Exam 12: Pay for Performance and Financial Incentives

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,supports the argument that Ryobi should eliminate all merit raises?

Studies suggest that team incentive plans enhance productivity because the work load is equally distributed among team members,which fosters cooperation.

Which of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance?

McDonald Manufacturing contributes cash to a trust established to purchase shares of McDonald stock for employees.Which of the following is most likely offered by McDonald Manufacturing?

In Vroom's theory of motivation,motivation is equal to E * I * V,where I represents ________.

Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?

In which of the following do workers receive a basic hourly rate plus a premium equal to the percent by which their performance exceeds the standard?

Behavior modification is based upon the principles of rewards and punishments advanced by ________.

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

Competence in the Scanlon plan refers to a focus on ________.

Studies indicate that in order for merit pay to be most effective,it should be linked to ________.

Cash,stock,stock options,stock appreciation rights,and phantom stock are known as "golden handcuffs" because they are long-term incentives for executives.

When developing the involvement system for a gainsharing plan,which of the following is NOT a commonly used element?

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

Top executives at DYS Enterprises are considering the idea of implementing an employee incentive plan.Which of the following suggests that an incentive plan would NOT be appropriate at DYS Enterprises?

Which of the following found that extrinsic rewards could detract from an employee's intrinsic motivation?

Behavior modification principles can be useful to managers who seek to change employee behavior through rewards or punishments linked to performance.

With a standard hour plan,employers do not need to recalculate piece rates when changes are made to the hourly pay rate.

Vroom's expectancy theory observes that people will not pursue rewards that they find unattractive or where their chances of success are very low.

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