Ch 10

Question 1

Piecework

Answer 1

Straight piecework: an incentive plan under which employees receive a certain rate for each unit produced

Differential piece rate: a compensation rate under which employees whose production exceeds the standard amount of output receive a higher rate for all their work than the rate paid to those who do not exceed the standard amount

Question 2

Standard Hour Plan

Answer 2

an incentive plan that sets rates based on the completion of a job in a predetermined standard time

Question 3

Bonuses

Answer 3

an incentive payment that is supplemental to the base wage

Question 4

Merit Pay

Answer 4

performance-related pay which provides bonuses or base pay increases for employees who hit the target or perform their jobs effectively

Question 5

lump sum merit pay

Answer 5

program under which employees receive a year-end merit payment, which is not added to their base pay

Question 6

incentive awards

Answer 6

Noncash: merchandise,
personalized gifts, theatre or sports tickets, vacations,
dining out, gift certificates or gift cards, and personalized
clothing

Question 7

sales incentives

Answer 7

Combined salary and commission plan, Salary plus bonus plan

Question 8

inventives for professional employees

Question 9

executive incentives

Question 10

team compensation

Question 11

scanlon plan

Question 12

improshare

Question 13

profit sharing

Question 14

stock option

Question 15

employee stock ownership plans

Question 16

Spot bonus

Answer 16

an unplanned bonus given for employee effort unrelated to an
established performance measure

Question 17

Merit guidelines

Answer 17

guidelines for awarding merit raises that are tied to
performance objectives

Question 18

Salary plus bonus plan

Answer 18

a compensation plan that pays a salary plus a
bonus achieved by reaching targeted sales goals

Question 19

Combined salary and commission plan

Answer 19

a compensation plan that
includes a straight salary and a commission