Question 1

Enterprise incentive plans include:

Accepted Answer

The answer of Enterprise incentive plans include:
...

Question 2

If an employee's pay is based not on the actual amount of time it takes him or her to complete a job but instead on a predetermined amount of time for completing the job,he or she is working under the _____.

Accepted Answer

The standard hour plan involves paying employees based on a predetermined amount of time for completing a job, rather than the actual time it takes them. The other options listed (piece rate plan, time division plan, completion pay system) do not involve this specific method of pay.

Question 3

Piecework is appropriate when:

Accepted Answer

Piecework is most appropriate for jobs that are fairly standardized, meaning the work can be consistently broken down into specific units or pieces. This allows for clear measurement of output and makes it easier to determine appropriate pay rates. Piecework may not be appropriate for jobs with frequent technology changes, where productivity standards are difficult to develop, or where quality is more important than quantity.

Question 4

Which of the following is NOT an advantage of an incentive pay program?

Accepted Answer

Incentives are designed to reward employees who contribute to the success of the organization. Distributing success among those who are not responsible for it would not be fair or effective in motivating employees. The other options are all advantages of an incentive pay program.

Question 5

Rate busting refers to:

Accepted Answer

Rate busting is when an employee produces significantly more than the norm, often leading to disapproval from coworkers who may feel pressured to increase their own output or who may be concerned about changes to work expectations or incentive structures.

Question 6

In 2011,a study by the American Psychological Association found that _____ of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.

Accepted Answer

The study by the American Psychological Association found that 43 percent of employees feel they receive inadequate nonmonetary awards and recognition for their contributions at work.

Question 7

Contemporary reasons given by organizations for implementing incentive plans are:

Accepted Answer

All of the given reasons (A, B, and C) are contemporary and commonly cited by organizations as motivations for implementing incentive plans.

Question 8

According to Sammer,which of the following is NOT a characteristic of a successful incentive plan?

Accepted Answer

While it is important to have clear payout formulas, they do not necessarily need to be technically detailed, quantitative, and extremely thorough. In fact, overly complex payout formulas can be confusing and demotivating for employees. The other three characteristics identified by Sammer are important for a successful incentive plan.

Question 9

Group incentive plans include:

Accepted Answer

Improshare is a group incentive plan that rewards employees for their contributions to the company's overall performance.

Question 10

Research shows that a merit increase in the range of _____ is necessary to serve as a pay motivator.

Accepted Answer

The answer of Research shows that a merit increase in...

Question 11

More than _____ of companies globally are offering variable pay programs.

Accepted Answer

The answer of More than _____ of companies globally are...

Question 12

When employees receive a certain rate for each unit produced,they are working under the _____ incentive plan.

Accepted Answer

Straight piecework is when employees receive a fixed rate for each unit produced, regardless of the time it takes to produce it. This plan is based solely on productivity and does not consider quality or efficiency.

Question 13

Which of the following is NOT a reason for variable pay plans to not achieve their proposed objectives or lead to organizational improvements?

Accepted Answer

Employee and management committees are not a reason for variable pay plans to not achieve their proposed objectives or lead to organizational improvements. In fact, involving employees and management in the design and implementation of the plan can lead to increased engagement and buy-in, ultimately leading to better results. The other options (A, C, and D) are all valid reasons that could hinder the success of a variable pay plan.

Question 14

When setting performance measures for incentive systems,we can say that the best measures are those that:

Accepted Answer

The best performance measures for incentive systems are those that are quantitative, simple to understand, and show a clear relationship to improved performance. This ensures that employees understand what they need to do to earn rewards and motivates them to work towards achieving measurable goals. Qualitative measures can lead to subjectivity and uncertainty, while focusing solely on quantity and exceptional employees can leave some employees feeling undervalued and demotivated.

Question 15

An incentive given for a special employee contribution not directly tied to a performance standard is a:

Accepted Answer

A spot bonus is an incentive or reward given to an employee for a specific contribution or achievement that is not necessarily tied to a performance standard. This can be given for things like hard work, creativity, or successful completion of a project, regardless of how well the employee is performing overall. The other options listed are all tied to performance standards in some way.

Question 16

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is a:

Accepted Answer

A spot bonus is a one-time payment given to an employee to recognize exceptional performance or effort. In this case, the consumer service representative worked long hours to fill a new customer's large order, which demonstrates exceptional effort that deserves recognition through a spot bonus. Piece rate, differential piece rate, and merit pay are typically more appropriate for situations in which the focus is on productivity, efficiency, or overall performance rather than a specific accomplishment or effort.

Question 17

When employees receive a higher rate of pay for all of their work and production exceeds a standard level of output,they are working under the _____ incentive plan.

Accepted Answer

The differential piece rate incentive plan provides employees with a higher rate of pay for all of their work, while also offering additional bonuses or incentives for exceeding a standard level of output. This encourages employees to work efficiently and productively in order to earn higher wages.

Question 18

_____ describes the design of individual incentive plans.

Accepted Answer

Flexibility describes the design of individual incentive plans as it allows for adjustments to meet the specific needs and circumstances of different employees or situations.

Question 19

A study on bonus versus actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by ____ percent.

Accepted Answer

The answer of A study on bonus versus actual pay...

Question 20

The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes.The piece rate would be ____ per unit.

Accepted Answer

To find the piece rate, we need to first convert the 12 minutes to hours:

12 minutes = 12/60 hours = 0.2 hours

Now we can use the formula:

Piece rate = (Hourly rate)/(Standard time per unit)

Piece rate = $12.75/0.2 = $63.75

Therefore, the piece rate per unit is $2.55.

Quiz 10: Pay-For-Performance: Incentive Rewards