Question 1

The Scanlon plan is a type of gainsharing plan.

Accepted Answer

The Scanlon plan is one early version of a gainsharing plan. Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company.

Question 2

Explain the advantages of employee stock ownership plans.

Accepted Answer

The answer of Explain the advantages of employee stock ownership...

Question 3

Research suggests that employee stock ownership plans discourage employees from developing a sense of ownership in and commitment to the firm, which is why the programs are decreasing in popularity.

Accepted Answer

Research suggests that ESOPs encourage employees to develop a sense of ownership in and commitment to the firm.

Question 4

In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans.

Accepted Answer

The answer of In a brief essay, discuss the difference...

Question 5

Research indicates that employee stock ownership plans most likely ________.

Accepted Answer

C)Research suggests that ESOPs do encourage employees to develop a sense of ownership in and commitment to the firm. For the plans to be effective, firms must be responsible for their funds.

Question 6

Studies suggest that team incentive plans enhance productivity because the work load is equally distributed among team members, which fosters cooperation.

Accepted Answer

Most large employers use team incentive plans, but studies suggest they are counterproductive. Inequity is the issue because usually a few people do the work but everyone shares the reward.

Question 7

Gainsharing is an incentive plan where employee efforts that result in cost-savings gains are shared among employees and the company.

Accepted Answer

Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company.

Question 8

Describe what a Scanlon Plan is and its 5 major elements.

Accepted Answer

The answer of Describe what a Scanlon Plan is and...

Question 9

Top executives at DYS Enterprises are considering the idea of implementing an employee incentive plan. Which of the following suggests that an incentive plan would NOT be appropriate at DYS Enterprises?

Accepted Answer

C)Incentive plans are effective and appropriate when motivation (and not ability)is the problem. They are also appropriate when there is a clear relationship between employee effort and quantity or quality of output, the job is standardized, and delays are few or consistent.

Question 10

Which of the following is the primary benefit of employee stock ownership plans?

Accepted Answer

C)The main reason that ESOPs are popular is that a firm gets a tax deduction equal to the fair market value of the shares it transfers to the trustee and can claim an income tax deduction for dividends paid on ESOP-owned stock. Employees are taxed when they receive a distribution from the trust, usually at retirement.

Quiz 12: Pay for Performance and Financial Incentives