Question 1

All incentive plans share an established standard against which worker performance is compared to determine the magnitude of the incentive pay.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is an advantage of gain-sharing plans?

Accepted Answer

A) They are the simplest type of variable-pay plan. 
B) They allow payouts to occur even if a company's financial performance is poor. 
C) They are administratively easy to implement. 
D) They increase employees' knowledge of business. 
A) They are the simplest type of variable-pay plan. 
B) They allow payouts to occur even if a company's financial performance is poor. 
C) They are administratively easy to implement. 
D) They increase employees' knowledge of business. D

Question 3

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 C

Question 4

The most frequently used incentive system is the:

Accepted Answer

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

Question 5

Why do companies prefer merit bonuses over merit pay increases?

Accepted Answer

Merit bonuses can be considerably less e

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

For any task completed in standard time or less, earnings are pegged at 120 percent of the time saved 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 8

Discuss the trends that are leading to the increased interest in variable pay.

Accepted Answer

The greater interest in variable pay pro

Question 9

All of the following support the use of individual incentives EXCEPT:

Accepted Answer

A) the independent nature of task accomplishment. 
B) the high commitment levels of workers to their profession. 
C) the readily apparent performance standards. 
D) the presence of a union. 
A) the independent nature of task accomplishment. 
B) the high commitment levels of workers to their profession. 
C) the readily apparent performance standards. 
D) the presence of a union.

Question 10

Individual incentives yield higher productivity gains than group incentives.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Smaller companies may be more casual about recognition for spot awards. 
B) Someone in an organization alerts top management about performances deserving of an award. 
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 for spot awards. 
B) Someone in an organization alerts top management about performances deserving of an award. 
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

Which of the following is NOT an advantage of team incentives?

Accepted Answer

A) Stimulates problem solving 
B) May better reflect how work is performed 
C) Easy to set equitable targets for all teams 
D) Minimizes distinctions between team members 
A) Stimulates problem solving 
B) May better reflect how work is performed 
C) Easy to set equitable targets for all teams 
D) Minimizes distinctions between team members

Question 13

Discuss SVOP.

Accepted Answer

Scanlon plans are designed to lower labo

Question 14

Paying a dime for every bottle collected and turned into a collection center is an example of a:

Accepted Answer

A) standard hour plan. 
B) Merrick system. 
C) straight piecework system. 
D) Rowan plan. 
A) standard hour plan. 
B) Merrick system. 
C) straight piecework system. 
D) Rowan plan.

Question 15

Performance plans typically feature corporate performance objectives for a time three years in the future.

Accepted Answer

A) True 
 B)False

Question 16

The authors argue that for merit pay to live up to its potential, all of the following should be done EXCEPT _____.

Accepted Answer

A) using more peer raters than supervisor raters 
B) improving the accuracy of appraisals 
C) allocating enough merit money to truly reward performance 
D) ensuring the size of the merit increase differentiates across performance levels 
A) using more peer raters than supervisor raters 
B) improving the accuracy of appraisals 
C) allocating enough merit money to truly reward performance 
D) ensuring the size of the merit increase differentiates across performance levels

Question 17

Which of the following statements about merit pay is NOT true?

Accepted Answer

A) It has a small but significant effect on performance. 
B) Removal of merit pay lowers satisfaction but not performance. 
C) Departments and units with merit pay show higher performance. 
D) Merit pay has a sorting effect. 
A) It has a small but significant effect on performance. 
B) Removal of merit pay lowers satisfaction but not performance. 
C) Departments and units with merit pay show higher performance. 
D) Merit pay has a sorting effect.

Question 18

Discuss the plans that provide for variable incentives linked to a standard expressed as a time period per unit of production.

Accepted Answer

In the Halsey 50-50 plan, an allowed tim

Question 19

The percentage of companies using some form of variable pay is declining because many employees prefer base wages.

Accepted Answer

A) True 
 B)False

Question 20

In the long run, merit bonuses cost employers less than merit pay.

Accepted Answer

A) True 
 B)False

All incentive plans share an established standard against which worker performance is compared to determine the magnitude of the incentive pay.

Which of the following is an advantage of gain-sharing plans?

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

The most frequently used incentive system is the:

Why do companies prefer merit bonuses over merit pay increases?

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

For any task completed in standard time or less, earnings are pegged at 120 percent of the time saved under the _____ plan.

Discuss the trends that are leading to the increased interest in variable pay.

All of the following support the use of individual incentives EXCEPT:

Individual incentives yield higher productivity gains than group incentives.

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

Which of the following is NOT an advantage of team incentives?

Discuss SVOP.

Paying a dime for every bottle collected and turned into a collection center is an example of a:

Performance plans typically feature corporate performance objectives for a time three years in the future.

The authors argue that for merit pay to live up to its potential, all of the following should be done EXCEPT _____.

Which of the following statements about merit pay is NOT true?

Discuss the plans that provide for variable incentives linked to a standard expressed as a time period per unit of production.

The percentage of companies using some form of variable pay is declining because many employees prefer base wages.

In the long run, merit bonuses cost employers less than merit pay.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

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

All incentive plans share an established standard against which worker performance is compared to determine the magnitude of the incentive pay.

Which of the following is an advantage of gain-sharing plans?

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

The most frequently used incentive system is the:

Why do companies prefer merit bonuses over merit pay increases?

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

For any task completed in standard time or less, earnings are pegged at 120 percent of the time saved under the _____ plan.

Discuss the trends that are leading to the increased interest in variable pay.

All of the following support the use of individual incentives EXCEPT:

Individual incentives yield higher productivity gains than group incentives.

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

Which of the following is NOT an advantage of team incentives?

Discuss SVOP.

Paying a dime for every bottle collected and turned into a collection center is an example of a:

Performance plans typically feature corporate performance objectives for a time three years in the future.

The authors argue that for merit pay to live up to its potential, all of the following should be done EXCEPT _____.

Which of the following statements about merit pay is NOT true?

Discuss the plans that provide for variable incentives linked to a standard expressed as a time period per unit of production.

The percentage of companies using some form of variable pay is declining because many employees prefer base wages.

In the long run, merit bonuses cost employers less than merit pay.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

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