Question 1

Social loafers ______.
A) give 100% both individually and in a group setting
B) are shy and reserved in company social settings
C) strive to be recognized as an outstanding performer in a group setting
D) avoid exerting maximum effort in group settings because it is difficult to pick out individual performance

Accepted Answer

Social loafers avoid exerting maximum effort in group settings because they think it is difficult to pick out individual performance.

Question 2

When it comes to group incentives,______ may be able to stay hidden within the group while allowing others to do the majority of the group work.
A) social loafers
B) golden parachutes
C) perquisites
D) merits

Accepted Answer

Social loafers are individuals who do not contribute their fair share of effort to a group project but still benefit from the group's success. They can remain hidden within the group and allow their teammates to do most of the work while still receiving the group's rewards. Therefore, A) social loafers is the best choice for this question.

Question 3

Manuela wants to provide an incentive program to reinforce the collective actions of all of her subordinates in the returns department team.In other words,Manuela would like to begin a(n)______ program.
A) variable incentive
B) executive incentive
C) individual incentive
D) group incentive

Accepted Answer

Manuela wants to reinforce the collective actions of her entire team. This indicates that a group incentive program would be the best choice as it would motivate the team to work together towards a common goal. Variable incentives are based on individual performance; executive incentives are designed for higher-level employees, and individual incentives are based on the performance of one person.

Question 4

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.This illustrates which disadvantage of group incentives?
A) Social loafing may occur.
B) Individual output may be discounted.
C) Outstanding performers may slacken efforts.
D) Group infighting may arise.

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 behavior of showing up late to meetings and not completing his part of the project, yet still receiving the same group incentive, is a classic example of social loafing.

Question 5

______ incentives provide reinforcement for actions of more than one individual within the organization.
A) Individual
B) Group
C) Cultural
D) Structural

Accepted Answer

Group incentives are designed to encourage teamwork and cooperation among members of a group or team. These incentives are based on the performance of the group as a whole, which provides reinforcement for actions of more than one individual within the organization. Group incentives can help promote collaboration, mutual support, and a sense of shared responsibility among team members, which can lead to improved productivity, morale, and job satisfaction.

Question 6

One advantage of a(n)______ is that it broadens individual outlook.
A) group incentive
B) executive incentive
C) individual incentive
D) professional incentive

Accepted Answer

Group incentives encourage teamwork and collaboration among members, leading to a broader perspective and outlook as individuals are exposed to diverse ideas and approaches.

Question 7

As a salesperson,Harold is paid based on a percentage of the value of the products and services he sells.In other words,he is paid on a ______ basis.
A) bonus
B) base pay
C) value pay
D) commission

Accepted Answer

The term "commission" refers to being paid a percentage of the value of the products or services sold. Therefore, option D is the correct answer. Option A (bonus) refers to an additional payment made based on performance, Option B (base pay) refers to a set salary without additional incentives, and Option C ("value pay") is not a common term used in compensation practices.

Question 8

One risk with a ______ as an incentive is in allowing it to become a time-based entitlement instead of a performance incentive.
A) perquisite
B) bonus
C) merit
D) wage

Accepted Answer

A bonus is typically based on performance and results, but there is a risk that it can become an expected entitlement after a certain amount of time rather than a reward for exceptional performance. This can lead to a decrease in motivation and productivity among employees.

Question 9

Carol was recently put on a team to develop a new product for Acme Global.Because there are so many people on the team,Carol thinks no one will notice if she does not participate or do any work for the team.Carol is a(n)______.
A) social loafer
B) golden parachute
C) individual performer
D) merit seeker

Accepted Answer

Carol's behavior is consistent with that of a social loafer, someone who fails to put in the effort on a group task, assuming that someone else will take up the slack.

Question 10

For every $1,000 of widgets Tanner sells,he receives a ______ of 10%,or $100.
A) bonus
B) commission
C) merit pay
D) piecework

Accepted Answer

A commission is a percentage of the sales made by an individual, so this is the appropriate term to describe Tanner's payment structure. A bonus is an additional payment made as a reward for exceptional performance, while merit pay is an increase in base pay based on an employee's overall performance. Piecework refers to a payment system where employees are paid based on the number of items they produce.

Question 11

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% to 2%.If he achieves this goal by the end of the quarter,he will receive a ______ of $4,000.
A) bonus
B) commissions
C) merit pay
D) piecework

Accepted Answer

A bonus is typically a one-time payment given as a reward for achieving a specific goal or objective, such as reducing defects on an assembly line. In this case, Jacob has set a specific goal with his supervisor, and if he achieves it, he will receive a bonus of $4,000. Commissions are typically a percentage of sales, merit pay is usually an increase in salary based on performance, and piecework is a payment system based on the number of units produced. None of these options are applicable in this scenario.

