Question 1

________ are noncash incentives given to a firm's executives.

Accepted Answer

Perquisite

Question 2

A(n)________ is a system that rewards employees on the assumptions that (1)individual employees and work teams differ in how much they contribute to the firm; (2)the firm's overall performance depends to a large degree on the performance of individuals and groups within the firm; and (3)to attract,retain,and motivate high performers and to be fair to all employees,the firm needs to reward employees on the basis of their relative performance.

Accepted Answer

pay-for-pe

Question 3

Approximately ________ of companies reward their executives with short-term year-end bonuses.

Accepted Answer

A)  25% 
B)  40% 
C)  75% 
D)  90% 
A)  25% 
B)  40% 
C)  75% 
D)  90%

Question 4

A survey of 1,400 employers showed that ________ of them factor customer satisfaction into their calculation of incentive payments to employees.

Accepted Answer

A)  75% 
B)  55% 
C)  35% 
D)  15% 
A)  75% 
B)  55% 
C)  35% 
D)  15%

Question 5

All of the following are disadvantages associated with team-based pay-for-performance plans EXCEPT:

Accepted Answer

A)  difficulties identifying meaningful groups. 
B)  diminishing quality goals. 
C)  the free-riding effect. 
D)  intergroup competition. 
A)  difficulties identifying meaningful groups. 
B)  diminishing quality goals. 
C)  the free-riding effect. 
D)  intergroup competition.

Question 6

Bowen Productions wants to increase the flexibility of its workforce while increasing productivity and cooperation.Bowen would be best served by a(n):

Accepted Answer

A)  individual-based plan. 
B)  team-based plan. 
C)  plantwide plan. 
D)  corporate-based plan. 
A)  individual-based plan. 
B)  team-based plan. 
C)  plantwide plan. 
D)  corporate-based plan.

Question 7

Pay-for-performance plans are more likely to succeed when:

Accepted Answer

A)  cooperation is critical to success. 
B)  an employee's job demands autonomy. 
C)  a firm utilizes cross-functional teams. 
D)  customers complete service questionnaires. 
A)  cooperation is critical to success. 
B)  an employee's job demands autonomy. 
C)  a firm utilizes cross-functional teams. 
D)  customers complete service questionnaires.

Question 8

When seeking to increase employee involvement in rewarding performance,it is important to allow them some control in the dispensation of the rewards.

Accepted Answer

A) True 
 B)False

Question 9

Long-term incentive plans are linked very closely with executive performance.

Accepted Answer

A) True 
 B)False

Question 10

Plantwide pay-for-performance plans are built on the assumption that:

Accepted Answer

A)  employees are motivated to be productive by financial rewards. 
B)  firms are more productive when employees are team players. 
C)  competition between work teams is an optimal goal. 
D)  profits should be reinvested in the firm. 
A)  employees are motivated to be productive by financial rewards. 
B)  firms are more productive when employees are team players. 
C)  competition between work teams is an optimal goal. 
D)  profits should be reinvested in the firm.

Question 11

The experience of Century Telephone Company clearly showed that pay-for-performance programs may promote:

Accepted Answer

A)  problems linking group and individual incentives. 
B)  ethical violations that led to employee lawsuits. 
C)  increases in employee conflicts and stress. 
D)  excessive union involvement. 
A)  problems linking group and individual incentives. 
B)  ethical violations that led to employee lawsuits. 
C)  increases in employee conflicts and stress. 
D)  excessive union involvement.

Question 12

Which of the following is an advantage of individual-based pay-for-performance plans?

Accepted Answer

A)  Quality goals and production goals are accomplished. 
B)  Rewarded performance is likely to be repeated. 
C)  Flexibility is enhanced among supervisors. 
D)  Equity is relatively easy to achieve. 
A)  Quality goals and production goals are accomplished. 
B)  Rewarded performance is likely to be repeated. 
C)  Flexibility is enhanced among supervisors. 
D)  Equity is relatively easy to achieve.

Question 13

The "do only what you get paid for" syndrome is a potential problem tied to which of the following conditions?

Accepted Answer

A)  Companies do not use a pay-for-performance strategy. 
B)  Employees help develop a pay-for-performance strategy. 
C)  Pay is closely tied to specific performance indicators. 
D)  Employee intrinsic drives are reinforced. 
A)  Companies do not use a pay-for-performance strategy. 
B)  Employees help develop a pay-for-performance strategy. 
C)  Pay is closely tied to specific performance indicators. 
D)  Employee intrinsic drives are reinforced.

Question 14

Profit sharing is one type of:

Accepted Answer

A)  team-based pay-for-performance plan. 
B)  corporate-wide incentive pay plan. 
C)  plantwide incentive pay plan. 
D)  gainsharing plan. 
A)  team-based pay-for-performance plan. 
B)  corporate-wide incentive pay plan. 
C)  plantwide incentive pay plan. 
D)  gainsharing plan.

Question 15

What is the difference between a straight commission and a straight salary system? What are the benefits of each? How can a firm ensure that a sales team does not overlook customer satisfaction for high sales volume?

