MGMT 330 Exam 4
The Henry-Bell organization uses the Scanlon plan to provide incentives to its employees. The workers produce electrical components worth $5 million. The target ratio set by the organization is 30 percent. The employees will be given a bonus if the actual labor costs are less than $0.5 million. $1 million. $1.5 million. $2 million. $2.5 million.
$1.5 million.
By law, what is the minimum percentage of assets that an employee stock ownership plan (ESOP) must invest in its company's stock? 10 26 51 60 76
51
What is a reason for the popularity of employee stock ownership plans (ESOPs)? ESOPs provide tax advantages to employers. ESOPs provide very high risk-free retirement income. Employees can use ESOPs to buy their company during financial crises. ESOPs must invest at least 51 percent of their assets in the company's own stocks. The employees are provided with many more shares of stock than they actually own.
ESOPs provide tax advantages to employers.
What must be true for a pension plan to be deemed a qualified plan? It must not discriminate in favor of an organization's highly compensated employees. It must not be a cafeteria-style plan. It should include elder care and child care. It has to be a defined-contribution plan. It has to be a defined-benefit plan that requires most of the funding to come from the employer.
It must not discriminate in favor of an organization's highly compensated employees.
What is true of short-term disability insurance? It pays the full amount of a disabled employee's salary for a minimum period of one year. It pays double the full salary of a disabled employee for a period of two months. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. It pays a portion of a disabled employee's salary as benefits for up to six months. It is only provided to those individuals who work part time.
It pays a portion of a disabled employee's salary as benefits for up to six months.
Which statement is true of a performance bonus? It is designed to reward group performance. It should be re-earned by employees during each performance period. It is rolled into base pay and provided yearly or monthly. It lacks flexibility and hence it is less popular. It is exclusively linked to subjective ratings, rather than objective performance measures.
It should be re-earned by employees during each performance period.
_____ rules require that employees who join the union remain members for a certain period of time but do not require a union membership. Agency shop Union shop Closed shop Maintenance of membership Checkoff provision
Maintenance of membership
_____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee. The Internal Revenue Service The Consolidated Omnibus Budget Reconciliation Act (COBRA) The Employee Retirement Income Security Act (ERISA) Employee Benefit Research Institute The Bureau of Labor Statistics
The Internal Revenue Service
Who among the following is NOT covered by the National Labor Relations Act (NLRA)? an individual employed as a supervisor an individual employed in the service sector an individual employed by a private-sector firm with less than 15 full-time employees an individual joining a union that is not recognized by his or her employer an individual refraining from activity on behalf of the union
an individual employed as a supervisor
Organizations must communicate benefits information to employees so that they will be motivated to work harder. choose the least-expensive benefits package. be legally liable in an employee lawsuit. be informed of future career opportunities within the organization. appreciate the value of their benefits.
appreciate the value of their benefits.
The Public Transport Union and the New York Transit Authority are in conflict with each other. When the conflict escalates, the New York City Council decides to intervene and settle the dispute. The Council, after listening to offers from both sides, puts forth a binding settlement, which both parties must accept. In the context of the alternatives to work stoppages, this is an example of arbitration. fact finder negotiation. mediation. checkoff bargain. grievance leverage.
arbitration.
Straight commission plans are plans that provide a straight salary to employees. are useful when the organization wants salespeople to concentrate on listening to customers. are used to attract risk-averse employees. are common among insurance and real estate agents. are uncommon among car salespeople.
are common among insurance and real estate agents.
Team awards differ from group bonuses in that they are typically plant-wide group incentive programs. make payments in company stock rather than in cash. are more likely to use a broad range of performance measures. encourage competition among individual employees to achieve higher bonuses. give more importance to organizational performance than small groups' performances.
are more likely to use a broad range of performance measures.
