Question 1

Accurate ________ are a precondition for effective variable pay plans.

Accepted Answer

A)  job evaluation 
B)  job specifications 
C)  performance appraisals 
D)  salary curves 
E)  job descriptions 
A)  job evaluation 
B)  job specifications 
C)  performance appraisals 
D)  salary curves 
E)  job descriptions

Question 2

Describe a piecework incentive plan using an example. Discuss at least two advantages and two disadvantages of piecework using your example.

Accepted Answer

Up to two points for accurate descriptio

Question 3

What is Victor Vroom's term for the perceived relationship between successful performance and obtaining the reward?

Accepted Answer

A)  Motivation 
B)  Valence 
C)  Hygiene 
D)  Expectancy 
E)  Instrumentality 
A)  Motivation 
B)  Valence 
C)  Hygiene 
D)  Expectancy 
E)  Instrumentality

Question 4

What is a non-deductible formula as it relates to incentives?

Accepted Answer

A)  Compensation paid over a threshold amount 
B)  The key formula incorporating years of service and value to the company 
C)  The fund that begins to accumulate after a specified level of earnings 
D)  A straight percentage used to create a short-term incentive fund 
E)  A long-term incentive that pays out on a straight-line basis with no deductible 
A)  Compensation paid over a threshold amount 
B)  The key formula incorporating years of service and value to the company 
C)  The fund that begins to accumulate after a specified level of earnings 
D)  A straight percentage used to create a short-term incentive fund 
E)  A long-term incentive that pays out on a straight-line basis with no deductible

Question 5

What is the cornerstone of executive compensation?

Accepted Answer

A)  Benefits 
B)  Gainsharing 
C)  Salary 
D)  Profit-sharing 
E)  Incentives 
A)  Benefits 
B)  Gainsharing 
C)  Salary 
D)  Profit-sharing 
E)  Incentives

Question 6

One drawback to the split-award approach is that it pays too much to a marginal performer. What is one way to get around this problem?

Accepted Answer

A)  Lump-sum bonus method 
B)  Individual award system 
C)  Group incentive plan 
D)  Individual bonus method 
E)  Multiplier method 
A)  Lump-sum bonus method 
B)  Individual award system 
C)  Group incentive plan 
D)  Individual bonus method 
E)  Multiplier method

Question 7

Which type of incentive plan is an organization-wide pay plan designed to reward employees for improvements in organizational productivity?

Accepted Answer

A)  A group incentive program 
B)  Variable pay 
C)  A profit-sharing plan 
D)  Performance bonus plan 
E)  A gainsharing plan 
A)  A group incentive program 
B)  Variable pay 
C)  A profit-sharing plan 
D)  Performance bonus plan 
E)  A gainsharing plan

Question 8

A stock option is the right to purchase a specific number of shares of company stock at a specific price during a period of time.

Accepted Answer

A) True 
 B)False

Question 9

Which plan rewards a worker by a premium that equals the percent by which his or her performance is above standard?

Accepted Answer

A)  The differential piece-rate plan 
B)  Gainsharing plan 
C)  The percent incentive plan 
D)  The premium plan 
E)  The guaranteed piecework plan 
A)  The differential piece-rate plan 
B)  Gainsharing plan 
C)  The percent incentive plan 
D)  The premium plan 
E)  The guaranteed piecework plan

Question 10

Under this pay system, each worker receives the minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour. This system is known as a

Accepted Answer

A)  process piecework plan. 
B)  straight piecework plan. 
C)  gainsharing piecework plan. 
D)  guaranteed piecework plan. 
E)  differential piecework plan. 
A)  process piecework plan. 
B)  straight piecework plan. 
C)  gainsharing piecework plan. 
D)  guaranteed piecework plan. 
E)  differential piecework plan.

Question 11

What is the term related to a target bonus that is set for each eligible position and then adjustments are made for greater- or less-than-targeted performance?

