ECON 448
An organization uses the Scanlon plan to provide incentives to its employees. The workers produce electrical components worth $6 million. The target ratio set by the organization is 20%. The employees will be given a bonus if the actual labor costs are less than _________ million.
1.2 (6million x 20%)
Which of the following is an example of a quoted-price market?
Nile, a website that allows sellers to sell their products for a fixed price
Which of the following is NOT a benefit that is required by law in the US?
Pension and retirement benefits
"Central tendency" as a rating error refers to that a rater gives high ratings to all employees regardless of their performance.
false
"Horns error" as a rating error in performance appraisals refers to that a rater gives an employee high ratings on all aspects of performance because of his/her overall positive impression of the employee.
false
According to the goal setting theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.
false
All U.S. employees, including federal, state, and local government employees, are covered under the Social Security program.
false
Companies that conduct pay surveys should include at least 100 employers in the survey
false
Companies that use 360-degree performance evaluation should always link the evaluation results to pay raises or promotion decisions, in order to make the evaluation approach effective.
false
Employers in highly competitive product markets are more able to increase pay levels of employees.
false
Generally labor-intensive industries tend to pay higher than technology-intensive industries.
false
In order to receive benefits from workers' compensation, an employee who suffered work-related injury must show evidence that his/her employer was negligent of workplace safety.
false
Overtime pay is required only if the employer specifically asked or expected the employee to work more than 40 hours a week.
false
The Family and Medical Leave Act (FMLA) allows employees to take up to 12 weeks of paid leave after childbirth or adoption, to care for a seriously ill family member, or their own serious illness.
false
Under a defined benefit retirement plan, employees are responsible for choosing specific investments.
false
Under the Equal Pay Act of 1963, all men and women who do the same work must be paid the same without any exceptions.
false
When designing pay for performance plans, most companies use a single performance measure linking to pay increases or bonuses.
false
Which of the following is TRUE about individual spot awards?
larger companies may use formal mechanisms for giving the awards
Which of the following is NOT a long-term incentive plan?
merit bonus plans
A firm uses a compensation plan to reward employees' performance based on an employee's performance rating and the employee's compa-ratio. Which of the following incentive plans is most likely exemplified in this scenario?
merit pay plan
Among the four types of pay-mix strategies, which of the following has the highest percentage of base pay?
security (commitment) strategy
Company A determines a particular time to complete a particular task. Even if an employee completes the allotted task before the standard time of completion, the employee receives an amount of pay equal to the wage for the designated time. Which of the following payment methods is exemplified in this scenario?
standard hour plan
A merit pay system links increases in base pay to employees' performance ratings.
true
According to the efficiency-wage theory, paying higher wages than competitors can bring higher profits because higher wages can attract higher ability workers and thus improve efficiency.
true
An important implication of reinforcement theory is that the timing of payouts to employees is very important.
true
Because employers are raising employee pay at various times during the year, survey data are usually updated using a process called aging or trending to forecast the competitive rates for the future date when the pay decision will be implemented.
true
Comparing to Scanlon plans, Rucker plans tie incentives to more types of savings and can be more easily linked to individual incentive plans.
true
Employee self-evaluations are valuable for employee development purpose, but they should not be used for administrative decisions such as promotion or pay raises.
true
If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate.
true
Implementing safety programs can help an organization reduce the costs of workers' compensation insurance.
true
In cases where the content of an organization's jobs does not sufficiently match that of the survey jobs, benchmark conversion can be used to quantify the differences of the job content.
true
Maslow's theory suggests that performance-based pay can be demotivating if it impinges upon employees' capacity to meet daily living needs.
true
One advantage of gain-sharing plans compared to profit sharing plans is that employees under gain-sharing plans can see a stronger link between their efforts and payoffs that they will receive.
true
One important criticism to the broad-based option plans (BBOPs) is that rank-and-file employees may not necessarily see a connection between their actions and the company's stock price.
true
The Merrick plan is a form of differential piece-rate plan and it establishes three piecework rates.
true
The reservation wage theory seeks to explain differences' in people's responses to job offers.
true
The theory of compensating wage differentials states that if a job has negative characteristics, employers must offer higher wages to attract and retain workers.
true
Under the Lilly Ledbetter Fair Pay Act, employers can be liable for current pay differences that are a result of discrimination occurred many years earlier.
true
According to the Expectancy Theory, ______ refers to the value employees attach to the organization rewards offered for satisfactory job performance.
valence