Chap 10

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

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

_____ have the disadvantage of requiring employees to spend money to obtain their incentive.

Stock options plans

If you had repair work done on your car, the shop most likely used the _____ plan to pay the mechanic.

standard hour

TreeDen Corp. experiences an increase in 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

Menthorp Inc. wants to design a variable-pay plan that fosters teamwork and business knowledge of its employees. In order to ensure maximum motivation, Menthorp wants its variable-pay plan to show a clear performance-reward link. Which of the following plans is most suitable for Menthorp?

Cash profit sharing plan

Which of the following is NOT an advantage of team incentives?

Easy to set equitable targets for all teams

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

Gantt

When a firm is _____ on business risk, and its outcomes are _____, its performance is more likely to be higher without any incentive plans.

high; uncertain

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by:

specifying performance levels and due dates.

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?

Cash profit sharing plan

Which of the following is the most commonly used team incentive performance standard?

Customer satisfaction measures

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 NOT true of merit bonuses?

They are more expensive than merit pay in the long run.

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 into a collection center is an example of a:

straight piecework system.

The most frequently used incentive system is the:

straight piecework system.

All of the following support the use of individual incentives EXCEPT:

the presence of a union.

The authors argue that for merit pay to live up to its potential, all of the following should be done EXCEPT _____.

using more peer raters than supervisor raters

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.