Worksheet #12

Giving out service awards is an example of which non-monetary incentive?

Recognition

In which type of individual incentive program does each task have an assigned amount of time for completion?

Standard hour plan

Bonuses can also be used at the group level, but are generally considered an individual incentive.

True

Dysfunctional conflict, competition, and sabotage might be fostered in employees on individual incentive plans.

True

Gainsharing programs can include increased labor productivity, lower labor cost, or improved safety.

True

Group incentives tend to require less supervision.

True

If we pay employees "by the piece," they may make lots of pieces with lots of quality problems.

True

Less productive employees who see others getting valued rewards for performance may be convinced to increase their own performance levels in order to get similar rewards.

True

When providing group incentives, individual efforts and results may get "lost" in the group.

True

A 'golden parachute' provides:

a large lump sum payment to executives who are dismissed from a merged or acquired firm

An impartial agent is:

someone who acts on the owners' (shareholders') behalf

Which of the following is a true statement about Agency Theory?

Agents will act in a way that provides the most benefit to them and not the owners of the firm, unless we provide the agent with incentives to act in ways to benefit the owners

Which group incentive ultimately allows at least part of the stock in the company to be given to employees over a period of time based on some formula?

Employee stock ownership plan

Giving out service awards is an example of which non-monetary incentive?

Encourage repeat performance

Commission is usually a group incentive.

False

Equitable distribution of incentives cannot be achieved through individual incentive plans.

False

If a company with a profit-sharing program does not have any profit during a particular period, the company still has to pay out to all employees.

False

Angela has decided that she wants to provide an incentive program to reinforce the collective actions of all of her subordinates in the returns department team. Which incentive option would most likely be used by Angela?

Group incentive

One advantage of a ________ is that it 'broadens individual outlook?'

Group incentive

Which type of incentive program is easier to develop?

Group incentive