One of the substitutes for traditional organizing is to conduct _____, which bring(s) financial, political, or public pressure on employers during union organization and contract negotiation. collective coercion corporate campaigns indirect provisions associate campaigns social campaigns
corporate campaigns
A feature of an effective incentive pay plan is that it should have performance measures based on employees' requirements. not be provided as a direct percentage of employees' performance. encourage group performance and sideline individual achievements. be the same for all employees in the organization. have performance measures linked to the organization's goals.
have performance measures linked to the organization's goals.
Justin is a human resource manager at an advertising firm. Justin proposes that the company adopt defined-benefit plans to attract and retain employees. In which situation will this benefit be most valuable to the firm's employees? if all the employees are under the age of 30 if the nature of work demands college graduates if the firm employs experienced, older people if the firm employs young and creative minds if the firm mainly employs freelancers
if the firm employs experienced, older people
Leonard, the manager of a manufacturing firm, wants the organization to perform better. He expects his employees to think more like owners, taking a broad view of what they need to do in order to make the organization more effective. In this case, Leonard should pay his employees per piece that is manufactured. create a balanced scorecard. reorganize the departments in the organization. implement a profit-sharing incentive plan. hire new employees and pay them above the market rate.
implement a profit-sharing incentive plan.
A pay structure specifically designed to energize, direct, or control employees' behavior is known as monthly salary. wage. incentive pay. annual salary. fixed pay.
incentive pay.
Britney, a heavy equipment operator, Kristin, an operating engineer, and Sam, a construction mechanic, hail from different parts of the United States. Though they have different occupations, they are all members of the same union. In the context of types of union, Britney, Kristin, and Sam most likely belong to a(n) _____ union. international industrial stewards checkoff craft
industrial
Under the Older Workers Benefit Protection Act of 1990, which guideline must employers follow when asking employees to sign early-retirement waivers? inform employees that they may consult with a lawyer before signing allow employees no more than 48 hours before signing the retirement agreement make Age Discrimination in Employment Act (ADEA) waivers compulsory provide lesser benefits than would otherwise be available upon retirement provide employees with an annual bonus and health insurance after the retirement
inform employees that they may consult with a lawyer before signing
Arman joins the human resource department at SmartFuel Inc., where the production workers are represented by a union. Which goal would Arman most likely be expected to work toward in supporting any negotiations with the union? discouraging employees from forming a union making managers and workers into adversaries keeping operations flexible and retaining some control over schedules raising the value of workers' compensation package ensuring a regular flow of new members into the union
keeping operations flexible and retaining some control over schedules
Courtney's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate? managed care health maintenance organization employee wellness flexible spending account consumer-driven health plan
managed care
Organizations customize their balanced scorecards according to their earnings. profits, benefits, and incentives. markets, products, and objectives. objectives as set by the organization's CEO and board of directors. research on what drives employee motivation.
markets, products, and objectives.
A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. top-heavy multiemployer special draw rights deferred defined-contribution
top-heavy
Most national unions in the United States are linked with the _____, an association that seeks to improve the shared interests of its member unions at the national level. National Labor Relations Act (NLRA) Society of Modern Trade Workers and the Trade Federation of the States (SMTW-TFS) American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) Chamber of Commerce (CoC) National Association of Manufacturers (NAM)
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
What is a similarity between unemployment insurance benefits and workers' compensation benefits? Both of the programs are funded by the federal taxes on employees. Both of the programs' costs depend on the organization's experience ratings. Both of the programs have the same funding costs across the states. Both of the programs replace the same percentage of an individual's previous earnings. Both of the programs provide the same amount of compensation to the employees.
Both of the programs' costs depend on the organization's experience ratings.
What is true of child care benefits? At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. Companies that provide child care facilities face liability concerns. Provision of child care is mandatory under the Family and Medical Leave Act. Child care benefits should be limited to provision of leaves to employees. Child care benefits must include death benefits for it to be considered as a qualified plan.
Companies that provide child care facilities face liability concerns.
