HB 307: CH 10 Quiz
25 Cards in this Set
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T/F: Organizational goals should impact choice of incentive plans
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True
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T/F: Major advantages of of piecework systems are that the wage payment is simple to compute and the organization can predict labor costs with reasonable accuracy.
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True
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T/F: A bonus is supplemental to base wages
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True
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T/F: The performance "threshold" in incentive plans is the name given to the amount of the award.
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False
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T/F: For incentive plans to work effectively, employees must see a clear connection between the incentive payments they receive and their performance.
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True
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T/F: Incentive plans may fail if employees have little ability to reach performance standards.
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True
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T/F: Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard.
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True
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Which of the following is NOT an advantage of an incentive pay program?
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Incentive payouts are fixed costs linked to the achievement of results
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According to Sammer, which of the following is NOT a characteristic of a successful incentive plan?
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Payout formulas should be technically detailed , quantitative and extremely thorough so as to prove that management took significant effort to create the plan
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When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output, they are working under which incentive plan?
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differential piece rate
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Research shows that a merit increase in the range of __ is necessary to serve as a pay motivator.
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7-9%
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Rate busting refers to:
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an increase in output that results in the disapproval of fellow employees
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Piecework is appropriate when:
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the job is fairly standardized
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If employees' pay is based not on the actual amount of time it takes them to complete a job but instead on a predetermined amount of time for completing the job, which incentive plan are they working under?
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standard hour plan
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In 2011, a study by the American Psychological Association found that ____ of employees feel they receive inadequate non-monetary awards and recognition for their contributions at work
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43%
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In most profit sharing plans, about __ of the net profit is shared.
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20-25%
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Which of the following is NOT one of the simple rules for maintaining motivation among professional?
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All of the Below:
provide clear goals
give prompt feedback
reward performance quickly
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Executive base salaries represent between __ percent of the total annual compensation.
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30-40%
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Management should guard against incentive payments being seen as ______.
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an entitlement
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Long-term incentive plans in which rights are granted to executives to purchase shares of the company's stock at a fixed price for a fixed period of time is known as:
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stock options
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The philosophy behind the Scanlon Plan is that:
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employees should make suggestions to improve the performance and be rewarded for their contributions
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The purpose of a profit-sharing plan is to:
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motivate a total commitment to the organization as a whole
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A major problem pf ESOPs is that:
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ESOPs place employees' pensions at risk because they are tied to the market performance of the organization
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Non-cash incentive rewards are the most effective as motivators when the award:
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is combined with a meaningful employee recognition program or is a complete surprise to the recipient
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The most widely used sales incentive program is the ________ plan.
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combined salary and commission
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HB 307: CH 10 Quiz