Question 1

Which statement best explains why,despite their motivational potential,piece rate systems often do not motivate maximum effort?

Accepted Answer

A)  Work group norms define acceptable rates of production. 
B)  Piece rates are used in conjunction with base pay. 
C)  Workers may be tempted to cut corners on quality. 
D)  Workers are more concerned with production than safety. 
A)  Work group norms define acceptable rates of production. 
B)  Piece rates are used in conjunction with base pay. 
C)  Workers may be tempted to cut corners on quality. 
D)  Workers are more concerned with production than safety.

Question 2

Martin,the HR Manager,bought 1000 shares in his company at a price that was a little less than market prices.What type of stock plan is this?

Accepted Answer

A)  stock option 
B)  stock bonus 
C)  share purchase 
D)  market share 
A)  stock option 
B)  stock bonus 
C)  share purchase 
D)  market share

Question 3

As a human resource specialist,you have been asked by your organization to lead a discussion on the merits of using internal promotions as a main reward mechanism.Which point would you most likely NOT raise?

Accepted Answer

A)  They are an expensive process,as promotions are typically associated with pay increases. 
B)  They often carry both intrinsic and extrinsic rewards. 
C)  They recognize contributions made by strong performers. 
D)  They are often seen as a key motivation tool for employees. 
A)  They are an expensive process,as promotions are typically associated with pay increases. 
B)  They often carry both intrinsic and extrinsic rewards. 
C)  They recognize contributions made by strong performers. 
D)  They are often seen as a key motivation tool for employees.

Question 4

Unions generally oppose profit-sharing plans on the basis of potential manipulation of profits by management and the uncertainty associated with profit sharing when compared with base pay.

Accepted Answer

A) True 
 B)False

Question 5

The three main types of employee stock plans are: stock bonus plans,stock purchase plans,and stock option plans.

Accepted Answer

A) True 
 B)False

Question 6

All things being equal,goal-sharing programs are thought to be less motivational than gain-sharing programs.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the nature of suggestion systems and some of the problems you need to be aware of.

Accepted Answer

Suggestion systems are intended to promo

Question 8

Explain the difference between goal-sharing and gain-sharing plans.

Accepted Answer

The core of goal sharing is that work gr

Question 9

There are three types of profit-sharing plans discussed in the textbook.Identify and briefly explain each of them.

Accepted Answer

Profit sharing may take one of the follo

Question 10

Identify and briefly explain the nature of individual performance pay plans.

Accepted Answer

Individual performance pay plans-piece r

Question 11

One of the problems with merit raises is the risk of providing a long-term future reward for a short-term past performance.What is one way to address this problem while maintaining the performance appraisal system?

Accepted Answer

A)  Replace merit raises with merit bonuses. 
B)  Use stock options instead of merit raises. 
C)  Use a team to assess performance. 
D)  Outsource merit systems. 
A)  Replace merit raises with merit bonuses. 
B)  Use stock options instead of merit raises. 
C)  Use a team to assess performance. 
D)  Outsource merit systems.

Question 12

Which type of selling requires the most initiative on the part of the sales representative?

Accepted Answer

A)  maintenance 
B)  conversion 
C)  leverage 
D)  new market 
A)  maintenance 
B)  conversion 
C)  leverage 
D)  new market

Question 13

Which are the main types of profit sharing plans?

Accepted Answer

A)  current assessment plan,deferred plan,and blended plan 
B)  deferred plan,cash plan,and group plan 
C)  combination plan,deferred plan,and current distribution plan 
D)  current distribution plan,combination plan,and employee plan 
A)  current assessment plan,deferred plan,and blended plan 
B)  deferred plan,cash plan,and group plan 
C)  combination plan,deferred plan,and current distribution plan 
D)  current distribution plan,combination plan,and employee plan

Question 14

What is the rationale that makes employee stock plans such a "natural fit" with organizations using a high-involvement management strategy?

Accepted Answer

The notion of unity and common purpose (

Question 15

Your CEO is concerned that employees are not saving enough for their retirement.At the same,the CEO wants to have some of the company's profits shared with all employees.To address these issues,your CEO asks you,a human resource compensation specialist,to recommend the most appropriate profit-sharing plan to address this retirement issue.Which profit-sharing plan would you recommend?

Accepted Answer

A)  deferred 
B)  combination 
C)  current distribution 
D)  cash plan 
A)  deferred 
B)  combination 
C)  current distribution 
D)  cash plan

Question 16

John's employer decides to provide him with regular advances against his future commissions as a way to smooth out John's income.Which term best describes the pay plan used by John's employer?

Accepted Answer

A)  sales stipend system 
B)  draw system 
C)  pay advance system 
D)  security income 
A)  sales stipend system 
B)  draw system 
C)  pay advance system 
D)  security income

Question 17

Which characteristic of profit-sharing plans may be viewed as negative from the perspective of an employer?

