MGMT 494 Ch.10
A ____ plan divides a task into simple actions and determines the time an average worker takes to complete each action
Bedeaux
Which of the following is not an advantage of group incentive pay plans?
Compensation risk to income stability is reduced
Which of the following is not an advantage of team incentives?
Encourages competition between teams
Compensation security is highest for workers who fail to complete tasks within the standard time under the ____ plan?
Gantt
Which of the following does not use the time period per unit of production to determine the rate?
Merrick system
Labor costs are to value added as pay roll costs are to
SVOP
The incentive system with two rates, one for above production standard and one for below standard is the ____ plan
Taylor
A team works on a project with specific performance level goals and time deadlines, but weather problems cause the team to miss the deadline. What is the key factor affecting how the team feels about their incentive?
The team's perception of reward fairness
Which of the following is not true of lump sum bonuses?
They help maintain competitive pay position relative to competitors
Which of the following is not true about individual spot awards?
a majority of companies do not fell that these awards are effective
Components identified as vital to the success of both Scanlon and Rucker plans are
a productivity norm and effective worker committees
A penalty for poor performance rather than rewarded for good is an example of
a reverse incentive plan
The common feature to all types of incentive plans is
a standard of performance to determine magnitude of incentive pay
Advantages of individual incentive plans include all of the following except
greater trust between workers and management
When a firm is ____ on business risk and outcomes are ____, corporate performance is higher without any incentive plans
high; uncertain
Usually ____ are awardedfor exceptional performance, often on special projects or for performance that so exceeds expectations as to be deserving of an add-on bonus
individual spot awards
In gain sharing plan formulas, ____ is/are the numerator and ____ the denominator
labor inputs, productivity measures
All of the following are conditions supporting use of individual incentives except
presence of a union
The two most commonly used team incentive performance standards are
productivity and customer satisfaction
A team leader with a free rider problem could maximize performance by
specifying performance levels and due dates
____ has the disadvantage that employees may be required to spend money to obtain the incentive
stock options
____ have advantages of having minimal impact on the company's financial statements
stock options
The balanced scorecard includes all of the following performance categories except
tenure
____ offer a reward pool based upon achieving performance targets and communicates organizational priorities
the balanced scorecard
All of the following factors except ____ have been associated with success of Scanlon/Rucker plans
the presence of a union
It is observed that ____ is/are commanding a larger share of the total compensation for all employee groups
variable pay
Which gain sharing plan is most similar to the standard hour plan?
Improshare
Which of the following is not a long-term incentive plan?
Improshares
Hoarding star performers, reluctance to accept new team members and resistance to transferring team members are examples of which team-related compensation problem?
Level
An incentive system with three piecework rates is the ____ plan
Merrick
In which of the following incentive pay plans does the wage not increase for production above the standard?
Standard hour plan
All of the following are human resource capabilities performance indicators used for group incentive plans except
accuracy/error rates
The purpose of this variable pay plan is to foster a one for all culture and to educate employees about business
cash profit sharing
Dissatisfaction with ____ performance indicators for group incentives has led to greater use of ____
financial; the balanced scorecard
The best variable pay plan for employees when company financial performance is poor is ____
gain sharing
The variable pay plan with the highest instrumentality is ____
gain sharing
The trend in recent variable-pay design is to combine the best of ____ and ____
gain-sharing, profit-sharing
More complex gain sharing plans create needs for
higher levels of trust among participants and more effective communication
Paying a dime for every bottle collected and turned into a collection center is an example of
straight piecework
The most frequently used incentive system is the
straight piecework
