Chapter 10 365

The performance threshold in incentive pay programs is:

Contemporary reasons given by organizations for implementing incentive plans are:

Enterprise incentive plans include:

More than _____ of companies globally are offering variable pay programs.

Group incentive plans include:

Which of the following is NOT an advantage of an incentive pay program?

Which of the following is NOT a reason for variable pay plans to not achieve their proposed objectives or lead to organizational improvements?

When setting performance measures for incentive systems, we can say that the best measures are those that:

According to Sammer, which of the following is NOT a characteristic of a successful incentive plan?

_____ describes the design of individual incentive plans.

When employees receive a certain rate for each unit produced, they are working under the _____ incentive plan.

When employees receive a higher rate of pay for all of their work and production exceeds a standard level of output, they are working under the _____ incentive plan.

The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes. The piece rate would be ____ per unit.

A study on bonus versus actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by ____ percent.

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Rate busting refers to

Piecework is appropriate when:

An incentive given for a special employee contribution not directly tied to a performance standard is a:

If an employee's pay is based not on the actual amount of time it takes him or her to complete a job but instead on a predetermined amount of time for completing the job, he or she is working under the _____.

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is a:

In 2011, a study by the American Psychological Association found that _____ of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.

_____ are a group of individuals who are over the age of 60 and are less likely to spend money on themselves.

To minimize the problems of merit raises, organizations should use:

_____ are individuals between the ages of 25 and 41 who value a balanced lifestyle of work and play.

The straight commission plan is limited by all of the following disadvantages EXCEPT that:

A grant of units equal in value to fair market value or book value of a share of stock is known as:

A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period, which does not require executive financing is known as:

In most profit-sharing plans, about _____ of the net profit is shared.

Performance of sales people can be affected by all of the following external factors EXCEPT:

A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as a:

According to the National Center for Employee Ownership, in 2013 approximately _____ organizations have employee stock ownership plans (ESOP) for their employees.

A compensation plan that compensates sales employees based on a percentage of sales is known as a:

Which of the following is NOT one of the simple rules for maintaining motivation among professionals?

Executive compensation consists of all of the following EXCEPT:

Executive base salaries represent between _____ percent of the total annual compensation.

The greatest influence on executive base salary is most likely:

When computing executive pay, many organizations are tying _____ to traditional financial gauges.

Management should guard against incentive payments being seen as _____.

Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as:

Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price?

Which of the following is an individual type of incentive plan?

Special benefits given to executive employees, such as assigned chauffeurs, country club memberships, and special vacation policies, are known as:

Compensation committees justify large executive compensation packages in the following ways EXCEPT:

A major concern of executive compensation involves:

Group incentive plans do all of the following EXCEPT:

A problem with creating team incentive plans is that:

Team incentive bonuses may be paid out in all of the following ways EXCEPT by distributing it:

Common output measures for productivity include:

_____ is a bonus incentive plan which uses employee and management committees to gain cost-reduction improvements.

The philosophy behind the Scanlon Plan is that:

When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity, which type of gainsharing program is being used?

Profit sharing refers to any procedure by which an employer pays employees:

The purpose of a profit-sharing plan is to:

The success of the Lincoln Electric Company profit-sharing plan rests largely on:

The disadvantages of profit sharing include all of the following EXCEPT that:

The use of _____ is a popular and prevalent method used in different industries for motivating and compensating hourly, salaried, and executive personnel.

ESOPs can qualify as tax-exempt employee trusts under section _____ of the Internal Revenue Code.

he advantages of employee stock ownership plans include all of the following EXCEPT that:

A major problem of employee stock ownership plans is that:

According to one budget survey, _____ percent of reporting organizations use variable pay.

Noncash incentive rewards are most effective as motivators when the award is:

Compensation specialists recognize all the following generations of employees EXCEPT:

The most widely used sales incentive program is the _____ plan.