Question 1

In larger organizations that have stock ownership plans,the employees may not see a strong link between their actions and the company's stock price.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A)   commissions
B)   the Scanlon plan
C)   merit pay
D)   gainsharing
E)   profit sharing

Question 3

Jeff owns and manages a small electronics repair store.He determines the time required by his employees to complete each task assigned by him.When employees complete the repairs in less time,they receive an amount of pay equal to that time determined by him.In this scenario,Jeff is using a

Accepted Answer

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

Question 4

Developed in the 1930s,the Scanlon plan is a variation of a(n)

Accepted Answer

A)   profit-sharing plan.
B)   gainsharing plan.
C)   merit pay plan.
D)   individual bonus.
E)   commission plan.

Question 5

Which of the following is a common condition for gainsharing to be a success in an organization?

Accepted Answer

A)   employees who value working in groups
B)   employers who do not set short-term goals for employees
C)   work environment with minimum management commitment
D)   employees who prefer minimum interaction and cooperation
E)   low levels of cooperation and interaction

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of using stock options as incentive pay?

Accepted Answer

A)   The use of stock options ensures that managers add value in terms of efficiency and customer satisfaction.
B)   Stock options require an option holder to purchase the organization's stocks at its present market rate.
C)   Stock options are rewarding for employees who exercise their option when the company's stock value has risen.
D)   Low-level employees with stock options are more likely to think like owners than executives who have stock options.
E)   A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options. C

Question 8

_____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Accepted Answer

A)   Profit rate
B)   Gainsharing
C)   Commission sharing
D)   Merit rate
E)   Group bonus

Question 9

What are the different types of pay for rewarding individual performance?

Accepted Answer

Another quantity-oriented incentive for ...

Question 10

Executive pay at Ashance Inc. ,a manufacturing company,includes bonuses based on the year's profits or other measures related to the organization's goals.Sometimes,to gain tax advantages,the bonus is made part of executives' retirement plans.Which of the following is being exemplified in this scenario?

Accepted Answer

A)   long-term incentives
B)   balanced scorecards
C)   piecework plans
D)   employee stock ownership plans
E)   short-term incentives

Question 11

Which of the following is a disadvantage of using group bonuses?

Accepted Answer

A)   Physical outputs are not rewarded.
B)   It reduces the level of cooperation between the members of the group.
C)   The performance measures used are narrow.
D)   It could result in competition among groups.
E)   It cannot be used to promote specific goals.

Question 12

Which of the following statements is true about a piecework rate plan?

Accepted Answer

A)   It can be used for all types of jobs and in all types of industries.
B)   It is best suited for complex jobs and tasks.
C)   It can be used to encourage teamwork and collaboration.
D)   It has a direct link between the work done by the employee and the amount earned.
E)   It encourages the employee's peers to perform and reduces conflicts. D

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

East Bay Hospital was concerned about rising costs for patients who have surgery for joint replacement.It tried rewarding staff in any quarter they met targets for lower use of supplies,but costs continued to rise.An investigation showed that one source of costs was the readmission of patients who experienced infections after surgery.The human resource department proposed setting up a gainsharing program with an effectiveness measure related to reducing infections.Which statement about gainsharing best supports this recommendation?

Accepted Answer

A)   With gainsharing,employees are freed to collaborate on how to improve performance.
B)   Gainsharing creates a competitive environment,so employees will try to outdo one another.
C)   Gainsharing is appropriate because the jobs in this case are simple,and so are the performance standards.
D)   Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards.
E)   The success of gainsharing requires management acceptance of employee input.

Question 15

Elaborate on how gainsharing can be successful as a form of group incentive.

Accepted Answer

Gainsharing is most likely to succeed wh...

Question 16

Julianna,the HR manager at Hudson Corp. ,wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set.She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios.In this scenario,Julianna would be applying the system of

Accepted Answer

A)   merit pay.
B)   piecework pay.
C)   standard hour pay.
D)   commissions.
E)   attendance bonus.

Question 17

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 18

Jupiter Systems,an information technology company,determines that most problems handled by employees at its help desk can be resolved within 20 minutes.The company sets 20 minutes as the standard time for resolving a customer problem.If an employee solves a customer's problem in less than 20 minutes,the employee still earns 20 minutes' worth of wages.Which of the following payment methods does this scenario illustrate?

Accepted Answer

A)   piecework plan
B)   differential plan
C)   standard hour plan
D)   merit pay
E)   performance bonus

Question 19

An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Accepted Answer

A) True 
 B)False

Question 20

If employee participation in making pay-related decisions is encouraged in an organization,then

Accepted Answer

A)   administering the plans become simple.
B)   the organization's interests can be best protected.
C)   the cost borne by the organization decreases.
D)   monitoring performance becomes difficult.
E)   the incentive plan has more chances of being successful.

Exam 13: Recognizing Employee Contributions With Pay

In larger organizations that have stock ownership plans,the employees may not see a strong link between their actions and the company's stock price.

Correct Answer
verified
True

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

Correct Answer
verified

Jeff owns and manages a small electronics repair store.He determines the time required by his employees to complete each task assigned by him.When employees complete the repairs in less time,they receive an amount of pay equal to that time determined by him.In this scenario,Jeff is using a

Correct Answer
verified

Developed in the 1930s,the Scanlon plan is a variation of a(n)

Correct Answer
verified

Which of the following is a common condition for gainsharing to be a success in an organization?

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements is true of using stock options as incentive pay?

Correct Answer
verified
C

_____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Correct Answer
verified

What are the different types of pay for rewarding individual performance?

Correct Answer
verified
Another quantity-oriented incentive for ...
View Answer

Correct Answer
verified

Which of the following is a disadvantage of using group bonuses?

Correct Answer
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Which of the following statements is true about a piecework rate plan?

Correct Answer
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D

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

Elaborate on how gainsharing can be successful as a form of group incentive.

Correct Answer
verified
Gainsharing is most likely to succeed wh...
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

Correct Answer
verified

An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Correct Answer
verified

If employee participation in making pay-related decisions is encouraged in an organization,then

Correct Answer
verified

Exam 13: Recognizing Employee Contributions With Pay

In larger organizations that have stock ownership plans,the employees may not see a strong link between their actions and the company's stock price.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Jeff owns and manages a small electronics repair store.He determines the time required by his employees to complete each task assigned by him.When employees complete the repairs in less time,they receive an amount of pay equal to that time determined by him.In this scenario,Jeff is using a

Correct AnswerverifiedShow Answer

Developed in the 1930s,the Scanlon plan is a variation of a(n)

Correct AnswerverifiedShow Answer

Which of the following is a common condition for gainsharing to be a success in an organization?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is true of using stock options as incentive pay?

Correct AnswerverifiedC

_____ is a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

Correct AnswerverifiedShow Answer

What are the different types of pay for rewarding individual performance?

Correct AnswerverifiedAnother quantity-oriented incentive for ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of using group bonuses?

Correct AnswerverifiedShow Answer

Which of the following statements is true about a piecework rate plan?

Correct AnswerverifiedD

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

Elaborate on how gainsharing can be successful as a form of group incentive.

Correct AnswerverifiedGainsharing is most likely to succeed wh...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

Correct AnswerverifiedShow Answer

An employee stock ownership plan is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust.

Correct AnswerverifiedShow Answer

If employee participation in making pay-related decisions is encouraged in an organization,then

Correct AnswerverifiedShow Answer

Correct Answer
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True

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C

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Another quantity-oriented incentive for ...
View Answer

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Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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Correct Answer
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Gainsharing is most likely to succeed wh...
View Answer

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Correct Answer
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Correct Answer
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