5. Which of the following statements does NOT accurately describe what is needed to make a merit pay plan work well?a) Merit pay should be based on realistic and accurate measures of individual work performance.b) Merit pay should create a belief among employees that they must perform at high levels to achieve high pay.c) Merit pay should be higher for those employees whom the manager personally favors.d) Merit pay should clearly differentiate between high and low performers in the amount of pay received.e) Managers should avoid confusing “merit” aspects of a pay increase with “cost-of-living” adjustments.
6. __________ is a pay system that links pay and performance by giving the workers the opportunity to share in productivity gains through increased earnings.
7. __________ rewards employees based on the entire organization’s performance.
8. The awarding of cash bonuses is especially common in the __________ of organizations.
9. All of the following statements about profit-sharing are true EXCEPT:a) profit sharing is somewhat similar to gain sharing.b) profit sharing rewards individuals according to some measure of organizational performance.c) profit sharing plans do not reward employees for specific productivity gains.d) profit sharing plans reward employees based on overall organizational profits.e) profit sharing plans have no criticisms.
10. In a(n) __________, employees are rewarded by being given company stock or by being allowed to purchase it at a price below market value.
11. __________ is a system that rewards people for acquiring and developing job-relevant skills.
12. When measuring employee performance, managers should make sure that measurements are: