comp ch 10

One common feature of all types of incentive plans is:

an established standard of performance that is used to determine the magnitude of the incentive pay.

The trend in recent variable-pay design is to combine the best of

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 cash profit-sharing plan

Which of the following is an individual incentive plan?

A straight piecework system

Which of the following statements is true of the Halsey 50-50 method?

It derives its name from the shared split between worker and employer of any savings in direct cost

Which of the following statements is true of the Rowan plan?

It is an individual incentive plan that provides for variable incentives as a function of a standard expressed as time period per unit of production.

Which of the following statements is true of merit pay?

Merit programs are commonly designed to pay different amounts depending on the level of performance.

Which of the following is a disadvantage of gain-sharing plans?

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

Which of the following is an advantage of providing stock ownership as variable pay to employees?

Question options: It defers a portion of taxes to employees.

Which of the following is a reward that recognizes outstanding past performance?

Question options: Merit pay

________ have indirect pay-performance links and require employees to put up money to exercise grants.

Stock options plans

Which of the following is an advantage of team incentives?

They are effective in stimulating ideas and problem solving.

Which of the following statements is true of individual spot awards?

They are given to employees for exceptional performance as an add-on bonus.

Which of the following is an advantage of gain-sharing plans?

They increase employees' knowledge of business.

Components identified as vital to the success of both Scanlon and Rucker plans are:

a productivity norm and effective worker committees.

Paying a dime for every bottle collected and turned to a collection center is an example of:

a straight piecework system.

The most frequently implemented incentive system is:

a straight piecework system.

For any task completed in standard time or less, earnings are pegged at 120 percent of the time saved under the

Gantt 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

stock ownership plan.