Scanlon The plan is a variation of which type of incentive?
A. Individual
B. Merit pay
C. Gainsharing
D. Profit sharing
A system in which an employer pays a worker specifically for each unit produced is
known as
A. gross pay.
B. hourly wage.
C. piecework rate.
D. salary.
In 2003, a company employee received an option to purchase the company's stock at
$45 per share. If the stock is trading at $40 a share in 2005, the employee will most
likely
A. hold on to the option, hoping the stock price will increase in the future.
B. try changing the price in the original option agreement to improve the stock's performance.
C. exercise the option, receiving a gain of $5.
D. exercise the option, receiving a gain of $40.
An employee produces 10 components in an hour and earns $8.00 ($.80 10), while an
employee who produces 12 components per hour earns $9.60 ($.80 12). This
arrangement is an example of a _______ plan.
A. commission
B. differential-piece-rate
C. straight-piecework
D. straight-salary
Organizations being squeezed between labor and product markets need to
A. change their strategic mission and direction, moving to more attractive industries.
B. move from job-based pay structures to skill-based pay systems, where employees are empowered
and jobs are more enriched.
C. couple pay policies with creative HR, production, and marketing management to make workers'
contributions more valuable and products more profitable.
D. move their operations overseas
Which of the following is an advantage of group incentives?
A. Encouraging team members to compete with each other so they can achieve their goal
B. Rewarding the performance of all employees at a facility
C. Group more likely using a broad range of performance measures
D. Groups trying to outdo one another in satisfying customers
Three of the following are objectives of the unemployment insurance program. Which is
not an objective of the unemployment insurance program?
A. To provide an incentive for employers to stabilize employment
B. To offset lost income during a labor dispute
C. To offset lost income during involuntary unemployment
D. To preserve investments in worker skills by providing income during short-term layoffs
Three of the following are types of defined-contribution pension plans. Which of the
following is not a type of defined-contribution pension plan?
A. Gainsharing plan
B. Section 401(k) plan
C. Money purchase plan
D. Employee stock option plan
Chief executives of large U.S. businesses earn over _______ times as much as
manufacturing employees in their companies.
A. 10
B. 40
C. 60
D. 20
The National Compensation Survey is an ongoing activity of the
A. Bureau of Labor Statistics.
B. Society for Human Resource Management.
C. AFL-CIO.
D. American Management Association
Which of the following is a false statement about key jobs?
A. Key jobs have many incumbents within the organization.
B. Key jobs are common to many organizations.
C. Key jobs are relatively stable in content.
D. Key jobs are jobs on which it's possible to obtain market-pay survey data.
An earns employee $10 an hour and receives a weekly attendance award of $20. That
employee works 50 hours this week and thus earns a total compensation of
A. $570.00.
B. $557.50.
C. $577.50.
D. $550.00
Pay specifically designed to energize, direct, or control employees' behavior is known
as
A. empowerment pay.
B. incentive pay.
C. indirect pay.
D. exempt pay
In response to the growing concern over ethical issues surrounding incentive pay for
executives, three of the following actions have been taken. Which action has not been
taken in response to the growing concern over ethical issues?
A. Using the balanced-scorecard to design executive pay and incentives
B. Requiring companies to more clearly report executive compensation levels and the company's
performance relative to that of competitors
C. Imposing strict limits on insider trading
D. Limiting the amount companies may deduct for executive and performance-related pay to no more
than $1 million
If employees conclude that they're underrewarded, they're likely to make up the
difference in three of the following ways. Which is not a way in which employees who
feel underrewarded are likely to make up the difference?
A. Withdrawing by leaving the organization
B. Finding a way to reduce their outcomes
C. Reducing their inputs
D. Refusing to cooperate
Three of the following are vesting rights. Which is not a vesting right?
A. In most cases, a waiting period of no more than five years or a three- to seven-year period, with 20
percent in the third and each year thereafter
B. A guarantee that the employer won't switch the pension plan from defined-benefit to definedcontribution plan
C. The right to a pension at retirement
D. The right to a pension regardless of whether or not the employee remains with the employer until
retirement
Employees who have met the enrollment and length-of-service requirements to receive a
pension at retirement, regardless of whether they remained with the employer until that
time, are said to be
A. expatriates.
B. retirees.
C. pensioners.
D. vested
Which of the following is not an advantage of a balanced scorecard?
A. A balanced scorecard links external pay rates with internal job structures, allowing organizations to
gain both internal and external pay equity.
B. Communicating a balanced scorecard helps employees understand the organization's goals and how
they might contribute to these goals.
C. A balanced scorecard allows for a combination of performance measures that are directed toward both
the company's long- and short-term objectives.
D. A balanced scorecard balances the disadvantages of one type of incentive pay with the advantages of
another type
Due to increasing diversity within the workplace, many employers are extending benefits
to
A. extended-family members.
B. independent contractors.
C. anyone living within the employee's household.
D. domestic partners
Since the 1990s, the trend in larger public companies is to grant stock options to
A. all exempt employees.
B. all employees.
C. only top management.
D. all top and middle managers