C236 End of Topic Review Ch. 9

In a ____________________, managers are given a cash budget from which they can immediately draw to provide employees with instant recognition of a high performance. Spot award system Scattered award system Filtered award system Dark award system

1 / 1 (100.0%) Answer: Spot award system Spot awards are often given out based on weekly or daily behavior. Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Spot Awards

There are three distinctions that define an individual bonus. Which of the following is not one of the three? It is a monetary reward given to a single employee based upon that employee's performance Bonuses do not accumulate into base pay Individual bonuses provided as a lump sum to employees generally make it easier for employees to perceive the value of the reward. All of the above

Answer: All of the above Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Individual Bonus

Rucker plans have a ___________ base on metrics. Smaller Wider Larger Broader

Answer: Broader Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Gain Sharing

Rucker plans provides incentives for: Exempt employees Senior management Collaboration Hourly workers

Answer: Collaboration Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Gain Sharing

_____________________ reward systems are most often used for jobs with a sales component and provide employees a set percentage of the sales that they make. Salaried Commission-based pay Hourly None of the above

Answer: Commission-based pay They are used to provide a strong incentive to create sales and also to maximize the size of those sales. Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Commissions

Similar to the piece rate, the ________________ is where an organization will pay $xx per unit and then pay more per unit after a certain number are produced. Differential piece rate Differential pay rate Sequential piece rate Sequential pay rate

Answer: Differential piece rate This allows an organization to effectively pay a lower rate for a portion of the production by drawing upon the motivational power of tournament theory due to the significance of the larger reward for high-quantity performance. Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Piece Rate

One disadvantage to a profit sharing plan is that when the organization has a profit loss, employees owe a certain percentage of their income to the organization. TrueFalse

Answer: False When the organization is losing money, no additional labor cost is required. Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Profit Sharing

________________________ ties rewards to the collective actions and results achieved by teams, groups and units in the organization. Single pay Individual-based variable pay Variable pay Group-based variable pay

Answer: Group-based variable pay Group-based variable pay ties rewards to the collective actions and results achieved by teams, groups and units in the organization. Found in the following section(s) of the text: 9.5 Group-based Variable Pay

Scanlon plans focus on __________________. Improvements in capital costs Improvements in labor costs Improvements in product costs Improvements in all costs

Answer: Improvements in labor costs Scanlon plans that focus on improvements in labor costs. Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Gain Sharing

What industry is commonly known for using the piece rate system? Hospitality Manufacturing Technology Biomedical

Answer: Manufacturing Commonly used in manufacturing companies, these systems might pay employees $1.25 for each unit they assemble. Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Piece Rate

Because of profit sharing plans, when an _______________ is profitable, the employees receive a portion. Employee Government Employer Organization

Answer: Organization When the organization is profitable, employees receive a portion of the profit. Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Profit Sharing

Gain sharing attempts to align the interests of the __________with the interests of the ______________. Employer, organization Organization, employees Organization, government Government, senior management

Answer: Organization, employees The employees have a continual incentive to create real savings for the organization while simultaneously increasing their compensation. Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Gain Sharing

As gain sharing is intended to align interests, it will do so by doing all of the following except: Productivity gains Productivity losses Service improvements Cost savings

Answer: Productivity losses Gain sharing attempts to align the interests of the organization with the interests of the employees by creating a system in which they both benefit from productivity gains, service improvements, or cost saving Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Gain Sharing

A _______________ is designed to distribute a portion of the firm's annual profits back to the firm's employees. Profit plan Profit sharing plan Profit loss plan None of the above

Answer: Profit sharing plan Profit sharing plans are designed to distribute a portion of the firm's annual profits back to the firm's employees. Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Profit Sharing

Spot awards draw upon __________________in that they allow for very short gaps between the demonstrated performance and the reception of the reward. Reinforcement theory Expectancy theory Contingency theory Spot theory

Answer: Reinforcement theory Spot awards draw upon reinforcement theory in that they allow for very short gaps between the demonstrated performance and the reception of the reward. Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Spot Awards

_____________________ provide employees the right to purchase a set amount of shares of stock for a set price. Stock benefits Benefit options Stock price Stock options

Answer: Stock options Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Stock Options

Stock options are often reserved for executive compensation plans. TrueFalse

Answer: True Because of the disconnect between most levels of employees and concerns about diluting voting shares of stock, stock options are often reserved for executive compensation plans. Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Stock Options

Care must be taken to ensure that the distribution of spot awards is based upon legitimate performance behaviors, guarding against a perception that the spot awards are only given to the managers' preferred employees. TrueFalse

Answer: True Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Spot Awards

Merit pay budget and cost of living adjustment pay increases for all employees to account for inflation. TrueFalse

Answer: True These are often thought of as part of the solution to this problem. Found in the following section(s) of the text: 9.4 Individual-based Variable Pay - Merit Pay

Gain sharing plans typically are at the ___________that would include a significant number of the employees in a particular location. Unit-level Main level Floor Ceiling

Answer: Unit-level Gain sharing plans typically are at the unit-level that would include a significant number of the employees in a particular location. Found in the following section(s) of the text: 9.5 Group-based Variable Pay - Gain Sharing