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) B) and D)
G) C) and D)

Question 2

Token Inc.is an envelope manufacturer based in Dallas.The employees of the organization receive incentive pay based on the amount of work produced.If the output of an employee is more than the average production volume,then the organization pays an incentive in addition to wages and salaries.In this case,which of the following incentives is offered by Token Inc.?

Accepted Answer

A)   Piecework rate
B)   Minimum wage
C)   Employee labor
D)   Training stipend
E)   Group bonusF) C) and D)
G) All of the above

Question 3

Which of the following is an advantage of the merit pay incentive system?

Accepted Answer

A)   It makes the reward more valuable by relating it to economic conditions.
B)   It promotes group performance instead of promoting individual behavior.
C)   It provides merit increases to employees solely on the basis of performance.
D)   It is the most economical incentive system for the employers.
E)   It provides a direct link between the work done by the employee and the amount earned.F) A) and B)
G) A) and E)

Question 4

What is the drawback of stock ownership as a form of incentive pay?

Accepted Answer

A)   Financial benefits mostly come when the employee leaves the organization.
B)   Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer.
C)   It causes the employers to lose control over their employees.
D)   The employees will not benefit even if the organization is performing well.
E)   Stock options do not provide any ownership to employees, instead it offers an equivalent sum.F) A) and B)
G) All of the above

Question 5

What are the advantages and disadvantages of a merit pay system?

Accepted Answer

Almost all organizations have establishe...

Question 6

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Accepted Answer

A) True 
 B)False

Question 7

An employee at CellWorks who produces 10 components in an hour earns $9 ($.90 × 10) per hour,while another employee who produces 15 components earns $13.50 ($.90 × 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) A) and E)
G) A) and C)

Question 8

Under incentive pay,piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

Accepted Answer

A) True 
 B)False

Question 9

What is balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

Accepted Answer

The balanced scorecard is a combination ...

Question 10

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would be a reason for organizations to implement profit sharing?

Accepted Answer

A)   It has been established that profit sharing helps organizations perform better.
B)   It makes employees feel that they have control over the company's profits.
C)   It costs less when the organization is experiencing financial difficulties.
D)   It helps employees find a direct relation between their performance and gain.
E)   It motivates employees more than individual incentives.F) C) and E)
G) A) and C)

Question 12

Electrix Inc.is an electrical appliances manufacturing company.It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf.Which of the following has been implemented by Electrix in this scenario?

Accepted Answer

A)   Scanlon plan
B)   Balanced scorecard
C)   Piecework stock plan
D)   Employee stock ownership plan
E)   Differential piece stock planF) C) and D)
G) B) and C)

Question 13

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

Accepted Answer

A) True 
 B)False

Question 14

Jennifer believes that the challenge of identifying appropriate performance measures for complex jobs can be resolved by implementing a gainsharing plan.Natalie argues that it is a poor incentive program in an organization that wants to encourage teamwork.Which of the following statements weakens Natalie's argument?

Accepted Answer

A)   It oversimplifies the responsibilities involved in teamwork and motivates employees to work hard.
B)   It creates a competitive environment among the employees working in a team.
C)   It offers less incentives because the incentives are distributed equally among team members.
D)   It encourages employees to learn new skills from other team members.
E)   It encourages teams to take pay-related decisions.F) A) and E)
G) All of the above

Question 15

In a company's merit pay program,individuals' compa-ratio represents their:

Accepted Answer

A)   pay relative to performance of other workers in the industry.
B)   pay relative to average pay.
C)   comparable worth versus others.
D)   ratio of pay to benefits.
E)   the average worth of the skills possessed by the individual.F) A) and D)
G) B) and D)

Question 16

Maria,an employee of a finance company,believes that purchasing the company's stock will always be profitable regardless of the stock's market value.She feels that stock options are long-term incentive plans that make employees part owners of the organization.Which of the following statements contradicts Maria's belief?

