HAS 3240 - Quiz #6

Approximately __________ of companies reward their executives with short-term year-end bonuses.
A. 25%
B. 40%
C. 75%
D. 90%
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Approximately __________ of companies reward their executives with short-term year-end bonuses.
A. 25%
B. 40%
C. 75%
D. 90%
D. 90%
Camara and Jose always ask the professor in their American Government class exactly what will be on the next exam. They ask this questions so that they can study for no more than they absolutely must. This is an example of:
A. The negative effects of pay-for-performance on the spirit of cooperation
B. The "do only what you get paid for" syndrome
C. Negative psychological contracts
D. An increase of intrinsic drives
B. The "do only what you get paid for" syndrome
If managers increase employee involvement in the design of an incentive compensation system, which of the following will most likely occur?
A. Employees will be more committed to the plan
B. Managers will spend more time in conflict resolution
C. Employees' intrinsic drives will be sharply reduced
D. Managers will be better able to evaluate performance
A. Employees will be more committed to the plan
In general, prerequisites are:
A. Part of team-based pay-for-performance plans
B. Offered to top-performing employees at all levels
C. Nonmonetary incentives awarded to executives
D. Are not well received by most executives
C. Nonmonetary incentives awarded to executives
__________ is a plantwide pay-for-performance plan which returns a portion of company savings to employees as a lump-sum bonus.
A. Gainsharing
B. A team-based plan
C. A merit increase
D. A profit-sharing plan
A. Gainsharing
Merit pay differs from bonus programs in what way?
A. Merit pay raises the employee's base pay permanently; bonuses do not.
B. Bonuses are nonfinancial rewards; merit pay is a financial reward.
C. Merit pay is disbursed several times a year; bonuses are given on a yearly basis
D. Bonterm-10uses are used much less often than merit pay in individual-based pay plans
A. Merit pay raises the employee's base pay permanently; bonuses do not.
Most companies use a __________ when setting up their sales compensation plan.
A. Straight commission plan
B. Combination plan
C. Straight Salary Plan
D. Gainsharing plan
B. Combination plan
__________ permit the executive to buy stock at, or below, cost during a limited time.
A. Formula-based stocks
B. Restricted stock plans
C. Stock appreciation rights
D. Stock purchase plans
D. Stock purchase plans
Piece-rate pay-for performance would most likely work well with:
A. Secretaries who also fill in as receptionists paid for the amount of correspondence they type each day.
B. Police officers paid for the number of arrests they make for drunk driving during a single month.
C. School teachers paid on the basis of the number of students who have passed standardized tests
D. Sewing machine operators paid for the number of pairs of pants they sew in a given work day.
D. Sewing machine operators paid for the number of pairs of pants they sew in a given work day
Public and nonpublic praise, honorary titles, and expanded job responsibilities are all examples of:
A. Financial rewards
B. Lump-sum payments
C. Nonfinancial rewards
D. Employee services
C. Nonfinancial rewards
To minimize problems, a pay-for-performance plan should: A. Appropriately link pay and performance B. Use pay-for-performance as a stand-alone program C. Downplay the rewards to avoid an over-focus on productivity D. Use a single-layer, simple programA. Appropriately link pay and performance(True or False) A significant advantage of team-based pay-for-performance plans is that they eliminate the social pressure to limit performance.False(True or False) Nearly 95% of U.S. companies are expected to use pay-for-performance plans by 2014.True(True or False) Pay-for-performance is likely to enhance the spirit of cooperation in an organization, as employees will work to help one another improve their job performance.False(True or False) Team-based pay plans are the most widely used pay-for-performance plans in the industryFalseUnlike individual-based incentive plans, gainsharing: A. Accepts people's intrinsic motivations B. Often leads to decreases in productivity C. Accepts that people are externally motivated D. Supports the idea that pay incentives motivate productionA. Accepts people's intrinsic motivationsWhat is the most common type of pay-for-performance used by firms? A. Perks B. Bonuses C. Stock options D. Nonmonetary rewardsB. BonusesWhich of the following is a disadvantage of plantwide incentive programs? A. Increased team competition B. Complex formulas for determining bonuses C. Protection of low performers D. Disbelief that pay and performance are linkedC. Protection of low performersWhich of the following is most likely true abut individual-based compensation systems? A. They facilitate performance measurement B. They provide tax advantages to maniufacturers C. They promote independence from supervision D. They match the individualistic culture of the U.S.D. They match the individualistic culture of the U.S.Which of the following is the most likely problem of using team-based pay-for-performance plans? A. Employees' retirement funds are put at risk B. Group cohesiveness is severely limited C. Intergroup competition causes a performance decline D. Managers have difficulty appraising group performanceC. Intergroup competition causes a performance decline