Compensation, Chapter 10

A ________ plan requires division of a task into simple actions and determination of the time required by an average skilled worker to complete each action.

Bedeaux

The authors argue that for merit pay to live up to its potential, all of the following should be done EXCEPT... A. Using more peer raters than supervisor raters B. Improving the accuracy of appraisals C. Allocating enough merit money to truly reward performance D. Ensuring the size of the merit increase differentiates across performance levels

A. 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.

Which of the following statements about merit pay is NOT true? A. It has a small bit significant effect on performance. B. Removal of merit pay lowers satisfaction but not performance. C. Departments and units with merit pay show higher performance. D. Merit pay has a sorting effect.

B. Removal of merit pay lowers satisfaction but not performance.

Which of the following is NOT true of merit bonuses? A. They are viewed as less of an entitlement than merit pay. B. They are more expensive than merit pay in the long run. C. Employees dislike them D. They are thought to be a substitute for merit pay

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

Which of the following is NOT true about individual spot awards? A. Smaller companies may be more casual about recognition for spot awards. B. Someone in an organization alerts top management about performances deserving of an award. C. A majority of companies do not feel that these awards are affective. D. Smaller companies are more subjective about deciding the size of the award

C. A majority of companies do not feel that these awards are affective.

Which of the following statements is true of individual spot awards? A. They are an example of long-term incentives B. They are more expensive than merit pay increases C. They are given to employees for exceptional performance as an add-on bonus D. They are given to all employees as a one-time cost-of-living adjustment

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

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 does NOT provide for incentives based on standards that are expressed in terms of time period per unit of production? A. Gantt plan B. Rowan plan C. Halsey 50-50 Method D. Merrick System

D. Merrick System

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

Gantt

An incentive system with three piecework rates is the ________ plan.

Merrick

Surveys show the most popular type of variable pay plans are...

Special Recognition Plans

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

Standard Hour

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