Question 1

In which of the following incentive pay plans does the wage rate not increase for production above the standard?

Accepted Answer

A)  Standard hour plan 
B)  Rowan plan 
C)  Taylor plan 
D)  Merrick plan 
A)  Standard hour plan 
B)  Rowan plan 
C)  Taylor plan 
D)  Merrick plan

Question 2

Which of the following is not true of lump-sum bonuses?

Accepted Answer

A)  They help maintain competitive pay position relative to competitors. 
B)  They are less expensive than merit pay. 
C)  Employees dislike them. 
D)  They are a more visible reward than merit pay. 
A)  They help maintain competitive pay position relative to competitors. 
B)  They are less expensive than merit pay. 
C)  Employees dislike them. 
D)  They are a more visible reward than merit pay.

Question 3

A good solution to the problem of production variability is to set gain sharing goals based upon industry norms.

Accepted Answer

A) True 
 B)False

Question 4

A penalty for poor performance rather than reward for good is an example of:

Accepted Answer

A)  benchmarking. 
B)  a reengineering plan. 
C)  a Rowan plan. 
D)  a reverse incentive plan. 
A)  benchmarking. 
B)  a reengineering plan. 
C)  a Rowan plan. 
D)  a reverse incentive plan.

Question 5

Which of the following is not a long-term incentive plan?

Accepted Answer

A)  ESOPs 
B)  Broad-based option plans (BBOPs) 
C)  Improshares 
D)  Performance plans 
A)  ESOPs 
B)  Broad-based option plans (BBOPs) 
C)  Improshares 
D)  Performance plans

Question 6

When a firm is _____ on business risk and outcomes are _____,corporate performance is higher without any incentive plans.

Accepted Answer

A)  high,well defined 
B)  high,uncertain 
C)  low,well defined 
D)  low,uncertain 
A)  high,well defined 
B)  high,uncertain 
C)  low,well defined 
D)  low,uncertain

Question 7

All of the following factors except _____ have been associated with success of Scanlon/Rucker plans.

Accepted Answer

A)  the presence of a union 
B)  managers open to criticism 
C)  competent supervision 
D)  cooperative union-management attitudes 
A)  the presence of a union 
B)  managers open to criticism 
C)  competent supervision 
D)  cooperative union-management attitudes

Question 8

Components identified as vital to the success of both Scanlon and Rucker plans are:

Accepted Answer

A)  top management support and employee acceptance. 
B)  a flexible and accepted pay out formula. 
C)  union and top management support. 
D)  a productivity norm and effective worker committees. 
A)  top management support and employee acceptance. 
B)  a flexible and accepted pay out formula. 
C)  union and top management support. 
D)  a productivity norm and effective worker committees.

Question 9

Which of the following is not an advantage of group incentive pay plans?

Accepted Answer

A)  Performance measures are easier to develop than for individual plans 
B)  Cooperation within and across groups is encouraged 
C)  Compensation risk to income stability is reduced 
D)  Employee participation in decision-making increases 
A)  Performance measures are easier to develop than for individual plans 
B)  Cooperation within and across groups is encouraged 
C)  Compensation risk to income stability is reduced 
D)  Employee participation in decision-making increases

Question 10

A _____ plan divides a task into simple actions and determines the time an average worker takes to complete each action.

Accepted Answer

A)  standard hour 
B)  Rowan 
C)  Bedeaux 
D)  Merrick 
A)  standard hour 
B)  Rowan 
C)  Bedeaux 
D)  Merrick

Question 11

Which of the following is not true about individual spot awards?

Accepted Answer

A)  Smaller companies may be more casual about recognition. 
B)  Someone in the organization alerts top management to the exceptional performance. 
C)  A majority of companies do not feel that these awards are effective. 
D)  Smaller companies are more subjective about deciding the size of the award. 
A)  Smaller companies may be more casual about recognition. 
B)  Someone in the organization alerts top management to the exceptional performance. 
C)  A majority of companies do not feel that these awards are effective. 
D)  Smaller companies are more subjective about deciding the size of the award.

Question 12

In gain sharing plan formulas,_____ is/are the numerator and _____ the denominator.

Accepted Answer

A)  productivity measures,inputs 
B)  productivity measures,labor inputs 
C)  costs and scrap rate,revenues 
D)  labor inputs,productivity measures 
A)  productivity measures,inputs 
B)  productivity measures,labor inputs 
C)  costs and scrap rate,revenues 
D)  labor inputs,productivity measures

Question 13

Advantages of individual incentive plans include all of the following except:

Accepted Answer

A)  lowered production costs. 
B)  less direct supervision. 
C)  greater trust between workers and management. 
D)  higher productivity. 
A)  lowered production costs. 
B)  less direct supervision. 
C)  greater trust between workers and management. 
D)  higher productivity.

