Exam 11: Pay and Incentive Systems

It is true of all incentive plans that none will work well except in a climate of trustworthy labor-management relations and sound human resource management practices.

This occurs when the difference in pay between newly hired or less qualified employees and more experienced ones is small

In the United States,salary discussions among employees are protected under:

The process of ranking jobs in terms of their relative worth to a firm is called:

The fact that past merit payments are incorporated into an individual's base salary allowing formerly productive employees to slack off is known as:

________________ incentive plans encourage the efficient use of existing assets.

Pay compression is the narrowing of the ratios of pay between jobs or pay grades in a firm's pay structure,and is related to the general problem of inflation.

Skill-based plans are usually applied to "white-collar" work and competencies to "blue-collar" work.

Competition between team is listed as an advantage of team incentives.

Good corporate citizen awards include everything in a work environment that enhances a worker's sense of self-respect and esteem by others.

What are the two key factors in the product and services market that affect the ability of a firm to change the prices of its products or services?

The final step in attaching dollar values to jobs using the point method is to establish:

What are the three elements of the ARM concept?

Most commonly,merit systems are applied to exempt employees in the form of temporary adjustments to their base pay.

Wage structures tend to vary across firms to the extent that managers view any given position as more or less critical in their firms.

To be effective,organizational reward systems should provide all of the following EXCEPT:

The broad objective in developing pay systems is to assign a monetary value to each job in the organization and an orderly procedure for _____ the base rate.

Middle managers may actually benefit from pay inflation among non-management employees since companies generally maintain a differential between the managers' pay and that of their highest paid subordinate.

Failure of organizations to address _____ may cause long-serving employees to rethink their commitment to a company they think does not value or reward loyalty.

Companies providing variable pay to their best workers are 68 percent more likely than other firms to report outstanding financial performance.