Question 1

Straight commission plans are attractive to high-performing salespeople.

Accepted Answer

A) True 
 B)False

Question 2

Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.

Accepted Answer

A) True 
 B)False

Question 3

Explain the advantages of employee stock ownership plans.

Accepted Answer

The answer of Explain the advantages of employee stock ownership...

Question 4

How often do most firms tend to compute financial performance measures used in gainsharing plans?

Accepted Answer

A) weekly 
B) monthly 
C) quarterly 
D) annually

Question 5

All of the following are disadvantages associated with piecework plans EXCEPT that workers ________.

Accepted Answer

A) resist attempts to modify production standards 
B) focus on production quantity instead of quality 
C) view the plans as unfair and complicated 
D) dislike new technology or processes

Question 6

With which of the following can an executive NOT profit until the stock makes significant gains?

Accepted Answer

A) indexed options 
B) phantom stock 
C) restricted stock 
D) premium priced options

Question 7

Tyler Oil offers a profit-sharing plan to its employees.Each year,Tyler Oil distributes total annual profits less taxes among employees based on employee merit ratings.Which of the following is most likely used by Tyler Oil?

Accepted Answer

A) cash plan 
B) Lincoln incentive system 
C) deferred profit-sharing plan 
D) employee stock ownership plan

Question 8

All of the following are advantages of team incentive plans EXCEPT that ________.

Accepted Answer

A) jealousy is reduced 
B) wage equity is guaranteed 
C) team planning is reinforced 
D) problem solving is encouraged

Question 9

According to Maslow's theory,a manager will not be able to motivate an employee with challenging tasks if the employee does not make enough money to pay for basic necessities.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following found that extrinsic rewards could detract from an employee's intrinsic motivation ?

Accepted Answer

A) Frederick Taylor 
B) Frederick Herzberg 
C) David McClelland 
D) Edward Deci

Question 11

Studies suggest that team incentive plans enhance productivity because the work load is equally distributed among team members,which fosters cooperation.

Accepted Answer

A) True 
 B)False

Question 12

Herzberg's Hygiene-Motivator theory is based on Maslow's hierarchy of needs.

Accepted Answer

A) True 
 B)False

Question 13

Rebecca's manager wants to acknowledge her outstanding service record for the past quarter.The manager decides to give Rebecca a bonus of $1000 as a reward.According to Edward Deci,which of the following will most likely occur as a result?

Accepted Answer

A) The bonus will encourage Rebecca to work harder than before. 
B) The bonus will detract from Rebecca's inner desire to work hard. 
C) Rebecca's bonus will satisfy her higher-level needs and increase her motivation. 
D) Rebecca will feel inadequate because the bonus fails to address hygiene factors.

Question 14

Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm,which is why the programs are decreasing in popularity.

Accepted Answer

A) True 
 B)False

Question 15

Edward is the new sales manager at Wilson Auto Mart.The previous sales manager set commission rates informally without considering how much each sale covered expenses.As a result,Wilson Auto Mart barely breaks even on each car sale once commissions are paid.Edward wants to motivate his sales force but avoid having excessive commissions. Which of the following,if true,supports the argument that Edward should pay his sales team a combination of salary plus commission?

Accepted Answer

A) Wilson Auto Mart's sales team consists of high-performing, experienced salespeople. 
B) Wilson Auto Mart has successfully implemented a "one price no hassle" pricing program. 
C) Each Wilson Auto Mart sales person is encouraged to sell at least ten vehicles each month. 
D) Wilson Auto Mart salespeople are primarily asked to find new clients and service current accounts.

Question 16

Employees at GameTime Software participate in a gainsharing plan.Employee bonuses are calculated by dividing payroll expenses by total sales.Game Time Software most likely uses which of the following plans?

Accepted Answer

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

Question 17

Which of the following best explains identity in regards to the Scanlon plan?

Accepted Answer

A) philosophy of cooperation among employees 
B) clear articulation of the company mission 
C) high level of competence from all employees 
D) corporate-wide benefits and savings

Question 18

Craig is a line manager at a paper supply company.All of the following are methods that Craig should most likely implement to motivate his subordinates EXCEPT ________.

Accepted Answer

A) recognizing an employee's contribution 
B) encouraging workers to earn overtime pay 
C) gaining agreement on goals with employees 
D) using positive reinforcement on a daily basis

Question 19

The standard hour plan is like the piece rate plan except instead of getting a rate per piece,the employee gets a premium equal to the percent by which his or her performance exceeds the standard.

Accepted Answer

A) True 
 B)False

Question 20

Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement.Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?

Accepted Answer

A) deferred profit-sharing plan 
B) Lincoln incentive system 
C) Jefferson incentive system 
D) gainsharing plan

Exam 12: Pay for Performance and Financial Incentives

Straight commission plans are attractive to high-performing salespeople.

Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.

Explain the advantages of employee stock ownership plans.

How often do most firms tend to compute financial performance measures used in gainsharing plans?

All of the following are disadvantages associated with piecework plans EXCEPT that workers ________.

With which of the following can an executive NOT profit until the stock makes significant gains?

Tyler Oil offers a profit-sharing plan to its employees.Each year,Tyler Oil distributes total annual profits less taxes among employees based on employee merit ratings.Which of the following is most likely used by Tyler Oil?

All of the following are advantages of team incentive plans EXCEPT that ________.

According to Maslow's theory,a manager will not be able to motivate an employee with challenging tasks if the employee does not make enough money to pay for basic necessities.

Which of the following found that extrinsic rewards could detract from an employee's intrinsic motivation ?

Studies suggest that team incentive plans enhance productivity because the work load is equally distributed among team members,which fosters cooperation.

Herzberg's Hygiene-Motivator theory is based on Maslow's hierarchy of needs.

Rebecca's manager wants to acknowledge her outstanding service record for the past quarter.The manager decides to give Rebecca a bonus of $1000 as a reward.According to Edward Deci,which of the following will most likely occur as a result?

Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm,which is why the programs are decreasing in popularity.

Employees at GameTime Software participate in a gainsharing plan.Employee bonuses are calculated by dividing payroll expenses by total sales.Game Time Software most likely uses which of the following plans?

Which of the following best explains identity in regards to the Scanlon plan?

Craig is a line manager at a paper supply company.All of the following are methods that Craig should most likely implement to motivate his subordinates EXCEPT ________.

The standard hour plan is like the piece rate plan except instead of getting a rate per piece,the employee gets a premium equal to the percent by which his or her performance exceeds the standard.

Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement.Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?