Exam 11: Pay and Incentive Systems

Regardless of the exact form of rebalancing,stock options will continue to be the focal point of executive compensation.

Which act states executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company?

The market-based pay system uses a premium-price options approach for all of a firm's jobs.

Internal equity is the relative size of pay differentials among different segments of the workforce.

Whether a labor market is tight or loose has a major impact on wage structures and levels.

There is a current trend away from areas where organized labor is weak and pay rates are low.

Alternatives to pay systems based on job evaluation include all of the following EXCEPT:

One solution to the problem of pay compression is to institute:

An employer awarding an employee's exceptional performance with a small,one-time bonus shortly after the noteworthy actions is a:

What steps must be taken to insure that merit pay plans will be effective?

One purpose of job evaluations is to identify important characteristics of each job so that the relative worth of jobs can be determined.

Which type of pay structure is feasible if all jobs are benchmark jobs and direct matches can be found in the market?

Different job evaluation methods yield different rank-orders of jobs,and therefore different pay structures.

In the 50 years since the inception of gain sharing,it has been abandoned by firms about as often as it has been retained.

There should be a balance in pay relationships between supervisors and the highest paid subordinates reporting to them.This differential typically varies from:

Gain sharing plans consist of all except which of the following elements?

A(n)___________ includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions.

ESOP satisfaction tends to be highest in companies where:

The gap between a CEO's pay and the wages of employees has narrowed in the United States.

Companies view skill-and competency-based pay plans as a way to develop the critical behaviors and abilities employees need to achieve specific business results.