Exam 12: Pay for Performance and Financial Incentives

With a ________,an executive receives units instead of shares of company stock.In the future,the executive receives cash equal to the appreciation of the units owned.

With which of the following can an executive NOT profit until the stock makes significant gains?

Which of the following is the most commonly used reward for motivating employees?

Edward is the new sales manager at Wilson Auto Mart.The previous sales manager set commission rates informally without considering how much each sale covered expenses.As a result,Wilson Auto Mart barely breaks even on each car sale once commissions are paid.Edward wants to motivate his sales force but avoid having excessive commissions. Which of the following,if true,supports the argument that Edward should pay his sales team a combination of salary plus commission?

Which of the following is a true statement about Herzberg's Hygiene-Motivator theory?

Behavior modification is based on the idea that people will repeat behavior for which they are punished.

Sometimes managers need to reinforce positive behavior but cannot turn to a cash incentive to do so.Identify some positive reinforcement rewards that a manager could use on a day-to-day basis to reward employees.What does research suggest about the impact of financial and nonfinancial incentives on employees?

All of the following are disadvantages of straight commission plans EXCEPT ________.

Which of the following terms refers to an incentive plan that ties a group's pay to the firm's profitability?

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

Tyler Oil offers a profit-sharing plan to its employees.Each year,Tyler Oil distributes total annual profits less taxes among employees based on employee merit ratings.Which of the following is most likely used by Tyler Oil?

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?

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

Employers may award merit pay as traditional merit increases that increase an employee's base pay or as a lump sum merit raise.Explain the pros and cons of these two choices.

Herzberg's Hygiene-Motivator theory is based on a needs theory.

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?

Who proposed a two-factor theory that explains how motivator factors relate to satisfaction and hygiene factors relate to dissatisfaction?

The work of Edward Deci suggests that managers should primarily rely on extrinsic rewards to motivate employees.

According to Herzberg's motivation theory,good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.