Exam 3 - Chapter 11

Question 1

What are three types of incentive pay

Answer 1

1. Individual
2. Group
3. Organization

Question 2

What are the advantages of incentive plans?

Answer 2

1. Focus employee efforts
2. Variable Costs tied to operating performance
3. Foster Teamwork
4. Distribute success

Question 3

What are the incentive pay for employees ( As Individual)

and define each

Answer 3

1. Piece Rate ( the more you produce the employee makes more money)
2. Stand hour plan (Predetermine amount of time being allocated to finish a task and this determine the cost of being payed)
3. Bonus ( A one-time thing where employees are rewarded with money)
4. Merit Raise (An increase in your base salary forever)
5. Commission (Amount of sales determine how much you make)

Question 4

What are the incentive pay for employees (As Team)

Answer 4

1. Gainsharing
2. Stock Option
3. Profit Sharing
4. Stock ownership

All of these are based on the team and their productivity

Question 5

What are the three types of gainsharing plans?

Answer 5

1. Scanlon plan
2. Rucker plan
3. Improshare plan

Question 6

Define Scanlon plan

Answer 6

Rewards come from employee participation in improving productivity and reducing costs, improving productivity and reducing costs

Question 7

Define Rucker Plan

Answer 7

Shared rewards come from the difference between labor costs and sales value of production.

Question 8

Define Improshare plan

Answer 8

Gainsharing based on increases in productivity of the standard hour output of work teams.