Chapter 12 - Recognizing Employee Contributions with Pay

What will happen to the cost of a merit pay plan if Compu-Globo's business suffers? A. He will still have to increase salaries if individual performance is good B. It depends on the value of the company at that time C. Payments will be reduced along with sales

A. He will still have to increase salaries if individual performance is good

Which of these is a reason that Compu-Globo's employees might not be motivated by a profit-sharing plan? A. If they feel that they have no impact on the overall results. B. If they pay out during the current time period, instead of being deferred. C. If it requires them to behave like owners, by doing what it takes to make the organization more effective.

A. If they feel that they have no impact on the overall results.

Which of these policies is most likely to lead to individual competition among Compu-Globo's new hires? A. Profit sharing B. Merit pay C. Skill based D. Gainsharing

B. Merit pay

Why is it important for Nick to have a well-developed performance appraisal system if merit pay is a substantial component of compensation? A. Federal law has enacted legislation that requires employers to provide it B. Merit pay increases are based on assessments of individual performance; the stakes of the appraisal are high with this system. C. Because individual appraisals and merit increases determine profit sharing outcomes

B. Merit pay increases are based on assessments of individual performance; the stakes of the appraisal are high with this system.

Tom Werner wants to provide his employees with a compensation plan that is foremost ____________. A. Full of benefits B. Outcome-oriented C. On a sliding pay scale D. Behavior-based

B. Outcome-oriented

Which of the following compensation programs would likely NOT be acceptable to the WMS managers? A. Gainsharing B. Profit sharing C. Incentive Pay D. Skill based E. Equity shares

C. Incentive Pay

Which of these is most amenable to incentive pay, if Nick decides to go that route? A. Jobs with significant interdependence on other employees. B. Jobs that are peripheral to the mission of the organization. C. Jobs in which performance can be measured as individual output, productivity, and sales.

C. Jobs in which performance can be measured as individual output, productivity, and sales.

Which of the following statements is true when it comes to shareholders and managers? A. Shareholders are close to daily operations. B. Managers like to take risks. C. Shareholders are risk averse. D. Their goals are usually not the same.

D. Their goals are usually not the same.

Typically, managers like ________, while shareholders like ______. A. risk; stability B. salaries; benefits C. wealth; perks D. stability; risk

D. stability; risk