Question 1

The chief disadvantage of group plans is that

Accepted Answer

A)  each worker's rewards are no longer based just on his/her own efforts. 
B)  a group incentive is problematic when conflict arises between group members. 
C)  a group incentive may not improve importance. 
D)  some members let others take on the burden of work. 
E)  the group is as strong as its weakest worker. 
A)  each worker's rewards are no longer based just on his/her own efforts. 
B)  a group incentive is problematic when conflict arises between group members. 
C)  a group incentive may not improve importance. 
D)  some members let others take on the burden of work. 
E)  the group is as strong as its weakest worker.

Question 2

What form of compensation is most common for salespeople in the pharmaceutical industry?

Accepted Answer

A)  Salary 
B)  Bonuses 
C)  Commission 
D)  Hourly wages 
E)  Merit pay 
A)  Salary 
B)  Bonuses 
C)  Commission 
D)  Hourly wages 
E)  Merit pay

Question 3

Sales compensation plans have typically relied heavily on incentives such as sales commissions. What does this vary by?

Accepted Answer

A)  Strategic plan 
B)  Corporate policy 
C)  Labour contract 
D)  Industry 
E)  Geographic location 
A)  Strategic plan 
B)  Corporate policy 
C)  Labour contract 
D)  Industry 
E)  Geographic location

Question 4

One approach to using the team incentive plan is to set work standards for each member of the group and maintain a count of the output of each member.

Accepted Answer

A) True 
 B)False

Question 5

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

Accepted Answer

A) True 
 B)False

Question 6

Traditional merit pay plans have which of the following characteristics?

Accepted Answer

A)  A merit raise is usually based on individual performance. 
B)  A merit raise is usually based on corporate performance. 
C)  A merit raise is usually based exclusively on group performance. 
D)  A merit raise is based on overall level of company profits. 
E)  A merit raise is usually based on individual performance only. 
A)  A merit raise is usually based on individual performance. 
B)  A merit raise is usually based on corporate performance. 
C)  A merit raise is usually based exclusively on group performance. 
D)  A merit raise is based on overall level of company profits. 
E)  A merit raise is usually based on individual performance only.

Question 7

The right to purchase a specific number of shares of company stock at a specific price during a specified period of time is called a

Accepted Answer

A)  book value plan. 
B)  stock appreciation right. 
C)  phantom stock plan. 
D)  stock option plan. 
E)  restricted stock plan. 
A)  book value plan. 
B)  stock appreciation right. 
C)  phantom stock plan. 
D)  stock option plan. 
E)  restricted stock plan.

Question 8

Amy received a salary increase based on her individual performance as a collections clerk over the past year. Which type of compensation did Amy receive?

Accepted Answer

A)  Individual increases 
B)  Individual incentives 
C)  Special awards 
D)  Individual bonuses 
E)  Merit pay 
A)  Individual increases 
B)  Individual incentives 
C)  Special awards 
D)  Individual bonuses 
E)  Merit pay

Question 9

An important prerequisite for an effective variable pay plan is referred to as "line of sight." What does this refer to with respect to the employee?

Accepted Answer

A)  Relate daily work to compensation for continual motivation. 
B)  Relate daily work to the achievement of personal needs. 
C)  Relate daily work to the achievement of overall corporate goals. 
D)  Relate daily work to how overall society is impacted. 
E)  Relate daily work to other employees efforts to ensure equity is achieved. 
A)  Relate daily work to compensation for continual motivation. 
B)  Relate daily work to the achievement of personal needs. 
C)  Relate daily work to the achievement of overall corporate goals. 
D)  Relate daily work to how overall society is impacted. 
E)  Relate daily work to other employees efforts to ensure equity is achieved.

Question 10

The oldest and most commonly used type of incentive plan is the standard hour plan.

Accepted Answer

A) True 
 B)False

Question 11

Amy is part of a team of four software developers. Upon completion of a major client project, she and each of her team members received a set amount in addition to their base salary. What is this an example of?

Accepted Answer

A)  Group incentive program 
B)  Gain-sharing program 
C)  Individual incentive plan 
D)  Spot bonus plan 
E)  Profit-sharing plan 
A)  Group incentive program 
B)  Gain-sharing program 
C)  Individual incentive plan 
D)  Spot bonus plan 
E)  Profit-sharing plan

Question 12

When all employees earning over a threshold amount are automatically eligible for consideration for short-term incentives, what is this called?

Accepted Answer

A)  Key position 
B)  Job evaluation 
C)  Job clusters 
D)  Salary grade 
E)  Salary-level cutoff point 
A)  Key position 
B)  Job evaluation 
C)  Job clusters 
D)  Salary grade 
E)  Salary-level cutoff point

Question 13

Most experts argue that in most organizations managerial- and executive-level bonuses should be tied to both organizational and individual performance.

Accepted Answer

A) True 
 B)False

Question 14

Today, any plan that ties pay to productivity or profitability is called

Accepted Answer

A)  competency-based pay. 
B)  piecework pay. 
C)  variable pay. 
D)  pay-for-performance. 
E)  fixed pay. 
A)  competency-based pay. 
B)  piecework pay. 
C)  variable pay. 
D)  pay-for-performance. 
E)  fixed pay.

Question 15

Paula reviews her company's financial reports to ensure revenues exceed expenses before authorizing additional pay beyond base salaries. What is this an example of?