Evan is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Evan thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Evan's idea? The plan makes employees part-owners of the company. The Pension Benefit Guarantee Corporation will guarantee a basic benefit. Employees can buy an annuity with the contributions when they retire. The amount employees contribute is not taxed when they contribute it. Contributing a share of profits gives the company more flexibility as it establishes itself.
Contributing a share of profits gives the company more flexibility as it establishes itself.
_____ refers to incentive pay in which the wage paid is higher when a greater amount is produced. Profit sharing Differential piece rate Gainsharing Scanlon pay Merit pay
Differential piece rate
As Monty Corp., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Juliet, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Juliet's argument? Employees do not pay income taxes on most benefits they receive. Benefits are harder for employees to understand than pay structures. Employees could get a better deal if they bought their own insurance policies. Higher cash compensation gives employees more purchasing power. Different employees look for different types of benefits.
Employees do not pay income taxes on most benefits they receive.
Phono Inc. has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change? Vacation and sick leave do not make economic sense. Most companies offer this arrangement. The company won't have to set a schedule for holidays. The company won't have to pay for the time the employees take off. Employees have more flexibility and privacy for their personal matters.
Employees have more flexibility and privacy for their personal matters.
Vince, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason? Employees expect to receive benefits that are legally required and widely available. Software is the only method employees will accept to help them choose their benefits. The costs of turnover at Vince's company are high. The employees only value medical insurance. Employees have very different opinions about what they value.
Employees have very different opinions about what they value.
Kotochi and Sons, a marketing company, has implemented a few incentive plans to motivate its employees. The organization encourages employees to learn new skills and cooperate with others. Which condition will contribute to employees' feeling that the organization's incentive pay plans are fair and something to pursue? Employees must be able to understand the requirements of the incentive pay plan. Equal incentives should be offered to all the employees of the organization. Employees must be the key decision makers when creating incentive pay plans. The company should not inform the employees about incentive plan changes. Employees should make decisions that are only in favor of their interests.
Employees must be able to understand the requirements of the incentive pay plan.
How do cafeteria-style plans increase costs for employers? Employers pay much higher premiums for an HMO than a preferred health care plan. Employers are required to pay higher insurance premiums for laid-off workers. Contributions to PBGC to fund the retirement plan increases under this plan. Employees select the kind of benefits they expect to need the most. Employers bear the cost of providing employees with benefits they do not value.
Employees select the kind of benefits they expect to need the most.
Joe, a supervisor, believes that employees should participate in pay-related decisions. He says that it will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. Which statement weakens this argument? Employees will make decisions that are in their best interests at the expense of the organization's interests. It is difficult to monitor an employee's work output when decisions are made by the employee. When employees become more involved in pay decisions, they neglect the work assigned to them. Employees should be a part of the human resource department to be involved in pay-related decisions. It will have a negative impact on the top-level management of the company.
Employees will make decisions that are in their best interests at the expense of the organization's interests
Edgar, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which statement best summarizes what the HR professional should explain to the supervisor? Benefits apply whether a spouse is of the same or the opposite sex. Females may not be required to contribute more than men to defined-benefit plans. Fatherhood is a protected category in the antidiscrimination laws. Edgar has not yet used all of his sick leave. Equal employment opportunity requires that access to benefits not be limited by sex.
Equal employment opportunity requires that access to benefits not be limited by sex.
Laura, a sales manager at Dexter Inc., claims that labor and management are rivals for most organizations. Brooke, the HR manager, says she is aware of exceptions. Which statement best supports Brooke's perspective? After the 1980s, most unions and organizations have acted more like adversaries. Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams. Finding win-win solutions is almost impossible because unions and management have conflicting goals. Organizations often define jobs narrowly, which is a sign of cooperation. Creating a union necessarily forces employers to pay more wages, which results in loss of profits.
Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams.
What is the drawback of stock ownership as a form of incentive pay? Financial benefits mostly come when the employee leaves the organization. Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer. It causes the employers to lose control over their employees. The employees will not benefit even if the organization is performing well. Stock options do not provide any ownership to employees, instead offering an equivalent sum.