Question 14

Why do companies prefer lump-sum pay over merit pay increases?

Accepted Answer

Lump-sum bonuses can be considerably les

Question 15

Standard hour plans are better for non-repetitive jobs requiring numerous skills for completion.

Accepted Answer

A) True 
 B)False

Question 16

The standard hour plan is likely to be an effective incentive plan for plumbers employed by a plumbing company.

Accepted Answer

A) True 
 B)False

Question 17

Gain sharing plans tend not to use a historical standard to set productivity standards since environmental conditions can change quickly.

Accepted Answer

A) True 
 B)False

Question 18

The trend in recent variable-pay design is to combine the best of _____ and _____ plans.

Accepted Answer

A)  individual,group 
B)  gain-sharing,profit-sharing 
C)  short-term,long-term 
D)  long-term,short-term 
A)  individual,group 
B)  gain-sharing,profit-sharing 
C)  short-term,long-term 
D)  long-term,short-term

Question 19

Costing and budgetary control are more difficult using individual incentives than under time-based pay.

Accepted Answer

A) True 
 B)False

Question 20

Individual incentives yield higher productivity gains.

Accepted Answer

A) True 
 B)False

In which of the following incentive pay plans does the wage rate not increase for production above the standard?

Which of the following is not true of lump-sum bonuses?

A good solution to the problem of production variability is to set gain sharing goals based upon industry norms.

A penalty for poor performance rather than reward for good is an example of:

Which of the following is not a long-term incentive plan?

When a firm is _ on business risk and outcomes are _,corporate performance is higher without any incentive plans.

All of the following factors except _____ have been associated with success of Scanlon/Rucker plans.

Components identified as vital to the success of both Scanlon and Rucker plans are:

Which of the following is not an advantage of group incentive pay plans?

A _____ plan divides a task into simple actions and determines the time an average worker takes to complete each action.

Which of the following is not true about individual spot awards?

In gain sharing plan formulas,_ is/are the numerator and _ the denominator.

Advantages of individual incentive plans include all of the following except:

Why do companies prefer lump-sum pay over merit pay increases?

Standard hour plans are better for non-repetitive jobs requiring numerous skills for completion.

The standard hour plan is likely to be an effective incentive plan for plumbers employed by a plumbing company.

Gain sharing plans tend not to use a historical standard to set productivity standards since environmental conditions can change quickly.

The trend in recent variable-pay design is to combine the best of _ and _ plans.

Costing and budgetary control are more difficult using individual incentives than under time-based pay.

Individual incentives yield higher productivity gains.

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

In which of the following incentive pay plans does the wage rate not increase for production above the standard?

Which of the following is not true of lump-sum bonuses?

A good solution to the problem of production variability is to set gain sharing goals based upon industry norms.

A penalty for poor performance rather than reward for good is an example of:

Which of the following is not a long-term incentive plan?

When a firm is _____ on business risk and outcomes are _____,corporate performance is higher without any incentive plans.

All of the following factors except _____ have been associated with success of Scanlon/Rucker plans.

Components identified as vital to the success of both Scanlon and Rucker plans are:

Which of the following is not an advantage of group incentive pay plans?

A _____ plan divides a task into simple actions and determines the time an average worker takes to complete each action.

Which of the following is not true about individual spot awards?

In gain sharing plan formulas,_____ is/are the numerator and _____ the denominator.

Advantages of individual incentive plans include all of the following except:

Why do companies prefer lump-sum pay over merit pay increases?

Standard hour plans are better for non-repetitive jobs requiring numerous skills for completion.

The standard hour plan is likely to be an effective incentive plan for plumbers employed by a plumbing company.

Gain sharing plans tend not to use a historical standard to set productivity standards since environmental conditions can change quickly.

The trend in recent variable-pay design is to combine the best of _____ and _____ plans.

Costing and budgetary control are more difficult using individual incentives than under time-based pay.

Individual incentives yield higher productivity gains.

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

When a firm is _ on business risk and outcomes are _,corporate performance is higher without any incentive plans.

In gain sharing plan formulas,_ is/are the numerator and _ the denominator.

The trend in recent variable-pay design is to combine the best of _ and _ plans.