Question 1

Employees will _____________ an incentive program provided only to management.

Accepted Answer

If an incentive program is provided only to management, employees may feel unfairly treated and undervalued. As a result, they may resist or be demotivated by the program. It is important to ensure that incentive programs are fair and inclusive to all employees to maximize their effectiveness.

Question 2

At the beginning of the quarter,Marcus sat down with his manager and set three goals for the next three months.The achievement of each goal will depend on Marcus.No one else in his work group can affect the work toward the goal.Which advantage of individual incentives does this illustrate?

Accepted Answer

This illustrates the advantage of promoting the link between performance and results because the achievement of each goal is solely dependent on Marcus, allowing for a clear connection between his individual performance and the desired outcome.

Question 3

At the beginning of the quarter,Sara sat down with her manager and set three goals.If Sara achieves those three goals in the next three months,she will receive a $1,000 bonus.Which advantage of individual incentives does this illustrate?

Accepted Answer

The scenario illustrates the advantage of individual incentives related to promoting the link between performance and results. Sara has specific goals to achieve, and the reward is tied directly to her achieving those goals. This incentivizes her to perform well and demonstrates a clear connection between performance and reward.

Question 4

With the introduction of an individual incentive program,Caitlin has begun spending an hour each day documenting her employees' outcomes.Which disadvantage of individual incentives does this illustrate?

Accepted Answer

This illustrates the disadvantage of a high record-keeping burden, as introducing an individual incentive program requires a significant amount of documentation and tracking of employee outcomes.

Question 5

Jacob sat down with his supervisor at the beginning of the quarter and set a goal to reduce defects on the assembly line from 5 percent to 2 percent.If he achieves this goal by the end of the quarter,he will receive a ________ of $4,000.

Accepted Answer

A bonus is typically a one-time payment given as an incentive for achieving a specific goal, such as reducing defects on an assembly line. Commissions, merit pay, and piecework are all forms of compensation that are typically tied to ongoing work or production, rather than achieving a specific goal.

Question 6

With the introduction of an individual incentive program,Alexander feels like he is competing with the other members of his team instead of working together with them.While the individual incentive plan could mean more money for some members of the team,most members of the team feel the same way Alexander does.They wish they could go back to working together for a group incentive.Which disadvantage of individual incentives does this illustrate?

Accepted Answer

This scenario illustrates the disadvantage of individual incentives not fitting the organizational culture, as it has shifted the team's focus from collaboration to competition, which is contrary to the team members' preference for working together towards a common goal.

Question 7

Now that his team is working toward a group incentive,Steven does not leave work early or take long lunches.He feels that doing so would let down his group members.He has started working harder and slacking off less to help make the group successful.Which advantage of group incentives does this illustrate?

Accepted Answer

The advantage of group incentives being promoted in this scenario is that it promotes better teamwork. Steven is motivated to work harder to help the group succeed because he does not want to let his group members down. This suggests that the group incentive has fostered a sense of cooperation and collaboration among team members.

Question 8

Much fanfare was made about Anthony's latest bonus in the office.He has always been a high performer.However,this year he received an extra-large bonus.His co-worker Hannah got a little tired of hearing about Anthony's bonus and decided that next year she would win some of the bonus money.Which advantage of individual incentives does this illustrate?

Accepted Answer

Hannah's decision to work harder next year to win some of the bonus money illustrates the advantage of individual incentives in motivating less productive employees to increase their effort and productivity.

Question 9

Brian offered his team a bonus if the team completes the project one week ahead of time.Brian is using ________ as an incentive

Accepted Answer

Brian is offering a bonus as a form of variable pay, which means the pay varies based on performance.

Question 10

_____________________________ includes informing all of our employees about the program: how to participate; what their goals are; any assistance that is available to help them meet those goals; and how their performance ties in with the others in the company.

Accepted Answer

The statement is referring to the need for clear and accurate communication about the program to all employees. This includes information about participation, goals, available assistance, and how performance relates to others in the company. Therefore, the best choice is D: understandable and accurate communication.

Question 11

As a product promoter,Emily receives a commission on every sale made as a result of her presentations.However,part of her job also is to keep the area around her display neat and to return the items she promotes to their correct locations following demonstrations.Since Emily does not get a bonus for cleaning up,she leaves her area messy and does not return products following demonstrations.Which disadvantage of individual incentives does this illustrate?

