Question 1

Which of the following terms refers to financial rewards paid to workers whose production exceeds some predetermined standard?

Accepted Answer

A)  indirect financial payments 
B)  merit payments 
C)  hardship allowances 
D)  financial incentives 
A)  indirect financial payments 
B)  merit payments 
C)  hardship allowances 
D)  financial incentives D

Question 2

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

Accepted Answer

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

Question 3

According to Herzberg's theory,a manager would be able to motivate an employee with challenging tasks.

Accepted Answer

A) True 
 B)False  True

Question 4

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 questions is most relevant to the decision by Ryobi executives to discontinue all merit raises?

Accepted Answer

A)  What are the guidelines for implementing a gainsharing plan? 
B)  What type of merit raises are effective for high-performing managers? 
C)  What organization wide incentive plans are used by other manufacturing firms? 
D)  What is the connection between merit pay increases and employee productivity? 
A)  What are the guidelines for implementing a gainsharing plan? 
B)  What type of merit raises are effective for high-performing managers? 
C)  What organization wide incentive plans are used by other manufacturing firms? 
D)  What is the connection between merit pay increases and employee productivity?

Question 5

How often do most firms tend to compute financial performance measures used in gainsharing plans?

Accepted Answer

A)  weekly 
B)  monthly 
C)  quarterly 
D)  annually 
A)  weekly 
B)  monthly 
C)  quarterly 
D)  annually

Question 6

According to Vroom's theory,when managers design incentive plans they should do all of the following EXCEPT ________.

Accepted Answer

A)  focus on behavior modification methods 
B)  make incentive plans easy to understand 
C)  provide training and support to employees 
D)  boost the confidence level of employees 
A)  focus on behavior modification methods 
B)  make incentive plans easy to understand 
C)  provide training and support to employees 
D)  boost the confidence level of employees

Question 7

Hanover Publications has a large sales staff.Over the last two years,the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics.Which of the following most likely explains the reason for these changes at Hanover?

Accepted Answer

A)  increased globalization 
B)  new federal legislation 
C)  recent economic recession 
D)  employee stock option plans 
A)  increased globalization 
B)  new federal legislation 
C)  recent economic recession 
D)  employee stock option plans

Question 8

Explain the advantages of employee stock ownership plans.

Accepted Answer

The company that offers the ESOP receive

Question 9

Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm,which is why the programs are decreasing in popularity.

Accepted Answer

A) True 
 B)False

Question 10

A management approach based on improving work methods through observation and analysis is known as ________.

Accepted Answer

A)  strategic management 
B)  scientific management 
C)  management by objectives 
D)  performance management 
A)  strategic management 
B)  scientific management 
C)  management by objectives 
D)  performance management

Question 11

Which profit-sharing plan provides tax advantages for employees by postponing income taxes,often until the employee retires?

Accepted Answer

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

Question 12

Enterprise incentive management systems enable firms to ________.

Accepted Answer

A)  compare corporate incentive programs 
B)  accurately calculate sales commissions 
C)  efficiently administer employee incentive programs 
D)  create a matrix of merit awards and incentive options 
A)  compare corporate incentive programs 
B)  accurately calculate sales commissions 
C)  efficiently administer employee incentive programs 
D)  create a matrix of merit awards and incentive options

Question 13

Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance?

Accepted Answer

A)  behavior modification 
B)  personal development 
C)  instrumentality 
D)  internal motivation 
A)  behavior modification 
B)  personal development 
C)  instrumentality 
D)  internal motivation

Question 14

Briefly describe Vroom's theory and its three components.How can managers use Vroom's theory as they develop effective incentive plans?

Accepted Answer

Vroom states that a person's motivation

Question 15

According to Herzberg's Hygiene-Motivator theory,which of the following factors will most likely satisfy employees' higher-level needs?

