Question 1

Which of the following is not a necessary component of goal-sharing plans?

Accepted Answer

A)  employee participation 
B)  performance goals 
C)  bonus payouts 
D)  achievement levels 
A)  employee participation 
B)  performance goals 
C)  bonus payouts 
D)  achievement levels A

Question 2

Which of the following statements is not true?

Accepted Answer

A)  For motivational reasons, fixed formula profit-sharing plans are recommended 
B)  Stock bonus plans provide the right to purchase shares in the future at a fixed price 
C)  Deciding the split is an important issue in gain-sharing plans 
D)  A key issue in designing profit-sharing plans is the form of the bonus payout 
A)  For motivational reasons, fixed formula profit-sharing plans are recommended 
B)  Stock bonus plans provide the right to purchase shares in the future at a fixed price 
C)  Deciding the split is an important issue in gain-sharing plans 
D)  A key issue in designing profit-sharing plans is the form of the bonus payout B

Question 3

A phantom stock plan ties an employee's bonus to the performance of company stock but that employee never actually receives any stock.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following plans is geared to the performance of the organization as a whole?

Accepted Answer

A)  Rucker 
B)  share appreciation rights 
C)  "family of measures" 
D)  Improshare 
A)  Rucker 
B)  share appreciation rights 
C)  "family of measures" 
D)  Improshare

Question 5

Improshare expresses labour costs as a percentage of value added.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a major issue with employee stock plans?

Accepted Answer

A)  government support for employee share ownership 
B)  taxation 
C)  decline in popularity 
D)  senior executive involvement 
A)  government support for employee share ownership 
B)  taxation 
C)  decline in popularity 
D)  senior executive involvement

Question 7

What is the advantage of distributing the bonus according to the salary levels of employees?

Accepted Answer

A)  It discourages free-riding by some employees. 
B)  It is the most egalitarian distribution method. 
C)  It maintains the same portion of goal-sharing compensation in compensation mix for each employee. 
D)  It adjusts for actual time worked during bonus period. 
A)  It discourages free-riding by some employees. 
B)  It is the most egalitarian distribution method. 
C)  It maintains the same portion of goal-sharing compensation in compensation mix for each employee. 
D)  It adjusts for actual time worked during bonus period.

Question 8

Which of the following is,according to the author,the most important factor in the success of the goal-sharing plan?

Accepted Answer

A)  identification of the goals to be rewarded 
B)  determination of levels for goal achievement 
C)  establishment of bonus amounts 
D)  determination of time frames for goal achievement 
A)  identification of the goals to be rewarded 
B)  determination of levels for goal achievement 
C)  establishment of bonus amounts 
D)  determination of time frames for goal achievement

Question 9

Identify and briefly comment on the key issues in designing profit-sharing plans.

Accepted Answer

Profit sharing plans have the following

Question 10

Based on the previous year's output,it typically takes 3 hours to produce one unit of product. Under which of the following gain-sharing plans are any productivity gains resulting in less than 3 hours of labour per unit shared between you and the company?

Accepted Answer

A)  "family of measures" 
B)  Rucker 
C)  Improshare 
D)  Scanlon 
A)  "family of measures" 
B)  Rucker 
C)  Improshare 
D)  Scanlon

Question 11

Which of the following plans does not make employee involvement an important part of the system?

Accepted Answer

A)  Rucker 
B)  Scanlon 
C)  Improshare 
D)  "family of measures" 
A)  Rucker 
B)  Scanlon 
C)  Improshare 
D)  "family of measures"

Question 12

Gain-sharing is not a viable plan to use if no valid historical benchmark can be set.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following plans motivates employees to find ways to reduce the costs of raw materials or any other purchased inputs?

Accepted Answer

A)  Rucker 
B)  Scanlon 
C)  Improshare 
D)  combination profit-sharing 
A)  Rucker 
B)  Scanlon 
C)  Improshare 
D)  combination profit-sharing

Question 14

Most firms typically use multi-goal sharing plans.

Accepted Answer

A) True 
 B)False

Question 15

With the Scanlon plan employees benefit from reductions in raw materials or any other purchased input.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following gain-sharing plan measures is a example of a "modifier"?

Accepted Answer

A)  cost of processing each customer order 
B)  results of customer satisfaction surveys 
C)  retention of customers 
D)  number of suggestions submitted 
A)  cost of processing each customer order 
B)  results of customer satisfaction surveys 
C)  retention of customers 
D)  number of suggestions submitted

Question 17

Identify the fundamental ways gain-sharing and goal-sharing plans differ.

