Question 1

The firm for which Rob works offers employees counseling services,a credit union,and a physical fitness facility,which are all considered personal service benefits.

Accepted Answer

A) True 
 B)False  True

Question 2

A(n)________ plan is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings shared among employees and the company.

Accepted Answer

A)  stock gain plan
B)  merit pay plan
C)  gainsharing
D)  ESOP C

Question 3

Athena,a sales representative,was terminated from her position at Ross Manufacturing.On Athena's last day of work,she was given a check for $5,000.What did Athena most likely receive from Ross Manufacturing?

Accepted Answer

A)  disability pay
B)  annual bonus
C)  severance pay
D)  unemployment insurance C

Question 4

Which of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance?

Accepted Answer

A)  merit pay
B)  variable pay
C)  competency-based pay
D)  incentive pay

Question 5

What is the primary disadvantage of using the straight salary approach to pay salespeople?

Accepted Answer

A)  relying on annual profits
B)  discouraging staff loyalty
C)  preventing territory changes
D)  failing to link effort with reward

Question 6

All of the following are examples of organization-wide incentive plans EXCEPT ________.

Accepted Answer

A)  employee stock ownership plans
B)  gainsharing plans
C)  golden parachute
D)  profit sharing

Question 7

Ryobi is a large,international power tool manufacturer that develops affordable,high-quality products such as drills,circular saws,and routers for both homeowners and craftspeople.As the company continues to grow,its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective.Currently,the firm provides merit raises based on performance appraisals;however,executives are considering changing the current incentive plan. Which of the following,if true,undermines the argument that Ryobi should discontinue all merit raises?

Accepted Answer

A)  Ryobi managers have noticed significant productivity improvements among employees who receive merit raises.
B)  Ryobi managers have not received significant training about conducting performance appraisals.
C)  Ryobi's top competitor is considered a high-performance work system within the industry.
D)  Ryobi employees have expressed that they would prefer stock options to merit raises.

Question 8

Which gainsharing plan involves employees working on a guaranteed piecework basis?

Accepted Answer

A)  current profit-sharing
B)  deferred profit-sharing
C)  Lincoln incentive system
D)  earnings-at-risk pay plan

Question 9

A 401(k)plan is best described as a ________.

Accepted Answer

A)  defined contribution pension plan
B)  defined benefit pension plan
C)  health savings account
D)  golden parachute

Question 10

Which of the following benefits is required by federal or state law?

Accepted Answer

A)  disability insurance
B)  workers' compensation
C)  paid time off
D)  pensions

Question 11

Every month,Angela,a manager at a manufacturing facility,meets briefly with each of her subordinates and shows them a graph of their productivity on the assembly line.Which term best describes Angela's activity?

Accepted Answer

A)  exit interview
B)  social recognition
C)  performance feedback
D)  performance appraisal

Question 12

Why do some companies use employee leasing firms?

Accepted Answer

A)  Large companies experience shifts in employee demand.
B)  Small businesses are able to obtain affordable health insurance.
C)  Businesses save on health care costs by hiring independent contractors.
D)  Companies reduce unemployment insurance premiums by outsourcing.

Question 13

Which of the following is NOT a true statement about the Family and Medical Leave Act?

Accepted Answer

A)  The law applies to all public and private employers regardless of size.
B)  Eligible employees have worked for the employer for at least one year.
C)  Leave may be taken for personal illness or the birth of a child.
D)  Eligible employees must be granted up to 12 weeks of leave.

Question 14

What type of profit-sharing plan involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals?

Accepted Answer

A)  current profit-sharing
B)  Lincoln incentive system
C)  Jefferson incentive system
D)  employee stock ownership plan

Question 15

In a brief essay,describe the three classifications that apply to basic pension plans.

Accepted Answer

The answer of In a brief essay,describe the three classifications...

Question 16

Which incentive plan is based on a philosophy that managers and employees must cooperate together?

Accepted Answer

A)  cash plan
B)  gainsharing plan
C)  deferred profit-sharing plan
D)  employee stock ownership plan

Question 17

Which of the following is the primary benefit of employee stock ownership plans?

Accepted Answer

A)  Employees have voting rights in firm decisions.
B)  Firms pay distribution taxes for employees prior to retirement.
C)  Firms may borrow against employee stock held in trust.
D)  Employees are able to diversify their investments.

Question 18

Which of the following is the most commonly used tool for motivating employees?

Accepted Answer

A)  merchandise incentives
B)  recognition programs
C)  special events
D)  variable pay

Question 19

An executive who receives a ________ stock receives units instead of shares of company stock.The units will be equated to cash in the future if appreciation occurs.

Accepted Answer

A)  phantom
B)  restricted
C)  premium
D)  nonqualified

Question 20

Health insurance,life insurance,pensions,and child care assistance are best categorized as ________.

Accepted Answer

A)  compensation
B)  incentives
C)  benefits
D)  rewards

Exam 11: Pay for Performance and Employee Benefits