Question 1

What are the different types of pay for rewarding individual performance?

Accepted Answer

Another quantity-oriented incentive for ...

Question 2

Jewels & Co., a watch manufacturing company, provides wages to its employees based on the number of watches the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

Accepted Answer

A)   piecework rate plan.
B)   merit pay plan.
C)   Scanlon plan.
D)   profit-sharing plan.
E)   rapid hour plan.F) B) and D)
G) A) and D)

Question 3

When Airborne Aircraft acquired Bell Airplanes, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Patrick, the vice president of engineering. The executives offered Patrick a one-time bonus of $25,000 if he stayed with the company for 12 months following the acquisition. In this scenario, Patrick's $25,000 represents

Accepted Answer

A)   a commission.
B)   a retention bonus.
C)   stock options.
D)   merit pay.
E)   a differential piece rate.F) All of the above
G) A) and E)

Question 4

________ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

Accepted Answer

A)   Merit pay
B)   Gainsharing
C)   Group bonus
D)   Profit sharing
E)   CommissionF) A) and C)
G) B) and C)

Question 5

If a company distributes stock to employees by granting stock options, employees exercise the option when they

Accepted Answer

A)   purchase the stock.
B)   sell the stock.
C)   retain the stock.
D)   distribute the stock.
E)   liquidate the stock.F) None of the above
G) B) and E)

Question 6

An employee at CellWorld who produces 10 phone components in an hour earns $9 ($0.90 ×10)  per hour, while another employee who produces 15 components earns $13.50 ($0.90 ×15) . This is an example of a

Accepted Answer

A)   commission plan.
B)   differential piece rate plan.
C)   direct commission plan.
D)   profit-sharing plan.
E)   straight piecework plan.F) A) and E)
G) D) and E)

Question 7

Define incentive pay and explain how it can motivate employees.

Accepted Answer

Incentive pay is pay-other than wages an...

Question 8

Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary.

Accepted Answer

A) True 
 B)False

Question 9

Explain how employee stock ownership plans (ESOPs) differ from stock options.

Accepted Answer

Stock options give employees the right t...

Question 10

The ________ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

Accepted Answer

A)   National Credit Union Administration
B)   Financial Industry Regulatory Authority
C)   Commodity Futures Trading Commission
D)   Securities and Exchange Commission
E)   Omnibus Budget Reconciliation ActF) None of the above
G) C) and D)

Question 11

QVT Financial, an auditing firm, distributes a portion of the profits resulting from improvements in productivity and efficiency among its employees. If the company enjoys an improvement of $45,000, 60 percent of the improvement is the company's share. The other 40 percent is distributed among the employees in the company. What is being exemplified in this scenario?

Accepted Answer

A)   profit rate
B)   gainsharing
C)   commission sharing
D)   merit gain
E)   group bonusF) B) and C)
G) A) and C)

Question 12

If employee participation in making pay-related decisions is encouraged in an organization, then

Accepted Answer

A)   administering the plans becomes simple.
B)   the organization's interests can be best protected.
C)   the cost borne by the organization decreases.
D)   monitoring performance becomes difficult.
E)   the incentive plan has more chances of being successful.F) B) and E)
G) A) and E)

Question 13

Which statement is true of using stock options as incentive pay?

Accepted Answer

A)   The use of stock options ensures that managers add value in terms of efficiency and customer satisfaction.
B)   Stock options require an option holder to purchase the organization's stocks at its present market rate.
C)   Stock options are rewarding for employees who exercise their option when the company's stock value has risen.
D)   Low-level employees with stock options are more likely to think like owners than executives who have stock options.
E)   A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options.F) A) and E)
G) All of the above

Question 14

________ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

Accepted Answer

A)   Differential piece rate
B)   Standard hour plan
C)   Merit pay
D)   Piece rate
E)   CommissionF) B) and E)
G) A) and D)

Question 15

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

Accepted Answer

A) True 
 B)False

Question 16

Team awards differ from group bonuses in that they

Accepted Answer

A)   are typically plant-wide group incentive programs.
B)   make payments in company stock rather than in cash.
C)   are more likely to use a broad range of performance measures.
D)   encourage competition among individual employees to achieve higher bonuses.
E)   give more importance to organizational performance than small groups' performances.F) B) and D)
G) None of the above

Question 17

By law, what is the minimum percentage of assets that an employee stock ownership plan (ESOP)  must invest in its company's stock?

