Exam 3 (Ch. 9-12) - MGT 461

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Last year your performance was not very good and your performance rating was below average, but this year you have done very well by exceeding your performance goals. To your surprise, your boss gives you just an average performance rating. What error has your boss most likely committed? Horn error Halo error Severity error Spillover error

Spillover error

T/F: A combination plan often favored by CEOs who don't like to make payouts when the company loses money is a completely self-funding plan.

True

T/F: MBO requires more paperwork than other rating methods and increases both performance pressure and stress.

True

T/F: Risk-sharing plans include a provision for cuts in base pay that are only recaptured in years when an organization meets performance objectives.

True

T/F: The central issue involving merit pay is how to get employees to view raises as a reward for performance.

True

T/F: When pay raises are based on events over which employees lack significant control, they are likely to regard the system as unfair.

True

T/F: Workload and work variety are both components of a total reward system.

True

When a company moves from an individual incentive plan to a group incentive plan, the company is most likely to experience _____. higher turnover among high performers an increase in instrumentality higher turnover among poor performers an increase in perceived equity

higher turnover among high performers

T/F: According to the agency theory, because employees prefer a salary, they will demand a wage premium in exchange for accepting performance-based pay.

True

T/F: An important implication of reinforcement theory is that the timing of payouts to employees is very important.

True

T/F: Maslow's theory suggests that performance-based pay can be demotivating if it impinges upon employees' capacity to meet daily living needs.

True

T/F: Performance-standard training provides raters with a standard of comparison or frame of reference for making appraisals.

True

When employee performance is easily measured and the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____. a large base pay and low-incentive pay a variety of rewards in addition to base pay a variety of rewards with significant incentive pay monetary rewards with large incentives

monetary rewards with large incentives

A team leader with a free-rider problem in his team can most likely maximize the performance of his team by: instructing them to do their best. specifying performance levels and due dates. assigning tasks only to the top performers in the team. punishing free riders who fail to meet standards.

specifying performance levels and due dates.

The motivation triangle includes _____. selection organization design culture organization development

Culture

The most common form of outcomes-based appraisal is: the essay method. MBO. the performance standards review. the BARS.

MBO.

When identifying what is important to employees, which theory would be most useful? Expectancy theory Equity theory Maslow's need theory Agency theory

Maslow's need theory

In situations where the nature of the task is so uncertain that it may be difficult to specify expected goals, the most appropriate rating format is _____. an MBO format a standard rating scale a behaviorally anchored rating scale an essay format

a standard rating scale

The corporate performance of Yellow Corp. is fairly stable. However, it is difficult to measure individual performance. In this case, the most effective compensation mix is to offer _____. a high base pay with high incentives monetary rewards alone a large base pay and low-incentive pay a wide range of awards beyond just money

a wide range of awards beyond just money

The trend in recent variable-pay design is to combine the best of _____ and _____ plans. individual; group gain-sharing; profit-sharing Halsey 50-50; Rowan balanced scorecard; cash profit sharing

gain-sharing; profit-sharing

All of the following support the use of individual incentives EXCEPT: the independent nature of task accomplishment. the high commitment levels of workers to their profession. the readily apparent performance standards. the presence of a union.

the presence of a union.

The typical employee can recall _____ percent of the benefits he or she receives. almost 50 less than 15 over 30 40

less than 15

When an organization's performance has frequent highs and lows, but individual performance is fairly stable, and performance measures are clear, the most effective compensation mix is to offer _____. a base pay with low incentives and a variety of rewards monetary rewards with large incentives a large base pay and low-incentive pay a wide range of rewards and significant incentives

a large base pay and low-incentive pay

Which of the following does NOT provide for incentives based on standards that are expressed in terms of time period per unit of production? Gantt plan Rowan plan Halsey 50-50 method Merrick system

Merrick system

The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship. Patient Protection and Affordable Care Act Family and Medical Leave Act Health Maintenance Organization Act Consolidated Omnibus Budget Reconciliation Act

Patient Protection and Affordable Care Act

T/F: A fast and efficient worker would earn more money under a Rowan plan than under a Halsey 50-50.

