Question 1

The Scanlon Plan is a group-oriented rather than an individual-oriented pay plan.

Accepted Answer

The Scanlon Plan is designed to encourage group performance and cooperation by sharing the cost savings from improved productivity among employees, making it group-oriented.

Question 2

In a study in a unionized auto parts manufacturing plant, a Scanlon gain-sharing program had a positive effect on the number of suggestions provided by employees and the number of suggestions implemented was associated with

Accepted Answer

The answer of In a study in a unionized auto...

Question 3

The effect of team-based financial incentives on performance has been found to be strongest in what kind of teams?

Accepted Answer

Smaller teams tend to benefit more from team-based financial incentives because the contribution of each member is more visible, and the impact of the incentive on individual motivation is stronger. In larger teams, individual efforts might be less noticeable, diluting the incentive's effectiveness.

Question 4

What pay plan provides employees with a sense of legal and psychological ownership?

Accepted Answer

Employee Stock Ownership Plans (ESOPs) provide employees with a sense of legal and psychological ownership because they actually become part-owners of the company through the acquisition of its stock. This ownership stake not only offers potential financial benefits but also fosters a deeper connection and commitment to the company's success.

Question 5

Training costs can be high with a skill-based pay system.

Accepted Answer

Skill-based pay systems often require ongoing training and development to ensure employees acquire and maintain the skills needed for their roles, leading to higher training costs for the organization.

Question 6

What pay plan is associated with high training costs?

Accepted Answer

Skill-based pay is associated with high training costs because it requires employees to acquire new skills and competencies, often necessitating extensive training programs.

Question 7

An organization wishes to base pay on objective, measurable performance data, but the performance of individual workers cannot be isolated and measured.Which system should it adopt?

Accepted Answer

Gain-sharing is a system designed to encourage collaboration among workers by basing rewards on the performance of the group or organization as a whole, making it suitable for situations where individual performance cannot be isolated.

Question 8

Under a skill-based pay plan, people are paid according to

Accepted Answer

Under a skill-based pay plan, employees are compensated based on the range and depth of skills they possess and can apply, rather than their specific job role or productivity.

Question 9

Profit sharing seems to work best in larger firms that regularly turn a handsome profit.

Accepted Answer

The answer of Profit sharing seems to work best in...

Question 10

Rodney has just accepted a job offer and he already feels a sense of legal and psychological ownership in his new organization.What pay plan does Rodney's new organization offer employees?

Accepted Answer

ESOPs (Employee Stock Ownership Plans) give employees a sense of ownership in the organization by providing them with stock or stock options. This creates both a legal and psychological sense of ownership in the company, aligning employee interests with the success of the organization.

Question 11

What is another name for skill-based pay plans?

Accepted Answer

The answer of What is another name for skill-based pay...

Question 12

Which of the following is one of the most commonly used group-oriented incentive systems?

Accepted Answer

The answer of Which of the following is one of...

Question 13

If an organization wants to create a sense of legal and psychological ownership amongst its employees, it should implement a profit sharing pay system.

Accepted Answer

The answer of If an organization wants to create a...

Question 14

Sydney works under a gain-sharing plan.In other words, he is paid according to individual piece rate.

Accepted Answer

Gain-sharing plans are typically group-based incentive plans where employees receive bonuses based on the overall performance of their group or company, not individual piece rates.

Question 15

Team-based pay for performance programs have a positive effect on

Accepted Answer

The answer of Team-based pay for performance programs have a...

Question 16

Which pay system is intentionally designed to motivate groups of employees rather than individual employees?

Accepted Answer

Gain-sharing is a system designed to motivate groups of employees by providing them with financial rewards based on improvements in the group's productivity or performance, encouraging teamwork and collective effort.

Question 17

What pay plan loses its motivational potential in a weak economy?

Accepted Answer

The answer of What pay plan loses its motivational potential...

Question 18

Skill-based pay is a motivation system whereby people are paid on the basis of how many skills they have mastered.

Accepted Answer

Skill-based pay rewards employees for the range or depth of their skills and knowledge, rather than for the specific job they perform, aiming to motivate them to learn and master more skills.

Question 19

When is profit sharing likely to be most effective?

Accepted Answer

Profit sharing is most effective in small organizations that regularly make a profit because employees can directly see the impact of their work on the company's success, fostering a strong sense of ownership and motivation.

Question 20

In a study in a unionized auto parts manufacturing plant, a Scanlon gain-sharing program had a positive effect on the

Accepted Answer