Accepted Answer

This illustrates the disadvantage that individual incentives may motivate undesirable employee behaviors. Emily is prioritizing her commission and neglecting her responsibilities to keep the area tidy and return products, which could negatively impact customer satisfaction and the overall image of the company.

Question 12

_____________ can include: providing the ability to choose between work assignments,providing training and learning opportunities,allowing flexible schedules,providing extra paid time off,or recognition at an awards ceremony.

Accepted Answer

The options listed are all examples of incentives, which are rewards or encouragements designed to motivate employees towards achieving certain goals or performing at a certain level. The other choices do not accurately describe these options.

Question 13

Naoyuki is a surgical technologist at a hospital.His job involves helping out during surgeries.Among other things,he hands supplies to surgeons and surgeons' assistants,holds retractors and other instruments,and performs various tasks requested by the surgeon.An individual bonus plan would not work for Naoyuki because of which disadvantage of individual incentives?

Accepted Answer

Many jobs, like that of a surgical technologist, do not have a direct, quantifiable output, making it difficult to measure performance based on individual incentives.

Question 14

Andrew showed up to every team meeting late and did not complete his part of the project.The rest of the team had to pick up the slack to complete the project on time.Despite his lack of contribution,Andrew received the same group incentive as everyone else on the team.Which disadvantage of group incentives does this illustrate?

Accepted Answer

Social loafing occurs when individuals exert less effort to achieve a goal when they work in a group than when they work alone. In this scenario, Andrew's lack of contribution and reliance on the group to complete the project, while still receiving the same incentive, exemplifies social loafing.

Question 15

Ever since the organization began a group incentive program,John has noticed that his team appears more loyal to one another than they were before the group incentive program began.Which advantage of group incentives does this illustrate?

Accepted Answer

The fact that John's team appears more loyal to one another after the implementation of the group incentive program suggests that the program has promoted better teamwork. Group incentives can encourage team members to work together and support one another in order to achieve a common goal, which can help to build loyalty and improve group cohesion.

Question 16

When she is not working,Shelby trains to run marathons.She wishes she had more time to travel to various races but work keeps her busy.Kevin does not want time off work.He needs to earn as much overtime as possible to pay off his college loans.The company recently offered either a week's pay or a week off as the bonus to the salesperson who made the most sales.Both Shelby and Marcus worked hard to win.Which advantage of individual incentives does this illustrate?

Accepted Answer

This scenario illustrates the advantage of matching rewards to employee desires, as Shelby would prefer time off to travel for marathons, while Kevin wants to earn overtime pay to pay off his college loans. The company's offer of a bonus that allows the winner to choose between a week's pay or a week off allows for individual preferences to be considered in the incentive structure. The other options (A, C, D) may also be advantages of individual incentives, but they are not illustrated in this scenario.

Question 17

Nancy always completed her work ahead of schedule.She was known as a fast and accurate worker.When group incentives were initiated,the rest of her work team could not keep pace with Nancy.Many members of the team told Nancy to stop making them look bad.Eventually,Nancy matched her work pace to the rest of the team.Which disadvantage of group incentives does this illustrate?

Accepted Answer

This situation illustrates the disadvantage of outstanding performers slacking their efforts to match the pace of the rest of the team, which is a common problem with group incentives. Nancy's work pace was matched to the rest of the team, which shows that she had to slow down her pace to match her teammates.

Question 18

Stock incentives,long term bonuses,and perks are all common _____________ to help the "agent" act in manners favorable to the firm.

Accepted Answer

These are all forms of executive incentives designed to align the interests of executives (agents) with those of the firm (principals).

Question 19

Now that his team is working toward a group incentive,Matthew is paying more attention to what others in the organization do and how their actions affect his group.Which advantage of group incentives does this illustrate?

Accepted Answer

Group incentives can broaden an individual's outlook by encouraging them to consider the actions and contributions of others in the organization. This can lead to increased collaboration and a better understanding of interdepartmental relationships.

Question 20

_____________________ have the potential to lead to unethical actions.

Accepted Answer

Incentive payments can create a situation where employees prioritize achieving the incentive over ethical behavior, leading to unethical actions. For example, if an employee is incentivized to make more sales, they may oversell to customers or provide false information in order to meet their sales goals, which would be unethical.

Quiz 12: Incentive Pay