Accepted Answer

A)  base salary 
B)  achievement 
C)  incentive pay 
D)  co-worker relationships 
A)  base salary 
B)  achievement 
C)  incentive pay 
D)  co-worker relationships

Question 16

The Lincoln incentive system 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 many or all 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)  involves the firm distributing total annual profits each year among employees based on their merit rating 
A)  uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement 
B)  engages many or all 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)  involves the firm distributing total annual profits each year among employees based on their merit rating

Question 17

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 
A)  incentives appear to be logical 
B)  incentives are linked to behaviors 
C)  rewards are attractive to employees 
D)  standards are clear and complete

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Employers are shifting away from piecework in many industries due to the incentive plan's poor reputation.

Accepted Answer

A) True 
 B)False

Question 20

If an employee earns an incentive in the form of a prize or cash award,the value of the award is not included when calculating the employee's overtime pay.

Accepted Answer

A) True 
 B)False

Which of the following terms refers to financial rewards paid to workers whose production exceeds some predetermined standard?

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

According to Herzberg's theory,a manager would be able to motivate an employee with challenging tasks.

How often do most firms tend to compute financial performance measures used in gainsharing plans?

According to Vroom's theory,when managers design incentive plans they should do all of the following EXCEPT ________.

Hanover Publications has a large sales staff.Over the last two years,the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics.Which of the following most likely explains the reason for these changes at Hanover?

Explain the advantages of employee stock ownership plans.

Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm,which is why the programs are decreasing in popularity.

A management approach based on improving work methods through observation and analysis is known as ________.

Which profit-sharing plan provides tax advantages for employees by postponing income taxes,often until the employee retires?

Enterprise incentive management systems enable firms to ________.

Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance?

Briefly describe Vroom's theory and its three components.How can managers use Vroom's theory as they develop effective incentive plans?

According to Herzberg's Hygiene-Motivator theory,which of the following factors will most likely satisfy employees' higher-level needs?

The Lincoln incentive system is an incentive plan that ________.

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

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

Employers are shifting away from piecework in many industries due to the incentive plan's poor reputation.

If an employee earns an incentive in the form of a prize or cash award,the value of the award is not included when calculating the employee's overtime pay.

Introduction to Human Resource Management

Equal Opportunity and the Law

Human Resource Management Strategy and Analysis

Job Analysis and the Talent Management Process

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Employee Retention, Engagement, and Careers

Establishing Strategic Pay Plans

Benefits and Services

Ethics and Employee Rights and Discipline

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

Which of the following terms refers to financial rewards paid to workers whose production exceeds some predetermined standard?

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

According to Herzberg's theory,a manager would be able to motivate an employee with challenging tasks.

How often do most firms tend to compute financial performance measures used in gainsharing plans?

According to Vroom's theory,when managers design incentive plans they should do all of the following EXCEPT ________.

Hanover Publications has a large sales staff.Over the last two years,the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics.Which of the following most likely explains the reason for these changes at Hanover?

Explain the advantages of employee stock ownership plans.

Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm,which is why the programs are decreasing in popularity.

A management approach based on improving work methods through observation and analysis is known as ________.

Which profit-sharing plan provides tax advantages for employees by postponing income taxes,often until the employee retires?

Enterprise incentive management systems enable firms to ________.

Which of the following terms refers to changing behavior through rewards or punishments that are contingent on performance?

Briefly describe Vroom's theory and its three components.How can managers use Vroom's theory as they develop effective incentive plans?

According to Herzberg's Hygiene-Motivator theory,which of the following factors will most likely satisfy employees' higher-level needs?

The Lincoln incentive system is an incentive plan that ________.

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

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

Employers are shifting away from piecework in many industries due to the incentive plan's poor reputation.

If an employee earns an incentive in the form of a prize or cash award,the value of the award is not included when calculating the employee's overtime pay.

Introduction to Human Resource Management

Equal Opportunity and the Law

Human Resource Management Strategy and Analysis

Job Analysis and the Talent Management Process

Personnel Planning and Recruiting

Employee Testing and Selection

Interviewing Candidates

Training and Developing Employees

Performance Management and Appraisal

Employee Retention, Engagement, and Careers

Establishing Strategic Pay Plans

Benefits and Services

Ethics and Employee Rights and Discipline

Labor Relations and Collective Bargaining

Employee Safety and Health

Managing Global Human Resources

Managing Human Resources in Entrepreneurial Firms

Filters