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Piecework rate plans are most suited for _____. (Points : 2) innovative tasks non-standard jobs managerial jobs jobs with difficult-to-measure output routine, standardized jobs


1. Piecework rate plans are most suited for _____. (Points : 2)       innovative tasks
non-standard jobs
managerial jobs
jobs with difficult-to-measure output
routine, standardized jobs

Question 2. 2. The decisions about merit pay are based on two factors: the individual’s performance rating and the individual’s: (Points : 2)

pay grade.
emotional quotient.


Question 3. 3. Paying most or all of a salesperson’s compensation in the form of commissions encourages the salesperson to focus on: (Points : 2)

closing the sale.
developing customer goodwill.
working as a team member.
building a relationship with the customer.
improving the quality of customer experience.


Question 4. 4. Differential piece rates system refers to: (Points : 2)

an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees.
a wage system designed for salespeople who earn a differential pay for every piece sold.
an incentive pay in which the piece rate is higher when a greater amount is produced.
a system of linking pay increases to ratings on performance appraisals.
an incentive pay plan where every employee is paid different wages based on the skills they possess.


Question 5. 5. An effective incentive pay plan should: (Points : 2)

have performance measures based on employees’ requirements.
not be provided as a direct percentage of employees’ performance.
encourage group performance and dispirit individual achievements.
be the same for all types of employees in the organization.
have performance measures linked to the organization’s goals.


Question 6. 6. In order to control compensation costs, administrators of merit pay programs must closely monitor the compa-ratio and the: (Points : 2)

number of pay grades in the pay structure.
an individual’s performance ratings.
number of new hires in the company.
company’s stock price in the financial year.
average pay of the area where the organization is functioning.


Question 7. 7. Which of the following types of incentive pay plans are used to reward individual performance? (Points : 2)

Merit pay
Scanlon plan
Profit sharing
Stock ownership


Question 8. 8. Which of the following is a disadvantage of a merit pay system? (Points : 2)

It does not relate the rewards to economic conditions.
It cannot be used effectively in performance appraisals.
Comparative pay is not considered in its evaluation.
It is not consistent with performance management’s dimensions.
It can quickly become expensive for the company.


Question 9. 9. Team awards differ from group bonuses in that they: (Points : 2)

are typically plant-wide group incentive programs.
make payments in company stock rather than in cash.
are more likely to use a broad range of performance measures.
encourage competition among individual employees to achieve higher bonus.
give more importance to organizational performance than small groups’ performance.


Question 10. 10. Which of the following is true of a balanced scorecard? (Points : 2)

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


Question 11. 11. Stock options have their greatest motivational potential during periods of: (Points : 2)

high unemployment.
downturns in the economy.
high economic growth.
low inflation.
slowdown in the company’s growth.


Question 12. 12. An advantage of merit pay is that: (Points : 2)

it makes the reward more valuable by relating it to economic conditions.
it promotes group performance instead of promoting individual behavior.
it provides merit increases to employees only on the basis of performance.
it would never become costly for the employers.
it results in a bigger short-term reward for the best performers.


Question 13. 13. How does the balanced scorecard help organizations deal with unethical behaviors of executives? (Points : 2)

It allows companies to deduct executive pay that exceeds $1 million.
Rewarding the achievement of a variety of goals reduces temptation on the executive’s part to gain bonuses by manipulating data.
It encourages executives to hold on to their stock options when the company is undergoing financial problems.
It forces executives to focus on company’s long-term success because funds in ESOP are guaranteed by the Pension Benefit Guarantee Corporation.
In a balance scorecard, maximum points are given to ethical behavior.


Question 14. 14. Which of the following is an incentive plan that is intended to improve the overall performance of an organization? (Points : 2)

Profit sharing
Merit pay
Group bonus
Scanlon plan


Question 15. 15. The link between employees’ performance and pay is harder to establish in: (Points : 2)

piece rate plans.
merit pay plans.
standard hour plans.
stock ownership plans.
Scanlon plans.


Question 16. 16. Employee participation in pay-related decisions can be part of a general move toward: (Points : 2)

employee empowerment.
centralized decision making.
self ownership.
power system approach.


Question 17. 17. Which of the following is a long-term incentive? (Points : 2)

Group bonus
Merit pay
Stock option
Piece rate


Question 18. 18. 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? (Points : 2)

Merit pay
Gain sharing
Scanlon plan
Performance bonuses
Profit sharing


Question 19. 19. When designing incentives, managers should make sure that: (Points : 2)

all the employees are paid equal amounts.
even the lowest performing employees get some rewards.
employees focus only completing the task quickly.
employees think that the pay plan is fair.
they focus on hiring employees for whom earning money is the only reason to do a good job.


Question 20. 20. The _____ has required companies to more clearly report executive compensation levels and the company’s performance relative to that of competitors. (Points : 2)

National Credit Union Administration
Financial Industry Regulatory Authority
Commodity Futures Trading Commission
The Securities and Exchange Commission
Omnibus Budget Reconciliation Act

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