Question 1

If a sales manager wants his sales professionals to service the product and spend time with customers,then a straight salary compensation plan is best.

Accepted Answer

A) True 
 B)False

Question 2

Additional Case 11.2 
Richland Manufacturing uses an individual-based pay-for-performance plan for employees.

Manager input in the form of performance evaluations primarily determines individual employee rewards. Performance appraisals at Richland are used for multiple purposes including compensation, training, and work planning. Since implementing the plan, many managers have noticed that employees tend to play it safe by setting modest rather than challenging goals for themselves. Employees have also been avoiding important tasks, such as satisfying the needs of customers and keeping work areas neat. In addition, most employees express disbelief that pay and performance are actually linked. As a result, Richland is considering making modifications to the system.

The HR Director wants a system that will reward all employees based on the entire company's performance because he wants to increase employee commitment. The VP of Operations wants to reward specific productivity and quality improvements with a simply structured system that considers labor costs as well as other production expenses. The VP of Operations also believes that labor and management should work together to allocate the rewards.

-Refer to Additional Case 11.1.Sussex executives have decided to change the firm's pay-for-performance plan to one that is plantwide.Which of the following characteristics of Sussex,if true,best supports this decision?

Accepted Answer

A)  Sussex is a midsize firm in a stable product market. 
B)  Sussex is a large, global firm in a cyclical product market. 
C)  Most employee contributions at Sussex can be clearly isolated. 
D)  Sussex managers want to encourage innovation within work groups. 
A)  Sussex is a midsize firm in a stable product market. 
B)  Sussex is a large, global firm in a cyclical product market. 
C)  Most employee contributions at Sussex can be clearly isolated. 
D)  Sussex managers want to encourage innovation within work groups.

Question 3

What is the main requirement for the successful implementation of a piece-rate plan?

Accepted Answer

A)  Training managers on the employee's work process. 
B)  Limiting labor union influences and regulations. 
C)  Giving employees control of work pace and quality. 
D)  Outsourcing most tasks to overseas organizations. 
A)  Training managers on the employee's work process. 
B)  Limiting labor union influences and regulations. 
C)  Giving employees control of work pace and quality. 
D)  Outsourcing most tasks to overseas organizations.

Question 4

In most firms,pay-for-performance compensation systems experience a credibility gap among approximately ________ of employees.

Accepted Answer

A)  15% 
B)  25% 
C)  50% 
D)  75% 
A)  15% 
B)  25% 
C)  50% 
D)  75%

Question 5

Camara and Jose always ask the professor in their American Government class exactly what will be on the next exam.They ask this question so that they can study for no more than they absolutely must.This is an example of:

Accepted Answer

A)  the negative effects of pay-for-performance on the spirit of cooperation. 
B)  the "do only what you get paid for" syndrome. 
C)  negative psychological contracts. 
D)  an increase of intrinsic drives. 
A)  the negative effects of pay-for-performance on the spirit of cooperation. 
B)  the "do only what you get paid for" syndrome. 
C)  negative psychological contracts. 
D)  an increase of intrinsic drives.

Question 6

Benson Marketing is a small firm with fewer than 100 employees.The CEO wants to implement a pay-for-performance system.The CEO wants the plan to motivate employees,attract top workers,and reduce fixed costs.Which of the following would be most appropriate for Benson?

Accepted Answer

A)  Straight-commission 
B)  Profit sharing 
C)  Gainsharing 
D)  Merit pay 
A)  Straight-commission 
B)  Profit sharing 
C)  Gainsharing 
D)  Merit pay

Question 7

Gainsharing can significantly improve productivity,but at the same time decrease production quality,as employees strive to produce more at the expense of quality.

Accepted Answer

A) True 
 B)False

Question 8

What is the primary concern about physicians receiving incentives from pharmaceutical firms and state governments?

Accepted Answer

A)  Doctors and nurses lacking time to see the most needy patients. 
B)  Doctors placing financial gain ahead of patient care. 
C)  Private health insurance becoming unaffordable. 
D)  Medicare and Medicaid running out of money. 
A)  Doctors and nurses lacking time to see the most needy patients. 
B)  Doctors placing financial gain ahead of patient care. 
C)  Private health insurance becoming unaffordable. 
D)  Medicare and Medicaid running out of money.

Question 9

Which of the following is the most likely problem of using team-based pay-for-performance plans?

