Chapter 10

Question 1

Variable Pay

Answer 1

Tying pay to some measure of individual, group, or organizational performance.

Question 2

Straight Piece Work

Answer 2

An incentive plan under which employees receive a certain rate for each unit produced.

Question 3

Differential Piece Rate

Answer 3

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

Question 4

Standard Hour Pay

Answer 4

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

Question 5

Bonus

Answer 5

An incentive payment that is supplemental to the base wage.

Question 6

Spot Bonus

Answer 6

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

Question 7

Merit Guidelines

Answer 7

Guidelines for awarding merit raises that are tied to performance objectives.

Question 8

Straight Salary Plan

Answer 8

A compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume.

Question 9

Straight Commission Plan

Answer 9

A compensation plan based on a percentage of sales.

Question 10

Combined Salary and Commission Plan

Answer 10

A compensation plan that includes straight salary and a commission.

Question 11

Salary Plus Bonus Plan

Answer 11

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

Question 12

Team Incentive Plan

Answer 12

A compensation plan in which all team members receive an incentive bonus payment when production or service standards are met or exceeded.

Question 13

Gainsharing Plans

Answer 13

Programs under which both employees and the organization share financial gains according to predetermined formula that reflects improved productivity and profitability.

Question 14

Scanlon Plan

Answer 14

A bonus incentive plan using employe and management committees to gain cost-reduction improvements.

Question 15

Improshare

Answer 15

A gainsharing program under which bonuses are based on the overall productivity of the work team.

Question 16

Employee Stock Ownership Plans (ESOPs)

Answer 16

Stock plans in which an organization contributes shares of its stock to an established trust for the purpose of stock purchases by its employees.

Question 17

Profit Sharing Plans

Answer 17

Profit sharing is any procedure by which an employer pays, or makes available to all regular employees, special current or deferred sums based on the organization’s profits.

Question 18

Perquisites

Answer 18

Special non monetary benefits given to executives, often referred to as perks.