Question 1

The focus of team incentive plans is work groups or teams and does not include divisions or an entire company.

Accepted Answer

A) True 
 B)False

Question 2

_____ has the disadvantage that employees may be required to spend money to obtain the incentive.

Accepted Answer

A)  Cash profit sharing 
B)  A balanced scorecard 
C)  Stock options 
D)  Deferred profit sharing 
A)  Cash profit sharing 
B)  A balanced scorecard 
C)  Stock options 
D)  Deferred profit sharing

Question 3

_____ offer(s)a reward pool based upon achieving performance targets and communicates organizational priorities.

Accepted Answer

A)  The balanced scorecard 
B)  Stock options 
C)  Deferred profit sharing 
D)  Cash profit sharing 
A)  The balanced scorecard 
B)  Stock options 
C)  Deferred profit sharing 
D)  Cash profit sharing

Question 4

The common feature to all types of incentive plans is:

Accepted Answer

A)  a standard of performance to determine magnitude of incentive pay. 
B)  a sharing formula between worker and employer. 
C)  penalties for poor performance. 
D)  limits on magnitude of incentive pay. 
A)  a standard of performance to determine magnitude of incentive pay. 
B)  a sharing formula between worker and employer. 
C)  penalties for poor performance. 
D)  limits on magnitude of incentive pay.

Question 5

Merit pay differs from other forms of incentive pay in that it must be "earned" every year.

Accepted Answer

A) True 
 B)False

Question 6

The most frequently used incentive system is the:

Accepted Answer

A)  standard hour plan. 
B)  straight piecework. 
C)  Halsey 50-50 plan. 
D)  Taylor differential piece-rate plan. 
A)  standard hour plan. 
B)  straight piecework. 
C)  Halsey 50-50 plan. 
D)  Taylor differential piece-rate plan.

Question 7

A major problem of group incentive plans is performance targets are not correctly set.

Accepted Answer

A) True 
 B)False

Question 8

It is observed that _____ is/are commanding a larger share of the total compensation for all employee groups.

Accepted Answer

A)  merit pay 
B)  health benefits 
C)  retirement benefits 
D)  variable pay 
A)  merit pay 
B)  health benefits 
C)  retirement benefits 
D)  variable pay

Question 9

Over time,lump-sum bonuses cost employers less than merit pay.

Accepted Answer

A) True 
 B)False

Question 10

A team works on a project with specific performance level goals and time deadlines,but weather problems cause the team to miss the deadline.What is the key factor affecting how the team feels about their incentive?

Accepted Answer

A)  The incentive was as promised 
B)  The incentive was less than promised 
C)  The team's perception of reward fairness 
D)  The timing of the incentive 
A)  The incentive was as promised 
B)  The incentive was less than promised 
C)  The team's perception of reward fairness 
D)  The timing of the incentive

Question 11

More complex gain sharing plans create needs for:

Accepted Answer

A)  higher levels of trust among participants and more effective communication. 
B)  greater variety of incentives and more effective communication. 
C)  revisions in the management worker split and revisions to the scope of the formula. 
D)  more effective communication and greater variety of incentives. 
A)  higher levels of trust among participants and more effective communication. 
B)  greater variety of incentives and more effective communication. 
C)  revisions in the management worker split and revisions to the scope of the formula. 
D)  more effective communication and greater variety of incentives.

Question 12

A group performance based pay plan is superior to an individual plan when individual production standards and production methods must change to meet changing events.

Accepted Answer

A) True 
 B)False

Question 13

Broad-based option plans are usually limited to managerial and professional employees.

Accepted Answer

A) True 
 B)False

Question 14

Compensation security is highest for workers who fail to complete tasks within the standard time under the _____ plan?

Accepted Answer

A)  Halsey 50-50 
B)  Gantt 
C)  Taylor 
D)  Rowan 
A)  Halsey 50-50 
B)  Gantt 
C)  Taylor 
D)  Rowan

Question 15

Unions prefer individual to group incentive pay plans since members can earn more money.