Accepted Answer

A)  A lump-sum bonus 
B)  Retirement income 
C)  An annual bonus 
D)  An individual award 
E)  Gainsharing 
A)  A lump-sum bonus 
B)  Retirement income 
C)  An annual bonus 
D)  An individual award 
E)  Gainsharing

Question 12

Victor Vroom says an employee must value the reward from higher performance to be motivated. If that does not occur then motivation will be zero.

Accepted Answer

A) True 
 B)False

Question 13

Which piecework plan has the most advantages of all the piecework plans?

Accepted Answer

A)  Process piecework plan 
B)  Straight piecework plan 
C)  Gainsharing piecework plan 
D)  Guaranteed piecework plan 
E)  Differential piece-rate plan 
A)  Process piecework plan 
B)  Straight piecework plan 
C)  Gainsharing piecework plan 
D)  Guaranteed piecework plan 
E)  Differential piece-rate plan

Question 14

What is the fundamental premise of variable pay plans?

Accepted Answer

A)  Workers should only be paid for the work they complete. 
B)  Top performers must get top pay to secure their commitment. 
C)  Create incentive for commission paid workers to maximize their efforts. 
D)  Enable the organization to reduce labour costs when profits decline. 
E)  Accommodative the different needs of workers. 
A)  Workers should only be paid for the work they complete. 
B)  Top performers must get top pay to secure their commitment. 
C)  Create incentive for commission paid workers to maximize their efforts. 
D)  Enable the organization to reduce labour costs when profits decline. 
E)  Accommodative the different needs of workers.

Question 15

What is Victor Vroom's term for the perceived value a person attaches to the reward?

Accepted Answer

A)  Motivation 
B)  Valence 
C)  Hygiene 
D)  Expectancy 
E)  Instrumentality 
A)  Motivation 
B)  Valence 
C)  Hygiene 
D)  Expectancy 
E)  Instrumentality

Question 16

Frederick Herzberg encourages the use of cash bonuses and pay increases to motivate workers most effectively to higher levels of performance.

Accepted Answer

A) True 
 B)False

Question 17

What long-term incentives are most often reserved for senior executives?

Accepted Answer

A)  Performance achievement plans 
B)  Book value plans 
C)  Capital accumulation programs 
D)  Stock option programs 
E)  Stock appreciation rights programs 
A)  Performance achievement plans 
B)  Book value plans 
C)  Capital accumulation programs 
D)  Stock option programs 
E)  Stock appreciation rights programs

Question 18

What has been the traditional role of employee recognition plans?

Accepted Answer

A)  Set benchmarks for employee productivity 
B)  Foster loyalty in new workers 
C)  Ensure salespeople receive the greatest rewards 
D)  Reward employees for long service 
E)  Provide a reward in lieu of promotions or pay increases 
A)  Set benchmarks for employee productivity 
B)  Foster loyalty in new workers 
C)  Ensure salespeople receive the greatest rewards 
D)  Reward employees for long service 
E)  Provide a reward in lieu of promotions or pay increases

Question 19

To determine eligibility in a short-term incentive program, a job-by-job review is conducted to identify the key jobs (typically of line jobs) that have measurable impact on profitability. This is called the criterion of

Accepted Answer

A)  salary grade. 
B)  position level. 
C)  key position. 
D)  salary level. 
E)  professional membership. 
A)  salary grade. 
B)  position level. 
C)  key position. 
D)  salary level. 
E)  professional membership.

Question 20

Compensation plans for salespeople have typically relied heavily on incentives in the form of sales commissions.

Accepted Answer

A) True 
 B)False

Accurate ________ are a precondition for effective variable pay plans.

Describe a piecework incentive plan using an example. Discuss at least two advantages and two disadvantages of piecework using your example.

What is Victor Vroom's term for the perceived relationship between successful performance and obtaining the reward?

What is a non-deductible formula as it relates to incentives?

What is the cornerstone of executive compensation?

One drawback to the split-award approach is that it pays too much to a marginal performer. What is one way to get around this problem?

