Question 1

Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

Accepted Answer

A)   gainsharing
B)   standard hour
C)   bonus
D)   commission
E)   piece rate payF) A) and B)
G) B) and C)

Question 2

In order to control compensation costs,administrators of merit pay programs must closely monitor the compa-ratio and the:

Accepted Answer

A)   number of pay grades in the pay structure.
B)   an individual's performance ratings.
C)   number of new hires in the company.
D)   company's stock price in the financial year.
E)   average pay of the area where the organization is functioning.F) A) and D)
G) None of the above

Question 3

The balanced-scorecard approach is not particularly useful in designing executive pay.

Accepted Answer

A) True 
 B)False

Question 4

Gainsharing addresses the challenge of identifying appropriate performance measures for complex jobs.

Accepted Answer

A) True 
 B)False

Question 5

An employee who produces 10 components in an hour earns $9 ($.90 X 10) per hour,while an employee who produces 15 components earns $13.50 ($.90 x 15) .This is an example of a:

Accepted Answer

A)   commission plan.
B)   differential piece rate plan.
C)   direct commission plan.
D)   profit sharing plan.
E)   straight piecework plan.F) B) and C)
G) A) and E)

Question 6

Group bonuses typically reward the performance of all employees in an organization.

Accepted Answer

A) True 
 B)False

Question 7

Team awards differ from group bonuses in that they:

Accepted Answer

A)   are typically plant-wide group incentive programs.
B)   make payments in company stock rather than in cash.
C)   are more likely to use a broad range of performance measures.
D)   encourage competition among individual employees to achieve higher bonus.
E)   give more importance to organizational performance than small groups' performance.F) A) and C)
G) C) and D)

Question 8

The _____ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

Accepted Answer

A)   National Credit Union Administration
B)   Financial Industry Regulatory Authority
C)   Commodity Futures Trading Commission
D)   The Securities and Exchange Commission
E)   Omnibus Budget Reconciliation ActF) A) and E)
G) B) and D)

Question 9

Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes.

Accepted Answer

A) True 
 B)False

Question 10

Martin owns and manages a small auto-parts shop.He determines the time required to complete each task in his shop.When an employee completes the repair in less time,he/she receives an amount of pay equal to the rate determined by Martin for .Martin is using a:

Accepted Answer

A)   standard hour plan.
B)   differential piecework plan.
C)   merit pay plan.
D)   straight piecework plan.
E)   Scanlon plan.F) A) and C)
G) D) and E)

Question 11

Incentive pay for executives lays the groundwork for significant ethical issues.

Accepted Answer

A) True 
 B)False

Question 12

An organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.This incentive plan is referred to as:

Accepted Answer

A)   group bonus.
B)   merit pay plan.
C)   Scanlon plan.
D)   piecework rate.
E)   team award.F) D) and E)
G) B) and D)

Question 13

Which of the following is a long-term incentive?

Accepted Answer

A)   Commission
B)   Group bonus
C)   Merit pay
D)   Stock option
E)   Piece rateF) B) and D)
G) A) and B)

Question 14

By law,what is the minimum percentage of assets that an ESOP must invest in its company's stock?

Accepted Answer

A)   10
B)   26
C)   51
D)   60
E)   76F) C) and D)
G) B) and C)

Question 15

ESOP does not give employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Accepted Answer

A) True 
 B)False

Question 16

Successful gainsharing plans include employee stock ownership plans.

Accepted Answer

A) True 
 B)False

Question 17

What are the different types of incentive pay? How should organizations choose the right type of incentive pay?

Accepted Answer

The many kinds of incentive pay fall int...

Question 18

Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following incentive plans would enable its employees to think like owners,taking a broad view of what they need to do in order to make the organization more effective?

Accepted Answer

A)   Merit pay
B)   Gain sharing
C)   Scanlon plan
D)   Performance bonuses
E)   Profit sharingF) A) and B)
G) A) and C)

Question 20

Which of the following types of incentive pay plans are used to reward individual performance?

Accepted Answer

A)   Gainsharing
B)   Merit pay
C)   Scanlon plan
D)   Profit sharing
E)   Stock ownershipF) None of the above
G) A) and D)

Exam 12: Recognizing Employee Contributions With Pay

Which of the following incentive plans would enable its employees to think like owners,taking a broad view of what they need to do in order to make the organization more effective?

Correct AnswerverifiedShow Answer

Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program.

Correct AnswerverifiedShow Answer

Martin owns and manages a small auto-parts shop.He determines the time required to complete each task in his shop.When an employee completes the repair in less time,he/she receives an amount of pay equal to the rate determined by Martin for .Martin is using a:

Correct AnswerverifiedShow Answer

What are the different types of incentive pay? How should organizations choose the right type of incentive pay?

Correct AnswerverifiedThe many kinds of incentive pay fall int...View AnswerShow Answer

An employee who produces 10 components in an hour earns $9 ($.90 X 10) per hour,while an employee who produces 15 components earns $13.50 ($.90 x 15) .This is an example of a:

Correct AnswerverifiedShow Answer

Team awards differ from group bonuses in that they:

Correct AnswerverifiedShow Answer

In order to control compensation costs,administrators of merit pay programs must closely monitor the compa-ratio and the:

Correct AnswerverifiedShow Answer

Group bonuses typically reward the performance of all employees in an organization.

Correct AnswerverifiedShow Answer

Which of the following types of incentive pay plans are used to reward individual performance?

Correct AnswerverifiedShow Answer

Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes.

Correct AnswerverifiedShow Answer

Gainsharing addresses the challenge of identifying appropriate performance measures for complex jobs.

Correct AnswerverifiedShow Answer

The balanced-scorecard approach is not particularly useful in designing executive pay.

Correct AnswerverifiedShow Answer

Incentive pay for executives lays the groundwork for significant ethical issues.

Correct AnswerverifiedShow Answer

Stock options are best suited to motivate day-to-day effort or to attract and retain top individual performers.

Correct AnswerverifiedShow Answer

The _____ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

Correct AnswerverifiedShow Answer

Which of the following is a long-term incentive?

Correct AnswerverifiedShow Answer

Successful gainsharing plans include employee stock ownership plans.

Correct AnswerverifiedShow Answer

ESOP does not give employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Correct AnswerverifiedShow Answer

An organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.This incentive plan is referred to as:

Correct AnswerverifiedShow Answer

By law,what is the minimum percentage of assets that an ESOP must invest in its company's stock?

Correct AnswerverifiedShow Answer

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The many kinds of incentive pay fall int...
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