Compensation Chapter 10
Menthorp, Inc. wants to design a variable pay plan that fosters teamwork and increases the 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?
A gain-sharing plan
Which of the following is an individual incentive plan?
A straight piecework system
Which of the following is a reward that recognizes outstanding past performance?
Merit pay
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 the most commonly used team incentive performance standard?
Productivity improvements
Which of the following is true of merit bonuses?
They are viewed as less of an entitlement than merit pay.
Which of the following are an example of a long-term incentive plan?
Performance plans
The most frequently implemented incentive system is:
a straight piecework system.
Components identified as vital to the success of both Scanlon and Rucker plans are:
a productivity norm and effective worker committees.