Financial benefits mostly come when the employee leaves the organization.
For five years, Mainstream Production Systems offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year. In the first year of that incentive program, 23 employees earned the bonus, but last year, only 7 submitted ideas, and only two of the ideas would actually save more than a few dollars. The company's HR director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan. Which statement best supports this argument? Gainsharing succeeds regardless of whether employees understand how performance is measured. Gainsharing is likely to succeed under almost any organizational conditions. Gainsharing broadens employees' horizons beyond the range of activities they can influence. Gainsharing measures oversimplify the complex responsibilities of production work. Gainsharing expands employees' thinking beyond their individual interests.
Gainsharing expands employees' thinking beyond their individual interests.
Yang, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Yang to say she has been called up for jury duty and needs to be away next week. What should Yang do? He should direct the employee to use the Family and Medical Leave Act. He should forbid the employee from taking time off for jury duty. He should ask the employee to use her sick leave for jury duty. He should ask the employee to use her vacation time for jury duty. He should establish, and then apply, policies for other situations requiring time off.
He should establish, and then apply, policies for other situations requiring time off.
Jerome is the CEO of a magazine publishing company. He wants to provide benefits for his employees but would still like to control his company's costs. Ashley, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Jerome doing so? He will save time by using software packages to offer benefits packages. He will avoid the cost of providing employees with benefits they don't value. Having a non-standardized plan will make Jerome's company seem cutting-edge. Employees of the company, including Jerome, will be given more vacation days. Costs will be easy to estimate since all benefits options will be taken into consideration.
He will avoid the cost of providing employees with benefits they don't value.
Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true? He will receive full retirement benefits. He will receive retirement benefits only according to his earnings history. He will not be eligible for worker's compensation. He will receive benefits at a permanently reduced level. His exempt amount limits will be lifted.
He will receive benefits at a permanently reduced level.
What is true of how the National Labor Relations Board (NLRB) carries out the function of preventing unfair labor practices? The deadline for filing a charge is twelve months after the alleged unfair practice. The NLRB has no authority to issue cease-and-desist orders to halt unfair labor. The board can order the employer to reinstate workers but cannot order them to pay back pay. The NLRB is not authorized to set aside the results of an election and must approach the courts for this purpose. If an employer or union refuses to comply with an NLRB order, the board has the authority to petition the U.S. Court of Appeals.
If an employer or union refuses to comply with an NLRB order, the board has the authority to petition the U.S. Court of Appeals.
How does the balanced scorecard help organizations deal with unethical behaviors of executives? It allows companies to deduct executive pay that exceeds $1 million. It ensures that by rewarding the achievement of a variety of goals, temptation on the executive's part to gain bonuses by manipulating data are reduced. It encourages executives to hold on to their stock options when the company is undergoing financial problems. It forces executives to focus on the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation. It mandates that an ESOP invest at least 51 percent of its assets in the company's own stock.
It ensures that by rewarding the achievement of a variety of goals, temptation on the executive's part to gain bonuses by manipulating data are reduced.
Tina, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Tina says it was. What is the most likely reason for Tina's opinion? It lowered the cost of communicating with employees, because now the company doesn't need to use printed media. It lowered the cost of providing benefits, because employees know what to sign up for. It increased employees' commitment to saving for retirement, so they won't need Social Security. It increased employees' happiness and job commitment, so they are more fun to be around. It increased employees' commitment and satisfaction, so they contribute more to the company.
It increased employees' commitment and satisfaction, so they contribute more to the company.
The executives of Bee Hive Honey are proud of the company's management practices, which they believe ensure fair treatment of employees better than union representation does. However, some complaints about working conditions have shown up in the suggestion box. The executives asked the HR manager, Ashley, to plan a system of employee-manager meetings to address issues such as these. As Ashley considers this request, what potential problem should she keep in mind? Legal guidelines covering an employer-established system of representation are lengthy and precise. Workers tend to think representatives in an employer-established system cannot be counted on to stand up for them. It is statistically likely that most Bee Hive Honey workers are already represented by unions. It is possible that a management-established system of employee representation may violate the NLRA. Unions have never tried to organize Bee Hive Honey's workers, so they can easily make a case that the company organized workers illegally.
