXCEPT ________.

The main feature of broad-based stock option plans is:

Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?

Which of the following is a true statement about Herzberg's Hygiene-Motivator theory?

The perceived relationship between successful performance and obtaining the reward is referred to by Vroom as ________.

When hired by Delmar Designs, Shane agreed to forego 6% of his normal pay if he didn't meet his goals in return for a 12% bonus if he exceeded his goals. In which type of plan does Shane most likely participate?

Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction?

Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement. Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?

Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals.

Straight commission plans are attractive to high-performing salespeople.

Which of the following was shown by the Harvard Business School to have the greatest impact on employee engagement?

Briefly describe Vroom's theory and its three components. How can managers use Vroom's theory as they develop effective incentive plans?

Introduction to Human Resource Management

Equal Opportunity and the Law

Human Resource Management Strategy and Analysis

Job Analysis and the Talent Management Process

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Employee Retention, Engagement, and Careers

Establishing Strategic Pay Plans

Benefits and Services

Building Positive Employee Relations

Labor Relations and Collective Bargaining

Safety, Health, and Risk Management

Managing Global Human Resources

Managing Human Resources in Small and Entrepreneurial Firms

Filters

Exam 12: Pay for Performance and Financial Incentives

Which profit-sharing plan provides tax advantages for employees by postponing income taxes, often until the employee retires?

Which of the following best explains identity in regards to the Scanlon plan?

Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________.

Under the Fair Labor Standards Act, which of the following would NOT be included in overtime pay computations?

Top executives at DYS Enterprises are considering the idea of implementing an employee incentive plan. Which of the following suggests that an incentive plan would NOT be appropriate at DYS Enterprises?

Which of the following terms refers to an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards?

In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans.

According to Vroom's theory, when managers design incentive plans they should do all of the following EXCEPT ________.

The main feature of broad-based stock option plans is:

Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?

Which of the following is a true statement about Herzberg's Hygiene-Motivator theory?

The perceived relationship between successful performance and obtaining the reward is referred to by Vroom as ________.

When hired by Delmar Designs, Shane agreed to forego 6% of his normal pay if he didn't meet his goals in return for a 12% bonus if he exceeded his goals. In which type of plan does Shane most likely participate?

Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction?

Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement. Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?

Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals.

Straight commission plans are attractive to high-performing salespeople.

Which of the following was shown by the Harvard Business School to have the greatest impact on employee engagement?

Briefly describe Vroom's theory and its three components. How can managers use Vroom's theory as they develop effective incentive plans?

Introduction to Human Resource Management

Equal Opportunity and the Law

Human Resource Management Strategy and Analysis

Job Analysis and the Talent Management Process

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Employee Retention, Engagement, and Careers

Establishing Strategic Pay Plans

Benefits and Services

Building Positive Employee Relations

Labor Relations and Collective Bargaining

Safety, Health, and Risk Management

Managing Global Human Resources

Managing Human Resources in Small and Entrepreneurial Firms

Filters