Question 1

What percentage of employers track sales performance using spreadsheets?

Accepted Answer

A) 15% 
B) 35% 
C) 60% 
D) 85%

Question 2

With a standard hour plan, employers do not need to recalculate piece rates when changes are made to the hourly pay rate.

Accepted Answer

A) True 
 B)False

Question 3

In ________, employees agree to put some portion of their normal pay at risk if they don't meet their goals, in return for a much larger bonus if they exceed their goals.

Accepted Answer

A) earnings-at-risk pay plans 
B) gainsharing 
C) the Scanlon plan 
D) team incentive plans

Question 4

Which of the following is NOT a basic tenet of behavior modification?

Accepted Answer

A) Behavior that leads to rewards tends to be repeated. 
B) Properly scheduled rewards can be used to encourage some behaviors. 
C) Properly scheduled punishments can be used to minimize some behaviors. 
D) Employees must understand the link between rewards, punishments, and behavior.

Question 5

In Herzberg's Hygiene-Motivator theory, working conditions are motivator factors, and challenging assignments are hygiene factors.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

Dual-career ladders are effective tools for managing the professional pay of working mothers who desire a work-life balance.

Accepted Answer

A) True 
 B)False

Question 8

Elaine, the HR manager at Western Enterprises, will get stock distributed to her from a trust when she retires. This is known as a(n):

Accepted Answer

A) profit-sharing plan 
B) earnings-at-risk plan 
C) Employee stock ownership plan (ESOP) 
D) gainsharing plan

Question 9

Using a straight salary to compensate salespeople is most likely ineffective because it ________.

Accepted Answer

A) discourages sales flexibility 
B) lacks connection to performance 
C) makes it hard to switch territories 
D) depends on annual corporate profits

Question 10

You are the manager of large used car retailer, and sales are sluggish. What incentive plan would be best for motivating your sales team?

Accepted Answer

The answer of You are the manager of large used...

Question 11

Behavior modification is based on the idea that people will repeat behavior for which they are punished.

Accepted Answer

A) True 
 B)False

Question 12

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 13

What type of pay plan is being used when workers are paid a sum for each unit they produce?

Accepted Answer

A) competency-based pay 
B) job-based pay 
C) piecework 
D) bonus

Question 14

Cash, stock, stock options, stock appreciation rights, and phantom stock are known as "golden handcuffs" because they are long-term incentives for executives.

Accepted Answer

A) True 
 B)False

Question 15

According to Herzberg's Hygiene-Motivator theory, which of the following factors will most likely satisfy employees' higher-level needs?

Accepted Answer

A) base salary 
B) achievement 
C) incentive pay 
D) co-worker relationships

Question 16

According to Herzberg's motivation theory, good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.

Accepted Answer

A) True 
 B)False

Question 17

Behavior modification principles can be useful to managers who seek to change employee behavior through rewards or punishments linked to performance.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Describe what a Scanlon Plan is and its 5 major elements.

Accepted Answer

The answer of Describe what a Scanlon Plan is and...

Question 20

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

Accepted Answer

A) True 
 B)False

Exam 12: Pay for Performance and Financial Incentives

What percentage of employers track sales performance using spreadsheets?

With a standard hour plan, employers do not need to recalculate piece rates when changes are made to the hourly pay rate.

In ________, employees agree to put some portion of their normal pay at risk if they don't meet their goals, in return for a much larger bonus if they exceed their goals.

Which of the following is NOT a basic tenet of behavior modification?

In Herzberg's Hygiene-Motivator theory, working conditions are motivator factors, and challenging assignments are hygiene factors.

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

Dual-career ladders are effective tools for managing the professional pay of working mothers who desire a work-life balance.

Elaine, the HR manager at Western Enterprises, will get stock distributed to her from a trust when she retires. This is known as a(n) :

Using a straight salary to compensate salespeople is most likely ineffective because it ________.

You are the manager of large used car retailer, and sales are sluggish. What incentive plan would be best for motivating your sales team?

Behavior modification is based on the idea that people will repeat behavior for which they are punished.

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.

What type of pay plan is being used when workers are paid a sum for each unit they produce?

Cash, stock, stock options, stock appreciation rights, and phantom stock are known as "golden handcuffs" because they are long-term incentives for executives.

According to Herzberg's Hygiene-Motivator theory, which of the following factors will most likely satisfy employees' higher-level needs?

According to Herzberg's motivation theory, good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.

Behavior modification principles can be useful to managers who seek to change employee behavior through rewards or punishments linked to performance.

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

Describe what a Scanlon Plan is and its 5 major elements.

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.