True

T/F: Individual incentives yield higher productivity gains than group incentives.

True

T/F: Keeping a performance diary can help employers defend against discrimination charges stemming from performance ratings.

True

Deming's major argument regarding performance appraisals is that: the work situation is the major determinant of performance. performance appraisals reduce teamwork. peer ratings are better than supervisor ratings. lack of training makes performance appraisals redundant.

the work situation is the major determinant of performance.

There is evidence that every 10 percent increase in the bonus paid to employees by a firm yields a _____ percent increase in ROA to the firm. 1 1.5 5 15

1.5

How many weeks of leave does Family Medical Leave Act (1993) mandate for all workers at companies that employ 50 or more people? 4 weeks 8 weeks 12 weeks 16 weeks

12 weeks

In 1959, benefits were approximately _____ percent of payroll and in 2010 it was approximately _____ percent of payroll. 30; 50 20; 38 25; 30 30; 60

25; 30

The corporate performance of Yellow Corp. is fairly stable. However, it is difficult to measure individual performance. In this case, the most effective compensation mix is to offer _____. a high base pay with high incentives monetary rewards alone a large base pay and low-incentive pay a wide range of awards beyond just money

A wide range of awards beyond just money

_____ theory states that success-sharing plans will be motivating, whereas at-risk plans will be demotivating. Equity Expectancy and agency Herzberg's two-factor Agency

Herzberg's two-factor

_____ is employees' beliefs that requisite job performance will be rewarded by the organization. Valence Expectancy Instrumentality Utility

Instrumentality

T/F: The trend today is toward less stable and less secure compensation packages.

True

Subordinate ratings _____. are likely to be inflated if they are not anonymous are immune to halo errors are immune to horn errors are used by 70 percent of all team-style organizations

are likely to be inflated if they are not anonymous

All of the following are categories of rater training EXCEPT _____ training. rater-error performance-standard behavior modeling performance-dimension

behavior modeling

By limiting liability for an employee's hospital stay costs to $200,000, an employer is using a cost-containment measure known as: dual coverage. benefit ceiling. coinsurance. deductible.

benefit ceiling.

If you had repair work done on your car, the shop most likely used the _____ plan to pay the mechanic. Bedeaux standard hour Halsey 50-50 straight piecework

standard hour

TreeDen Corp. experiences an increase in 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 cash profit sharing plan gain-sharing plan team incentive plan

stock ownership plan

One of the most preferred benefits is _____. stock plans profit sharing shorter working hours early retirement

stock plans

The authors argue that for merit pay to live up to its potential, all of the following should be done EXCEPT _____. using more peer raters than supervisor raters improving the accuracy of appraisals allocating enough merit money to truly reward performance ensuring the size of the merit increase differentiates across performance levels

using more peer raters than supervisor raters

Which of the following theories states that people choose the behavior that leads to the greatest reward? Maslow's need theory Expectancy theory Herzberg's two-factor theory Goal-setting theory

Expectancy theory

T/F: According to available evidence, companies can successfully remain nonunion by offering the same benefits as those provided by unionized firms.

False

T/F: Group pay is always more effective than individual pay.

False

T/F: The Family Medical Leave Act of 1993 mandates 20 weeks of leave for all workers at companies that employ 10 or more people.

False

Which of the following statements is true of employee benefits? Employers can substitute insurance benefits for job security. Group insurance benefits has relatively easy qualification standards. Most employee benefits are taxable. Many group-based benefits are obtained at a higher rate than could be obtained by employees acting on their own.

Group insurance benefits has relatively easy qualification standards.

Which of the following is a negative outcome of the management by objectives method? Increased difficulty of the planning process Decrease in superior/subordinate communication Increase in performance pressure and stress Lack of direction for work units

Increase in performance pressure and stress

Which of the following is statements is true of leniency errors? It is the error of consistently rating someone higher than is deserved. It is the error of avoiding extremes in ratings across employees. It is the error of downgrading an employee across all performance dimensions exclusively because of poor performance on one dimension. It is the error of giving better ratings to individuals who are like the rater in behavior and personality.

