Ch 10 ca
_______ requires division of a task into simple actions and determination of the time required by an average skilled worker to complete each action.
Bedeaux Plan
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 is an advantage of gain-sharing plans?
They increase employees' knowledge of business
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.
If you had repair work done on your car, the shop most likely used ________ to pay the mechanic.
standard hour plan
An incentive system with three piecework rates is the
Merrick plan
have indirect pay-performance links and require employees to put up money to exercise grants.
Stock options plans
Which of the following is an advantage of providing stock ownership as variable pay to employees?
It defers a portion of taxes to employees.
Components identified as vital to the success of both Scanlon and Rucker plans are:
a productivity norm and effective worker committees.
For any task completed in standard time or less, earnings are pegged at 120 percent of the time saved under the
Gantt plan.
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.
Paying a dime for every bottle collected and turned to a collection center is an example of
a straight piecework system.
The trend in recent variable-pay design is to combine the best of
gain-sharing and profit-sharing plans
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
Which of the following are an example of a long-term incentive plan?
performance plans
TreeDen Corp. experiences an increase in its 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.
Horizon Inc. wants its employees to focus on organizational as well as individual goals. It also wants to motivate its employees to contribute toward increasing the company's shareholder value. It has implemented a variable pay plan that links incentive payouts to the company's financial targets. Horizon believes that this plan would help it clearly communicate its priorities to its employees. However, the downside of this plan is that the employees receive reduced payouts if the company's financial targets are not fulfilled. Which of the following variable pay plans is Horizon most likely using?
A balanced scorecard plan
Which of the following is an advantage of team incentives?
A) They are effective in stimulating ideas and problem solving
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 statements is true of the Rowan plan?
It is an individual incentive plan that provides for variable incentives as a function of a standard expressed as time period per unit of production.
The most frequently implemented incentive system is:
Straight Piecework System
Which of the following is an individual incentive plan?
Straight Piecework System
Which of the following statements is true of individual spot awards?
They are given to employees for exceptional performance as an add-on bonus.