Question 1

Nick works for an electronics store. His entire compensation is based on an 8 percent commission he is paid on all the sales he makes minus merchandise returns. This is an example of a(n)
A) straight salary plan.
B) quota-bonus plan.
C) equity-based compensation.
D) incentive compensation plan.
E) cafeteria plan.

Accepted Answer

Incentive compensation plans reward employees on the basis of their productivity.

Question 2

A ________ is a target level used to motivate and evaluate performance.
A) quota
B) straight commission
C) compensation plan
D) group goal
E) draw

Accepted Answer

Quotas are often used with compensation plans.

Question 3

Employment discrimination on which of the following basis is legal in the United States?
A) Gender
B) Age
C) Educational qualification
D) Religious beliefs
E) Sexual orientation

Accepted Answer

Companies cannot treat employees differently simply on the basis of their race, color, religion, sex, national origin, age, or disability status. There is a very limited set of circumstances in which employees can be treated differently.

Question 4

Which of the following is a disadvantage of incentive compensation plans?
A) Employees know that a rise in productivity will have no impact on their compensation.
B) Employees are taxed heavily on their income from incentive plans.
C) Employers are taxed heavily on their expenditure incurred through incentive plans.
D) Employees don't develop loyalty to their employers when incentive plans are practiced.
E) Employers are unable to increase employee productivity while following incentive plans.

Accepted Answer

Salespeople compensated primarily by incentives don't develop loyalty to their employer. The employer doesn't guarantee them an income, so they feel no obligation to the firm.

Question 5

Which of the following is an intrinsic reward?
A) Employee of the year award
B) Bonus
C) Promotion
D) Meaningful work
E) Commission

Accepted Answer

Intrinsic rewards are rewards employees get personally from doing their job well.

Question 6

Which of the following is an example of extrinsic reward?
A) Meaningful work
B) Promotion
C) Team spirit
D) Positive environment
E) Open communication

Accepted Answer

Extrinsic rewards are rewards provided by either the employee's manager or the firm, such as compensation, promotion, and recognition.

Question 7

The Fair Labor Standards Act of 1938 does all of the following except
A) limit maximum work hours.
B) set child labor standards.
C) set overtime-pay provisions.
D) establish minimum wages.
E) prohibit discrimination.

Accepted Answer

The Fair Labor Standards Act of 1938 set minimum wages, maximum hours, child labor standards, and overtime-pay provisions.

Question 8

Mercer was getting bored with his job as a sales clerk in the home department until his manager gave him responsibility for training a new salesperson in his area, which he likes to do. This is an example of
A) management by objective.
B) the unity of command principle.
C) an intrinsic reward.
D) an extrinsic reward.
E) management by exception.

Accepted Answer

Intrinsic rewards are rewards employees get personally from doing their jobs well. Job enrichment is one way to provide intrinsic rewards.

Question 9

Norman was recognized as the best Albertons' employee of the year. His name, along with the names of other winners, is engraved on a plaque that is prominently displayed in the store. This is an example of
A) job enrichment.
B) an intrinsic reward.
C) management by objective.
D) an extrinsic reward.
E) management by exception.

Accepted Answer

Extrinsic rewards are provided by an employee's manager and include recognition.

Question 10

________ is the process by which a person attempts to influence others to accomplish a common goal or task.
A) Idiosyncrasy credit
B) Multipolarity
C) Leadership
D) Post hegemony
E) Tripolarity

Accepted Answer

Leadership is the process by which a person attempts to influence others to accomplish a common goal or task.

Question 11

Sales are poor at the Kirt's Bathing Suit Store in Alaska, and Kirt's sales team is suffering from low morale. Which of the following will best help Kirt to increase his sales team's morale?
A) Reduce the quantity of incoming merchandise.
B) Fire non-performing sales people.
C) Recruit an efficiency consultant to identify the problem.
D) Reward performing sales people.
E) Tweak the marketing tactics.

Accepted Answer

Managers can motivate employees by setting realistic goals and offering rewards that employees want.

Question 12

Which of the following is the major disadvantage of a straight salary plan?
A) It is expensive to administer.
B) It increases a retailer's variable costs.
C) Many employees have trouble understanding a straight salary plan.
D) It makes it very difficult for a retailer to assign employees to activities.
E) It does not directly relate pay incentives to productivity.

Accepted Answer

The major disadvantage of the straight salary plan is employees' lack of immediate incentives to improve their productivity.

Question 13

Which of the following statements is True of drawing accounts?
A) It is used to provide a steadier income for salespeople who work on commission.
B) It is used to motivate employees who receive a straight salary.
C) It is used to attract salespeople who are willing to sell low-margin items.
D) It is used to provide an additional income for full-time sales people.
E) It is used to pay employees for delivering good customer service.

Accepted Answer

To provide a more steady income for salespeople who are paid by high-incentive plans, some retailers offer a drawing account.