Accepted Answer

Cost savings in gain sharing are quantif

Question 18

Which of the following is not a condition needed for the success of gain-sharing plans?

Accepted Answer

A)  trust between management and employees 
B)  a history of job security 
C)  a joint employee-management gain sharing committee 
D)  system seen as fair and equitable 
A)  trust between management and employees 
B)  a history of job security 
C)  a joint employee-management gain sharing committee 
D)  system seen as fair and equitable

Question 19

Which of the following conditions makes a gain-sharing plan not viable and requires you to consider another option?

Accepted Answer

A)  No valid historical benchmark can be set. 
B)  Employee involvement is not an integral part of the system. 
C)  The plan involves large expenditures to implement. 
D)  Employees receive only 50 percent of the share. 
A)  No valid historical benchmark can be set. 
B)  Employee involvement is not an integral part of the system. 
C)  The plan involves large expenditures to implement. 
D)  Employees receive only 50 percent of the share.

Question 20

Which of the following describes an employee stock bonus plan?

Accepted Answer

A)  Employees receive shares at no cost to themselves. 
B)  Employees receive the cash value of phantom shares. 
C)  Employee receive a bonus equivalent to the increase in their share value. 
D)  Employees are given free financial advice on stocks. 
A)  Employees receive shares at no cost to themselves. 
B)  Employees receive the cash value of phantom shares. 
C)  Employee receive a bonus equivalent to the increase in their share value. 
D)  Employees are given free financial advice on stocks.

Which of the following is not a necessary component of goal-sharing plans?

Which of the following statements is not true?

A phantom stock plan ties an employee's bonus to the performance of company stock but that employee never actually receives any stock.

Which of the following plans is geared to the performance of the organization as a whole?

Improshare expresses labour costs as a percentage of value added.

Which of the following is a major issue with employee stock plans?

What is the advantage of distributing the bonus according to the salary levels of employees?

Which of the following is,according to the author,the most important factor in the success of the goal-sharing plan?

Identify and briefly comment on the key issues in designing profit-sharing plans.

Based on the previous year's output,it typically takes 3 hours to produce one unit of product. Under which of the following gain-sharing plans are any productivity gains resulting in less than 3 hours of labour per unit shared between you and the company?

Which of the following plans does not make employee involvement an important part of the system?

Gain-sharing is not a viable plan to use if no valid historical benchmark can be set.

Which of the following plans motivates employees to find ways to reduce the costs of raw materials or any other purchased inputs?

Most firms typically use multi-goal sharing plans.

With the Scanlon plan employees benefit from reductions in raw materials or any other purchased input.

Which of the following gain-sharing plan measures is a example of a "modifier"?

Identify the fundamental ways gain-sharing and goal-sharing plans differ.

Which of the following is not a condition needed for the success of gain-sharing plans?

Which of the following conditions makes a gain-sharing plan not viable and requires you to consider another option?

Which of the following describes an employee stock bonus plan?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 11: Designing Performance Pay Plans

Which of the following is not a necessary component of goal-sharing plans?

Which of the following statements is not true?

A phantom stock plan ties an employee's bonus to the performance of company stock but that employee never actually receives any stock.

Which of the following plans is geared to the performance of the organization as a whole?

Improshare expresses labour costs as a percentage of value added.

Which of the following is a major issue with employee stock plans?

What is the advantage of distributing the bonus according to the salary levels of employees?

Which of the following is,according to the author,the most important factor in the success of the goal-sharing plan?

Identify and briefly comment on the key issues in designing profit-sharing plans.

Based on the previous year's output,it typically takes 3 hours to produce one unit of product. Under which of the following gain-sharing plans are any productivity gains resulting in less than 3 hours of labour per unit shared between you and the company?

Which of the following plans does not make employee involvement an important part of the system?

Gain-sharing is not a viable plan to use if no valid historical benchmark can be set.

Which of the following plans motivates employees to find ways to reduce the costs of raw materials or any other purchased inputs?

Most firms typically use multi-goal sharing plans.

With the Scanlon plan employees benefit from reductions in raw materials or any other purchased input.

Which of the following gain-sharing plan measures is a example of a "modifier"?

Identify the fundamental ways gain-sharing and goal-sharing plans differ.

Which of the following is not a condition needed for the success of gain-sharing plans?

Which of the following conditions makes a gain-sharing plan not viable and requires you to consider another option?

Which of the following describes an employee stock bonus plan?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters