Question 1

Which of the following is a drawback of a standard hour plan?

Accepted Answer

A)   It does not focus on quality or customer service.
B)   It escalates costs for an employer in the long term.
C)   It is applicable only in team-based work environments.
D)   It helps employees work at a comfortable pace.
E)   It does not pay workers extra for work done in less than the standard time.F) None of the above
G) A) and E)

Question 2

An organization should keep information,such as changes made to its incentive plan,confidential from its employees.

Accepted Answer

A) True 
 B)False

Question 3

What are group bonuses and team awards? What are their advantages and disadvantages?

Accepted Answer

Bonuses for group performance tend to be...

Question 4

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

Accepted Answer

A)   commission
B)   the Scanlon plan
C)   merit pay
D)   gain sharing
E)   profit sharingF) A) and C)
G) A) and D)

Question 5

Retention bonuses refer to:

Accepted Answer

A)   the special reward programs used to satisfy the lower and middle-level managers.
B)   the bonuses provided to union members to withhold a strike.
C)   the bonuses provided to employees who take long leaves without pay.
D)   annual incentives paid to daily wage workers to remain in the organization.
E)   one-time incentives paid in exchange for remaining with the company.F) A) and E)
G) B) and D)

Question 6

In the context of stock options,_____ is called exercising the option.

Accepted Answer

A)   purchasing stock
B)   selling stock
C)   retaining stock
D)   distributing stock
E)   liquidating stockF) B) and C)
G) All of the above

Question 7

Gerald,the CEO of Logiworks,decides to scrap the current individual incentive pay scheme for a group incentive structure in an effort to increase the overall benefit to the organization.Which of the following statements,if true,would weaken his decision?

Accepted Answer

A)   Most of the employees had exercised their stock options before this change.
B)   The employees were unaware of the impact of their actions on the company's finances.
C)   The move was a response to problems that arose out of a poorly constructed bonus plan.
D)   The organization was divided into departments whose managers were rewarded as one group.
E)   The employees in the company are required to work in teams in order to accomplish their goals.F) A) and D)
G) A) and B)

Question 8

Which of the following statements is true about a balanced scorecard?

Accepted Answer

A)   It encourages employees to compete at the expense of cooperating to achieve organizational goals.
B)   It allows employees to buy their company when it is experiencing financial problems.
C)   It combines the advantages of different incentive pay plans and helps employees understand the organization's goals.
D)   It increases cooperation but does little to motivate day-to-day effort or to attract and retain top individual performers.
E)   It is the only measure used by top management to measure the performance of HR professionals and managers.F) A) and D)
G) A) and B)

Question 9

A pay structure specifically designed to energize,direct,or control employees' behavior is known as:

Accepted Answer

A)   monthly salary.
B)   wage.
C)   incentive pay.
D)   annual salary.
E)   fixed pay.F) C) and D)
G) C) and E)

Question 10

Michael,formerly a model employee at his organization,has recently begun losing interest in his work due to personal and financial issues.He has spoken to his manager about leaving the company,complaining that he hasn't been receiving enough recognition for his work of the last 12 years.In an effort to change Michael's mind,his manager decides to give him a large amount of money as an incentive.In this scenario,Michael's manager is giving him _____.

Accepted Answer

A)   a commission
B)   a retention bonus
C)   stock options
D)   merit pay
E)   an attendance bonusF) A) and B)
G) D) and E)

Question 11

Which of the following is a short-term incentive?

Accepted Answer

A)   Return on investment
B)   Straight salary
C)   Stock options
D)   Stock purchase plans
E)   Company sharesF) B) and E)
G) All of the above

Question 12

The distribution of a portion of a company's earnings to its employees will motivate them to focus more on efficiency and productivity.Which of the following would strengthen this argument?

Accepted Answer

A)   It helps create job opportunities.
B)   It helps avoid competition among employees.
C)   Employees spend long hours working.
D)   Employees avoid taking days off when they are given a share of profit.
E)   Employees consider the organization's goals along with their personal interests.F) B) and D)
G) A) and B)

Question 13

A merit pay incentive system is used to attract employees who are more team-oriented.

Accepted Answer

A) True 
 B)False

Question 14

A feature of an effective incentive pay plan is that it should:

Accepted Answer

A)   have performance measures based on employees' requirements.
B)   not be provided as a direct percentage of employees' performance.
C)   encourage group performance and sideline individual achievements.
D)   be the same for all employees in the organization.
E)   have performance measures linked to the organization's goals.F) B) and D)
G) A) and D)

Question 15

What is the difference between bonuses and team awards?

Accepted Answer

A)   Bonuses are for bigger work groups whereas team awards are for small teams.
B)   Unlike bonuses, team awards encourage cooperation.
C)   Bonuses are usually given to employees who meet deadlines, whereas team awards are given only when the team as a whole meets the targets.
D)   Unlike team awards, bonuses encourage competition among individuals.
E)   Bonuses reward attainment of goals measured in terms of physical output, whereas team awards reward performance in terms of cost savings.F) C) and D)
G) B) and E)

Question 16

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees.The workers produce electrical components worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:

Accepted Answer

A)   $0.5 million.
B)   $1 million.
C)   $1.5 million.
D)   $2 million.
E)   $2.5 million.F) D) and E)
G) A) and B)

Question 17

Harry,the HR manager at Kopi Co.,has been asked to reward good performance.However,the budget allocated for rewards is limited.He therefore decides to offer raises to a few employees and spot bonuses to the remaining employees.Which of the following would further strengthen his decision?