Accepted Answer

A)   10
B)   26
C)   51
D)   60
E)   76F) A) and D)
G) None of the above

Question 18

An employee stock ownership plan denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Accepted Answer

A) True 
 B)False

Question 19

What are the implications of designing pay for organizational performance?

Accepted Answer

Many organizations offer incentive pay t...

Question 20

Franklin Appliances Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. What is Franklin Appliances using in this scenario?

Accepted Answer

A)   Scanlon plan
B)   balanced scorecard
C)   piecework stock plan
D)   employee stock ownership plan
E)   differential piece stock planF) B) and C)
G) A) and E)

Exam 13: Recognizing Employee Contributions With Pay

If employee participation in making pay-related decisions is encouraged in an organization, then

Correct Answer
verified

Correct Answer
verified

An employee at CellWorld who produces 10 phone components in an hour earns $9 ($0.90 ×10) per hour, while another employee who produces 15 components earns $13.50 ($0.90 ×15) . This is an example of a

Correct Answer
verified

Explain how employee stock ownership plans (ESOPs) differ from stock options.

Correct Answer
verified
Stock options give employees the right t...
View Answer

What are the different types of pay for rewarding individual performance?

Correct Answer
verified
Another quantity-oriented incentive for ...
View Answer

Which statement is true of using stock options as incentive pay?

Correct Answer
verified

Correct Answer
verified

________ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

Correct Answer
verified

Jewels & Co., a watch manufacturing company, provides wages to its employees based on the number of watches the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

Correct Answer
verified

Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary.

Correct Answer
verified

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

Correct Answer
verified

By law, what is the minimum percentage of assets that an employee stock ownership plan (ESOP) must invest in its company's stock?

Correct Answer
verified

Franklin Appliances Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. What is Franklin Appliances using in this scenario?

Correct Answer
verified

________ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

Correct Answer
verified

Define incentive pay and explain how it can motivate employees.

Correct Answer
verified
Incentive pay is pay-other than wages an...
View Answer

Team awards differ from group bonuses in that they

Correct Answer
verified

If a company distributes stock to employees by granting stock options, employees exercise the option when they

Correct Answer
verified

An employee stock ownership plan denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Correct Answer
verified

What are the implications of designing pay for organizational performance?

Correct Answer
verified
Many organizations offer incentive pay t...
View Answer

The ________ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

Correct Answer
verified

Exam 13: Recognizing Employee Contributions With Pay

If employee participation in making pay-related decisions is encouraged in an organization, then

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An employee at CellWorld who produces 10 phone components in an hour earns $9 ($0.90 ×10) per hour, while another employee who produces 15 components earns $13.50 ($0.90 ×15) . This is an example of a

Correct AnswerverifiedShow Answer

Explain how employee stock ownership plans (ESOPs) differ from stock options.

Correct AnswerverifiedStock options give employees the right t...View AnswerShow Answer

What are the different types of pay for rewarding individual performance?

Correct AnswerverifiedAnother quantity-oriented incentive for ...View AnswerShow Answer

Which statement is true of using stock options as incentive pay?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

________ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.

Correct AnswerverifiedShow Answer

Jewels & Co., a watch manufacturing company, provides wages to its employees based on the number of watches the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a

Correct AnswerverifiedShow Answer

Under profit sharing, payments are a percentage of the organization's profits and become part of the employees' base salary.

Correct AnswerverifiedShow Answer

The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.

Correct AnswerverifiedShow Answer

By law, what is the minimum percentage of assets that an employee stock ownership plan (ESOP) must invest in its company's stock?

Correct AnswerverifiedShow Answer

Franklin Appliances Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. What is Franklin Appliances using in this scenario?

Correct AnswerverifiedShow Answer

________ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.

Correct AnswerverifiedShow Answer

Define incentive pay and explain how it can motivate employees.

Correct AnswerverifiedIncentive pay is pay-other than wages an...View AnswerShow Answer

Team awards differ from group bonuses in that they

Correct AnswerverifiedShow Answer

If a company distributes stock to employees by granting stock options, employees exercise the option when they

Correct AnswerverifiedShow Answer

An employee stock ownership plan denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Correct AnswerverifiedShow Answer

What are the implications of designing pay for organizational performance?

Correct AnswerverifiedMany organizations offer incentive pay t...View AnswerShow Answer

The ________ has required companies to more clearly report executive compensation levels and the company's performance relative to that of competitors.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Stock options give employees the right t...
View Answer

Correct Answer
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Another quantity-oriented incentive for ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Incentive pay is pay-other than wages an...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Many organizations offer incentive pay t...
View Answer

Correct Answer
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