Q&A Hero

Human Resource

Q: In which of the following incentive pay plans does the wage rate not increase for production above the standard?A.Standard hour planB.Rowan planC.Taylor planD.Merrick plan
Q: The most frequently used incentive system is the:A.standard hour plan.B.straight piecework.C.Halsey 50-50 plan.D.Taylor differential piece-rate plan.
Q: Paying a dime for every bottle collected and turned into a collection center is an example of:A.a commission based work.B.a standard hour based work.C.straight piecework.D.a Rowan plan.
Q: The common feature to all types of incentive plans is:A.a standard of performance to determine magnitude of incentive pay.B.a sharing formula between worker and employer.C.penalties for poor performance.D.limits on magnitude of incentive pay.
Q: A penalty for poor performance rather than reward for good is an example of:A.benchmarking.B.a reengineering plan.C.a Rowan plan.D.a reverse incentive plan.
Q: Which of the following is not true about individual spot awards?A.Smaller companies may be more casual about recognition.B.Someone in the organization alerts top management to the exceptional performance.C.A majority of companies do not feel that these awards are effective.D.Smaller companies are more subjective about deciding the size of the award.
Q: Usually _____ are awarded for exceptional performance, often on special projects or for performance that so exceeds expectations as to be deserving of an add-on bonus.A.variable pay awardsB.individual spot awardsC.lump-sum bonusesD.merit pay
Q: Which of the following is not true of lump-sum bonuses?A.They help maintain competitive pay position relative to competitors.B.They are less expensive than merit pay.C.Employees dislike them.D.They are a more visible reward than merit pay.
Q: The authors argue that for merit pay to live up to its potential, all of the following should be done except _________A. use more peer than supervisor raters.B. improve the accuracy of appraisals.C. allocate enough merit money to truly reward performance.D. ensure merit pay differentiates across performance levels.
Q: All of the following are true regarding merit pay except _______A. it has a small, but significant effect on performance.A. it has a small, but significant effect on performance.B. removal of merit pay lowers satisfaction but not performance.C. departments and units with merit pay show higher performance.D. merit pay has a sorting effect.
Q: Variable pay as a percent of payroll is __ percent.A. 5B. 12C. 17D. 21
Q: Surveys show the most popular type of variable pay plan is ____________A. stock options.B. gainsharing.C. individual incentives.D. special recognition
Q: It is observed that _____ is/are commanding a larger share of the total compensation for all employee groups.A.merit payB.health benefitsC.retirement benefitsD.variable pay
Q: Which of the following does not use the time period per unit of production to determine the rate?A.Gantt planB.Rowan planC.Halsey 50-50 methodD.Merrick system
Q: What are the four standards managers need to focus on when designing a pay-for-performance system?
Q: What are stay bonuses?
Q: Explain how personality characteristics can influence an employee's preference for rewards.
Q: Compare risk sharing and success-sharing plans.
Q: What is a cost-of-living-increase?
Q: What are the implications for performance-based pay based on the theory of reinforcement?
Q: Explain the expectancy theory of motivation.
Q: Briefly explain the concept of cafeteria-style or flexible compensation.
Q: What predictions can be made about performance-based pay based on Maslow's theory?
Q: What are the behaviors that compensation ought to enforce?
Q: Managers have more control over distributive justice than procedural justice.
Q: Eligibility refers to who in the organization may participate in an incentive pay program.
Q: Group incentives are more effective than individual incentives.
Q: A problem with incentive pay plans is workers focus exclusively on behaviors that are rewarded.
Q: Incentive effect means pay can motivate people to perform better.
Q: Blue-collar workers feel pay increases should be based upon performance.
Q: Generally, team-based incentives are more attractive than individual incentives.
Q: Evidence suggests that skill-based pay may not increase productivity.
Q: An individual incentive pay system is associated with high turnover of high performers.
Q: Group incentive pay increases turnover of better performers while individual incentive increases turnover of poorer performers.
Q: Evidence suggests that talented people are motivated to join organizations with strong links between performance and pay.
Q: Both pay level and pay system characteristics affect applicants decisions to accept a job.
Q: Risk-sharing plans include a provision for cuts in base pay that are only recaptured in years when the organization meets performance objectives.
Q: Gain sharing poses greater risk to individual employees than profit sharing.
Q: Line of sight is highest in individual incentive plans.
Q: Lump-sum bonuses have less risk for workers than merit pay.
Q: The authors argue that a system of flexible compensation could lead to more desirable employee behaviors at a lower total cost.
Q: The trend today is toward less stable and less secure compensation packages.
Q: Security in terms of compensation refers to the predictability of one's paycheck from one time to another.
Q: Work load and work variety are both components of a total reward system.
