Chapter 10 Homework

_____ are a group of individuals who are over the age of 60 and are less likely to spend money on themselves. a. Members of generation Y b. Members of generation X c. Boomers d. Traditionalists

d. Traditionalists

True or False? Fixed pay is more flexible than variable pay.

False.

True or False? Generally, an employee stock ownership plan is more likely to serve its intended purposes in privately held companies than in publicly held ones.

False.

True or False? Historically, incentive plans have not been a major element of strategic compensation management.

False.

True or False? Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

False.

True or False? Standard hour plans are based on specific production standards set for individual jobs.

False.

True or False? The performance threshold in incentive plans is the name given to the amount awarded to an employer.

False.

True or False? Under a straight piecework plan, if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50. The piece rate is $1.50 per unit.

False.

Piecework is appropriate when: a.a job is fairly standardized. b.quality is more important than quantity. c.productivity standards are difficult to develop. d.technology changes are frequent.

a. a job is fairly standardized.

The straight commission plan is limited by all of the following disadvantages EXCEPT that: a.salespeople will stress low-priced products. b.customer service after the sale is likely to be neglected. c.earnings tend to fluctuate widely between good and poor periods of business. d.salespeople are tempted to grant price concessions.

a. salespeople will stress low-priced products.

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is a: a.spot bonus. b.differential piece rate. c.piece rate. d.merit pay.

a. spot bonus.

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. a.differential piece rate b.standard piece rate c.individual rate pay d.exception bonus rate

a.differential piece rate

True or False? Incentive plans can create an organizational environment of shared commitment since individuals contribute to organizational success.

True.

True or False? Major advantages of piecework systems are that the wage payment is simple to compute, and an organization can predict labor costs with reasonable accuracy.

True.

True or False? Meshing compensation and organizational objectives help employees assume ownership of their jobs, thereby improving their effort and overall job performance.

True.

True or False? Piecework may be inappropriate where technology changes are frequent.

True.

True or False? Under a differential piece rate, employees whose production performance exceeds the standard output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard.

True.

True or False? Under the Scanlon plan or Improshare program, psychological ownership can play a stronger role than financial ownership in employee performance.

True.

When setting performance measures for incentive systems, we can say that the best measures are those that: a. are qualitative, flexible, and create competition between employees. b. are quantitative, simple to understand, and show a clear relationship to improved performance. c. reduce administrative costs, determine rewards based only on quantity, and reward only exceptional employees. d. allow employers to "ratchet up" standards and base rewards on qualitative standards.

b. are quantitative, simple to understand, and show a clear relationship to improved performance.

When employees receive a certain rate for each unit produced, they are working under the _____ incentive plan. a. differential piece rate b. straight piecework c. standard piece rate d. individual rate pay

b. straight piecework

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.$1.95 b.$2.55 c.$3.15 d.$2.95

b.$2.55

Which of the following is NOT an advantage of an incentive pay program? a.Incentives are a way to increase equity and justice in an organization. b.Incentives are a means to reward or attract top performers when salary budgets are low. c.Incentives are a way to distribute success among those not responsible for producing that success. d.Incentives focus employee efforts on specific performance targets.

c. Incentives are a way to distribute success among those not responsible for producing that success.

Special benefits given to executive employees, such as assigned chauffeurs, country club memberships, and special vacation policies, are known as: a. executive rewards. b. golden parachutes. c. perquisites. d. assigned benefits.

c. perquisites.

Enterprise incentive plans include: a.the Rucker Plan. b.sales incentives. c.stock options. d.the Scanlon Plan.

c. stock options.