Chapter 13

Question 1

Incentive pay is typically based on

Answer 1

Employees performance

Question 2

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

Answer 2

Differential

Question 3

An incentive plan that pays workers extra for work done in less than a preset time is referred to as a

Answer 3

Standard hour plan

Question 4

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

Answer 4

Merit

Question 5

Merit pay is an inexpensive option from an employers standpoint

Answer 5

False

Question 6

What is the difference between performance bonuses and merit pay

Answer 6

Performance bonuses are not rolled into base pay

Question 7

Lori is a realtor and earned 5 percent on the sale of each house. Her pay is an example of a

Answer 7

Commission

Question 8

In which of the following occupations would a straight commission plan NOT likely be used

Answer 8

HR professional

Question 9

W. Edwards deming critizes merit pay bc he believes it discourages _______

Answer 9

Teamwork

Question 10

A onetime incentive paid in exchange for an employee remaining with an organization is called

Answer 10

Retention bonus

Question 11

Incentive pay can be linked to the performance of which of the following

Answer 11

Individuals
Group
Organizational

Question 12

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

Answer 12

Piecework

Question 13

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.

Answer 13

Employee stock

Question 14

By law. An esop must invest at least _____ of its assets in the company’s own stock

Answer 14

51%

Question 15

The right to buy a certain number of stock shares at a specific price is referred to as

Answer 15

Stock options

Question 16

Incentives pay in which the employer pays the same rate per piece produced is called a

Answer 16

Straight piecework plan

Question 17

Which of the following conditions are important for success in gaining sharing?

Answer 17

Management encouragement of employee input
Goal setting
Employee security

Question 18

A group incentive program that measures improvements in productivity and distributes a portion of the profits to each employee is called

Answer 18

Gainsharing

Question 19

Profit-sharing payments become part of an employees base salary

Answer 19

False

Question 20

In contrast to gainsharing plans, group bonuses tend to be for

Answer 20

Smaller work groups

Question 21

What is the best way for an organization to manage the disadvantages of one type of incentive pay with the advantages of another type

Answer 21

Use a balanced scorecard approach

Question 22

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

Answer 22

Scanlon plan

Question 23

Jakes sales team earned a 5% bonus for meeting their goals last quarter . This bonus is an example of ____ pay

Answer 23

Incentive

Question 24

As the Enron scandal demonstrated , incentive pay for executive can pay the groundwork for significant ______ issues

Answer 24

Ethical

Question 25

The dodds frank walls street reform act gives shareholders of public companies

Answer 25

A say on companies executive pay plans

Question 26

When executives pay includes stock or stock options, companies need to be aware of the possibility of

Answer 26

Insider trading

Question 27

Which federal agency requires companies to report executive compensation levels and the companies performance relative to its competitors

Answer 27

The sec

Question 28

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 .

Answer 28

Short

Question 29

What is the downside of offering bonuses for groups performance

Answer 29

May prevent necessary cooperation amounts group

Question 30

In order for gainsharing to be successful it is beneficial to have employees who value working in groups

Answer 30

True

Question 31

When employees understand the requirements of an incentive pay program , the plan is likely to

Answer 31

Influence their behavior as desired

Question 32

What is the practical advantage of profit sharing programs

Answer 32

Is a company experiences little or no profit in a given test, this type of incentive pay is small or nonexistent

Question 33

What is the most common form of employee ownership ?

Answer 33

An esop plan

Question 34

In contrast to grain shaping plans , group bonuses tend to be for

Answer 34

Smaller work groups