CH 5

Question 1

Employee Stock Plans

Answer 1

EE acquires shares in the firm
Stock bonus (stocks)
Share Purchase (buy shares)
Stock Options (buy stocks - fixed price limited time)

Question 2

Other Organization Performance

Answer 2

Long term incentives (3-5 yrs)
Performance unit plan (cash)
Performance share plan (shares)

Question 3

Profit Sharing (DCC)

Answer 3

Profits are shared with a broad cross section of employees at least annually
Deferred Profit Sharing plan (paid later - termination or retirement)
Current Distribution Plan (cash)
Combination Plan (some cash now the rest at termination or retirement)

Question 4

Organization Performance (POE)

Answer 4

Profit Sharing
Other Organization Performance
(Long term incentives)
Employee Stock Plans

Question 5

Goal Sharing Plans (SMF)

Answer 5

A group performance pay plan where a work group receives a bonus when it meets prespecified performance goals.
Single goal plans
Multigoal plans
Financially funded

Question 6

Other Bonus Group Plans

Answer 6

Competitive bonus plans (reward for outperforming another)
and
pooled performance plans (group combined effort split rewards)

Question 7

Gain Sharing Plans (FIRS)

Answer 7

shares cost savings generated by a work group with all members of that group
Family of Measures
Improshare
Rucker
Scanlon

Question 8

Group Performance (GOG)

Answer 8

Gain Sharing
Other Group Bonus Plans
Goal Sharing

Question 9

Incentives - Special Purpose

Answer 9

An incentive designed to motivate a specific type of employee behaviour

• creativity
• attendance

Question 10

Merit pay

Answer 10

used to recognize and encourage continuing good performance by individual employees (raises and bonuses and promotions)

Question 11

Individual Performance Pay (CIMP)

Answer 11

Commissions
Incentives -Special Purpose
Merit Pay
Piece rates