It is the error of consistently rating someone higher than is deserved.

Which of the following rating formats has the lowest rating errors? Standard rating scales BARS MBO Ranking

MBO

An incentive system with three piecework rates is the _____ plan. Taylor Gantt Halsey 50-50 Merrick

Merrick

Available evidence indicates managers believe the most important factor for pay increases is _____. experience nature of the job seniority performance

Performance

Which of the following is NOT true regarding performance appraisals? Race has no effect in layoff decisions. Males are rated higher than females. Raters with traditional stereotypes rate females less accurately. Variation in performance affects ratings.

Race has no effect in layoff decisions.

T/F: A group performance-based pay plan is superior to an individual plan when production methods and labor mix must change to meet changing pressures.

True

T/F: A job ad stating generous benefits leads applicants to place higher value on benefits in choosing among jobs.

True

T/F: During performance appraisals, managers tend to focus on either good performance, counterproductive performance, or both.

True

T/F: Evidence suggests that talented people are motivated to join organizations with strong links between performance and pay.

True

T/F: Security in terms of compensation refers to the predictability of one's paycheck from one time to the next.

True

T/F: The authors argue that a system of flexible compensation could lead to more desirable employee behaviors at a lower total cost.

True

_____ is the value employees attach to the organization rewards offered for satisfactory job performance. Equity Instrumentality Valence Reinforcement

Valence

A person with low self-esteem is likely to seek _____. a small, hierarchical organization with pay plans based upon individual performance a flat organization with a significant amount of pay based upon performance a small organization with large benefits based on group performance a large, decentralized organization with little performance-based pay

a large, decentralized organization with little performance-based pay

When employee performance measures are ambiguous and vary from time to time, but the organization's performance is fairly stable over time, the most effective type of compensation is to offer _____. a large base pay and low-incentive pay an increase in base pay a variety of rewards with significant incentive pay monetary rewards with no benefits

a variety of rewards with significant incentive pay

A horn error occurs when an employee is: consistently rated higher than deserved. given a favorable rating on all job duties based on his or her impressive performance in just one job function. downgraded across all performance dimensions because of poor performance on one dimension. consistently rated lower than deserved.

downgraded across all performance dimensions because of poor performance on one dimension.

In gain-sharing plan formulas, _____ are in the numerator and _____ are in the denominator. productivity measures; inputs productivity measures; labor inputs costs; revenues labor inputs; productivity outcomes

labor inputs; productivity outcomes

Surveys show that the most highly valued benefit is: dental coverage. life insurance. paid vacation and holidays. medical insurance.

medical insurance.

Teaching raters what constitutes good, average, and poor performance is _____ training. performance-standard rater-error performance-dimension Six-Sigma

performance-standard

The ability triangle includes _____. selection performance management compensation organization development

selection

Paying a dime for every bottle collected and turned into a collection center is an example of a: standard hour plan. Merrick system. straight piecework system. Rowan plan.

straight piecework system.

The most frequently used incentive system is the: standard hour plan. straight piecework system. Merrick system. Taylor differential piece-rate plan.

straight piecework system.

The most widely used benefit survey is conducted by: the U.S. Chamber of Commerce. Watson-Wyatt. the Society for Human Resource Management. the American Compensation Association.

the U.S. Chamber of Commerce.

____ allows employees who have resigned or have been laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee. Health Maintenance Act (1973) FLSA (1938) The tax reform of 1982 COBRA (1984)

COBRA (1984)

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? Balanced scorecard plan Gain-sharing plan Stock ownership plan Cash profit sharing plan

Cash profit sharing plan

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? Gain-sharing plan Cash profit sharing plan Stock ownership plan Stock options plan

Cash profit sharing plan

Which of the following is NOT true? More companies are using pay systems based upon individual, group, and organization performance. Workers with high security needs may accept lower pay if they come in a package that is stable. Workers may need higher pay to stay and perform in a company that uses at-risk pay plan. Companies are moving back to entitlement-oriented pay to reduce turnover.

