Outcome # 2

Question 1

Individual Incentives plans

Answer 1

Flexibility
technology, job tasks and duties, and/or
organizational goals/// Impact incentive Programs

Question 2

Piecework

straight piecework

Answer 2

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

Question 3

Piecework

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

Piecework - DRAWBACKS

Answer 4

1. not always be an effective motivator
2. When quality is more important than quantity
3. When technology changes are frequent
4. productivity standards on which piecework must be based are difficult to develop

Question 5

Standard hour plan

Answer 5

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

Question 6

Bonuses

Answer 6

An incentive payment that is supplemental to the base wage

Question 7

spot bonus

Answer 7

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

Question 8

Merit pay

Answer 8

Achieved some objective performance standard

although a superior’s subjective evaluation of subordinate performance may play a large role in the increase given

Question 9

Merit Pay-DRAWBACKS

Answer 9

Money available for merit increases may be inadequate to satisfactorily raise all employees’ base pay

vagueness regarding merit award criteria

Employees/ unable to differentiate between merit pay and other types of pay increases.

Merit pay plans may create feelings of pay inequit

Question 10

lump-sum merit program

Answer 10

Program under which employees receive a year-end merit payment, not added to their base pay

Question 11

Awards and recognition

Answer 11

Awards are used to recognize productivity gains, special contributions or achievements, and service to the organization