Compensation - Chapter 10
the following support the use of individual incentives
1. independent nature of task 2. high commitment 3. readily apparent
which of the following is not true about individual spot awards
a majority of companies do not feel that these awards are effective
scanlon and rucker plans are
a productivity norm
penalty for poor performance
a reverse incentive plan
common feature of incentive plans
an established standard of performance
an incentive payment can best be described as
any forma of pay tied directly to achievement
division of a task into simple actions
bedeaux plan
most commonly used team incentive performance standard
customer satisfaction measures
which of the following is not an advantage of team incentives
easy to set equitable targets for all teams
best variable pay plan for employees
gain sharing
the trend in recent variable pay design is to combine the best of _______ and __________ plans
gain sharing and profit sharing
120% of the time saved
gantt plan
when a firm is ________ on business risk, and its outcomes are _______ its perfomance is more likely to be higher without any incentive plans
high uncertain
proven easy to administer and communicate
improshare
which of the following is not a long term incentive plan
improshare
advantage of providing stock ownership
it defers a portion of taxes to employees
in gain-sharing plan formulas, __________ are the numerator and _________ are in the denominator
labor inputs productivity outcomes
what distinguishes individual incentive plans from individual merit plans
merit plan = added to base incentives = not added base
three piecework rates
merrick
period per unit of production
merrick system
disadvantage of gain-sharing plan
pay outs can occur even if the company's financial performance is poor
a complex pay guideline ties not only performance but also to position in the
pay range
not a condition favoring gain-sharing plans
product cost not controllable
two most commonly used team incentives
productivity and quality
which of the following statements about merit pay is not true
removal of merit pay lowers satisfaction
employee's bonus increase as time required to complete the task decreases
rowan plan
differnce between scanlon and rucker plan
scanlon focuses on labor savings rucker focuses on variety of savings
lower labor costs without lowering the level of a firms activity
scanlon plan
most popular type of variable pay plans
special recognition plans
a free-rider problem
specifies performance levels and due dates
auto mechanic charges you his hourly rate
standard hour plan
repair work done on your car
standard hour plan
requirng employees to spend money
stock option plan
minimal impact on the companys financal standards
stock options
based on units of production per time period
straight piecework system
paying a dime
straight piecework system
the most frequently used incentive plan
straight piecework system
incentive level (two rates)
taylor plan
which of the following is true about individual spot awards
they are given to employees for exceptional performance as an add on bonus
for merit pay to live up to its potential
they are more expensive than merit pay in the long run
which of the following is not true about merit bonuses
they are more expensive than merit pay in the long run
advantage of gain-sharing plan
they increase employees knowledge of business
not an advantage of all-salaried work force
union support
does not support the use of individual incentive plans
unionized work force
commanding a larger share of the total compensation
variable pay