Accepted Answer

A)  Employees' retirement funds are put at risk. 
B)  Group cohesiveness is severely limited. 
C)  Intergroup competition causes a performance decline. 
D)  Managers have difficulty appraising group performance. 
A)  Employees' retirement funds are put at risk. 
B)  Group cohesiveness is severely limited. 
C)  Intergroup competition causes a performance decline. 
D)  Managers have difficulty appraising group performance.

Question 10

Marianne is binding biology notes at a university bookstore.She is paid based upon the number of note packs she binds in a day.Marianne is compensated on a:

Accepted Answer

A)  gainsharing system 
B)  bonus reward system. 
C)  merit pay system. 
D)  piece-rate system. 
A)  gainsharing system 
B)  bonus reward system. 
C)  merit pay system. 
D)  piece-rate system.

Question 11

A firm that wants a gainsharing program that is easy to administer and communicate,and based on an agreed-on level of output should most likely use a(n)________ plan.

Accepted Answer

A)  Improshare 
B)  Rucker 
C)  Scanlon 
D)  McGregor 
A)  Improshare 
B)  Rucker 
C)  Scanlon 
D)  McGregor

Question 12

When implementing pay-for-performance,it is best to provide a single type of incentive.This leads to less confusion and better results.

Accepted Answer

A) True 
 B)False

Question 13

Perry wants employees with unique skills and backgrounds to be able to tackle common projects.Flexibility in work assignments is also very important to his firm.Perry's best choice of an incentive program,based on these factors,would be 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 14

Corey is the president of a large corporation whose plants are very interdependent.Her corporation is vulnerable to cyclical ups and downs in product demand.Which of the following would be the best pay-for-performance plan for her corporation?

Accepted Answer

A)  Scanlon plan 
B)  Rucker plan 
C)  ESOP program 
D)  Merit pay plan 
A)  Scanlon plan 
B)  Rucker plan 
C)  ESOP program 
D)  Merit pay plan

Question 15

In general,perquisites are:

Accepted Answer

A)  part of team-based pay-for-performance plans. 
B)  offered to top-performing employees at all levels. 
C)  nonmonetary incentives awarded to executives. 
D)  are not well received by most executives. 
A)  part of team-based pay-for-performance plans. 
B)  offered to top-performing employees at all levels. 
C)  nonmonetary incentives awarded to executives. 
D)  are not well received by most executives.

Question 16

Piece-rate pay-for-performance would most likely work well with:

Accepted Answer

A)  secretaries who also fill in as receptionists paid for the amount of correspondence they type each day. 
B)  police officers paid for the number of arrests they make for drunk driving during a single month. 
C)  school teachers paid on the basis of the number of students who have passed standardized tests. 
D)  sewing machine operators paid for the number of pairs of pants they sew in a given work day. 
A)  secretaries who also fill in as receptionists paid for the amount of correspondence they type each day. 
B)  police officers paid for the number of arrests they make for drunk driving during a single month. 
C)  school teachers paid on the basis of the number of students who have passed standardized tests. 
D)  sewing machine operators paid for the number of pairs of pants they sew in a given work day.

Question 17

Unlike individual-based incentive plans,gainsharing:

Accepted Answer

A)  accepts people's intrinsic motivations. 
B)  often leads to decreases in productivity. 
C)  accepts that people are externally motivated. 
D)  supports the idea that pay incentives motivate production. 
A)  accepts people's intrinsic motivations. 
B)  often leads to decreases in productivity. 
C)  accepts that people are externally motivated. 
D)  supports the idea that pay incentives motivate production.

Question 18

Additional Case 11.1
The HR department at Sussex Enterprises has been asked to evaluate the effectiveness of the firm's team-based incentive plan. Managers at the firm report a decline in worker performance, an increase in interpersonal conflicts, and an increase in complaints about free riding team members. In addition, the manufacturing group has been accused of producing more units than the marketing group can sell. HR at Sussex needs to determine if the current incentive plan is appropriate or should be replaced.
-Refer to Additional Case 11.1.Which of the following would be the best way to minimize free-riding at Sussex?

Accepted Answer

A)  Making adjustments to the performance appraisal system 
B)  Requiring all team members to attend training sessions 
C)  Basing a portion of incentive payments on peer reviews 
D)  Increasing opportunities for intergroup competition 
A)  Making adjustments to the performance appraisal system 
B)  Requiring all team members to attend training sessions 
C)  Basing a portion of incentive payments on peer reviews 
D)  Increasing opportunities for intergroup competition

Question 19

Most companies use a ________ when setting up their sales compensation plan.

