Chapter 5: Performance Pay Choices Flashcards
Which of the following pay plans target organizational level performance
A. Goal sharing plans
B merit pay plans
C. Special purpose incentive pay plans
D. Profit-sharing plans
D.
What is the most common form of performance pay used by medium to large Canadian firms?
A. Merit raises
B. Profit sharing
C. Merit bonuses
D. Commissions
A. Merit raises.
Which of the following would NOT be an ideal scenario in which to consider using a piece rate plan?
A. Quality standards can be monitored effectively
B. Significant teamwork is needed to complete a particular task.
C. Each unit of production can be easily measured.
D. Tasks tend to be fairly static over time.
B.
In what way are pieces rates and commissions similar to each other?
A. Employees don’t have to worry about working themselves out of a job.
B. They reduce the need for external control of employees through supervision
C. Both types are commonly used in conjunction with base pay.
D. Both are popular systems widely used in the service sector
B
As a human resource specialist, you have been asked by your organization to lead a discussion on the merits of using internal promotions not as a main reward mechanism. Which of the following points would you most likely NOT Raise?
A. They are an expensive process,As promotions are typically associated with pay increases.
B they often carry both intrinsic and extrinsic rewards
C. They recognize contributions made by strong performers
D. They are often seen as a key motivation for employees
A
Which of the following is NOT a suitable condition for merit pay?
A. Individual performance varies
B. Performance is not controlled by the individual
C. Individual performance can be separated out
D. Undesirable side effects are readily manageable
B
An Automotive ship wants to reward employees for demonstrating creative customer service that leads to repeat business. A particular employee received 10 percent bonus for suggesting that the company contact customers 24 hours after repair to ensure customers are satisfied. What type of incentive would be the most appropriate in this scenario?
A. Merit raises plans
B. Goal sharing plans
C. Gain sharing plans
D. Special purpose plans
D
From an employee’s point of view, what is the most attractive feature of gain-sharing plans?
A. The plans are self funding
B. Positive work group norms develop
C. The need for supervisory control is reduced.
D. Employees monitor each others performance.
A.
Which are the main types of profit sharing plans?
A. Current assessment plan, deferred plan and blended plan
B. Deferred plan, cash plan and group plan
C. Combination plan, deferred plan and current distribution plan
D. Current distribution plan, combination plan and employee plan
C
You’re ceo is concerned that employees are not saving enough for their retirement. At the same time, the ceo wants to have some of the company’s profit shared with all employees. To address these issues your CEO asks you, a human resource compensation specialist,
To recommend and the most appropriate profit sharing plan to address this retirement issue. Which of the following profs share plans would
You recommend?
A. Deferred profit sharing
B. Combination profit sharing
C. Current distribution
D. Cash plan
A. a
What do employees receive under an employee stock bonus plan?
A. Shares at no cost to themselves
B the cash value of phantoms shares
C. A bonus equivalent to the increase in their share value
D. Free financial advice on stocks
A
Which plans are set up so that payout is contingent on the achieving of three-five year performance goals?
A. Pension plans
B. Long term incentives
C. Deferred profit sharing plans
D. Goal sharing plans
B.
Which of the following is normally seen as an advantage associated with long term incentive plans?
A. They may encourage a better understanding of the business
B. They tie rewards to the company’s ability to pay
C. They usually dilute shareholders equity for existing shareholders
D. Goals are easy to determine, particular in dynamic industries
A