It is possible that a management-established system of employee representation may violate the NLRA
Weg Tech depends heavily on its workforce of software engineers, systems analysts, and coders. Which statement best explains why Weg Tech would offer its employees paid maternity and paternity leave? Only 13 percent of workers currently have paid family leave. Most industrialized nations don't provide this type of employee benefit. Management doesn't want exhausted workers in the office. These benefits are required by the Family and Medical Leave Act. It makes the company more attractive to workers who are in high demand.
It makes the company more attractive to workers who are in high demand.
_____ provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system. Differential piece rate Standard hour plan Merit pay Piece rate Commission
Merit pay
Identify the right statement regarding the effects of unions on company performance. As a result of the type of pay system favored by unions, employees are more inclined to compete than cooperate. Most studies show that union workers are less productive than nonunion workers. On average, union members receive higher wages and more generous benefits than nonunion workers. The introduction of a union invariably results in the employer paying less attention to employee ideas. Evidence shows that unions have a large positive effect on profits.
On average, union members receive higher wages and more generous benefits than nonunion workers.
The human resource, accounting, and legal departments of Glorious Software, a company with locations in seven states plus Europe, are working together on developing a profit-sharing plan. Which option for communicating with employees about the plan would be the most practical and effective? Call a meeting of all the employees to discuss the plan face-to-face. Set up a balanced scorecard to measure opinions about the plan. Ask employees not to engage in rumors. Post descriptions and videos on the company's intranet. Hold off on any communications until all employees can be brought together.
Post descriptions and videos on the company's intranet.
Rose, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Gary, suggests that Rose would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Gary's argument? Individual plans are typically offered only to senior executives. Rates for group insurance are typically lower than those of individual policies. Rose will not be eligible for other benefits if she does not enroll in a group insurance plan. Employees get more for their money when they receive insurance as a group benefit. Rose will get more take-home pay if she opts for a group insurance plan.
Rates for group insurance are typically lower than those of individual policies.
During a meeting to discuss ways to cut costs on benefits packages, the vice president of the company, Ian, suggests getting long-term disability insurance for all employees. Patty, the HR manager, disagrees with him, stating that short-term disability coverage is more advantageous for the company. Which of the following supports Patty's statement? Short-term disability coverage is offered by few employers, which leads to a competitive advantage. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. The nature of work is such that the level of risk involved is high and injuries could be permanent. The majority of the workforce is middle-aged and prefers long-term coverage.
Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.
Toby is an engineer at a paint manufacturing company. However, a chemical spill at the factory caused an accident that left him permanently disabled. Which program is specifically designed to help employees like Toby? unqualified retirement plan vested-benefit plan Social Security defined-benefit plan work-sharing plan
Social Security
Which benefits provided by the employer is required by law in the United States? paid vacation personal leave flextime Social Security contributions retirement savings plan
Social Security contributions
Fred, the vice president of Gallway Co., plans to introduce a retirement plan for all employees. Ron, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Fred's argument? Some benefits have become so common that today's employees expect them. Benefits packages are more complex than pay structures. The employees at Gallway Co. are young adults who prefer cash compensation to benefits. Benefits packages do not affect the competitive nature of the labor market. The federal government does not have mandatory requirements for specific retirement plans.
Some benefits have become so common that today's employees expect them.
Alyssa, the financial officer at Doone & Smithfield, encourages the human resource manager to consider using stock options as incentive pay for all employees. The human resource manager cautions that employees could become upset if the options don't turn out to be as valuable as cash. Which statement supports this concern? Stock options are not profitable to employees. Option owners must exercise the options, no matter what the market price. Employees may not purchase their employer's stock. Offering stock options discourages employees from thinking like owners. Stock prices in the market may fall below the exercise price of the options.
Stock prices in the market may fall below the exercise price of the options.
Park Production offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company could no longer afford to keep paying for its retirement benefits. What protection will the retirees have in this situation? Park Production must give the employees the option to sell their stock in the company. The employees will receive payouts from their 401(k) plans. The employees will receive a share of profits as part of the company's ESOP. Because the plan was underfunded, the retirees will no longer receive benefits. The Pension Benefit Guarantee Corporation will provide them with a basic benefit.
The Pension Benefit Guarantee Corporation will provide them with a basic benefit.
What is true of a cash balance plan? All contributions to the plan come from the employee. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. It penalizes employees for changing jobs. Employees cannot predict retirement benefits under cash balance plans.
The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.
An organization employs Roger, a bilateral amputee, to work as a research analyst. When Lauren, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which statement will strengthen Lauren's argument? The organization has a risk-based insurance in place before recruiting Roger. The organization plans to stop Roger's benefits when he reaches the age of 50. The organization switched to a risk-based policy after hiring Roger. The organization gave Roger access to the same health insurance that is provided to the other employees. The organization does not have a risk-based insurance.
The organization switched to a risk-based policy after hiring Roger.
Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave? They should be working for an organization with 50 or more employees within a 75-mile radius. They should be working at least 15 hours per week. They should have worked for the employer for more than 5 years. They should belong to the top 10 percent of highest paid executives. They should be working for an organization with at least 100 employees.
They should be working for an organization with 50 or more employees within a 75-mile radius.
What is a true of unemployment insurance? It provides payments to offset lost income during voluntary unemployment. Most funding for unemployment insurance is provided by employees. Unfavorable experience ratings of employers lead to higher premiums. Costs for unemployment insurance are standard across the country. It is a voluntary program based on number of employers in a specific state.
Unfavorable experience ratings of employers lead to higher premiums.
Landon, an HR manager, heard from other managers that there was talk of a union organizing effort at his company. Landon saw no signs of a union at work, so he downplayed the rumors. Therefore, he was caught by surprise when the union presented authorization cards and a request for a representation election. Which statement best explains the flaw in Landon's reasoning about the organizing effort? For the organizing process to continue, at least 30 percent of the employees must sign an authorization card. In an election, workers may have a choice from among more than one union. In most organizing efforts, there is a hotly contested election campaign. Unions usually launch an organizing campaign by discussing issues with employees at home. Regulations forbid unions from using online databases to identify issues of interest to particular workers.
Unions usually launch an organizing campaign by discussing issues with employees at home.
An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish. It is planning to implement an incentive plan that helps employees understand the organization's goals. Which plan should be used by this organization? a retention bonus a piecework rate system a merit pay system the Scanlon plan a balanced scorecard
a balanced scorecard
InfoTech Inc., a sales and marketing company, wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals. Which plan will help the company accomplish this goal? the Scanlon plan a balanced scorecard a dashboard an employee stock ownership plan a differential piece rate system
a balanced scorecard
When Airborne Aircraft acquired Bell Airplanes, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Patrick, the vice president of engineering. The executives offered Patrick a one-time bonus of $25,000 if he stayed with the company for 12 months following the acquisition. In this scenario, Patrick's $25,000 represents a commission. a retention bonus. stock options. merit pay. a differential piece rate.
a retention bonus.
With reference to the impact of unions on company performance, it can be said that companies wishing to become more competitive must continually monitor their labor relations strategy. prohibit unions. actively encourage unions. deny collective bargaining rights to their employees. pay workers well above market rates.
continually monitor their labor
Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called preferred provider plans. cafeteria-style plans. defined-benefit plans. flexible spending accounts. cash balance plans.
cafeteria-style plans.