Accepted Answer

A)   Stock options are not profitable to employees.
B)   A large percentage of top and middle managers avoid stock options.
C)   A company does not allow its employees to purchase its own stock.
D)   Offering stock options discourages employees from thinking like owners.
E)   Stock prices in the market may fall below their purchased value.F) B) and E)
G) A) and B)

Question 17

How does allowing employees to participate in pay-related decisions affect the incentive process?

Accepted Answer

Employee participation in pay-related de...

Question 18

The link between employees' performance and pay is harder to establish in:

Accepted Answer

A)   piece rate plans.
B)   merit pay plans.
C)   standard hour plans.
D)   stock ownership plans.
E)   Scanlon plans.F) A) and C)
G) B) and D)

Question 19

Vactin Motors,an automobile company,ties individual performance,profits,and other measures of employees' success to a particular form of pay.This form of pay is influential because the amount paid is linked to certain predefined behaviors or outcomes.Which of the following is exemplified in this scenario?

Accepted Answer

A)   Minimum wage
B)   Overtime pay
C)   Incentive pay
D)   Piecework rates
E)   Bonus paymentF) B) and C)
G) A) and E)

Question 20

What are the implications of designing pay for organizational performance?

Accepted Answer

Many organizations offer incentive pay t...

Exam 13: Recognizing Employee Contributions With Pay

Under incentive pay,piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

Correct Answer
verified

Correct Answer
verified

What are the implications of designing pay for organizational performance?

Correct Answer
verified
Many organizations offer incentive pay t...
View Answer

Which of the following would be a reason for organizations to implement profit sharing?

Correct Answer
verified

What are the advantages and disadvantages of a merit pay system?

Correct Answer
verified
Almost all organizations have establishe...
View Answer

Correct Answer
verified

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

Correct Answer
verified

How does allowing employees to participate in pay-related decisions affect the incentive process?

Correct Answer
verified
Employee participation in pay-related de...
View Answer

Correct Answer
verified

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Correct Answer
verified

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

Correct Answer
verified

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

Correct Answer
verified

Correct Answer
verified

Which of the following is an advantage of the merit pay incentive system?

Correct Answer
verified

What is the drawback of stock ownership as a form of incentive pay?

Correct Answer
verified

The link between employees' performance and pay is harder to establish in:

Correct Answer
verified

Electrix Inc.is an electrical appliances manufacturing company.It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf.Which of the following has been implemented by Electrix in this scenario?

Correct Answer
verified

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals.

Correct Answer
verified

In a company's merit pay program,individuals' compa-ratio represents their:

Correct Answer
verified

What is balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

Correct Answer
verified
The balanced scorecard is a combination ...
View Answer

Exam 13: Recognizing Employee Contributions With Pay

Under incentive pay,piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What are the implications of designing pay for organizational performance?

Correct AnswerverifiedMany organizations offer incentive pay t...View AnswerShow Answer

Which of the following would be a reason for organizations to implement profit sharing?

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages of a merit pay system?

Correct AnswerverifiedAlmost all organizations have establishe...View AnswerShow Answer

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

How does allowing employees to participate in pay-related decisions affect the incentive process?

Correct AnswerverifiedEmployee participation in pay-related de...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an advantage of the merit pay incentive system?

Correct AnswerverifiedShow Answer

What is the drawback of stock ownership as a form of incentive pay?

Correct AnswerverifiedShow Answer

The link between employees' performance and pay is harder to establish in:

Correct AnswerverifiedShow Answer

Electrix Inc.is an electrical appliances manufacturing company.It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf.Which of the following has been implemented by Electrix in this scenario?

Correct AnswerverifiedShow Answer

The balanced scorecard helps employees understand the organization's goals and how they can contribute to these goals.

Correct AnswerverifiedShow Answer

In a company's merit pay program,individuals' compa-ratio represents their:

Correct AnswerverifiedShow Answer

What is balanced scorecard? What is its purpose? What are the advantages of using a balanced scorecard?

Correct AnswerverifiedThe balanced scorecard is a combination ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Many organizations offer incentive pay t...
View Answer

Correct Answer
verified

Correct Answer
verified
Almost all organizations have establishe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Employee participation in pay-related de...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The balanced scorecard is a combination ...
View Answer