Which type of incentive plan is an organization-wide pay plan designed to reward employees for improvements in organizational productivity?

A stock option is the right to purchase a specific number of shares of company stock at a specific price during a period of time.

Which plan rewards a worker by a premium that equals the percent by which his or her performance is above standard?

Under this pay system, each worker receives the minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour. This system is known as a

What is the term related to a target bonus that is set for each eligible position and then adjustments are made for greater- or less-than-targeted performance?

Victor Vroom says an employee must value the reward from higher performance to be motivated. If that does not occur then motivation will be zero.

Which piecework plan has the most advantages of all the piecework plans?

What is the fundamental premise of variable pay plans?

What is Victor Vroom's term for the perceived value a person attaches to the reward?

Frederick Herzberg encourages the use of cash bonuses and pay increases to motivate workers most effectively to higher levels of performance.

What long-term incentives are most often reserved for senior executives?

What has been the traditional role of employee recognition plans?

To determine eligibility in a short-term incentive program, a job-by-job review is conducted to identify the key jobs (typically of line jobs) that have measurable impact on profitability. This is called the criterion of

Compensation plans for salespeople have typically relied heavily on incentives in the form of sales commissions.

The Strategic Role of Human Resources Management

The Changing Legal Emphasis: Compliance and Impact on Canadian Workplaces

Human Resources Management and Technology

Designing and Analyzing Jobs

Human Resources Planning

Recruitment

Selection

Onboarding and Training

Career and Management Deveopment

Performance Management

Strategic Pay Plans

Employee Benefits and Services

Occupational Health and Safety

Managing Employee Separations: Turnover, Communication, and Employee Engagement

Labour Relations

Managing Human Resources in a Global Business

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Exam 12: Pay-For-Performance and Financial Incentives

Accurate ________ are a precondition for effective variable pay plans.

Describe a piecework incentive plan using an example. Discuss at least two advantages and two disadvantages of piecework using your example.

What is Victor Vroom's term for the perceived relationship between successful performance and obtaining the reward?

What is a non-deductible formula as it relates to incentives?

What is the cornerstone of executive compensation?

One drawback to the split-award approach is that it pays too much to a marginal performer. What is one way to get around this problem?

Which type of incentive plan is an organization-wide pay plan designed to reward employees for improvements in organizational productivity?

A stock option is the right to purchase a specific number of shares of company stock at a specific price during a period of time.

Which plan rewards a worker by a premium that equals the percent by which his or her performance is above standard?

Under this pay system, each worker receives the minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour. This system is known as a

What is the term related to a target bonus that is set for each eligible position and then adjustments are made for greater- or less-than-targeted performance?

Victor Vroom says an employee must value the reward from higher performance to be motivated. If that does not occur then motivation will be zero.

Which piecework plan has the most advantages of all the piecework plans?

What is the fundamental premise of variable pay plans?

What is Victor Vroom's term for the perceived value a person attaches to the reward?

Frederick Herzberg encourages the use of cash bonuses and pay increases to motivate workers most effectively to higher levels of performance.

What long-term incentives are most often reserved for senior executives?

What has been the traditional role of employee recognition plans?

To determine eligibility in a short-term incentive program, a job-by-job review is conducted to identify the key jobs (typically of line jobs) that have measurable impact on profitability. This is called the criterion of

Compensation plans for salespeople have typically relied heavily on incentives in the form of sales commissions.

The Strategic Role of Human Resources Management

The Changing Legal Emphasis: Compliance and Impact on Canadian Workplaces

Human Resources Management and Technology

Designing and Analyzing Jobs

Human Resources Planning

Recruitment

Selection

Onboarding and Training

Career and Management Deveopment

Performance Management

Strategic Pay Plans

Employee Benefits and Services

Occupational Health and Safety

Managing Employee Separations: Turnover, Communication, and Employee Engagement

Labour Relations

Managing Human Resources in a Global Business

Filters