Q: Identifying desired behaviors is the emphasis of agency theory.
Q: According to agency theory, because employees prefer a salary, they demand higher total pay if performance-based pay is used.
Q: Agency theory argues that employees prefer risky pay since rewards can be greater than a salary.
Q: Goal setting theory argues that employees' performance in maximized when performance targets are stated as "do your very best".
Q: An important implication of reinforcement theory is that when employees receive pay is important.
Q: Line of sight means that employees believe they can influence performance targets.
Q: Herzberg's Two-factor theory argues success-sharing plans will be motivating while at-risk plans will be demotivating.
Q: Maslow's theory suggests that performance-based pay can be de-motivating.
Q: Cafeteria-style compensation is based on the idea that the organization knows what package of rewards would best suit individual employees' needs.
Q: When employees earn a lot from sales incentives, customer service will also be very good.
Q: Incentive pay systems are an effective way to motivate workers to perform a variety of tasks in changing situations.
Q: When pay raises are based on events over which employees lack significant control, they are likely to regard the system as unfair.
Q: The point of the behavior = f (M, A, E) model is that, though very important, compensation alone cannot change employee behavior.
Q: The text authors argue compensation has more influence on performance than selection or performance management.
Q: In the formula (behavior = f (M, A, E)), M standards monetary incentives.
Q: Growing evidence suggests HR practices affect employee perception of their employer which influences organization performance.
Q: The amount of fairness given to employees refers to _____.A.total justiceB.quantitative justiceC.procedural justiceD.distributive justice
Q: The key to designing a pay-for-performance system rests on standards. Specifically, managers need to be concerned about the:A.objectives, structure, eligibility, and funding.B.strategy, measures, structure, and equity.C.structure, efficiency, equity, and funding.D.objectives, measures, eligibility, and funding.
Q: Research suggests that for employees to notice and work hard to perform behaviors desired by the organization, incentives need to be _____ percent.A.5-8B.8-10C.15-20D.25-30
Q: There is evidence that every 10 percent increase in the bonus paid to employees yields a _____ percent increase in ROA to the firm.A.1B.1.5C.5D.15
Q: The most obvious sorting factor is _____.A.seniorityB.abilityC.experienceD.educational qualification
Q: Company X pays for performance. Allan, an employee of the company, is not in favor of this reward system and, therefore, leaves Company X in search of another company with different rules for getting rewards. This is an example of the:A.design effect.B.compensation effect.C.sorting effect.D.incentive effect.
Q: Available evidence indicates managers believe the most important factor for pay increases is _____.A.effortB.nature of the jobC.seniorityD.performance
Q: Growing evidence suggests that the major effect of skill-based pay is _____.A.high productivityB.reduced labor costsC.high quality productsD.low training costs
Q: When moving from an individual to a group incentive plan, you would expect _____.A.high turnover among high performersB.an increase in instrumentalityC.an increase in the output of high performersD.an increase in perceived equity
Q: Turnover tends to be highest among _____.A.poor performersB.good performersC.single women with childrenD.ethnic minorities
Q: A person with low self-esteem is likely to seek _____.A.an organizations with pay plans based upon individual not group performanceB.an organizations with a significant amount of pay based upon performanceC.a small organization with large benefitsD.a large, decentralized organization with little performance-based pay
Q: Which of the following is not true?A.More companies are using pay based upon individual, group and organization performance.B.Workers with high security needs may accept lower pay for pay security.C.Workers may need higher pay to stay and perform in an at-risk pay company.D.Companies are moving back to entitlement-oriented pay to reduce turnover.
Q: If you worked in a cyclical industry such autos, which set of pay components would be least desirable?A. gain sharing and lump-sum bonusB. merit pay and base wageC. profit sharing and lump-sum bonusD. cost of living and base wage
Q: Compared to other incentive plans, line of sight is lowest in _____.A.profit sharingB.gain sharingC.risk sharingD.success sharing
Q: _____ is an individual level form of performance pay.A.Risk sharingB.Gain sharingC.Lump-sum bonusD.Success sharing
Q: All of the following except ____ require periodically "re-earning" the added pay.A.success sharing planB.lump-sum bonusC.profit-sharing planD. cost of living
Q: _____ theory contends that we choose to do those things that we believe are most likely to lead to desired rewards.A.ExpectancyB.ReinforcementC.AgencyD.Equity
Q: Theories dealing with exchange include _____.A.Maslow and HerzbergB. agency, equity and expectancyC.expectancy and reinforcementD.goal setting and equity
Q: _____ theory argues that performance-based pay is best for complex jobs where monitoring employee performance is difficult.A.ReinforcementB.Goal settingC.AgencyD.Expectancy
Q: As per the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.A.equityB.expectancyC.agencyD.reinforcement
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