Question 1

Paul, the HR manager at Carletta & Co., is trying to implement an effective group incentive plan that measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Paul should apply the incentive scheme of

Accepted Answer

A)   piecework rate.
B)   gainsharing.
C)   sales commission.
D)   merit pay.
E)   ESOPs.F) A) and B)
G) A) and C)

Question 2

When an employee's pay is calculated as a percentage of sales, it is referred to as

Accepted Answer

A)   commissions.
B)   gainsharing.
C)   a merit plan.
D)   a variable wage plan.
E)   profit sharing.F) B) and E)
G) None of the above

Question 3

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 a specific goal, whereas team awards reward performance measured more broadly.F) B) and E)
G) B) and D)

Question 4

Chris, the CEO of an automobile company, believes that profit sharing has increased the productivity of his organization. He feels that an incentive plan motivates employees to be more productive. Which statement strengthens Chris' argument?

Accepted Answer

A)   In a profit-sharing plan, employees are the owners of the organization.
B)   Profit sharing helps employees to cooperate and focus on organizational interests.
C)   Profit sharing makes employees workaholics.
D)   In profit sharing, employees contribute their base salary for the development of the organization.
E)   Profit sharing benefits employees even if the organization makes less profit or no profit.F) D) and E)
G) B) and E)

Question 5

From employers' perspective, an advantage of merit pay is that it is cheap.

Accepted Answer

A) True 
 B)False

Question 6

What is an advantage of using balanced scorecard?

Accepted Answer

A)   It eliminates the need to communicate the details of an incentive plan to the employees.
B)   It eliminates managerial effort when providing incentives to employees.
C)   It increases the pay for all employees in the organization regardless of their performances.
D)   It reduces employee stress because it does not focus on financial targets.
E)   It helps employees understand the organization's goals.F) A) and C)
G) C) and E)

Question 7

What is a balanced scorecard? Explain its purpose.

Accepted Answer

The balanced scorecard is a combination ...

Question 8

Tucked Inc. is an envelope manufacturer based in Fort Worth. The employees of the organization receive 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 more for the work performed. In this case, which incentive is offered by Tucked Inc.?

Accepted Answer

A)   differential piecework rate
B)   minimum wage
C)   merit pay
D)   retention bonus
E)   group bonusF) B) and C)
G) A) and E)

Question 9

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 10

Which type of incentive plans are used to reward individual performance?

Accepted Answer

A)   gainsharing
B)   merit pay
C)   Scanlon plan
D)   profit sharing
E)   stock ownershipF) A) and E)
G) A) and D)

Question 11

Souped Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which payment plan is exemplified in this scenario?

Accepted Answer

A)   piecework plan
B)   merit pay
C)   standard hour plan
D)   differential plan
E)   skill-based planF) A) and B)
G) C) and E)

Question 12

Trent 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, Trent 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) C) and D)
G) A) and C)

Question 13

Straight commission plans are plans that

Accepted Answer

A)   provide a straight salary to employees.
B)   are useful when the organization wants salespeople to concentrate on listening to customers.
C)   are used to attract risk-averse employees.
D)   are common among insurance and real estate agents.
E)   are uncommon among car salespeople.F) B) and C)
G) A) and B)

Question 14

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 offering an equivalent sum.F) All of the above
G) A) and B)

Question 15

What is a reason for the popularity of employee stock ownership plans (ESOPs) ?

Accepted Answer

A)   ESOPs provide tax advantages to employers.
B)   ESOPs provide very high risk-free retirement income.
C)   Employees can use ESOPs to buy their company during financial crises.
D)   ESOPs must invest at least 51 percent of their assets in the company's own stocks.
E)   The employees are provided with many more shares of stock than they actually own.F) None of the above
G) A) and E)

Question 16

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.F) C) and D)
G) B) and C)

Question 17

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 C)
G) A) and D)

Question 18

Which statement is true of a performance bonus?

Accepted Answer

A)   It is designed to reward group performance.
B)   It should be re-earned by employees during each performance period.
C)   It is rolled into base pay and provided yearly or monthly.
D)   It lacks flexibility and hence it is less popular.
E)   It is exclusively linked to subjective ratings, rather than objective performance measures.F) A) and B)
G) A) and C)

Question 19

The link between employees' performance and pay is hardest 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) A) and E)

Question 20

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Accepted Answer

A)   stock options
B)   employee stock ownership plan
C)   Scanlon plan
D)   collective stock options
E)   profit-sharing planF) A) and B)
G) A) and C)

Exam 13: Recognizing Employee Contributions With Pay

Straight commission plans are plans that

Correct Answer
verified

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

Correct Answer
verified

What is an advantage of using balanced scorecard?

Correct Answer
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Which type of incentive plans are used to reward individual performance?

Correct Answer
verified

Correct Answer
verified

Which statement is true of a performance bonus?

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

What is a reason for the popularity of employee stock ownership plans (ESOPs) ?

Correct Answer
verified

Paul, the HR manager at Carletta & Co., is trying to implement an effective group incentive plan that measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Paul should apply the incentive scheme of

Correct Answer
verified

Souped Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which payment plan is exemplified in this scenario?

Correct Answer
verified

From employers' perspective, an advantage of merit pay is that it is cheap.

Correct Answer
verified

Retention bonuses refer to

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Chris, the CEO of an automobile company, believes that profit sharing has increased the productivity of his organization. He feels that an incentive plan motivates employees to be more productive. Which statement strengthens Chris' argument?

Correct Answer
verified

What is a balanced scorecard? Explain its purpose.

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

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Correct Answer
verified

What is the difference between bonuses and team awards?

Correct Answer
verified

Trent 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, Trent is using a

Correct Answer
verified

When an employee's pay is calculated as a percentage of sales, it is referred to as

Correct Answer
verified

Exam 13: Recognizing Employee Contributions With Pay

Straight commission plans are plans that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is an advantage of using balanced scorecard?

Correct AnswerverifiedShow Answer

Which type of incentive plans are used to reward individual performance?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which statement is true of a performance bonus?

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

What is a reason for the popularity of employee stock ownership plans (ESOPs) ?

Correct AnswerverifiedShow Answer

Paul, the HR manager at Carletta & Co., is trying to implement an effective group incentive plan that measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Paul should apply the incentive scheme of

Correct AnswerverifiedShow Answer

Souped Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which payment plan is exemplified in this scenario?

Correct AnswerverifiedShow Answer

From employers' perspective, an advantage of merit pay is that it is cheap.

Correct AnswerverifiedShow Answer

Retention bonuses refer to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Chris, the CEO of an automobile company, believes that profit sharing has increased the productivity of his organization. He feels that an incentive plan motivates employees to be more productive. Which statement strengthens Chris' argument?

Correct AnswerverifiedShow Answer

What is a balanced scorecard? Explain its purpose.

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

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Correct AnswerverifiedShow Answer

What is the difference between bonuses and team awards?

Correct AnswerverifiedShow Answer

Trent 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, Trent is using a

Correct AnswerverifiedShow Answer

When an employee's pay is calculated as a percentage of sales, it is referred to as

Correct AnswerverifiedShow Answer

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

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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