Question 1

Advantages of individual incentive plans include all of the following except:

Accepted Answer

Individual incentive plans may lead to increased productivity, lowered production costs, and less direct supervision. However, they may not necessarily lead to greater trust between workers and management. In fact, if incentive plans are seen as unfair or if workers feel that management is using incentives to manipulate them, trust may actually decrease.

Question 2

All of the following are human resource capabilities performance indicators used for group incentive plans except:

Accepted Answer

D

Question 3

The incentive system with two rates,one for above production standard and one for below standard is the _____ plan.

Accepted Answer

A

Question 4

A _____ plan divides a task into simple actions and determines the time an average worker takes to complete each action.

Accepted Answer

The answer of A _____ plan divides a task into...

Question 5

In which of the following incentive pay plans does the wage rate not increase for production above the standard?

Accepted Answer

In the standard hour plan, the wage rate remains constant even if the production exceeds the standard. The worker is paid based on the number of hours worked at the standard rate, regardless of how much output is produced. This plan is suitable for jobs that require consistent and repetitive work, where the output varies minimally.

Question 6

It is observed that _____ is/are commanding a larger share of the total compensation for all employee groups.

Accepted Answer

The answer of It is observed that _____ is/are commanding...

Question 7

Dissatisfaction with _____ performance indicators for group incentives has led to greater use of _____.

Accepted Answer

Financial performance indicators often fail to capture the full scope of a company's performance, leading organizations to adopt the balanced scorecard, which includes financial and non-financial measures to provide a more comprehensive view.

Question 8

Which of the following does not use the time period per unit of production to determine the rate?

Accepted Answer

The Merrick system is a piece-rate system that does not use time per unit of production to determine the rate, unlike the other methods which are based on time saved or time taken.

Question 9

Which of the following is not true about individual spot awards?

Accepted Answer

According to the information provided, it is not true that a majority of companies do not feel that individual spot awards are effective. Therefore, option C is the correct choice.

Question 10

Usually _____ are awarded for exceptional performance,often on special projects or for performance that so exceeds expectations as to be deserving of an add-on bonus.

Accepted Answer

Individual spot awards are typically given for exceptional performance on special projects or for exceeding expectations, making it the best choice for this scenario. Variable pay awards are more often tied to specific performance metrics, lump-sum bonuses may be given for meeting certain goals or targets, and merit pay is typically a scheduled increase in base pay for meeting performance expectations over time.

Question 11

Compensation security is highest for workers who fail to complete tasks within the standard time under the _____ plan?

Accepted Answer

The answer of Compensation security is highest for workers who...

Question 12

Paying a dime for every bottle collected and turned into a collection center is an example of:

Accepted Answer

This is an example of straight piecework because the employee is paid a set amount per item collected (a dime per bottle). Commission based work typically involves a percentage of a sale or transaction, while standard hour based work involves payment for a set amount of time worked. The Rowan plan is a management incentive system, which is not applicable here.

Question 13

An incentive system with three piecework rates is the _____ plan.

Accepted Answer

The answer of An incentive system with three piecework rates...

Question 14

Hoarding star performers,reluctance to accept new team members and resistance to transferring team members are examples of which team-related compensation problem?

Accepted Answer

The answer of Hoarding star performers,reluctance to accept new team...

Question 15

Which of the following is not true of lump-sum bonuses?

Accepted Answer

The answer of Which of the following is not true...

Question 16

A penalty for poor performance rather than reward for good is an example of:

Accepted Answer

The answer of A penalty for poor performance rather than...

Question 17

The most frequently used incentive system is the:

Accepted Answer

Straight piecework is the most frequently used incentive system because it is simple and easy to implement. Workers are paid a fixed rate per unit produced, which motivates them to increase their productivity. This system is particularly effective for tasks that involve repetitive work and can easily be measured. While other incentive systems may be more effective in certain circumstances, straight piecework is the most commonly used system across a variety of industries.

Question 18

A team works on a project with specific performance level goals and time deadlines,but weather problems cause the team to miss the deadline.What is the key factor affecting how the team feels about their incentive?

Accepted Answer

Despite whether the incentive payout was as promised or not, the key factor affecting how the team feels about their incentive is their perception of reward fairness. If the team believes the reward was fair and accounted for the external factors that caused the delay, they are more likely to be satisfied with the incentive. However, if they feel the reward was unfair or did not adequately account for the weather problems, they may feel demotivated or even resentful.

Question 19

The two most commonly used team incentive performance standards are:

Accepted Answer

The two most commonly used team incentive performance standards are productivity and customer satisfaction. Productivity measures the efficiency of the team in achieving their goals and completing tasks within a certain time frame. Customer satisfaction measures how well the team has met the expectations and needs of the customers. By combining these two incentive performance standards, the team is incentivized to not only be efficient in their work, but also ensure that the quality of their work meets the expectations of the customers. This ultimately leads to improved overall performance and success for the team and the organization.

Question 20

The common feature to all types of incentive plans is:

Accepted Answer

All incentive plans require a standard of performance to determine the amount of incentive pay that will be granted to an employee. Without this standard, there would be no objective way to measure an employee's performance and determine if they are eligible for additional compensation. While some plans may include sharing formulas, penalties, or limits on incentive pay, these features are not universal to all types of incentive plans.

Quiz 10: Pay-For-Performance Plans