Question 1

The type of incentive program for major league baseball players that will pay them extra money for hitting over .300 or making the All-Star team is called

Accepted Answer

A bonus is a type of incentive program that pays employees extra money for achieving specific goals, such as hitting over .300 or making the All-Star team.

Question 2

Rosalyn belongs to a company with a wellness program. The program may include

Accepted Answer

Wellness programs typically focus on improving employees' health and well-being, which can include stress management programs. Other options like insurance and compensation are not typically part of wellness programs.

Question 3

Wages are paid for ________, while salary is paid for ________.

Accepted Answer

The answer of Wages are paid for ________, while salary...

Question 4

What is the fundamental difference between profit-sharing and gainsharing?

Accepted Answer

The fundamental difference between profit-sharing and gainsharing is that profit-sharing rewards employees based on the profit the company earns, while gainsharing rewards employees on the basis of productivity improvements.

Question 5

Which of the following is correct with regard to compensation?

Accepted Answer

Compensation refers to a variety of rewards that employees receive, including base salary, incentives, bonuses, benefits, and other forms of payment.

B is incorrect because the issue of whether top managers deserve their high compensation is a matter of debate and not a general consensus in society.

C is irrelevant to the question of compensation elements.

D is incorrect because job evaluation is a method for comparing different jobs and determining their relative worth, not for determining whether a worker should receive a wage or salary.

Therefore, only A is the correct option.

Question 6

What is the purpose of incentive pay plans?

Accepted Answer

The purpose of incentive pay plans is to motivate high performance among employees. These plans offer rewards to employees who achieve or exceed specific goals or standards, which can increase their motivation and productivity. Incentive pay plans can also help organizations to attract and retain top talent.

Question 7

All of the following are considered incentive systems except

Accepted Answer

Benefits are a form of employee compensation, but they are not typically considered an incentive system because they are not directly tied to individual or group performance. Incentive systems are usually designed to motivate employees to achieve specific goals or outcomes, while benefits are aimed at providing certain perks or protections to employees regardless of performance.

Question 8

A survey by the Conference Board of Canada found that ________ percent of Canadian companies offer incentive programs.

Accepted Answer

The answer of A survey by the Conference Board of...

Question 9

Sammy is looking at his pay cheque. He received $900 for producing 75 units. This pay is called

Accepted Answer

The pay received by Sammy is determined by the number of units he produced, which suggests that he is being paid based on his output (i.e. piece-rate). Therefore, the correct option is D - piece-rate incentive plan.

Question 10

________ generally refer to hourly compensation paid to operating employees, while ________ generally refers to a yearly amount that is to be paid to an employee.

Accepted Answer

Wages generally refer to hourly compensation paid to operating employees, while salary generally refers to a yearly amount that is to be paid to an employee.

Question 11

Bill is looking at his pay cheque. He worked 38 hours last week and since he is paid $10.00 per hour, his gross pay was $380.00. Bill's compensation is in the form of

Accepted Answer

The term "wages" refers to the payment made to an employee based on the number of hours worked, which is the case for Bill. Salaries, on the other hand, typically refer to a fixed payment made to an employee on a regular basis, regardless of the number of hours worked. Variable pay and bonuses are typically forms of compensation that are tied to performance or other factors, whereas workers' compensation refers to insurance benefits for employees who are injured on the job.

Question 12

Under ________, profits earned above a certain level are distributed to employees, while under ________, bonuses are distributed to employees when a company's costs are reduced through greater work efficiency.

Accepted Answer

Profit-sharing involves distributing profits above a certain level to employees, while gainsharing involves distributing bonuses to employees when the company's costs are reduced through greater work efficiency.

Question 13

A survey by the Conference Board of Canada found that ________ percent of the companies that have an incentive programs don't measure the effectiveness of the programs.

Accepted Answer

The survey by the Conference Board of Canada found that 69 percent of companies with incentive programs do not measure their effectiveness.

Question 14

When an employee is paid a certain amount of money for every unit produced, this is a

Accepted Answer

A piece-rate incentive program is a pay system where an employee is paid a certain amount of money for each unit of work they produce. This system incentivizes employees to work more efficiently and produce more work to increase their earnings.

Question 15

At Palliser Furniture, any profit resulting from production that exceeds a certain level is split 50-50 between the company and the employees. This is an example of

Accepted Answer

Gainsharing is a system where employees receive benefits from improved company performance, often through increased productivity or cost savings, which aligns with the description of splitting profits from production exceeding a certain level.

Question 16

Shawn has been hurt while working on his job. The cost for him to have the injury repaired and to recuperate is covered under

Accepted Answer

Workers' compensation is insurance that provides wage replacement and medical benefits to employees who are injured while working. This is the best option as it specifically covers workplace injuries. A, B, C, and E may provide some coverage for injuries, but they are not specifically designed to cover workplace injuries like workers' compensation.

Question 17

Scott is looking at his pay cheque. He worked 48 hours last week but got paid the same as he did the previous week when he worked only 36 hours. His compensation plan is based on

Accepted Answer

Scott's consistent pay despite the difference in hours worked suggests he is on a salary compensation plan, where employees are paid a set amount regardless of the number of hours worked.

Question 18

A web design company, Gen Max, is expanding rapidly and needs to hire middle managers in a climate where first to market is an imperative. Which incentive plan for these employees would best help the firm achieve its first-to-market goal?

Accepted Answer

Pay for performance incentive plan is the best choice for employees in a rapidly expanding company like Gen Max. This type of plan typically rewards employees for achieving specific goals or targets, which aligns with the company's first-to-market goal. By offering incentives such as bonuses or commissions based on performance, employees are motivated to work harder and be more productive, which can lead to increased competitiveness and faster time-to-market.

Question 19

________ distribute bonuses to all employees in a company based upon reduced costs from working more efficiently.

Accepted Answer

Gainsharing plans distribute bonuses to employees based on cost savings resulting from their efforts to work more efficiently. Profit-sharing plans distribute bonuses based on company profits, while merit salary systems reward individual performance. Bona fide occupational requirement plans determine job requirements based on legitimate business reasons, and assessment centre plans assess employee performance for development purposes.

Question 20

After a very successful year when the firm exceeded targeted earnings levels by 10 percent, each employee received extra pay equal to 10 percent of what they earned for the year. This plan is called

Accepted Answer

The plan in question refers to profit-sharing, which involves sharing a portion of the firm's profits with employees as a form of incentive and motivation. In this case, each employee received extra pay equal to 10 percent of what they earned for the year, which is a share of the firm's profits. The other options listed (merit salary, pay-for-knowledge, gainsharing, pay-for-performance) involve different types of incentive plans that do not directly relate to the firm's profits.

Quiz 8: Managing Human Resources and Labour Relations