Exam 12: Pay-For-Performance and Financial Incentives

Amy is part of a team of four software developers.Upon completion of a major client project,she and each of her team members received a set amount in addition to their base salary.What is this most likely an example of?

To determine eligibility in a short-term incentive program for senior managers and executives,a job-by-job review is conducted in order to identify the key jobs that have a measurable impact on profitability; this is called the criterion of

Compensation plans for salespeople have typically relied heavily on incentives,such as sales commissions.

Describe a piecework incentive plan using an example.Discuss at least two advantages and two disadvantages of piecework using your example.

Amanda received a salary increase based on her individual performance as a Marketing Manager over the past year.Which type of compensation did Amanda receive?

Frederick Herzberg encourages the use of cash bonuses and pay increases as the best way to motivate workers to higher levels of performance.

Piecework means that earnings are tied directly to the worker's production levels.

The oldest and most commonly used type of incentive plan for operations employees is the standard hour plan.

Paula reviews her company's financial reports to ensure that revenues exceed expenses before distributing a percentage of the resulting difference amongst her company's employees; what is this most likely an example of?

The stock option is currently the most popular long-term incentive in Canada.

Employers continue to increase their use of variable pay plans while holding salary increases or fixed compensation at modest levels.