Chapter 13 Flashcards
Incentive pay is typically based on
Employees performance
Caroline works in a candy production plant. If she fills at least 10 boxes of candy in an hour, she earns 1 dollar for each box but if she fills more than 10 boxes, she earns 1.50 dollars per box. This demonstrates the idea of a ________ piece rate
Differential
An incentive plan that pays workers extra for work done in less than a preset time is referred to as a
Standard hour plan
At her last performance review , Mario received a 4% pay increase bc she had met all of the goals her manager had set for her the previous year. Her pay increase is an example of ______ pay
Merit
Merit pay is an inexpensive option from an employers standpoint
False
What is the difference between performance bonuses and merit pay
Performance bonuses are not rolled into base pay
Lori is a realtor and earned 5 percent on the sale of each house. Her pay is an example of a
Commission
In which of the following occupations would a straight commission plan NOT likely be used
HR professional
W. Edwards deming critizes merit pay bc he believes it discourages _______
Teamwork
A onetime incentive paid in exchange for an employee remaining with an organization is called
Retention bonus
Incentive pay can be linked to the performance of which of the following
Individuals
Group
Organizational
Janie works as a seamstress at the tailor shop and sees buttons on clothing she earns 2 dollars for each item she completes. Her pay is an example of ________ rate
Piecework
Giuseppe works for a company that distributes shares of stock to all the employees by placing the stick in a trust. Her company has a _____ ________ ownership plan.
Employee stock
By law. An esop must invest at least _____ of its assets in the company’s own stock
51%
The right to buy a certain number of stock shares at a specific price is referred to as
Stock options
Incentives pay in which the employer pays the same rate per piece produced is called a
Straight piecework plan
Which of the following conditions are important for success in gaining sharing?
Management encouragement of employee input
Goal setting
Employee security
A group incentive program that measures improvements in productivity and distributes a portion of the profits to each employee is called
Gainsharing
Profit-sharing payments become part of an employees base salary
False
In contrast to gainsharing plans, group bonuses tend to be for
Smaller work groups
What is the best way for an organization to manage the disadvantages of one type of incentive pay with the advantages of another type
Use a balanced scorecard approach
A program in which employees receive a bonus of the ratio of labor costs to be the sales value of production is below a set standard is referred to as a
Scanlon plan
Jakes sales team earned a 5% bonus for meeting their goals last quarter . This bonus is an example of ____ pay
Incentive
As the Enron scandal demonstrated , incentive pay for executive can pay the groundwork for significant ______ issues
Ethical
The dodds frank walls street reform act gives shareholders of public companies
A say on companies executive pay plans
When executives pay includes stock or stock options, companies need to be aware of the possibility of
Insider trading
Which federal agency requires companies to report executive compensation levels and the companies performance relative to its competitors
The sec
George is the chief financial officer for a bank holding company and received a bonus last year based on the company’s profits. He is not sure if he will get a bonus this year as the company is not doing as well financially. His bonus is an example of a _______ term incentive pay .
Short
What is the downside of offering bonuses for groups performance
May prevent necessary cooperation amounts group
In order for gainsharing to be successful it is beneficial to have employees who value working in groups
True
When employees understand the requirements of an incentive pay program , the plan is likely to
Influence their behavior as desired
What is the practical advantage of profit sharing programs
Is a company experiences little or no profit in a given test, this type of incentive pay is small or nonexistent
What is the most common form of employee ownership ?
An esop plan
In contrast to grain shaping plans , group bonuses tend to be for
Smaller work groups