Accepted Answer

A)  They align employee and employer interests. 
B)  They eliminate the "free rider" principle by holding everyone accountable. 
C)  They are more complex than gain-sharing plans. 
D)  They require the sharing of potentially confidential information with employees. 
A)  They align employee and employer interests. 
B)  They eliminate the "free rider" principle by holding everyone accountable. 
C)  They are more complex than gain-sharing plans. 
D)  They require the sharing of potentially confidential information with employees.

Question 18

What do employees receive under an employee stock bonus plan?

Accepted Answer

A)  shares at no cost to themselves 
B)  cash value of phantom shares 
C)  a bonus equivalent to the increase in their share value 
D)  free financial advice on stocks 
A)  shares at no cost to themselves 
B)  cash value of phantom shares 
C)  a bonus equivalent to the increase in their share value 
D)  free financial advice on stocks

Question 19

One of the problems with gain-sharing plans is that they do not encourage employee participation.

Accepted Answer

A) True 
 B)False

Question 20

Sales commissions are usually appropriate in situations where individual sales people exercise significant independence.

Accepted Answer

A) True 
 B)False

Which statement best explains why,despite their motivational potential,piece rate systems often do not motivate maximum effort?

Martin,the HR Manager,bought 1000 shares in his company at a price that was a little less than market prices.What type of stock plan is this?

As a human resource specialist,you have been asked by your organization to lead a discussion on the merits of using internal promotions as a main reward mechanism.Which point would you most likely NOT raise?

Unions generally oppose profit-sharing plans on the basis of potential manipulation of profits by management and the uncertainty associated with profit sharing when compared with base pay.

The three main types of employee stock plans are: stock bonus plans,stock purchase plans,and stock option plans.

All things being equal,goal-sharing programs are thought to be less motivational than gain-sharing programs.

Discuss the nature of suggestion systems and some of the problems you need to be aware of.

Explain the difference between goal-sharing and gain-sharing plans.

There are three types of profit-sharing plans discussed in the textbook.Identify and briefly explain each of them.

Identify and briefly explain the nature of individual performance pay plans.

One of the problems with merit raises is the risk of providing a long-term future reward for a short-term past performance.What is one way to address this problem while maintaining the performance appraisal system?

Which type of selling requires the most initiative on the part of the sales representative?

Which are the main types of profit sharing plans?

What is the rationale that makes employee stock plans such a "natural fit" with organizations using a high-involvement management strategy?

John's employer decides to provide him with regular advances against his future commissions as a way to smooth out John's income.Which term best describes the pay plan used by John's employer?

Which characteristic of profit-sharing plans may be viewed as negative from the perspective of an employer?

What do employees receive under an employee stock bonus plan?

One of the problems with gain-sharing plans is that they do not encourage employee participation.

Sales commissions are usually appropriate in situations where individual sales people exercise significant independence.

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 5: Performance Pay Choices

Which statement best explains why,despite their motivational potential,piece rate systems often do not motivate maximum effort?

Martin,the HR Manager,bought 1000 shares in his company at a price that was a little less than market prices.What type of stock plan is this?

As a human resource specialist,you have been asked by your organization to lead a discussion on the merits of using internal promotions as a main reward mechanism.Which point would you most likely NOT raise?

Unions generally oppose profit-sharing plans on the basis of potential manipulation of profits by management and the uncertainty associated with profit sharing when compared with base pay.

The three main types of employee stock plans are: stock bonus plans,stock purchase plans,and stock option plans.

All things being equal,goal-sharing programs are thought to be less motivational than gain-sharing programs.

Discuss the nature of suggestion systems and some of the problems you need to be aware of.

Explain the difference between goal-sharing and gain-sharing plans.

There are three types of profit-sharing plans discussed in the textbook.Identify and briefly explain each of them.

Identify and briefly explain the nature of individual performance pay plans.

One of the problems with merit raises is the risk of providing a long-term future reward for a short-term past performance.What is one way to address this problem while maintaining the performance appraisal system?

Which type of selling requires the most initiative on the part of the sales representative?

Which are the main types of profit sharing plans?

What is the rationale that makes employee stock plans such a "natural fit" with organizations using a high-involvement management strategy?

John's employer decides to provide him with regular advances against his future commissions as a way to smooth out John's income.Which term best describes the pay plan used by John's employer?

Which characteristic of profit-sharing plans may be viewed as negative from the perspective of an employer?

What do employees receive under an employee stock bonus plan?

One of the problems with gain-sharing plans is that they do not encourage employee participation.

Sales commissions are usually appropriate in situations where individual sales people exercise significant independence.

A Road Map to Effective Compensation

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Designing Indirect Pay Plans

Activating and Maintaining an Effective Compensation System

Filters