A) an amount advanced to a sales employee and repaid from future commissions B) a system by which sales employees "draw down" their sales quotas C) a type of income equalization for tax purposes in which sales representatives can draw down their earnings from a high-income year and transfer them to a low-income year D) a lump-sum payment or bonus at the end of the month for sales staff who are performing adequately. A) an amount advanced to a sales employee and repaid from future commissions B) a system by which sales employees "draw down" their sales quotas C) a type of income equalization for tax purposes in which sales representatives can draw down their earnings from a high-income year and transfer them to a low-income year D) a lump-sum payment or bonus at the end of the month for sales staff who are performing adequately.

Exam 12: Incentive Plans and Executive Compensation

Lucretia Toys is investigating the use of team incentives in its production plant.Each work group is composed of about 25 individuals.As the manager of HR you

(Multiple Choice)

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(97)

Question 41

In general,a single criterion should be used for measuring sales staff performance..

(True/False)

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Question 42

Which of the following statements is TRUE?

(Multiple Choice)

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Question 43

If sales staff can rely on receiving bonuses each year,it gives them income security and increases both morale and performance motivation.

(True/False)

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Question 44

Which of the following is an assumption of variable-pay systems?

(Multiple Choice)

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Question 45

Andrew is excited about the new program at work.He will be allowed to purchase 20 shares of stock at $45 per share for a limited period of time.Andrew is planning to take advantage of this ____ plan because he expects that the market price of the stock will far exceed $45 in a couple years.

(Multiple Choice)

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Question 46

What is a "draw?"

(Multiple Choice)

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Question 47

Despite the numerous scandals surrounding executive pay,such as Enron and Tyco,and seemingly excessive compensation to executives in the financial industry,there is no federal law that places restrictions on executive pay or mandates reporting requirements regarding executive pay.

(True/False)

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(81)

Question 48

Amanda,a CEO of a large marketing firm,is paid bonuses based n quarterly organizational performance.This pay system undermines Amanda's inclination to take the long term view when making important strategic decisions.

(True/False)

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(88)

Question 49

Clark's performance incentive is based entirely on the number of and dollar value of customer insurance claims he rejects.Clark will be motivated to reject as many claims as possible,regardless of the validity of the claim.

(True/False)

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(75)

Question 50

Non-monetary incentives,such as travel awards,will motivate employee retention and will improve an individual's morale,but it will not motivate the individual to exert discretionary effort.

(True/False)

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(74)

Question 51

Seeing other employees receive valuable service awards would be most likely to motivate employees to

(Multiple Choice)

4.9/5

(65)

Question 52

As the new Vice President of HR,you have been asked to implement a profit-sharing program at Megatherium Resources and Exploration.For years Megatherium has been plagued with a contentious relationship between employees and management.The executive committee feels that a profit-sharing plan would improve employee-management relations.You should disagree and argue that Megatherium is not ready for profit-sharing.

(True/False)

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Question 53

Which of the following statements is FALSE about sales incentive plans?

(Multiple Choice)

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Question 54

Which of the following is classified as an individual variable pay plan?

(Multiple Choice)

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(88)

Question 55

The downside of bonuses is that

(Multiple Choice)

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(69)

Question 56

Melanie has worked for 20 years for a manufacturer of specialized paint for the auto industry.Melanie stayed with the company rather than taking other job offers because of the generous ESOP,which has offset the somewhat lower than market pay.Which of the following statements is FALSE?

(Multiple Choice)

4.9/5

(81)

Question 57

A manager at your firm has recruited an individual who is an expert in his field,as well as being a strong team player.As the HR director,you think this individual will be a good match with the company because you are about to roll out an organizational level pay-for-performance system.

(True/False)

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(78)

Question 58

The primary objectives of organizational incentive systems includes all of the following EXCEPT

(Multiple Choice)

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Question 59

A ____ approach for compensating sales staff is useful when serving and retaining existing client accounts is significantly more important than generating new sales and accounts.

(Multiple Choice)

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Question 60

Showing 41 - 60 of 107

Lucretia Toys is investigating the use of team incentives in its production plant.Each work group is composed of about 25 individuals.As the manager of HR you

In general,a single criterion should be used for measuring sales staff performance..

Which of the following statements is TRUE?

If sales staff can rely on receiving bonuses each year,it gives them income security and increases both morale and performance motivation.

Which of the following is an assumption of variable-pay systems?

Andrew is excited about the new program at work.He will be allowed to purchase 20 shares of stock at $45 per share for a limited period of time.Andrew is planning to take advantage of this ____ plan because he expects that the market price of the stock will far exceed $45 in a couple years.

What is a "draw?"

Despite the numerous scandals surrounding executive pay,such as Enron and Tyco,and seemingly excessive compensation to executives in the financial industry,there is no federal law that places restrictions on executive pay or mandates reporting requirements regarding executive pay.

Amanda,a CEO of a large marketing firm,is paid bonuses based n quarterly organizational performance.This pay system undermines Amanda's inclination to take the long term view when making important strategic decisions.

Clark's performance incentive is based entirely on the number of and dollar value of customer insurance claims he rejects.Clark will be motivated to reject as many claims as possible,regardless of the validity of the claim.

Non-monetary incentives,such as travel awards,will motivate employee retention and will improve an individual's morale,but it will not motivate the individual to exert discretionary effort.

Seeing other employees receive valuable service awards would be most likely to motivate employees to

Which of the following statements is FALSE about sales incentive plans?

Which of the following is classified as an individual variable pay plan?

The downside of bonuses is that

Melanie has worked for 20 years for a manufacturer of specialized paint for the auto industry.Melanie stayed with the company rather than taking other job offers because of the generous ESOP,which has offset the somewhat lower than market pay.Which of the following statements is FALSE?

A manager at your firm has recruited an individual who is an expert in his field,as well as being a strong team player.As the HR director,you think this individual will be a good match with the company because you are about to roll out an organizational level pay-for-performance system.

The primary objectives of organizational incentive systems includes all of the following EXCEPT

A ____ approach for compensating sales staff is useful when serving and retaining existing client accounts is significantly more important than generating new sales and accounts.

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