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HB 307: CH 10 Quiz
T/F: Organizational goals should impact choice of incentive plans |
True |
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. |
True |
T/F: A bonus is supplemental to base wages |
True |
T/F: The performance "threshold" in incentive plans is the name given to the amount of the award. |
False |
T/F: For incentive plans to work effectively, employees must see a clear connection between the incentive payments they receive and their performance. |
True |
T/F: Incentive plans may fail if employees have little ability to reach performance standards.
|
True |
T/F: Spot bonuses are usually provided for some employee effort that is not directly tied to an established performance standard. |
True |
Which of the following is NOT an advantage of an incentive pay program? |
Incentive payouts are fixed costs linked to the achievement of results |
According to Sammer, which of the following is NOT a characteristic of a successful incentive plan? |
Payout formulas should be technically detailed , quantitative and extremely thorough so as to prove that management took significant effort to create the plan |
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? |
differential piece rate |
Research shows that a merit increase in the range of __ is necessary to serve as a pay motivator. |
7-9% |
Rate busting refers to: |
an increase in output that results in the disapproval of fellow employees |
Piecework is appropriate when: |
the job is fairly standardized |
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? |
standard hour plan |
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 |
43% |
In most profit sharing plans, about __ of the net profit is shared. |
20-25% |
Which of the following is NOT one of the simple rules for maintaining motivation among professional? |
All of the Below:
provide clear goals
give prompt feedback
reward performance quickly |
Executive base salaries represent between __ percent of the total annual compensation. |
30-40% |
Management should guard against incentive payments being seen as ______. |
an entitlement |
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: |
stock options |
The philosophy behind the Scanlon Plan is that: |
employees should make suggestions to improve the performance and be rewarded for their contributions |
The purpose of a profit-sharing plan is to: |
motivate a total commitment to the organization as a whole |
A major problem pf ESOPs is that: |
ESOPs place employees' pensions at risk because they are tied to the market performance of the organization |
Non-cash incentive rewards are the most effective as motivators when the award: |
is combined with a meaningful employee recognition program or is a complete surprise to the recipient |
The most widely used sales incentive program is the ________ plan. |
combined salary and commission |