Question 14

Nina's office was made up of a mostly all male staff. All worked well together and no one really even noticed the skewed ratio until one day when one of the men downloaded a lewd screensaver for all to see when they arrived in the office. Nina was infuriated. This situation can be considered
A) a violation of employee privacy.
B) political individualism.
C) an instance of sexual harassment.
D) an unethical hiring practice.
E) an unethical instance of distributive justice.

Accepted Answer

Simply creating a hostile work environment can be considered sexual harassment. For example, actions considered sexual harassment include lewd comments, joking, and graffiti, as well as showing obscene photographs, staring at a coworker in a sexual manner, alleging that an employee got rewards by engaging in sexual acts, and commenting on an employee's moral reputation.

Question 15

Angel's oldest associate, Betty, complained that she was bored and was thinking of looking for a different job. Instead of letting her go, Angel decided to utilize her life experience and asked Betty if she would be responsible for organizing departmental social events and the weekly visual displays. This suggestion, giving Betty a task she would enjoy doing, would be an example of
A) intrinsic rewards.
B) extrinsic rewards.
C) job enrichment.
D) job description.
E) job engagement.

Accepted Answer

Job enrichment is the redesign of a job to include a greater range of tasks and responsibilities, including skill variety, task significance, autonomy, and job feedback

Question 16

In order to motivate its employees, Dillards department store has set performance goals for its employees. If an employee exceeds his or her daily performance goals, he or she will receive a bonus. This compensation method is called a
A) straight bonus plan.
B) straight salary plan.
C) task-oriented plan.
D) equity-based plan.
E) quota-bonus plan.

Accepted Answer

A quota-bonus plan provides sales associates with a bonus when their performance exceeds their quota.

Question 17

Which of the following statements is True of laws relating to compensation?
A) They require that firms pay the same work pay for men and women.
B) They require that firms pay the same work pay for all employees of a department.
C) They protect the organization's investment on its employees.
D) They place restrictions on the salaries drawn by the top management.
E) They monitor the financial investments made by the top management of the organization.

Accepted Answer

Laws relating to compensation define the workweek, the pay rate for working overtime, and the minimum wage, and they protect employee investments in their pensions. In addition, they require that firms provide the same pay for men and women who are doing equal work.

Question 18

The ________, now enforced by the Equal Employment Opportunity Commission (EEOC), prohibits unequal pay for men and women who perform equal work or work of comparable work.
A) Fair Labor Standards Act
B) Equal Pay Act
C) Disparate Impact
D) Discrimination and Employment Act
E) Americans with Disabilities Act

Accepted Answer

The Equal Pay Act, now enforced by the EEOC (Equal Employment Opportunity Commission), prohibits unequal pay for men and women who perform equal work or work of comparable worth.

Question 19

________ is the redesign of a job to include a greater range of tasks and responsibilities.
A) Intrinsic rewards
B) Extrinsic rewards
C) Job enrichment
D) Job description
E) Job engagement

Accepted Answer

Job enrichment is the redesign of a job to include a greater range of tasks and responsibilities, including skill variety, task significance, autonomy, and job feedback.

Question 20

A quota-bonus plan is applicable when
A) employee performance exceeds the quota.
B) performance management is outsourced.
C) an employee has a salary plan based solely upon performance.
D) productivity is poor.
E) there are no other incentives.

Accepted Answer

A quota-bonus plan provides sales associates with a bonus when their performance exceeds their quota.

Quiz 15: Human Resources and Managing the Store

Nick works for an electronics store. His entire compensation is based on an 8 percent commission he is paid on all the sales he makes minus merchandise returns. This is an example of a(n)

A ________ is a target level used to motivate and evaluate performance.

Employment discrimination on which of the following basis is legal in the United States?

Which of the following is a disadvantage of incentive compensation plans?

Which of the following is an intrinsic reward?

Which of the following is an example of extrinsic reward?

The Fair Labor Standards Act of 1938 does all of the following except

Mercer was getting bored with his job as a sales clerk in the home department until his manager gave him responsibility for training a new salesperson in his area, which he likes to do. This is an example of

Norman was recognized as the best Albertons' employee of the year. His name, along with the names of other winners, is engraved on a plaque that is prominently displayed in the store. This is an example of

________ is the process by which a person attempts to influence others to accomplish a common goal or task.

Sales are poor at the Kirt's Bathing Suit Store in Alaska, and Kirt's sales team is suffering from low morale. Which of the following will best help Kirt to increase his sales team's morale?

Which of the following is the major disadvantage of a straight salary plan?

Which of the following statements is True of drawing accounts?

Nina's office was made up of a mostly all male staff. All worked well together and no one really even noticed the skewed ratio until one day when one of the men downloaded a lewd screensaver for all to see when they arrived in the office. Nina was infuriated. This situation can be considered

In order to motivate its employees, Dillards department store has set performance goals for its employees. If an employee exceeds his or her daily performance goals, he or she will receive a bonus. This compensation method is called a

Which of the following statements is True of laws relating to compensation?

The ________, now enforced by the Equal Employment Opportunity Commission (EEOC) , prohibits unequal pay for men and women who perform equal work or work of comparable work.

________ is the redesign of a job to include a greater range of tasks and responsibilities.

A quota-bonus plan is applicable when