Jesse has a health care plan that provides him with coverage that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Jesse using? managed care health maintenance organization preferred provider organization flexible health plan consumer-driven health plan
consumer-driven health plan
Tucked Inc. is an envelope manufacturer based in Fort Worth. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays more for the work performed. In this case, which incentive is offered by Tucked Inc.? differential piecework rate minimum wage merit pay retention bonus group bonus
differential piecework rate
Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust? stock options employee stock ownership plan Scanlon plan collective stock options profit-sharing plan
employee stock ownership plan
In the process of designing incentives, managers should make sure that all the employees are paid the same amount. even the lowest performing employees are rewarded. employees focus only on completing the task quickly. employees believe that the pay plan is fair. they hire employees who consider earning money as the sole reason to perform well.
employees believe that the pay plan is fair.
A standard hour incentive plan is likely to be successful if most or all of a salesperson's compensation is in the form of commissions. employers keep labor costs to a minimum. the pay increase is linked to ratings on performance appraisals. employees want the extra money more than they want to work at a pace that feels comfortable. the organization values employee satisfaction, product quality, and customer service more than profits.
employees want the extra money more than they want to work at a pace that feels comfortable.
Organizations that want employees to focus on efficiency and on group incentives are most likely to implement a _____ program. gainsharing standard hour bonus commission piece rate pay
gainsharing
Which incentive plans are specifically designed to promote group performance? performance bonuses gainsharing standard hour plans merit pay commissions
gainsharing
Paul, the HR manager at Carletta & Co., is trying to implement an effective group incentive plan that measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Paul should apply the incentive scheme of piecework rate. gainsharing. sales commission. merit pay. ESOPs.
gainsharing.
According to the provisions outlined in the contract between Kramer Inc. and its labor union, Kramer Inc. must pay its employees double for working overtime. However, due to financial constraints, the company is unable to meet these demands. The company and the union decide to negotiate the terms of the contract in a relatively informal manner. A non-authoritative third party is invited to listen to the views of both sides and help resolve the conflict. In the context of the alternatives to work stoppages, the third party in this scenario is an example of a(n) arbitrator. fact finder. mediator. rights enforcer. stakeholder.
mediator.
Julie, the HR manager at Forge Corp., wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set. She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios. In this scenario, Julie would be applying the system of merit pay. piecework pay. standard hour pay. commissions. attendance bonus.
merit pay.
A logical place to begin selecting employee benefits is to establish _____ for the benefits package. a basic hierarchy limits costs goals objectives
objectives
Sick leave programs must be provided by all employers according to the law. are based solely on the age of employees. pay employees for days not worked due to illness. are mandatory forms of unpaid leave. are forms of floating holidays.
pay employees for days not worked due to illness.
Jewels & Co., a watch manufacturing company, provides wages to its employees based on the number of watches the workers assemble. The more the employees assemble, the more they earn. This type of plan is called a piecework rate plan. merit pay plan. Scanlon plan. profit-sharing plan. rapid hour plan.
piecework rate plan.
Riley works at Kupton Co., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Kupton Co. providing to its employees? flexible spending account preferred provider organization health maintenance organization consumer-driven health plan managed care plan
preferred provider organization
A piecework rate plan is best suited for HR professionals. executives. production workers. managers. knowledge workers.
production workers.
What is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals? profit sharing gainsharing merit pay group bonus Scanlon plan
profit sharing
Which incentive plan would enable its employees to think like owners, taking a broad view of what they need to do in order to make the organization more effective? merit pay gainsharing the Scanlon plan performance bonuses profit sharing
profit sharing
What is a function of elder care benefits offered by organizations? providing direct financial assistance providing tax exemptions on medical bills of the dependent elders setting up elderly care facilities close to the workplace providing information, referrals, and support providing vouchers and discounts to help employees access the existing elderly care facilities
providing information, referrals, and support
If a company distributes stock to employees by granting stock options, employees exercise the option when they purchase the stock. sell the stock. retain the stock. distribute the stock. liquidate the stock.
purchase the stock.
