Question 1

Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.

Accepted Answer

A) True 
 B)False

Question 2

One common feature of all types of incentive plans is:

Accepted Answer

A) an established standard of performance that is used to determine the magnitude of the incentive pay. 
B) a sharing contract between the employees and employers, which stipulates that the losses incurred by the companies will be shared by both employees and employers. 
C) the established formula that specifies the maximum percentage of base pay allocated as incentives. 
D) a risk-sharing plan that increases pay depending upon the turnover rate of a company. 
A) an established standard of performance that is used to determine the magnitude of the incentive pay. 
B) a sharing contract between the employees and employers, which stipulates that the losses incurred by the companies will be shared by both employees and employers. 
C) the established formula that specifies the maximum percentage of base pay allocated as incentives. 
D) a risk-sharing plan that increases pay depending upon the turnover rate of a company.

Question 3

What is the difference between success-sharing plans and risk-sharing plans?

Accepted Answer

In success-sharing plans, employee base

Question 4

Which of the following is a disadvantage of gain-sharing plans?

Accepted Answer

A) Payouts can occur even if a company's financial performance is poor. 
B) Pay-performance link is indirect. 
C) Employees are required to put up money to exercise grants. 
D) Mandatory stock ownership required by gain-sharing plans can increase turnover rates. 
A) Payouts can occur even if a company's financial performance is poor. 
B) Pay-performance link is indirect. 
C) Employees are required to put up money to exercise grants. 
D) Mandatory stock ownership required by gain-sharing plans can increase turnover rates.

Question 5

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

Accepted Answer

A) top management support and primary focus on wage incentives. 
B) a flexible pay out formula and low turnover rates. 
C) union and top management support. 
D) a productivity norm and effective worker committees. 
A) top management support and primary focus on wage incentives. 
B) a flexible pay out formula and low turnover rates. 
C) union and top management support. 
D) a productivity norm and effective worker committees.

Question 6

An advantage of group incentives is that it leads to increased line-of-sight.

Accepted Answer

A) True 
 B)False

Question 7

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:

Accepted Answer

A) instructing them to do their best. 
B) specifying performance levels and due dates. 
C) assigning tasks only to the top performers in the team. 
D) punishing free riders who fail to meet standards. 
A) instructing them to do their best. 
B) specifying performance levels and due dates. 
C) assigning tasks only to the top performers in the team. 
D) punishing free riders who fail to meet standards.

Question 8

An incentive system with three piecework rates is the _____ plan.

Accepted Answer

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

Question 9

Which of the following is an advantage of providing stock ownership options as variable pay to employees?

Accepted Answer

A) It reinforces team identity. 
B) It is the simplest type of variable-pay plan. 
C) It defers a portion of taxes to employees. 
D) It provides a direct pay-performance link. 
A) It reinforces team identity. 
B) It is the simplest type of variable-pay plan. 
C) It defers a portion of taxes to employees. 
D) It provides a direct pay-performance link.

Question 10

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 11

Many variable-pay plans have some form of profit trigger linked to revenue growth or profit margins.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of individual spot awards?

Accepted Answer

A) They are an example of long-term incentives. 
B) They are more expensive than merit pay increases. 
C) They are given to employees for exceptional performance as an add-on bonus. 
D) They are given to all employees as a one-time cost-of-living adjustment. 
A) They are an example of long-term incentives. 
B) They are more expensive than merit pay increases. 
C) They are given to employees for exceptional performance as an add-on bonus. 
D) They are given to all employees as a one-time cost-of-living adjustment.

Question 13

A _____ plan requires division of a task into simple actions and determination of the time required by an average skilled worker 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 14

The Rowan plan uses a standard that is purposefully set high requiring high performance levels.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following does NOT provide for incentives based on standards that are expressed in terms of time period per unit of production?

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

Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.

One common feature of all types of incentive plans is:

What is the difference between success-sharing plans and risk-sharing plans?

Which of the following is a disadvantage of gain-sharing plans?

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

An advantage of group incentives is that it leads to increased line-of-sight.

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:

An incentive system with three piecework rates is the _____ plan.

Which of the following is an advantage of providing stock ownership options as variable pay to employees?

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.

Many variable-pay plans have some form of profit trigger linked to revenue growth or profit margins.

Which of the following statements is true of individual spot awards?

A _____ plan requires division of a task into simple actions and determination of the time required by an average skilled worker to complete each action.

The Rowan plan uses a standard that is purposefully set high requiring high performance levels.

Which of the following does NOT provide for incentives based on standards that are expressed in terms of time period per unit of production?

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

Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.

One common feature of all types of incentive plans is:

What is the difference between success-sharing plans and risk-sharing plans?

Which of the following is a disadvantage of gain-sharing plans?

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

An advantage of group incentives is that it leads to increased line-of-sight.

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:

An incentive system with three piecework rates is the _____ plan.

Which of the following is an advantage of providing stock ownership options as variable pay to employees?

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.

Many variable-pay plans have some form of profit trigger linked to revenue growth or profit margins.

Which of the following statements is true of individual spot awards?

A _____ plan requires division of a task into simple actions and determination of the time required by an average skilled worker to complete each action.

The Rowan plan uses a standard that is purposefully set high requiring high performance levels.

Which of the following does NOT provide for incentives based on standards that are expressed in terms of time period per unit of production?

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