Accepted Answer

Summary of suggested answer -
•Commissio

Question 16

________ permit the executive to buy stock at,or below,cost during a limited time.

Accepted Answer

A)  Formula-based stocks 
B)  Restricted stock plans 
C)  Stock appreciation rights 
D)  Stock purchase plans 
A)  Formula-based stocks 
B)  Restricted stock plans 
C)  Stock appreciation rights 
D)  Stock purchase plans

Question 17

Profit-sharing and ESOP-type compensation plans feature some significant drawbacks,such as:

Accepted Answer

A)  having only a limited effect on organizational productivity. 
B)  increasing internal competition among employees. 
C)  generating labor-management conflicts. 
D)  increasing corporate tax responsibilities. 
A)  having only a limited effect on organizational productivity. 
B)  increasing internal competition among employees. 
C)  generating labor-management conflicts. 
D)  increasing corporate tax responsibilities.

Question 18

Kari is the VP of a mid-sized plant.Employees are able to see how their work affects the plant's performance.The corporation is relatively flat and the market for the product is quite stable.Which of the following would be the best choice of a pay-for-performance plan?

Accepted Answer

A)  Individual-based pay 
B)  Merit-based pay 
C)  A gainsharing plan 
D)  A team-based plan 
A)  Individual-based pay 
B)  Merit-based pay 
C)  A gainsharing plan 
D)  A team-based plan

Question 19

One advantage of pay-for-performance compensation systems is the relative ease of accurately assessing an employee's actual contribution to the company.

Accepted Answer

A) True 
 B)False

Question 20

A significant advantage of team-based pay-for-performance plans is that they eliminate the social pressure to limit performance.

Accepted Answer

A) True 
 B)False

________ are noncash incentives given to a firm's executives.

Approximately ________ of companies reward their executives with short-term year-end bonuses.

A survey of 1,400 employers showed that ________ of them factor customer satisfaction into their calculation of incentive payments to employees.

All of the following are disadvantages associated with team-based pay-for-performance plans EXCEPT:

Bowen Productions wants to increase the flexibility of its workforce while increasing productivity and cooperation.Bowen would be best served by a(n):

Pay-for-performance plans are more likely to succeed when:

When seeking to increase employee involvement in rewarding performance,it is important to allow them some control in the dispensation of the rewards.

Long-term incentive plans are linked very closely with executive performance.

Plantwide pay-for-performance plans are built on the assumption that:

The experience of Century Telephone Company clearly showed that pay-for-performance programs may promote:

Which of the following is an advantage of individual-based pay-for-performance plans?

The "do only what you get paid for" syndrome is a potential problem tied to which of the following conditions?

Profit sharing is one type of:

What is the difference between a straight commission and a straight salary system? What are the benefits of each? How can a firm ensure that a sales team does not overlook customer satisfaction for high sales volume?

________ permit the executive to buy stock at,or below,cost during a limited time.

Profit-sharing and ESOP-type compensation plans feature some significant drawbacks,such as:

Kari is the VP of a mid-sized plant.Employees are able to see how their work affects the plant's performance.The corporation is relatively flat and the market for the product is quite stable.Which of the following would be the best choice of a pay-for-performance plan?

One advantage of pay-for-performance compensation systems is the relative ease of accurately assessing an employee's actual contribution to the company.

A significant advantage of team-based pay-for-performance plans is that they eliminate the social pressure to limit performance.

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Managing Compensation

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters

Exam 11: Rewarding Performance

________ are noncash incentives given to a firm's executives.

Approximately ________ of companies reward their executives with short-term year-end bonuses.

A survey of 1,400 employers showed that ________ of them factor customer satisfaction into their calculation of incentive payments to employees.

All of the following are disadvantages associated with team-based pay-for-performance plans EXCEPT:

Bowen Productions wants to increase the flexibility of its workforce while increasing productivity and cooperation.Bowen would be best served by a(n):

Pay-for-performance plans are more likely to succeed when:

When seeking to increase employee involvement in rewarding performance,it is important to allow them some control in the dispensation of the rewards.

Long-term incentive plans are linked very closely with executive performance.

Plantwide pay-for-performance plans are built on the assumption that:

The experience of Century Telephone Company clearly showed that pay-for-performance programs may promote:

Which of the following is an advantage of individual-based pay-for-performance plans?

The "do only what you get paid for" syndrome is a potential problem tied to which of the following conditions?

Profit sharing is one type of:

What is the difference between a straight commission and a straight salary system? What are the benefits of each? How can a firm ensure that a sales team does not overlook customer satisfaction for high sales volume?

________ permit the executive to buy stock at,or below,cost during a limited time.

Profit-sharing and ESOP-type compensation plans feature some significant drawbacks,such as:

Kari is the VP of a mid-sized plant.Employees are able to see how their work affects the plant's performance.The corporation is relatively flat and the market for the product is quite stable.Which of the following would be the best choice of a pay-for-performance plan?

One advantage of pay-for-performance compensation systems is the relative ease of accurately assessing an employee's actual contribution to the company.

A significant advantage of team-based pay-for-performance plans is that they eliminate the social pressure to limit performance.

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Managing Compensation

Designing and Administering Benefits

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters