Deck 11: Employee Incentives and Benefits

Question 1

Harold is paid based on a percentage of the value of the products and services he sells.He is being paid by:

A)bonus
B)base pay
C)value pay
D)commission
E)merit

Answer 1

D

Question 2

Much fanfare was made about Anthony's latest bonus in the office.He has always been a high performer.However, this year he received an extra-large bonus.His coworker Hannah got a little tired of hearing about Anthony's bonus and decided that next year she would win some of the bonus money.Which advantage of individual incentives does this illustrate?

A)Easy to evaluate individual employees
B)Ability to match rewards to employee desires
C)Promotes the link between performance and results
D)May motivate less productive employees to work harder
E)None of the above

Answer 2

D

Question 3

Jacob sat down with his supervisor at the beginning of the quarter and set a goal to reduce defects on the assembly line from 5% to 2%.If he achieves this goal by the end of the quarter, he will receive a ________ of $4,000.

A)bonus
B)commissions
C)merit pay
D)piecework
E)exit pay

Answer 3

A

Question 4

With the introduction of an individual incentive program, Alexander feels like he is competing with the other members of his team instead of working together with them.While the individual incentive plan could mean more money for some members of the team, most members of the team feel the same way Alexander does.They wish they could go back to working together for a group incentive.Which disadvantage of individual incentives does this illustrate?

A)Many jobs have no direct output
B)May motivate undesirable employee behaviors
C)Record-keeping burden is high
D)May not fit organizational culture
E)None of the above

Question 5

At the beginning of the quarter, Marcus sat down with his manager and set three goals for the next three months.The achievement of each goal will depend on Marcus.No one else in his work group can affect the work toward the goal.Which advantage of individual incentives does this illustrate?

A)Easy to evaluate employee's effect on team
B)Ability to match rewards to employee desires
C)Promotes the link between performance and results
D)May motivate less productive employees to work harder
E)None of the above

Question 6

Merit pay:

A)is a percentage of customer sales paid to the sales person
B)is a lump sum bonus payment
C)is pay for tenure (or length of service) in the organization
D)is a type of bonus that is based on a time period and not on individual performance
E)increases the annual wages of top performers and carries over from year to year

Question 7

A disadvantage of __________ is that "many jobs have no direct output."

A)individual incentives
B)executive incentives
C)benefits
D)group incentives
E)professional incentives

Question 8

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

A)Straight piece-rate plan
B)Differential piece-rate plan
C)Standard hour plan
D)Individual bonus plan
E)Merit payment plan

Question 9

A _______________ is a payment typically provided to a salesperson for selling an item to a customer and is usually paid as a percentage of the price of an item that is sold.

A)commission
B)employee stock option
C)merit pay
D)piece-rate
E)bonus

Question 10

Acme Global announced that it had $1 million available for pay increases this year.Lindsey was a top performer and hopes to get a 10% __________ incentive.

A)bonus
B)commissions
C)merit pay
D)piecework
E)exit pay

Question 11

One advantage of ______ is "promoting the link between performance and results."

A)professional incentives
B)individual incentives
C)group incentives
D)benefits
E)executive incentives

Question 12

Naoyuki is a surgical technologist at a hospital.His job involves helping out during surgeries.Among other things, he hands supplies to surgeons and surgeons' assistants, holds retractors and other instruments, and performs various tasks requested by the surgeon.An individual bonus plan would not work for Naoyuki because of which disadvantage of individual incentives?

A)Many jobs have no direct output
B)May motivate undesirable employee behaviors
C)Record-keeping burden is high
D)May not fit organizational culture
E)None of the above

Question 13

Blake worked 40 hours this week but was paid for 45 hours.Blake is paid under a(n) __________ plan.

A)bonus
B)commission
C)merit pay
D)standard hour
E)exit pay

Question 14

With the introduction of an individual incentive program, Caitlin has begun spending an hour each day documenting her employees' outcomes.Which disadvantage of individual incentives does this illustrate?

A)Many jobs have no direct output
B)May motivate undesirable employee behaviors
C)Record-keeping burden is high
D)May not fit organizational culture
E)None of the above

Question 15

__________is compensation that depends on some measure of individual or group performance or results in order to be awarded.

A)Variable pay
B)Merit pay
C)Vesting
D)Golden parachutes
E)Perquisites

Question 16

Individual incentives:

A)may motivate undesirable behaviors in the workforce.
B)assist in maximizing teamwork.
C)do not promote a link between performance and results.
D)require less supervision than group incentives.
E)are easier to develop than group incentives.

Question 17

For every $1,000 of widgets Tanner sells, he receives a _________ of 10%.

A)bonus
B)commission
C)merit pay
D)piecework
E)exit pay

Question 18

As a product promoter, Emily receives a commission on every sale made as a result of her presentations.However, part of her job also is to keep the area around her display neat and to return the items she promotes to their correct locations following demonstrations.Since Emily does not get a bonus for cleaning up, she leaves her area messy and does not return products following demonstrations.Which disadvantage of individual incentives does this illustrate?

A)Many jobs have no direct output
B)May motivate undesirable employee behaviors
C)Record-keeping burden is high
D)May not fit organizational culture
E)None of the above

Question 19

A lump sum payment, typically given to an individual at the end of a period is a(n):

A)commission
B)merit pay
C)bonus
D)exit pay
E)stock option

Question 20

When she is not working, Shelby trains to run marathons.She wishes she had more time to travel to various races, but work keeps her busy.Kevin does not want time off work.He needs to earn as much overtime as possible to pay off his college loans.The company recently offered either a week's pay or a week off as the bonus to the salesperson who made the most sales.Both Shelby and Marcus worked hard to win.Which advantage of individual incentives does this illustrate?

A)Easy to evaluate individual employees
B)Ability to match rewards to employee desires
C)Promotes the link between performance and results
D)May motivate less productive employees to work harder
E)None of the above

Question 21

Angelique is paid a flat rate of $2 per pair of pants that she sews at work.Angelique is being paid on a:

A)bonus rate basis
B)merit pay basis
C)differential piece-rate system
D)level piece system
E)straight piece-rate system

Question 22

The link between individual employee actions and the incentives paid to them is most difficult to establish in which type of incentive plan?

A)Bonus
B)Commission
C)Merit pay
D)Piece-rate
E)Profit sharing

Question 23

One advantage of a ________ is that it "broadens individual outlook."

A)group incentive
B)executive incentive
C)individual incentive
D)professional incentive
E)benefit

Question 24

At the end of each year, Acme Global's _________ program pays a portion of company proceeds to the employees of the company through a bonus payment.

A)profit sharing
B)gainsharing
C)employee stock ownership plan
D)stock option
E)exit pay

Question 25

_______________ let qualifying employees purchase shares of stock in the company at any time and usually at a discount.

A)Stock options plans
B)Employee stock ownership plans
C)Company-funded retirement funds
D)Employer divestiture plans
E)Stock purchasing plans

Question 26

Acme Global gave its top executives the opportunity to buy Acme Global stock in 5 years at the same price at which the stock is selling today.Acme Global is using a(n) ________ plan.

A)profit sharing
B)stock purchasing
C)employee stock ownership plan
D)stock option
E)exit pay

Question 27

_______________ and _______________ are the keys to successful piece-rate plans.

A)Bonuses; feedback
B)Standards; feedback
C)Standards; bonuses
D)Feedback; recognition
E)Recognition; motivation

Question 28

Acme Global gives its employees stock in the company at the end of each year.The stocks go directly into the employees' retirement accounts as part of the organization's __________ plan.

A)profit sharing
B)stock purchasing
C)employee stock ownership plan
D)stock option
E)exit pay

Question 29

Which type of incentive program is easier to develop?

A)Individual incentive
B)Variable incentive
C)Group incentive
D)Combination incentive
E)Executive incentive

Question 30

_______________ is a breakdown of communication and/or cooperation between individuals in a group.

A)Social loafing
B)Autonomy
C)Conversion deficit
D)Group infighting
E)Ring effect

Question 31

_______________ allow an individual employee to buy a certain amount of stock in the company at a specified future point.

A)Stock purchasing plans
B)Stock options plans
C)Employee stock ownership plans
D)Employer stock sales plans
E)Company-funded retirement funds

Question 32

In her organization's _________ plan, Nicole is paid for each widget she produces.

A)bonus
B)commission
C)merit pay
D)piecework
E)exit pay

Question 33

One disadvantage of group incentives is that individual high-performers may be pressured to ___________ their output to conform to group norms.

A)lower
B)raise
C)retract
D)forget about
E)None of the above

Question 34

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?

A)Employee stock ownership plan
B)Stock options plan
C)Employee stock provision plan
D)Stock purchasing plan
E)An executive-level retirement plan

Question 35

When the manufacturing department cut waste by 10%, the organization paid each member of the department $500 (a portion of the savings) as a part of the organization's ________ program.

A)profit sharing
B)gainsharing
C)employee stock ownership plan
D)stock option
E)exit pay

Question 36

Social loafers:

A)give 100% both individually and in a group setting
B)are shy and reserved in company social settings
C)strive to be recognized as an outstanding performer in a group setting
D)avoid exerting maximum effort in group settings because it is difficult to pick out individual performance
E)usually cause group infighting by intentionally creating conflict.

Question 37

What are profit sharing programs?

A)An individual incentive plan that provides a bonus based on that employee's profitability
B)A program that provides a portion of company proceeds over a specific amount of time to the employees of the firm through a bonus payment
C)An example of giving praise
D)Incentives typically based on improvements in workplace safety of material savings
E)Pretty much the same as a gain sharing program

Question 38

A common advantage of group incentives is that:

A)the best performers will maximize their efforts to make up for free riders.
B)they broaden the individual outlook of group members.
C)they encourage team members to compete with each other.
D)they always equally reward the performance of all employees.
E)there is very little chance of infighting or conflict with group incentives.

Question 39

Acme Global gave its top executives the opportunity to buy Acme Global stock at a 5% discount.Acme Global is using a(n) ________ plan.

A)profit sharing
B)stock purchasing
C)employee stock ownership plan
D)stock option
E)exit pay

Question 40

Larry produced 40 pressed inner fenders out of sheet metal per hour and got paid $24 per hour ($0.60 x 40), but Michelle only produced 30 inner fenders per hour and got paid $18.00 ($0.60 x 30).What type of compensation program are Larry and Michelle working under?

A)Commission
B)Merit pay
C)Straight piece-rate
D)Bonus
E)Pay differential

Question 41

Which entity manages mandatory workers' compensation programs?

A)The federal government
B)Regional governments
C)State governments
D)Municipal governments
E)County governments

Question 42

A worker would most likely be eligible for unemployment if they:

A)quit their job voluntarily.
B)were terminated for cause.
C)start their own business after being terminated from another company.
D)are actively looking for work.
E)fail to disclose any money earned while claiming unemployment.

Question 43

Stock incentives, long-term bonuses, and perks are all common _____________ to help the executives act in manners favorable to the firm.

A)executive incentives
B)equity incentives
C)pay differentials
D)administration benefits
E)exit pay programs

Question 44

The insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness is:

A)unemployment insurance
B)workers' compensation
C)government disability insurance
D)Social Security disability
E)portability option

Question 45

Due to a recession, Lauren was laid off by her organization.To avoid having Lauren and other laid-off workers stop spending money and thus deepen the recession, __________ will help them maintain some income.

A)Social Security
B)Medicare
C)unemployment insurance
D)worker's compensation
E)leave pay

Question 46

Whitney earns about $100,000 a year.She and her employer both pay 6.2 percent of Whitney's pay into __________ by withholding the money from Whitney's pay check.

A)Social Security
B)Medicare
C)unemployment insurance
D)retirement
E)exit pay

Question 47

The Patient Protection and Affordable Care Act of 2010 mandates that companies with at least ______ employees provide health care coverage or face penalties for not providing health insurance.

A)15
B)20
C)50
D)75
E)100

Question 48

Regular FMLA leave is typically associated with __________ leave?

A)6 weeks paid
B)6 weeks unpaid
C)12 weeks paid
D)12 weeks unpaid
E)18 weeks unpaid

Question 49

FMLA affects companies with __ or more employees within 75 miles of a central location.

A)15
B)20
C)30
D)50
E)100

Question 50

A routine component of executive compensation, common "perks" include all of the following except:

A)stock options.
B)use of company cars and aircraft.
C)home security systems.
D)club memberships.
E)tax planning assistance.

Question 51

Paige was working on a graphic design project for her employer when she cut her hand with scissors and needed stitches.Her employer paid for the doctor's visit to get the stitches under _________.

A)Social Security
B)Medicare
C)unemployment insurance
D)worker's compensation
E)None of the above

Question 52

Upon completion of FMLA leave, the employee will return to work to:

A)any open position
B)an equivalent position
C)a position of promotion
D)any part-time position
E)None of the above

Question 53

Alfred has requested unpaid leave to care for his wife.She was injured while serving in the army in Afghanistan.Alfred may be able to take this leave and return to his original job (or an equivalent one) under ________.

A)Social Security
B)the Affordable Care Act
C)the Family and Medical Leave Act
D)Medicare`/
E)high-deductible health plan (HDHP)

Question 54

Worker's compensation insurance rates are determined by all factors EXCEPT:

A)the risk of occupation
B)the frequency and severity of past claims
C)past judge and jury awards to victims
D)level of benefit payable, based on state regulations
E)None of the above

Question 55

A(n) __________ would be used to measure how often claims are made against a workers' compensation insurance policy.

A)test history
B)analysis rating
C)volume match
D)experience rating
E)insurance record

Question 56

Social Security includes all the following EXCEPT:

A)retirement
B)disability benefits
C)Medicare
D)survivor benefits
E)workers' compensation

Question 57

Matthew has just had a child placed in his foster care.He has requested unpaid leave to care for the child.Matthew may be able to take this leave and return to his original job (or an equivalent one) under ________.

A)Social Security
B)the Affordable Care Act
C)the Family and Medical Leave Act
D)Medicare
E)high-deductible health plan (HDHP)

Question 58

_______________ placed some significant limits on executive pay in public corporations and added new requirements for both reporting of compensation and of shareholder involvement with executive compensation.

A)Executive Compensation and Shareholder Involvement Act of 2010
B)The Madison Avenue Wall Street Reform and Consumer Protection Act of 2008
C)The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
D)The Wall Street Compensation and Shareholder Involvement Act of 2008
E)The Wagner-Tate Executive Reporting Act of 2009

Question 59

FMLA leave, when associated with care of a service member, is allowed for as many as ____ workweeks in a 12-month period.

A)6
B)12
C)18
D)26
E)36

Question 60

Gainsharing plans are:

A)basically the same thing as profit sharing plans.
B)based on any organization factor whose costs can be calculated, where a share of the gain is provided to the employees.
C)based on employee stock ownership at a level of at least 50% ownership in the firm, where employees provide gains to the company through ownership.
D)direct ownership plans that transfer value of the company to employees based on gains in productivity over the course of each year.
E)individual incentives that measure employee weight gain or loss and pay employees who lose weight an incentive payment.

Question 61

Paige's organization provides group health insurance.The plan covers "major medical" costs for each employee in any given year that total more than $10,000.Her group health insurance is a ________.

A)fee-for-service plan
B)health maintenance organization
C)high-deductible health plan
D)health savings account service
E)low-deductible health plan

Question 62

Alexander's organization offers flexible benefits.The plan has five packages from which Alexander can choose.His organization is offering a _______ flexible benefit plan.

A)modular
B)core-plus
C)full-choice
D)defined benefit
E)low-deductible plan

Question 63

Tamera's organization provides group health insurance.She has a primary care physician who is her first point of contact for all preventative care and routine medical situations.Her primary care physician can provide her with referrals to specialists, if needed.However, to be covered, the specialists must be within her plan's network.Her group health insurance is a ________.

A)fee-for-service plan
B)health maintenance organization
C)preferred provider organization
D)health savings account service
E)Family Medical Leave

Question 64

Meghan's organization offers several sets of benefits.One set would appeal to young single employees because it provides more paid time off for personal activities and no reimbursements for child care expenses.Another set would likely appeal to parents with young children because it does provide child care reimbursements and other benefits important to parents, such as life insurance.Meghan's organization is offering a _______ flexible benefits plan.

A)modular
B)core-plus
C)full-choice
D)defined benefit
E)low-deductible plan

Question 65

Myra's organization provides group health insurance.Under her coverage, Myra can see any physician or go to any medical facility.However, if she goes to a physician or facility outside those identified by her plan, she will have to pay a larger percentage of the costs.Her group health insurance is a ________.

A)fee-for-service plan
B)health maintenance organization
C)preferred provider organization
D)health savings account service
E)high-deductible health plan

Question 66

Michelle puts $17,500 into her 401(k) retirement plan each year.This type of retirement plan is a ________.

A)defined benefit
B)defined contribution
C)vesting
D)experience
E)high-deductible plan

Question 67

________ is a voluntary benefit consisting of vacation/annual leave, personal time off, sick days, holidays, and severance pay.

A)Contributory pay
B)Paid time off
C)Deferred compensation
D)Fiduciary rule
E)Family Medical Leave

Question 68

Erin knows exactly what benefits she will receive when she retires.She has worked for the organization for 20 years and will receive 65% of the average of her two highest years of pay.Erin's retirement plan is a ________ plan.

A)defined benefit
B)defined contribution
C)vesting
D)experience
E)high-deductible plan

Question 69

While not required, many U.S.employers provide employees with some paid holidays, sick leave, and/or vacation time.These voluntary benefits fall under the category of ________.

A)paid time off
B)group health insurance
C)employee services
D)retirement plans
E)Family Medical Leave

Question 70

Individual incentives may motivate undesirable employee behaviors.

Question 71

Chelsea's organization offers flexible benefits.During the open enrollment period, Chelsea can choose any benefits she wants.She selects several benefits, including elder care coverage to help her care for her mother and extra dental coverage because she knows her daughter will need braces this year.Chelsea's organization is offering a _______ flexible benefit plan.

A)modular
B)core-plus
C)full-choice
D)defined benefit
E)low-deductible plan

Question 72

Which of the following types of paid time off is mandatory for U.S.employers?

A)Paid federal holidays
B)Paid annual leave
C)Paid sick leave
D)Paid personal leave
E)There are no mandatory paid time off requirements for companies in the U.S.

Question 73

__________is a governmental corporation established within the Department of Labor whose purpose is to insure retirement funds from failure.

A)Golden Parachutes
B)Defined Benefit Plan
C)Pension Benefit Guarantee Corporation
D)Social Loafers
E)high-deductible health plan

Question 74

Laura's organization provides group health insurance that covers a set percentage of fees for medical services such as doctors or in-patient care.It allows her to go to any doctor or provider.Her group health insurance is a ________.

A)fee-for-service plan
B)health maintenance organization
C)preferred provider organization
D)health savings account service
E)Family Medical Leave

Question 75

Rachel's organization offers flexible benefits.Rachel receives some of the same benefits as everyone else in the organization, such as health, dental, and life insurance.However, Rachel was also able to add tuition reimbursement and elder care assistance to her benefits package.Rachel's organization is offering a _______ flexible benefit plan.

A)modular
B)core-plus
C)full-choice
D)defined benefit
E)low-deductible plan

Question 76

__________is a law that requires employers to offer to maintain health insurance on individuals who leave their employment (for a period of time).

A)high-deductible health plan (HDHP)
B)COBRA
C)Traditional Health Care Plans
D)Defined Benefit Plan
E)PBGC

Question 77

__________ refers to a maximum amount of time beyond which the employee will have unfettered access to their retirement funds, both employee contributions and employer contributions.

A)Golden Parachutes
B)Defined Benefit Plan
C)Perquisites
D)Vesting
E)Variable Pay

Question 78

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.

Question 79

Bonuses are more effective when based on meeting or exceeding a performance goal than when based on a time period.

Question 80

Abigail runs a small business of 55 employees.She is working hard to find a way to provide health benefits to all her employees by 2016 to be in compliance with __________.

A)Social Security
B)the Affordable Care Act
C)the Family and Medical Leave Act
D)Medicare
E)high-deductible health plan (HDHP)