Accepted Answer

A)  Group incentive plan 
B)  Semi-variable incentive plan 
C)  Individual incentive plan 
D)  Profit-sharing plan 
E)  Gainsharing plan 
A)  Group incentive plan 
B)  Semi-variable incentive plan 
C)  Individual incentive plan 
D)  Profit-sharing plan 
E)  Gainsharing plan

Question 16

A recent study of extroverted salespeople found that extroverts only sold more than those less extroverted when what occurred?

Accepted Answer

A)  Selling included a presentation in front of groups of buyers. 
B)  Their total compensation was in the form of commission. 
C)  Their compensation was all salary based. 
D)  Their rewards were contingent on their performance. 
E)  They were given a listing of highly potential buyers. 
A)  Selling included a presentation in front of groups of buyers. 
B)  Their total compensation was in the form of commission. 
C)  Their compensation was all salary based. 
D)  Their rewards were contingent on their performance. 
E)  They were given a listing of highly potential buyers.

Question 17

Which combination is the most prevalent approach to compensating salespeople?

Accepted Answer

A)  Salary and stock options 
B)  Commission and stock options 
C)  Salary and commissions 
D)  Commissions and profit sharing 
E)  Salary and profit sharing 
A)  Salary and stock options 
B)  Commission and stock options 
C)  Salary and commissions 
D)  Commissions and profit sharing 
E)  Salary and profit sharing

Question 18

What is the main disadvantage to salary plans for salespeople?

Accepted Answer

A)  They tend to motivate new salespeople to the organization only. 
B)  They do not depend on results and can be demotivating. 
C)  They are hard to keep track of. 
D)  Salespeople tend to act like administrators as opposed to making calls. 
E)  Salespeople give in to customer demands more. 
A)  They tend to motivate new salespeople to the organization only. 
B)  They do not depend on results and can be demotivating. 
C)  They are hard to keep track of. 
D)  Salespeople tend to act like administrators as opposed to making calls. 
E)  Salespeople give in to customer demands more.

Question 19

Which psychologist warned that too much extrinsic rewards could result in demotivation?

Accepted Answer

A)  Edward Deci 
B)  Frederick Herzberg 
C)  Frederick Taylor 
D)  Victor Vroom 
E)  Douglas McGregor 
A)  Edward Deci 
B)  Frederick Herzberg 
C)  Frederick Taylor 
D)  Victor Vroom 
E)  Douglas McGregor

Question 20

Employers have put increasing emphasis on variable pay plans in order to maximize their return on human capital.

Accepted Answer

A) True 
 B)False

The chief disadvantage of group plans is that

What form of compensation is most common for salespeople in the pharmaceutical industry?

Sales compensation plans have typically relied heavily on incentives such as sales commissions. What does this vary by?

One approach to using the team incentive plan is to set work standards for each member of the group and maintain a count of the output of each member.

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

Traditional merit pay plans have which of the following characteristics?

The right to purchase a specific number of shares of company stock at a specific price during a specified period of time is called a

Amy received a salary increase based on her individual performance as a collections clerk over the past year. Which type of compensation did Amy receive?

An important prerequisite for an effective variable pay plan is referred to as "line of sight." What does this refer to with respect to the employee?

The oldest and most commonly used type of incentive plan is the standard hour plan.

Amy is part of a team of four software developers. Upon completion of a major client project, she and each of her team members received a set amount in addition to their base salary. What is this an example of?

When all employees earning over a threshold amount are automatically eligible for consideration for short-term incentives, what is this called?

Most experts argue that in most organizations managerial- and executive-level bonuses should be tied to both organizational and individual performance.

Today, any plan that ties pay to productivity or profitability is called

Paula reviews her company's financial reports to ensure revenues exceed expenses before authorizing additional pay beyond base salaries. What is this an example of?

A recent study of extroverted salespeople found that extroverts only sold more than those less extroverted when what occurred?

Which combination is the most prevalent approach to compensating salespeople?

What is the main disadvantage to salary plans for salespeople?

Which psychologist warned that too much extrinsic rewards could result in demotivation?

Employers have put increasing emphasis on variable pay plans in order to maximize their return on human capital.

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

The chief disadvantage of group plans is that

What form of compensation is most common for salespeople in the pharmaceutical industry?

Sales compensation plans have typically relied heavily on incentives such as sales commissions. What does this vary by?

One approach to using the team incentive plan is to set work standards for each member of the group and maintain a count of the output of each member.

A group incentive plan's chief advantage is that each worker's rewards are no longer based solely on his or her own effort.

Traditional merit pay plans have which of the following characteristics?

The right to purchase a specific number of shares of company stock at a specific price during a specified period of time is called a

Amy received a salary increase based on her individual performance as a collections clerk over the past year. Which type of compensation did Amy receive?

An important prerequisite for an effective variable pay plan is referred to as "line of sight." What does this refer to with respect to the employee?

The oldest and most commonly used type of incentive plan is the standard hour plan.

Amy is part of a team of four software developers. Upon completion of a major client project, she and each of her team members received a set amount in addition to their base salary. What is this an example of?

When all employees earning over a threshold amount are automatically eligible for consideration for short-term incentives, what is this called?

Most experts argue that in most organizations managerial- and executive-level bonuses should be tied to both organizational and individual performance.

Today, any plan that ties pay to productivity or profitability is called

Paula reviews her company's financial reports to ensure revenues exceed expenses before authorizing additional pay beyond base salaries. What is this an example of?

A recent study of extroverted salespeople found that extroverts only sold more than those less extroverted when what occurred?

Which combination is the most prevalent approach to compensating salespeople?

What is the main disadvantage to salary plans for salespeople?

Which psychologist warned that too much extrinsic rewards could result in demotivation?

Employers have put increasing emphasis on variable pay plans in order to maximize their return on human capital.

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