Accepted Answer

A) True 
 B)False

Question 16

Discuss SVOP.

Accepted Answer

Scanlon plans are designed to lower labo

Question 17

Labor costs are to value added as pay roll costs are to:

Accepted Answer

A)  total standard value hours 
B)  production costs minus scrap 
C)  SVOP 
D)  customer satisfaction 
A)  total standard value hours 
B)  production costs minus scrap 
C)  SVOP 
D)  customer satisfaction

Question 18

Which of the following does not use the time period per unit of production to determine the rate?

Accepted Answer

A)  Gantt plan 
B)  Rowan plan 
C)  Halsey 50-50 method 
D)  Merrick system 
A)  Gantt plan 
B)  Rowan plan 
C)  Halsey 50-50 method 
D)  Merrick system

Question 19

A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

Accepted Answer

A) True 
 B)False

Question 20

What are the advantages of using the productivity/gainsharing methods of group incentives?

Accepted Answer

The advantages of using the productivity

The focus of team incentive plans is work groups or teams and does not include divisions or an entire company.

_____ has the disadvantage that employees may be required to spend money to obtain the incentive.

_____ offer(s)a reward pool based upon achieving performance targets and communicates organizational priorities.

The common feature to all types of incentive plans is:

Merit pay differs from other forms of incentive pay in that it must be "earned" every year.

The most frequently used incentive system is the:

A major problem of group incentive plans is performance targets are not correctly set.

It is observed that _____ is/are commanding a larger share of the total compensation for all employee groups.

Over time,lump-sum bonuses cost employers less than merit pay.

A team works on a project with specific performance level goals and time deadlines,but weather problems cause the team to miss the deadline.What is the key factor affecting how the team feels about their incentive?

More complex gain sharing plans create needs for:

A group performance based pay plan is superior to an individual plan when individual production standards and production methods must change to meet changing events.

Broad-based option plans are usually limited to managerial and professional employees.

Compensation security is highest for workers who fail to complete tasks within the standard time under the _____ plan?

Unions prefer individual to group incentive pay plans since members can earn more money.

Discuss SVOP.

Labor costs are to value added as pay roll costs are to:

Which of the following does not use the time period per unit of production to determine the rate?

A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

What are the advantages of using the productivity/gainsharing methods of group incentives?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, mix, and Pay Structures

Pay-For-Performance: the Evidence

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 10: Pay-For-Performance Plans

The focus of team incentive plans is work groups or teams and does not include divisions or an entire company.

_____ has the disadvantage that employees may be required to spend money to obtain the incentive.

_____ offer(s)a reward pool based upon achieving performance targets and communicates organizational priorities.

The common feature to all types of incentive plans is:

Merit pay differs from other forms of incentive pay in that it must be "earned" every year.

The most frequently used incentive system is the:

A major problem of group incentive plans is performance targets are not correctly set.

It is observed that _____ is/are commanding a larger share of the total compensation for all employee groups.

Over time,lump-sum bonuses cost employers less than merit pay.

A team works on a project with specific performance level goals and time deadlines,but weather problems cause the team to miss the deadline.What is the key factor affecting how the team feels about their incentive?

More complex gain sharing plans create needs for:

A group performance based pay plan is superior to an individual plan when individual production standards and production methods must change to meet changing events.

Broad-based option plans are usually limited to managerial and professional employees.

Compensation security is highest for workers who fail to complete tasks within the standard time under the _____ plan?

Unions prefer individual to group incentive pay plans since members can earn more money.

Discuss SVOP.

Labor costs are to value added as pay roll costs are to:

Which of the following does not use the time period per unit of production to determine the rate?

A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

What are the advantages of using the productivity/gainsharing methods of group incentives?

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, mix, and Pay Structures

Pay-For-Performance: the Evidence

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters