Question 1

All of the following are essential in order for incentive plans to be effective EXCEPT ________.

Accepted Answer

A)  incentives appear to be logical 
B)  incentives are linked to behaviors 
C)  rewards are attractive to employees 
D)  standards are clear and complete 
E)  employee motivation is an issue 
A)  incentives appear to be logical 
B)  incentives are linked to behaviors 
C)  rewards are attractive to employees 
D)  standards are clear and complete 
E)  employee motivation is an issue A

Question 2

Common stock is the most common payment form used in gainsharing plans.

Accepted Answer

A) True 
 B)False  False

Question 3

An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is the primary benefit of employee stock ownership plans?

Accepted Answer

A)  Firms are able to implement the plans with minimal costs and complications. 
B)  Firms pay distribution taxes for employees prior to retirement. 
C)  Firms may borrow against employee stock held in trust. 
D)  Employees are able to diversify their investments. 
E)  Employees have voting rights in firm decisions. 
A)  Firms are able to implement the plans with minimal costs and complications. 
B)  Firms pay distribution taxes for employees prior to retirement. 
C)  Firms may borrow against employee stock held in trust. 
D)  Employees are able to diversify their investments. 
E)  Employees have voting rights in firm decisions.

Question 5

Which of the following is NOT a type of gainsharing plan?

Accepted Answer

A)  Improshare 
B)  Lincoln 
C)  Scanlon 
D)  Rucker 
E)  Roth 
A)  Improshare 
B)  Lincoln 
C)  Scanlon 
D)  Rucker 
E)  Roth

Question 6

All merit raises become part of an employee's base salary.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best explains identity in regards to the Scanlon plan?

Accepted Answer

A)  philosophy of cooperation among employees 
B)  clear articulation of the company mission 
C)  high level of competence from all employees 
D)  improvement suggestions from employees 
E)  corporate-wide benefits and savings 
A)  philosophy of cooperation among employees 
B)  clear articulation of the company mission 
C)  high level of competence from all employees 
D)  improvement suggestions from employees 
E)  corporate-wide benefits and savings

Question 8

Explain the advantages and disadvantages of using piecework as a pay plan?

Accepted Answer

Piecework plans appear equitable in prin

Question 9

In Vroom's theory of motivation,which of the following terms refers to the perceived value a person attaches to a reward?

Accepted Answer

A)  piecework 
B)  valence 
C)  instrumentality 
D)  expectancy 
E)  variable pay 
A)  piecework 
B)  valence 
C)  instrumentality 
D)  expectancy 
E)  variable pay

Question 10

Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________.

Accepted Answer

A)  social loafing 
B)  systematic soldiering 
C)  human nature 
D)  group shift 
E)  group norms 
A)  social loafing 
B)  systematic soldiering 
C)  human nature 
D)  group shift 
E)  group norms

Question 11

Which incentive plan is based on a philosophy that managers and employees must cooperate together?

Accepted Answer

A)  cash plan 
B)  Lincoln incentive system 
C)  Scanlon plan 
D)  deferred profit-sharing plan 
E)  employee stock ownership plan 
A)  cash plan 
B)  Lincoln incentive system 
C)  Scanlon plan 
D)  deferred profit-sharing plan 
E)  employee stock ownership plan

Question 12

What is the most common form of payment in gainsharing plans?

Accepted Answer

A)  common stock 
B)  vacation time 
C)  preferred stock 
D)  promotions 
E)  cash 
A)  common stock 
B)  vacation time 
C)  preferred stock 
D)  promotions 
E)  cash

Question 13

Gainsharing is an incentive plan that ________.

Accepted Answer

A)  uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement 
B)  engages employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company 
C)  contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees 
D)  provides tax advantages for employees by deferring income taxes, often until the employee retires 
E)  involves the firm regularly distributing a percentage of profits as profit shares to employees 
A)  uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement 
B)  engages employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company 
C)  contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees 
D)  provides tax advantages for employees by deferring income taxes, often until the employee retires 
E)  involves the firm regularly distributing a percentage of profits as profit shares to employees

Question 14

The Scanlon plan is an early version of a ________ plan,an incentive plan that engages employees in a common effort to achieve productivity objectives.

Accepted Answer

A)  performance achievement 
B)  golden parachute 
C)  gainsharing 
D)  restricted stock 
E)  variable pay 
A)  performance achievement 
B)  golden parachute 
C)  gainsharing 
D)  restricted stock 
E)  variable pay

Question 15

Which of the following is NOT a basic tenet of behavior modification?

Accepted Answer

A)  Behavior that leads to rewards tends to be repeated. 
B)  Behavior that appears to lead to punishment tends not to be repeated. 
C)  Properly scheduled rewards can be used to encourage some behaviors. 
D)  Properly scheduled punishments can be used to minimize some behaviors. 
E)  Employees must understand the link between rewards,punishments, and behavior. 
A)  Behavior that leads to rewards tends to be repeated. 
B)  Behavior that appears to lead to punishment tends not to be repeated. 
C)  Properly scheduled rewards can be used to encourage some behaviors. 
D)  Properly scheduled punishments can be used to minimize some behaviors. 
E)  Employees must understand the link between rewards,punishments, and behavior.

Question 16

Heidi works for a computer firm that offers an incentive plan to its employees.Heidi's employer divides the value added for the period by total payroll expenses to determine employee bonuses.Which of the following incentive plans is most likely used by Heidi's employer?

Accepted Answer

A)  employee stock ownership plan 
B)  Lincoln incentive system 
C)  Scanlon plan 
D)  Rucker plan 
E)  Improshare plan 
A)  employee stock ownership plan 
B)  Lincoln incentive system 
C)  Scanlon plan 
D)  Rucker plan 
E)  Improshare plan

Question 17

You are the CEO of Blue Bay Motor Boat Company,a mid-size firm that manufactures speed boats.What incentive plan would you implement for the firm's engineers? What incentive plan would you implement for the firm's managers?

Accepted Answer

Stock options,bonuses,and profit sharing

Question 18

Annual bonus plans are long-term incentives,and stock options are short-term incentives.

Accepted Answer

A) True 
 B)False

Question 19

Which term refers to payments companies make in connection with a change in ownership or control of a company?

Accepted Answer

A)  pension 
B)  golden parachute 
C)  retirement bonus 
D)  consulting fee 
E)  stock option 
A)  pension 
B)  golden parachute 
C)  retirement bonus 
D)  consulting fee 
E)  stock option

Question 20

Ryobi is a large, international power tool manufacturer that develops affordable, high-quality products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the company continues to grow, its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective. Currently, the firm provides merit raises based on performance appraisals; however, executives are considering changing the current incentive plan.
-Which of the following,if true,undermines the argument that Ryobi should discontinue all merit raises?

Accepted Answer

A)  Ryobi employees have expressed that they would prefer stock options to merit raises. 
B)  Ryobi's top competitor is considered a high-performance work system within the industry. 
C)  Ryobi managers have not received significant training about conducting performance appraisals. 
D)  Ryobi managers have noticed significant productivity improvements among employees who receive merit raises. 
E)  Ryobi's top executives receive a combination of base salary and stock options to encourage them to focus on the firm's strategic goals. 
A)  Ryobi employees have expressed that they would prefer stock options to merit raises. 
B)  Ryobi's top competitor is considered a high-performance work system within the industry. 
C)  Ryobi managers have not received significant training about conducting performance appraisals. 
D)  Ryobi managers have noticed significant productivity improvements among employees who receive merit raises. 
E)  Ryobi's top executives receive a combination of base salary and stock options to encourage them to focus on the firm's strategic goals.

All of the following are essential in order for incentive plans to be effective EXCEPT ________.

Common stock is the most common payment form used in gainsharing plans.

An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

Which of the following is the primary benefit of employee stock ownership plans?

Which of the following is NOT a type of gainsharing plan?

All merit raises become part of an employee's base salary.

Which of the following best explains identity in regards to the Scanlon plan?

Explain the advantages and disadvantages of using piecework as a pay plan?

In Vroom's theory of motivation,which of the following terms refers to the perceived value a person attaches to a reward?

Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________.

Which incentive plan is based on a philosophy that managers and employees must cooperate together?

What is the most common form of payment in gainsharing plans?

Gainsharing is an incentive plan that ________.

The Scanlon plan is an early version of a ________ plan,an incentive plan that engages employees in a common effort to achieve productivity objectives.

Which of the following is NOT a basic tenet of behavior modification?

Heidi works for a computer firm that offers an incentive plan to its employees.Heidi's employer divides the value added for the period by total payroll expenses to determine employee bonuses.Which of the following incentive plans is most likely used by Heidi's employer?

You are the CEO of Blue Bay Motor Boat Company,a mid-size firm that manufactures speed boats.What incentive plan would you implement for the firm's engineers? What incentive plan would you implement for the firm's managers?

Annual bonus plans are long-term incentives,and stock options are short-term incentives.

Which term refers to payments companies make in connection with a change in ownership or control of a company?

Introduction to Human Resource Management

Equal Opportunity and the Law

The Manager's Role in Strategic Human Resource Management

Job Analysis

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Coaching, Careers, and Talent Management

Establishing Strategic Pay Plans

Benefits and Services

Ethics, Justice, and Fair Treatment in HR Management

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

Managing Human Resources in Entrepreneurial Firms

Filters

Exam 12: Pay for Performance and Financial Incentives

All of the following are essential in order for incentive plans to be effective EXCEPT ________.

Common stock is the most common payment form used in gainsharing plans.

An effective incentive plan involves gathering evidence and evaluating the long-term effects on employee performance.

Which of the following is the primary benefit of employee stock ownership plans?

Which of the following is NOT a type of gainsharing plan?

All merit raises become part of an employee's base salary.

Which of the following best explains identity in regards to the Scanlon plan?

Explain the advantages and disadvantages of using piecework as a pay plan?

In Vroom's theory of motivation,which of the following terms refers to the perceived value a person attaches to a reward?

Frederick Taylor referred to the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level as ________.

Which incentive plan is based on a philosophy that managers and employees must cooperate together?

What is the most common form of payment in gainsharing plans?

Gainsharing is an incentive plan that ________.

The Scanlon plan is an early version of a ________ plan,an incentive plan that engages employees in a common effort to achieve productivity objectives.

Which of the following is NOT a basic tenet of behavior modification?

Heidi works for a computer firm that offers an incentive plan to its employees.Heidi's employer divides the value added for the period by total payroll expenses to determine employee bonuses.Which of the following incentive plans is most likely used by Heidi's employer?

You are the CEO of Blue Bay Motor Boat Company,a mid-size firm that manufactures speed boats.What incentive plan would you implement for the firm's engineers? What incentive plan would you implement for the firm's managers?

Annual bonus plans are long-term incentives,and stock options are short-term incentives.

Which term refers to payments companies make in connection with a change in ownership or control of a company?

Introduction to Human Resource Management

Equal Opportunity and the Law

The Manager's Role in Strategic Human Resource Management

Job Analysis

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Coaching, Careers, and Talent Management

Establishing Strategic Pay Plans

Benefits and Services

Ethics, Justice, and Fair Treatment in HR Management

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

Managing Human Resources in Entrepreneurial Firms

Filters