ch 11 hr

Merit pay

Merit pay

Legally Mandated Benefits

SSN, retirement, Medicare, Disability,

_______________ allow an individual employee to buy a certain amount of stock in the company at a specified future point. Stock purchasing plans Stock options plans Employee stock ownership plans Employer stock sales plans Company-funded retirement funds

Stock options plans

- Perquisites

are extra financial benefits usually provided to top employees in many businesses

Social loafers: give 100% both individually and in a group setting are shy and reserved in company social settings strive to be recognized as an outstanding performer in a group setting avoid exerting maximum effort in group settings because it is difficult to pick out individual performance usually cause group infighting by intentionally creating conflict.

avoid exerting maximum effort in group settings because it is difficult to pick out individual performance

A lump sum payment, typically given to an individual at the end of a period is a(n): commission merit pay bonus exit pay stock option

bonus

Jacob sat down with his supervisor at the beginning of the quarter and set a goal to reduce defects on the assembly line from 5% to 2%. If he achieves this goal by the end of the quarter, he will receive a ________ of $4,000 bonus commissions merit pay piecework exit pay

bonus

bonus

bonus

Merit pay: is a percentage of customer sales paid to the sales person is a lump sum bonus payment is pay for tenure (or length of service) in the organization is a type of bonus that is based on a time period and not on individual performance increases the annual wages of top performers and carries over from year to year

increases the annual wages of top performers and carries over from year to year

A disadvantage of __________ is that "many jobs have no direct output." individual incentives executive incentives benefits group incentives professional incentives

individual incentives

One advantage of ______ is "promoting the link between performance and results." professional incentives individual incentives group incentives benefits executive incentives

individual incentives

- COBRA

is a law that requires employers to offer to maintain health insurance on individuals who leave their employment (for a period of time)

Variable pay

is compensation that depends on some measure of individual or group performance or results in order to be awarded

hat are profit sharing programs? An individual incentive plan that provides a bonus based on that employee's profitability A program that provides a portion of company proceeds over a specific amount of time to the employees of the firm through a bonus payment An example of giving praise Incentives typically based on improvements in workplace safety of material savings Pretty much the same as a gain sharing program

A program that provides a portion of company proceeds over a specific amount of time to the employees of the firm through a bonus payment

Which type of incentive program is easier to develop? Individual incentive Variable incentive Group incentive Combination incentive Executive incentive

Group incentive

Patient Protection and Affordable Care Act of 2010.

In general, this act requires that all employers with more than 50 employees provide their full-time employees with health care coverage or face penalties for failing to do so

__________ is compensation that depends on some measure of individual or group performance or results in order to be awarded. Variable pay Merit pay Vesting Golden parachutes Perquisites

Variable pay

Acme Global gives its employees stock in the company at the end of each year. The stocks go directly into the employees' retirement accounts as part of the organization's __________ plan. profit sharing stock purchasing employee stock ownership plan stock option exit pay

employee stock ownership plan

When the manufacturing department cut waste by 10%, the organization paid each member of the department $500 (a portion of the savings) as a part of the organization's ________ program. profit sharing gainsharing employee stock ownership plan stock option exit pay

gainsharing

One advantage of a ________ is that it "broadens individual outlook." group incentive executive incentive individual incentive professional incentive benefit

group incentive

individual incentives: may motivate undesirable behaviors in the workforce. assist in maximizing teamwork. do not promote a link between performance and results. require less supervision than group incentives. are easier to develop than group incentives.

may motivate undesirable behaviors in the workforce.

Acme Global announced that it had $1 million available for pay increases this year. Lindsey was a top performer and hopes to get a 10% __________ incentive. bonus commissions merit pay piecework exit pay

merit pay

o Piecework or piece-rate

plans are one of the simplest forms of compensation, and they can act as an incentive to produce at a higher level because the more workers produce, the more they get paid. I

- Profit sharing programs

provide a portion of company proceeds over a specific period of time (usually either quarterly or annually) to the employees of the firm through a bonus payment.

Acme Global gave its top executives the opportunity to buy Acme Global stock in 5 years at the same price at which the stock is selling today. Acme Global is using a(n) ________ plan. profit sharing stock purchasing employee stock ownership plan stock option exit pay

stock option

Abigail runs a small business of 55 employees. She is working hard to find a way to provide health benefits to all her employees by 2016 to be in compliance with __________. Social Security the Affordable Care Act the Family and Medical Leave Act Medicare high-deductible health plan (HDHP)

the Affordable Care Act

A common advantage of group incentives is that: the best performers will maximize their efforts to make up for free riders. they broaden the individual outlook of group members. they encourage team members to compete with each other. they always equally reward the performance of all employees. there is very little chance of infighting or conflict with group incentives.

they broaden the individual outlook of group members.

Due to a recession, Lauren was laid off by her organization. To avoid having Lauren and other laid-off workers stop spending money and thus deepen the recession, __________ will help them maintain some income. Social Security Medicare unemployment insurance worker's compensation leave pay

unemployment insurance

ocial Security includes all the following EXCEPT: retirement disability benefits Medicare survivor benefits workers' compensation

workers' compensation