Question 1

The free-rider problem is common in firms using individual incentive plans.

Accepted Answer

A) True 
 B)False

Question 2

The level problem in team compensation is an example of the line of sight problem.

Accepted Answer

A) True 
 B)False

Question 3

A job involving production of many parts each hour would have a rate based upon a time period per unit of production.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Individual incentives never include financial penalties for poor performance.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The focus of team incentive plans is work groups or teams and does not include divisions or an entire company.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Broad-based option plans are usually limited to managerial and professional employees.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The method of rate determination for incentives for short cycle jobs is typically the time it takes to complete one unit.

Accepted Answer

A) True 
 B)False

Question 12

_____ has the disadvantage that employees may be required to spend money to obtain the incentive.

Accepted Answer

A)  Cash profit sharing 
B)  A balanced scorecard 
C)  Stock options 
D)  Deferred profit sharing 
A)  Cash profit sharing 
B)  A balanced scorecard 
C)  Stock options 
D)  Deferred profit sharing

Question 13

The most frequently used incentive system is the:

Accepted Answer

A)  standard hour plan. 
B)  straight piecework. 
C)  Halsey 50-50 plan. 
D)  Taylor differential piece-rate plan. 
A)  standard hour plan. 
B)  straight piecework. 
C)  Halsey 50-50 plan. 
D)  Taylor differential piece-rate plan.

Question 14

Standard hour plan is to Rowan plan as straight piecework is to ______________ plan.

Accepted Answer

A)  Halsey 50-50 
B)  Gantt 
C)  Bedeaux 
D)  Taylor or Merrick plan 
A)  Halsey 50-50 
B)  Gantt 
C)  Bedeaux 
D)  Taylor or Merrick plan

Question 15

All of the following are true regarding merit pay except _______

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 16

Merit pay differs from other forms of incentive pay in that it must be "earned" every year.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are human resource capabilities performance indicators used for group incentive plans except:

Accepted Answer

A)  employee satisfaction. 
B)  total recruitment costs. 
C)  promotability index. 
D)  accuracy/error rates. 
A)  employee satisfaction. 
B)  total recruitment costs. 
C)  promotability index. 
D)  accuracy/error rates.

Question 18

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 19

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 20

The best variable pay plan for employees when company financial performance is poor is _____.

Accepted Answer

A)  profit sharing 
B)  a balanced scorecard 
C)  stock ownership 
D)  gain sharing 
A)  profit sharing 
B)  a balanced scorecard 
C)  stock ownership 
D)  gain sharing

The free-rider problem is common in firms using individual incentive plans.

The level problem in team compensation is an example of the line of sight problem.

A job involving production of many parts each hour would have a rate based upon a time period per unit of production.

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

Individual incentives never include financial penalties for poor performance.

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

The focus of team incentive plans is work groups or teams and does not include divisions or an entire company.

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

Broad-based option plans are usually limited to managerial and professional employees.

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

The method of rate determination for incentives for short cycle jobs is typically the time it takes to complete one unit.

_____ has the disadvantage that employees may be required to spend money to obtain the incentive.

The most frequently used incentive system is the:

Standard hour plan is to Rowan plan as straight piecework is to ______________ plan.

All of the following are true regarding merit pay except _______

Merit pay differs from other forms of incentive pay in that it must be "earned" every year.

All of the following are human resource capabilities performance indicators used for group incentive plans except:

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

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

The best variable pay plan for employees when company financial performance is poor is _____.

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

The free-rider problem is common in firms using individual incentive plans.

The level problem in team compensation is an example of the line of sight problem.

A job involving production of many parts each hour would have a rate based upon a time period per unit of production.

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

Individual incentives never include financial penalties for poor performance.

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

The focus of team incentive plans is work groups or teams and does not include divisions or an entire company.

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

Broad-based option plans are usually limited to managerial and professional employees.

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

The method of rate determination for incentives for short cycle jobs is typically the time it takes to complete one unit.

_____ has the disadvantage that employees may be required to spend money to obtain the incentive.

The most frequently used incentive system is the:

Standard hour plan is to Rowan plan as straight piecework is to ______________ plan.

All of the following are true regarding merit pay except _______

Merit pay differs from other forms of incentive pay in that it must be "earned" every year.

All of the following are human resource capabilities performance indicators used for group incentive plans except:

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

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

The best variable pay plan for employees when company financial performance is poor is _____.

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