Exam 12: Pay-For-Performance and Financial Incentives

There has been a definite movement away from the extremes of straight commission or fixed salary for salespeople. What has there been a movement toward to compensate sales people?

According to Frederick Herzberg what kind of factor is salary?

Under what terms can an executive buy stock in a stock option plan?

What is compensation that is independent of the performance level of the individual, group, or organization?

Describe how Frederick Herzberg defined motivation.

What does Frederick Herzberg call factors that satisfy lower level needs?

Which is the most commonly used and oldest type of incentive plan system of pay based on the number of items processed by each individual worker in a unit of time?

A plan in which a production standard is set for a specific work group and its members are paid extra if the group exceeds the production standard, is known as a(n)

What motivation is derived from the pleasure someone gets from doing the job or task?

What is Victor Vroom's term for when a worker believes his or her effort will lead to performance?

For short term incentives, what does the term fund size refer to?

Describe five important points to consider when implementing an incentive plan.

Piecework means basing compensation directly on the amount produced.

In some long-term incentive plans, shares are awarded without cost to the executive, but forfeited if the executive leaves before a vesting period. What are these plans are called?

What compensation plan offers each person a bonus based on the company's results, regardless of the person's actual effort?

What is the most common form of incentive for salespeople?

What percentage of total pay-related spending is on variable-pay related expenses?

Under which pay system does each worker receives a set payment for each item produced or processed in a factory or shop?

Studies show that it takes a 5%-15% of pay to have an effect on behaviour when a cash reward is provided. What is the percentage when a non-cash reward such as recognition is used?

According to Frederick Herzberg what kind of factor is safety?