Accepted Answer

A)   The performance appraisals of each employee were performed by two supervisors to avoid bias.
B)   The performance measures used to evaluate employees had been communicated to the employees before the start of the review period.
C)   The spot bonuses have been increased by ten percent from the previous financial year.
D)   The organization had decided to reward teams that worked on new types of projects.
E)   The organization believes that merit pay is for exceptional and not regular work.F) B) and D)
G) All of the above

Question 18

Which of the following best describes profit sharing?

Accepted Answer

A)   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
B)   An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary
C)   A group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees
D)   A combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay
E)   An incentive plan where a percentage of the previous year's profits is provided to the employees as a part of their salaryF) A) and E)
G) None of the above

Question 19

For incentive pay to motivate employees to contribute to the organization's success,the pay plans must be well designed.Which of the following statements would strengthen this argument?

Accepted Answer

A)   Performance measures are to be linked to the individual's goals.
B)   Employees are given unattainable performance standards.
C)   Employees will value the rewards or incentives that are being offered.
D)   Employees are given limited resources to meet their goals.
E)   The pay plan takes into account that employees will accept all goals irrespective of their rewards.F) A) and B)
G) C) and D)

Question 20

Julianna,the HR manager at Hudson Corp.,is facing criticism from the company's high-performing employees for the lack of an effective incentive scheme that rewards them with the necessary pay.The company has avoided paying out incentives in addition to employees' monthly salary in an attempt to minimize costs.But,after the last annual meeting,it has been decided to pay employees an incentive amount based on their performance ratings and their compa-ratio.In this scenario,Julianna would be applying the system of:

Accepted Answer

A)   merit pay.
B)   piecework pay.
C)   standard hour pay.
D)   commission.
E)   attendance bonus.F) B) and C)
G) B) and D)

Exam 13: Recognizing Employee Contributions With Pay

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees.The workers produce electrical components worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:

Correct Answer
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A merit pay incentive system is used to attract employees who are more team-oriented.

Correct Answer
verified

The distribution of a portion of a company's earnings to its employees will motivate them to focus more on efficiency and productivity.Which of the following would strengthen this argument?

Correct Answer
verified

Correct Answer
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Which of the following best describes profit sharing?

Correct Answer
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What is the difference between bonuses and team awards?

Correct Answer
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For incentive pay to motivate employees to contribute to the organization's success,the pay plans must be well designed.Which of the following statements would strengthen this argument?

Correct Answer
verified

Which of the following statements is true about a balanced scorecard?

Correct Answer
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An organization should keep information,such as changes made to its incentive plan,confidential from its employees.

Correct Answer
verified

Which of the following is a drawback of a standard hour plan?

Correct Answer
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Correct Answer
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A pay structure specifically designed to energize,direct,or control employees' behavior is known as:

Correct Answer
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Retention bonuses refer to:

Correct Answer
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In the context of stock options,_____ is called exercising the option.

Correct Answer
verified

What are group bonuses and team awards? What are their advantages and disadvantages?

Correct Answer
verified
Bonuses for group performance tend to be...
View Answer

Gerald,the CEO of Logiworks,decides to scrap the current individual incentive pay scheme for a group incentive structure in an effort to increase the overall benefit to the organization.Which of the following statements,if true,would weaken his decision?

Correct Answer
verified

A feature of an effective incentive pay plan is that it should:

Correct Answer
verified

Harry,the HR manager at Kopi Co.,has been asked to reward good performance.However,the budget allocated for rewards is limited.He therefore decides to offer raises to a few employees and spot bonuses to the remaining employees.Which of the following would further strengthen his decision?

Correct Answer
verified

Which of the following is a short-term incentive?

Correct Answer
verified

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

Correct Answer
verified

Exam 13: Recognizing Employee Contributions With Pay

The Rudd-Mitchell organization uses the Scanlon plan to provide incentives to its employees.The workers produce electrical components worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:

Correct AnswerverifiedShow Answer

A merit pay incentive system is used to attract employees who are more team-oriented.

Correct AnswerverifiedShow Answer

The distribution of a portion of a company's earnings to its employees will motivate them to focus more on efficiency and productivity.Which of the following would strengthen this argument?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following best describes profit sharing?

Correct AnswerverifiedShow Answer

What is the difference between bonuses and team awards?

Correct AnswerverifiedShow Answer

For incentive pay to motivate employees to contribute to the organization's success,the pay plans must be well designed.Which of the following statements would strengthen this argument?

Correct AnswerverifiedShow Answer

Which of the following statements is true about a balanced scorecard?

Correct AnswerverifiedShow Answer

An organization should keep information,such as changes made to its incentive plan,confidential from its employees.

Correct AnswerverifiedShow Answer

Which of the following is a drawback of a standard hour plan?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A pay structure specifically designed to energize,direct,or control employees' behavior is known as:

Correct AnswerverifiedShow Answer

Retention bonuses refer to:

Correct AnswerverifiedShow Answer

In the context of stock options,_____ is called exercising the option.

Correct AnswerverifiedShow Answer

What are group bonuses and team awards? What are their advantages and disadvantages?

Correct AnswerverifiedBonuses for group performance tend to be...View AnswerShow Answer

Gerald,the CEO of Logiworks,decides to scrap the current individual incentive pay scheme for a group incentive structure in an effort to increase the overall benefit to the organization.Which of the following statements,if true,would weaken his decision?

Correct AnswerverifiedShow Answer

A feature of an effective incentive pay plan is that it should:

Correct AnswerverifiedShow Answer

Harry,the HR manager at Kopi Co.,has been asked to reward good performance.However,the budget allocated for rewards is limited.He therefore decides to offer raises to a few employees and spot bonuses to the remaining employees.Which of the following would further strengthen his decision?

Correct AnswerverifiedShow Answer

Which of the following is a short-term incentive?

Correct AnswerverifiedShow Answer

An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as _____.

Correct AnswerverifiedShow Answer

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Bonuses for group performance tend to be...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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