Compensation Administration - Chapter 10

________ requires division of a task into simple actions and determination of the time required by an average skilled worker to complete each action. A) A standard hour plan B) The Rowan plan C) A Bedeaux plan D) The Merrick plan

C) A Bedeaux plan

Which of the following is an advantage of providing stock ownership as variable pay to employees? A) It reinforces team identity. B) It is the simplest type of variable pay plan. C) It defers a portion of taxes to employees. D) It provides a direct pay-performance link.

C) It defers a portion of taxes to employees.

Which of the following is a disadvantage of gain-sharing plans? A) Payouts can occur even if a company's financial performance is poor. B) Pay-performance links are indirect. C) Employees are required to put up money to exercise grants. D) Mandatory stock ownership required by gain-sharing plans can increase turnover rates.

A) Payouts can occur even if a company's financial performance is poor.

For any task completed in standard time or less, earnings are pegged at 120 percent of the time saved under the A) Merrick plan. B) Gantt plan. C) Taylor plan. D) Rowan plan.

B) Gantt plan.

The trend in recent variable-pay design is to combine the best of A) individual and group incentive plans. B) gain-sharing and profit-sharing plans. C) the Halsey and Rowan plans. D) balanced scorecard and cash profit-sharing plans.

B) gain-sharing and profit-sharing plans.

Maxwell Construction Corp. employs a lot of uneducated laborers. The company wants to introduce a variable pay plan that is easy to understand and does not cost much to administer. Which of the following variable pay plans is Maxwell most likely to introduce? A) A balanced scorecard plan B) A gain-sharing plan C) A stock ownership plan D) A cash profit-sharing plan

D) A cash profit-sharing plan

Which of the following is a reward that recognizes outstanding past performance? A) Insurance B) An allowance C) A remittance D) Merit pay

D) Merit pay

An incentive system with three piecework rates is the A) Taylor plan. B) Gantt plan. C) Rowan plan. D) Merrick plan.

D) Merrick plan.

TreeDen Corp. experiences an increase in its employee turnover rate. Upon investigating, it discovers that employees are dissatisfied with the company's pay. Employees cannot see a direct link between their performance and their pay. They are also unhappy about having to pay out of their pockets to obtain grants. In this case, TreeDen is most likely using a A) stock ownership plan. B) cash profit-sharing plan. C) gain-sharing plan. D) team incentive plan

A) stock ownership plan.

Which of the following are an example of a long-term incentive plan? A) Merit bonuses B) Performance plans C) Bedeaux plans D) Spot awards

B) Performance plans

If you had repair work done on your car, the shop most likely used ________ to pay the mechanic. A) a Bedeaux plan B) a standard hour plan C) the Halsey 50-50 method D) a straight piecework plan

B) a standard hour plan

The most frequently implemented incentive system is: A) a standard hour plan. B) a straight piecework system. C) the Merrick system. D) the Taylor differential piece-rate plan

B) a straight piecework system.

Paying a dime for every bottle collected and turned to a collection center is an example of: A) a standard hour plan. B) the Merrick system. C) a straight piecework system. D) the Rowan plan.

C) a straight piecework system.

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by: A) instructing the team to do their best. B) specifying performance levels and due dates. C) assigning tasks only to the top performers in the team. D) punishing free riders who fail to meet standards.

B) specifying performance levels and due dates.

Components identified as vital to the success of both Scanlon and Rucker plans are: A) top management support and primary focus on wage incentives. B) a flexible payout formula and low turnover rates. C) union and top management support. D) a productivity norm and effective worker committees

D) a productivity norm and effective worker committees

In gain-sharing plan formulas, A) productivity measures are in the numerator and revenues are in the denominator. B) productivity measures are in the numerator and labor inputs are in the denominator. C) costs are in the numerator and revenues are in the denominator. D) labor inputs are in the numerator and productivity outcomes are in the denominator

D) labor inputs are in the numerator and productivity outcomes are in the denominator