Companies are moving back to entitlement-oriented pay to reduce turnover.

Which of the following is NOT an advantage of team incentives? Stimulates problem solving May better reflect how work is performed Easy to set equitable targets for all teams Minimizes distinctions between team members

Easy to set equitable targets for all teams

According to the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees. equity expectancy agency reinforcement

Equity

T/F: The performance of hourly workers is more accurately tied to quantifiable measures than the performance of managerial workers.

False

T/F: Unions prefer individual incentive pay plans to group incentive pay plans since members can earn more money.

False

T/F: When raters must justify their scoring of subordinates in writing, the rating is less accurate.

False

Which of the following is NOT a long-term incentive plan? ESOPs Broad-based option plans (BBOPs) Improshares Performance plans

Improshares

A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction. first second third last

Second

T/F: No strong data exist linking benefits level and employee productivity.

True

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan. a select choice a no-deductible a flexible benefit a flat dollar benefit

a flexible benefit

According to the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees. equity expectancy agency reinforcement

equity

Which of the following is the best appraisal format in terms of legal defensibility? BARS MBO Essay format Ranking method

BARS

T/F: Agency theory argues that employees prefer risky pay as rewards can be greater than a salary.

False

T/F: An advantage of group incentives is that it leads to increased line-of-sight.

False

T/F: Central tendency errors are the most difficult form of error to eliminate.

False

T/F: Employees' preferences of various benefits can be predicted accurately from demographic data.

False

T/F: In the formula "Behavior = f (M, A, E)," M denotes monetary incentives.

False

T/F: Subordinate ratings are more accurate when they are not anonymous.

False

Which of the following is an advantage of providing stock ownership options as variable pay to employees? It reinforces team identity. It is the simplest type of variable-pay plan. It defers a portion of taxes to employees. It provides a direct pay-performance link.

It defers a portion of taxes to employees.

Louie received the highest performance rating and is in the second quartile of his pay range. He received a pay increase of 8 percent. Bart also received the highest performance rating and is in the fourth quartile. Given the way most merit increase grids work, what size of pay increase would you expect Bart to receive? Less than 8 percent More than 8 percent 8 percent There is no relationship between ratings and position in pay range.

Less than 8 percent

Which of the following is NOT a disadvantage of flexible benefit programs? Administrative burdens and expenses increase. Adverse selection of benefits by employees results in increase in costs. New benefits are more difficult to introduce. Flexible benefits are subject to nondiscrimination requirements in Section 125 of Internal Revenue Code.

New benefits are more difficult to introduce.

Which of the following types of rankings would be least preferred by managers of more than 10-15 employees? Straight ranking Alternation ranking Paired-comparison ranking Forced distribution ranking

Paired-comparison ranking

A study of ratings of managers found that approximately only _____ percent of the managers were rated below average. 30 20 10 5

5

Droppiece Inc. is a company that provides more performance-based pay and less base pay than its competitors. Who among the following is most likely to join Droppiece? George, a recently married man who wants a stable income Stella, a recent college graduate who loves to take on a challenge Mark, a musician who wants to supplement his income Sara, a senior citizen who wants a job only to keep herself busy

Stella, a recent college graduate who loves to take on a challenge

T/F: One of the best strategies for determining external equity is to conduct a benefit survey.

True

T/F: Performance plans typically feature corporate performance objectives for a time three years in the future.

True

Which of the following benefits is NOT mandated by state or federal legislation? Workers' compensation Work/life balance Social security Unemployment insurance

Work/life balance

The biggest cost-containment strategy in recent years is the movement to: benefit limitations. HMOs. outsourcing. higher deductibles.

outsourcing.

All of the following are cost-containment practices designed to reduce benefit costs EXCEPT: probationary periods. provision of skills development training. copay. seeking competitive bids for benefit delivery.

provision of skills development training.

A major criticism of standard rating scales is that: raters have different definitions of scale levels. raters find them hard to use. they are expensive to develop. they encourage halo and horns errors.

raters have different definitions of scale levels.