Accepted Answer

A)  straight commission plan 
B)  combination plan 
C)  straight salary plan 
D)  gainsharing plan 
A)  straight commission plan 
B)  combination plan 
C)  straight salary plan 
D)  gainsharing plan

Question 20

Blair and Jose always ask the professor in their American Government class exactly what will be on the next exam.They ask this question so that they can study for no more than they absolutely must.This is an example of the "do only what you get paid for" syndrome.

Accepted Answer

A) True 
 B)False

If a sales manager wants his sales professionals to service the product and spend time with customers,then a straight salary compensation plan is best.

What is the main requirement for the successful implementation of a piece-rate plan?

In most firms,pay-for-performance compensation systems experience a credibility gap among approximately ________ of employees.

Camara and Jose always ask the professor in their American Government class exactly what will be on the next exam.They ask this question so that they can study for no more than they absolutely must.This is an example of:

Benson Marketing is a small firm with fewer than 100 employees.The CEO wants to implement a pay-for-performance system.The CEO wants the plan to motivate employees,attract top workers,and reduce fixed costs.Which of the following would be most appropriate for Benson?

Gainsharing can significantly improve productivity,but at the same time decrease production quality,as employees strive to produce more at the expense of quality.

What is the primary concern about physicians receiving incentives from pharmaceutical firms and state governments?

Which of the following is the most likely problem of using team-based pay-for-performance plans?

Marianne is binding biology notes at a university bookstore.She is paid based upon the number of note packs she binds in a day.Marianne is compensated on a:

A firm that wants a gainsharing program that is easy to administer and communicate,and based on an agreed-on level of output should most likely use a(n)________ plan.

When implementing pay-for-performance,it is best to provide a single type of incentive.This leads to less confusion and better results.

Perry wants employees with unique skills and backgrounds to be able to tackle common projects.Flexibility in work assignments is also very important to his firm.Perry's best choice of an incentive program,based on these factors,would be a(n):

Corey is the president of a large corporation whose plants are very interdependent.Her corporation is vulnerable to cyclical ups and downs in product demand.Which of the following would be the best pay-for-performance plan for her corporation?

In general,perquisites are:

Piece-rate pay-for-performance would most likely work well with:

Unlike individual-based incentive plans,gainsharing:

Most companies use a ________ when setting up their sales compensation plan.

Blair and Jose always ask the professor in their American Government class exactly what will be on the next exam.They ask this question so that they can study for no more than they absolutely must.This is an example of the "do only what you get paid for" syndrome.

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

If a sales manager wants his sales professionals to service the product and spend time with customers,then a straight salary compensation plan is best.

What is the main requirement for the successful implementation of a piece-rate plan?

In most firms,pay-for-performance compensation systems experience a credibility gap among approximately ________ of employees.

Camara and Jose always ask the professor in their American Government class exactly what will be on the next exam.They ask this question so that they can study for no more than they absolutely must.This is an example of:

Benson Marketing is a small firm with fewer than 100 employees.The CEO wants to implement a pay-for-performance system.The CEO wants the plan to motivate employees,attract top workers,and reduce fixed costs.Which of the following would be most appropriate for Benson?

Gainsharing can significantly improve productivity,but at the same time decrease production quality,as employees strive to produce more at the expense of quality.

What is the primary concern about physicians receiving incentives from pharmaceutical firms and state governments?

Which of the following is the most likely problem of using team-based pay-for-performance plans?

Marianne is binding biology notes at a university bookstore.She is paid based upon the number of note packs she binds in a day.Marianne is compensated on a:

A firm that wants a gainsharing program that is easy to administer and communicate,and based on an agreed-on level of output should most likely use a(n)________ plan.

When implementing pay-for-performance,it is best to provide a single type of incentive.This leads to less confusion and better results.

Perry wants employees with unique skills and backgrounds to be able to tackle common projects.Flexibility in work assignments is also very important to his firm.Perry's best choice of an incentive program,based on these factors,would be a(n):

Corey is the president of a large corporation whose plants are very interdependent.Her corporation is vulnerable to cyclical ups and downs in product demand.Which of the following would be the best pay-for-performance plan for her corporation?

In general,perquisites are:

Piece-rate pay-for-performance would most likely work well with:

Unlike individual-based incentive plans,gainsharing:

Most companies use a ________ when setting up their sales compensation plan.

Blair and Jose always ask the professor in their American Government class exactly what will be on the next exam.They ask this question so that they can study for no more than they absolutely must.This is an example of the "do only what you get paid for" syndrome.

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