Question 1

Financial measures that can be used to judge executive performance include all of the following EXCEPT

Accepted Answer

A)  earnings per share. 
B)  net income before taxes. 
C)  market share. 
D)  return on equity. 
A)  earnings per share. 
B)  net income before taxes. 
C)  market share. 
D)  return on equity.

Question 2

In large for-profit organizations,the CEO's base salary is

Accepted Answer

A)  typically the largest part of his/her total compensation. 
B)  often deferred until after the CEO retires. 
C)  likely to be less than half of his/her total compensation. 
D)  typically 20 times larger than the salary of the average worker in the organization. 
A)  typically the largest part of his/her total compensation. 
B)  often deferred until after the CEO retires. 
C)  likely to be less than half of his/her total compensation. 
D)  typically 20 times larger than the salary of the average worker in the organization.

Question 3

When Claudette found a flaw in a major outgoing order and corrected it before it was shipped,her boss immediately gave her a voucher to the best day spa in town.This type of incentive is called an

Accepted Answer

A)  immediate payout. 
B)  spot bonus. 
C)  golden handshake. 
D)  perk 
A)  immediate payout. 
B)  spot bonus. 
C)  golden handshake. 
D)  perk

Question 4

A consultant presenting a plan for a group/team incentive plan stresses that the money to be used as incentive rewards will be generated by improved organizational performance.This aspect of the plan is called the ____ principle.

Accepted Answer

A)  liquidating 
B)  zero-sum 
C)  pay-as-you-go 
D)  self-funding 
A)  liquidating 
B)  zero-sum 
C)  pay-as-you-go 
D)  self-funding

Question 5

OnionDome Manufacturing has suffered major losses in the last few years.Last year the board of directors fired the CEO and hired Simon Simple from one of its major competitors.Simple has laid off 20 percent of the hourly employees and 15 percent of the managers and professional staff in the company.He has sold off two unprofitable subsidiaries,and for the first time in five years the company has posted a small profit.This year the board of directors has given Simple a multi-million dollar bonus.Which of the following statements is TRUE?

Accepted Answer

A)  It is unusual for a company that has experienced mass layoffs to give executives large bonuses. 
B)  Simple should not receive a performance bonus this year because the profits are due to accounting manipulations. 
C)  The Sarbanes-Oxley Act prohibits this type of bonus. 
D)  The employees at OnionDome may feel that it is unethical for Simple to have received this bonus. 
A)  It is unusual for a company that has experienced mass layoffs to give executives large bonuses. 
B)  Simple should not receive a performance bonus this year because the profits are due to accounting manipulations. 
C)  The Sarbanes-Oxley Act prohibits this type of bonus. 
D)  The employees at OnionDome may feel that it is unethical for Simple to have received this bonus.

Question 6

Bonuses are less costly to the organization than general wage increases,because

Accepted Answer

A)  bonuses receive preferential tax treatment. 
B)  the annual amount given as a bonus tends to be smaller than the annual amount given as a raise. 
C)  bonuses are frequently given in the form of non-cash items. 
D)  bonuses do not become part of employees' base wages. 
A)  bonuses receive preferential tax treatment. 
B)  the annual amount given as a bonus tends to be smaller than the annual amount given as a raise. 
C)  bonuses are frequently given in the form of non-cash items. 
D)  bonuses do not become part of employees' base wages.

Question 7

In a TV interview,the CEO of Trevelyan,Inc.,commented that the pay-for-performance system used by her company was effective because,"Now everyone is pulling in the same direction." What does the CEO mean by this observation?

Accepted Answer

A)  The pay-for-performance system is linking employee performance and the organization's strategic goals. 
B)  Employees are being motivated to gain more competencies and skills.. 
C)  Employees are receiving higher total compensation under the pay-for-performance system than under the former, traditional compensation system.. 
D)  Important HR objectives have been achieved, such as reduction in turnover and better attendance. 
A)  The pay-for-performance system is linking employee performance and the organization's strategic goals. 
B)  Employees are being motivated to gain more competencies and skills.. 
C)  Employees are receiving higher total compensation under the pay-for-performance system than under the former, traditional compensation system.. 
D)  Important HR objectives have been achieved, such as reduction in turnover and better attendance.

Financial measures that can be used to judge executive performance include all of the following EXCEPT

In large for-profit organizations,the CEO's base salary is

When Claudette found a flaw in a major outgoing order and corrected it before it was shipped,her boss immediately gave her a voucher to the best day spa in town.This type of incentive is called an

A consultant presenting a plan for a group/team incentive plan stresses that the money to be used as incentive rewards will be generated by improved organizational performance.This aspect of the plan is called the ____ principle.

Bonuses are less costly to the organization than general wage increases,because

In a TV interview,the CEO of Trevelyan,Inc.,commented that the pay-for-performance system used by her company was effective because,"Now everyone is pulling in the same direction." What does the CEO mean by this observation?

Human Resource Management in Organizations

Strategic HR Management and Planning

Equal Employment Opportunity

Workers,Jobs,and Job Analysis

Human Resource Planning and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent Management

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

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Exam 12: Incentive Plans and Executive Compensation

Financial measures that can be used to judge executive performance include all of the following EXCEPT

In large for-profit organizations,the CEO's base salary is

When Claudette found a flaw in a major outgoing order and corrected it before it was shipped,her boss immediately gave her a voucher to the best day spa in town.This type of incentive is called an

A consultant presenting a plan for a group/team incentive plan stresses that the money to be used as incentive rewards will be generated by improved organizational performance.This aspect of the plan is called the ____ principle.

Bonuses are less costly to the organization than general wage increases,because

In a TV interview,the CEO of Trevelyan,Inc.,commented that the pay-for-performance system used by her company was effective because,"Now everyone is pulling in the same direction." What does the CEO mean by this observation?

Human Resource Management in Organizations

Strategic HR Management and Planning

Equal Employment Opportunity

Workers,Jobs,and Job Analysis

Human Resource Planning and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent Management

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Union/Management Relations

Filters