Surveys show the most popular type of variable pay plans are _____. stock option plans gainsharing plans individual incentive plans special recognition plans

special recognition plans

T/F: If the future cost containment of a benefit may be a problem, the benefit should be offered on a noncontributory basis.

False

_____ theory argues that performance-based pay is the optimal compensation choice for complex jobs, where monitoring employee performance is difficult. Reinforcement Goal-setting Agency Expectancy

Agency

When a job involves very routine, mechanistic tasks, the most appropriate appraisal format is: BARS. MBO. standard rating scales. alternation ranking.

BARS

_____ have the disadvantage of requiring employees to spend money to obtain their incentive. Cash profit sharing plans Balanced scorecard plans Stock options plans Deferred profit sharing plans

Stock options plans

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

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

Which of the following is NOT true regarding self-ratings? They are done by someone who has the most complete knowledge about the ratee's performance. They are best used for development. They are often used as the first step in the appraisal process. They are immune to leniency errors.

They are immune to leniency errors.

All of the following are advantages of flexible benefits EXCEPT: containment of costs of benefits. increased understanding of benefits by employees. reduced expense of introducing new benefits. decreased administrative expenses.

decreased administrative expenses.

Trumbrella Corp. is a pharmaceuticals company. One of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back. When Trumbrella initiates its claims processing, it should first: determine whether the accident happened. determine if the employee is eligible for any benefit. calculate the payment required to be paid to the employee. contact the insurance companies to enquire about the possibility of a joint payment.

determine whether the accident happened.

The amount of fairness given to employees refers to _____. total justice quantitative justice procedural justice distributive justice

distributive justice

In _____ ranking, raters look at a list of employees, decide who the best employee is, and cross that person's name off the list. From the remaining names, the manager decides who the worst employee is and crosses that name off the list—and so forth. paired-comparison straight alternation forced distribution

alternation

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. a sharing contract between the employees and employers, which stipulates that the losses incurred by the companies will be shared by both employees and employers. the established formula that specifies the maximum percentage of base pay allocated as incentives. a risk-sharing plan that increases pay depending upon the turnover rate of a company.

an established standard of performance that is used to determine the magnitude of the incentive pay.

The first issue in setting up a benefits package is: finding out who should be protected or benefited. figuring out how much choice should employees have among benefits. determining how benefits should be financed. choosing legally defensible benefits.

finding out who should be protected or benefited.

Among peer raters, the most objective evaluations are given by: workers who are friends of the ratees. workers who are not close friends with ratees. high-performing workers. low-performing workers.

high-performing workers.

When a firm is _____ on business risk, and its outcomes are _____, its performance is more likely to be higher without any incentive plans. variable; certain high; uncertain low; certain low; invariable

high; uncertain

T/F: Rankings are more popular among managers than ratings as they are less complex.

False

Which of the following is an example of the sorting effect in action? An employee leaving a high-paying job for one that provides more work/life balance The provision of across-the-board pay increases by a company The provision of cost-of-living increases by a company An employee choosing fewer incentives in his flexible compensation plan

An employee leaving a high-paying job for one that provides more work/life balance

_____ is the best appraisal format across the five criteria for evaluating rating formats. Ranking MBO BARS Standard rating scales

BARS

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. standard hour Rowan Bedeaux Merrick

Bedeaux

T/F: Pension costs are of no concern to employers as the government handles the pension costs.

False

T/F: Gain-sharing plans do not to use a historical standard to set productivity standards since environmental conditions can change quickly.

False

T/F: Goal-setting theory argues that employees' performance is maximized when performance targets are unchallenging and unspecific

False

T/F: Goal-setting theory argues that employees' performance is maximized when performance targets are unchallenging and unspecific.

False

T/F: Halo error is the error that occurs when an employee is downgraded across all performance dimensions exclusively because of poor performance in one dimension.