The CEO of Workforce asked the human resource manager, May, to propose an approach to incentive pay. May proposes that the company create a gainsharing plan. What action(s) by the company will best increase the likelihood that gainsharing will succeed? hiring employees who prefer to work alone and equipping them with cost data sharing data about costs and setting up time for employees to interact indicating that failure to achieve goals will lead to job cuts using incentive pay as a substitute for goal setting and performance standards promoting continuous improvement and limiting time spent on personal interactions
sharing data about costs and setting up time for employees to interact
Which action helps organizations reduce the cost of health care benefits offered to employees? increasing the amount employers pay for deductibles and coinsurance selecting traditional health insurance over HMOs and PPOs as a preferred option expanding the coverage for different types of claims paying some or all of the difference in cost between an HMO or PPO plan shifting from traditional health insurance plans to PPOs and CDHPs
shifting from traditional health insurance plans to PPOs and CDHPs
Executive pay at Ashcroft Inc., a manufacturing company, includes bonuses based on the year's profits or other measures related to the organization's goals. Sometimes, to gain tax advantages, the bonus is made part of executives' retirement plans. What is being exemplified in this scenario? long-term incentives balanced scorecards piecework plans employee stock ownership plans short-term incentives
short-term incentives
Saturn Systems, an information technology company, determines that most problems handled by employees at its help desk can be resolved within 20 minutes. The company sets 20 minutes as the standard time for resolving a customer problem. If an employee solves a customer's problem in less than 20 minutes, the employee still earns 20 minutes' worth of wages. Which payment method does this scenario illustrate? piecework plan differential plan standard hour plan merit pay performance bonus
standard hour plan
Which of the following is a long-term incentive? sales commission group bonus merit pay stock option piece rate
stock option
Wayne Inc., a health insurance company, pays clerks an incentive based on the average amount of work completed per hour. Wayne pays $10 for processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Wayne pays the same rate per invoice no matter how many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate? straight piecework plan falling differential rising differential standard hour plan straight commission plan
straight piecework plan
Which action related to benefits can best give employers an advantage in the labor market? teaching employees about the value of their benefits limiting benefits to a few simple options explaining complex benefits with sophisticated language keeping messages about benefits basic and uncreative simplifying messages about benefits by delivering them through one medium
teaching employees about the value of their benefits
A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. This incentive plan is referred to as a group bonus. merit pay. the Scanlon plan. a piecework rate. a team award.
the Scanlon plan.
Which law permits states to pass right-to-work laws? the Taft-Hartley Act the Sarbanes-Oxley Act the Landrum-Griffin the Hatch Act the Maguire Act
the Taft-Hartley Act
In a company's merit pay program, an individual's compa-ratio represents the individual's pay relative to the individual's performance rating. the individual's pay relative to company's average pay for that position. the individual's worth versus that of others in the organization. the ratio of the individual's pay to benefits. the average worth of the skills possessed by the individual.
the individual's pay relative to company's average pay for that position.
Identify the right of employees that is covered under the Taft-Hartley Act. the right to nominate candidates for union office the right to participate in union meetings and secret-ballot elections the right to choose whether they join a union or other group the right to examine unions' financial records the right to physically block nonstriking employees from entering the workplace
the right to choose whether they join a union or other group
A major problem with ESOPs is that they carry a significant risk for employees. employees are not allowed to participate in votes by shareholders. the stocks within the trust are too widely diversified to earn high returns. any earnings from the trust holdings are taxed at an extremely high rate. they result in reduced profitability for the employees.
they carry a significant risk for employees.
Kevin is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit Kevin's company, so he decides to encourage this behavior. Which program is Kevin most likely to use in order to do so? tuition reimbursement program employee wellness program worker's compensation program short-term vesting program mature education program
tuition reimbursement program
In which condition is it an advantage when group incentives encourage competition between groups of employees? when concern for costs obscures customer service when groups try to outdo one another in satisfying customers when competition replaces cooperation to meet company goals when competition for sales obscures the importance of ethical behavior when performance goals consider only one objective, such as sales growth
when groups try to outdo one another in satisfying customers
