HRM Chpter 13
What is the difference between performance bonuses and merit pay?
Performance bonuses are not built into base pay.
Which of the following are examples of short-term incentives used for executives?
Return on investment Bonus based on profits
Why do organizations pay workers a piecework rate?
To motivate them to work efficiently
Under what conditions, employee participation in pay-related decisions can contribute to the success of an incentive pay plan?
When the organization fosters trust and cooperation When the incentives encourage employees to monitor their performance
The Dodd-Frank Wall Street Reform and Consumer Protection Act gives shareholders of public companies _____.
a vote of approval or disapproval on the companies' executive pay plans
What market should be used as a comparison in creating the balanced scorecard?
all business schools that have a similar size
What is a stock option?
an incentive in which the employee is granted the right to buy shares of the company at a specified price
What two factors determine the size and frequency of pay increases on the merit increase grid?
an individual's performance rating an individual's compa-ratio
Organizations establish and revise merit increase grids based on ______.
changing economic conditions
Giuseppa works for a company that distributes shares of stock to all the employees by placing the stock in a trust. Her company has a(n) ______ ownership plan.
employee stock
A gainsharing plan is more likely to succeed when an organization features which of the following components? (Select all that apply)
employees who enjoy working as a team committed managers specific goals
Incentive pay sometimes presents executives with significant ethical issues. Incentives linked to stock performance can lead to which of the following ethical issues? (Select all that apply.)
executives dishonestly raising the price of stock and thereby obtaining a bonus and stock option scandal that damages the company's reputation
A group incentive program that measures improvements in productivity and distributes a portion of the profits to each employee is called _____.
gainsharing
The compensation plan known as Blank______ involves payments being based on some measure of organizational performance, and the payments do not become part of the base salary.
profit sharing
Stock options are given to ______.
provide incentives for employees to work harder
Tyrone is the chief financial officer for a bank holding company and received a bonus last year based on the company's profits. He is not sure if he will get a bonus this year as the company is not doing as well financially. His bonus is an example of _____ incentive pay.
short-term