False

All of the following EXCEPT _____ require periodically re-earning the added pay. success-sharing plans merit bonuses profit-sharing plans cost-of-living increases

cost-of-living increases

The motivation triangle includes _____. selection organization design culture organization development

culture

In which of the following jobs is it most appropriate to use behaviorally anchored rating scales? The job of a trainer that requires training new employees every month The job of a web designer that requires designing websites according to client expectations An assembly line job that requires tightening nuts on an engine A client relations job that requires bringing in new clients to a firm

An assembly line job that requires tightening nuts on an engine

_____ is the most frequently used medium for communicating employee benefits. A notice board A seminar An employee benefit handbook A meeting with the chief executive officer

An employee benefit handbook

T/F: The Rowan plan uses a standard that is purposefully set high requiring high performance levels.

False

T/F: The behaviorally anchored rating scales are inexpensive to develop but time-consuming to use.

False

T/F: The favorable tax status granted to many benefits is safe from the threat of recurrent tax reform proposals.

False

When pay is based on individual performance, turnover tends to be highest among _____. poor performers good performers single women with children ethnic minorities

poor performers

Which of the following companies uses probationary periods as a cost-containment measure? Alpha Corp. combines the benefits offered for couples who work within the organization DLG Corp. excludes its new recruits from benefit coverage until they complete a year Kimberly Corp. requires employees in the lowest salary quartile to pay for 20 percent of benefits Amethyst Corp. limits its employees to avail coverage for only two dentist visits every six months

DLG Corp. excludes its new recruits from benefit coverage until they complete a year

T/F: Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs.

False

T/F: Flexible benefit plans eliminate the involvement of employees.

False

Which of the following is an advantage of gain-sharing plans? They are the simplest type of variable-pay plan. They allow payouts to occur even if a company's financial performance is poor. They are administratively easy to implement. They increase employees' knowledge of business.

They increase employees' knowledge of business.

T/F: A major problem in group incentive plans is that performance targets are not correctly set.

True

T/F: Employees prefer using their company's intranet for accessing their benefits information as they do not need to complete lengthy paperwork.

True

Which of the following is the most commonly used team incentive performance standard? Quality of goods Customer satisfaction measures Financial performance Quality of services

Customer satisfaction measures

T/F: Flexible compensation is based on the idea that the organization knows what package of rewards would best suit an individual employee's needs

False

T/F: Flexible compensation is based on the idea that the organization knows what package of rewards would best suit an individual employee's needs.

False

T/F: The Employment Retirement Income Security Act (1974) requires employers to offer some form of pension.

False

DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover? Counseling service Early retirement plan Medical coverage Profit-sharing plan

Medical coverage

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

Removal of merit pay lowers satisfaction but not performance.

Which of the following is an advantage of flexible benefit plans? They require no expenditure from the employers. They decrease the administrative burdens for employers. They decrease the costs as employees pick only those benefits they will use resulting in the subsequent high benefit utilization. They increase the involvement of employees in choosing benefit plans.

They increase the involvement of employees in choosing benefit plans.

T/F: Employees working under individual incentive plans tend to resist the introduction of new technology.

True

T/F: Evidence suggests that skill-based pay may not increase productivity.

True

T/F: For the same level of performance, employees low in a pay range receive higher percentage increases than employees higher in the range.

True

T/F: High performance ratings are nearly always statistically related to high merit increases.

True

T/F: Many variable-pay plans have some form of profit trigger linked to revenue growth or profit margins.

True

When an organization's performance has regular and large swings and individual performance is unclear and hard to measure, the most effective compensation mix is to offer _____. a base pay with low incentives and a variety of rewards monetary rewards with large incentives a large base pay and low-incentive pay a wide range of rewards and significant incentives

a base pay with low incentives and a variety of rewards

Components identified as vital to the success of both Scanlon and Rucker plans are: top management support and primary focus on wage incentives. a flexible pay out formula and low turnover rates. union and top management support. a productivity norm and effective worker committees.

a productivity norm and effective worker committees.

Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____. vacation days; dental plans profit-sharing plans; life insurance retirement benefits; paid vacations pensions; medical coverage

pensions; medical coverage

A survey shows that the majority of employers are responding to increased benefit costs by _____. requiring employees to pay higher deductibles and copays laying off employees dropping health care plans relying on the Patient Protection and Affordable Care Act

requiring employees to pay higher deductibles and copays


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