Question 12

Nadia 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 Nadia.Many members of the team told Nadia to stop making them look bad.Eventually,Nadia matched her work pace to the rest of the team.This illustrates which disadvantage of group incentives?
A) Social loafing may occur.
B) Individual output may be discounted.
C) Outstanding performers may slacken efforts.
D) Group infighting may arise.

Accepted Answer

This situation illustrates the disadvantage of outstanding performers, like Nadia, slacking their efforts since the incentive is given to the group as a whole, and not based on individual output. Nadia matched her work pace with the rest of the team, which negatively affected her individual output.

Question 13

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.This illustrates which advantage of group incentives?
A) They promote better teamwork.
B) They broaden individual outlook.
C) They require less supervision.
D) They are easier to develop than individual incentive programs.

Accepted Answer

This situation illustrates the advantage of group incentives in promoting better teamwork. Steven's sense of accountability to his group members is motivating him to work harder and stay committed to the common goal.

Question 14

In order for a(n)______ incentive program to work,it must provide a significant incentive to the salesperson to be successful in selling and provide a disincentive to make a harmful "quick sale."
A) commission
B) bonus
C) merit
D) entitlement

Accepted Answer

A commission incentive program provides a percentage of the sale as the incentive, therefore, the more the salesperson sells, the bigger their reward. This type of incentive program encourages salespeople to focus on making high-quality sales that are beneficial in the long run, rather than quick and potentially harmful sales just to make a sale.

Question 15

A(n)______ is a payment typically provided to a salesperson for selling an item to a customer and is usually paid as a percentage of the price of the item that is sold.
A) bonus
B) merit
C) entitlement
D) commission

Accepted Answer

A commission is a payment made to a salesperson for selling something to a customer. It is usually a percentage of the price of the item that is sold. Commission is a common way of compensating salespeople, as it provides an incentive for them to sell more and earn more money.

Question 16

In compensation,a ______ is a lump sum payment,typically given to an individual at the end of a time period.
A) bonus
B) merit
C) perquisites
D) variable pay

Accepted Answer

A bonus is a lump sum payment given to an individual, typically at the end of a time period such as a year-end bonus or a performance bonus. Merit refers to an increase in base pay based on individual performance, perquisites are non-cash compensation such as company car or club membership, and variable pay can include bonuses but also includes other forms of pay tied to performance or company results.

Question 17

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.This illustrates which advantage of group incentives?
A) They promote better teamwork.
B) They broaden individual outlook.
C) They require less supervision.
D) They are easier to develop than individual incentive programs.

Accepted Answer

The fact that John's team appears more loyal to one another since the implementation of the group incentive program suggests that the program has promoted better teamwork. Group incentives can encourage individuals to work together towards a common goal, which can improve communication, collaboration, and trust among team members.

Question 18

A program to reward top performers with increases in their annual wage that carry over from year to year is called ______ pay.
A) bonus
B) entitlement
C) merit
D) profit

Accepted Answer

The description provided in the question fits the definition of merit pay. Merit pay is a system of rewarding top-performing employees with annual increases that accumulate and carry over year to year. Bonus pay is typically a one-time reward, entitlement pay is based on job title or seniority rather than performance, and profit pay is based on company profits rather than individual performance.

Question 19

Now that his team is working toward a group incentive,Matteo is paying more attention to what others in the organization do and how their actions affect his group.This illustrates which advantage of group incentives?
A) They promote better teamwork.
B) They broaden individual outlook.
C) They require less supervision.
D) They are easier to develop than individual incentive programs.

Accepted Answer

Group incentives broaden individual outlook as employees become more aware of their co-workers' contributions to the organization and how their actions affect the team as a whole. Matteo's increased attention to his colleagues' actions demonstrates this benefit.

Question 20

______ avoid providing their maximum effort in group settings because it is difficult to pick out individual performance.
A) Golden parachutes
B) Social loafers
C) Perquisites
D) Merits

Accepted Answer

Social loafing refers to the tendency of individuals to exert less effort in group settings as compared to when working alone. This is because it is difficult to attribute specific contributions to one individual, leading to a diffusion of responsibility and a decrease in motivation to perform at one's maximum potential. Golden parachutes and perquisites refer to executive compensation and benefits, while merits refer to deserving qualities or accomplishments.

Quiz 12: Incentive Pay

Social loafers ______.

When it comes to group incentives,______ may be able to stay hidden within the group while allowing others to do the majority of the group work.

Manuela wants to provide an incentive program to reinforce the collective actions of all of her subordinates in the returns department team.In other words,Manuela would like to begin a(n) ______ program.

______ incentives provide reinforcement for actions of more than one individual within the organization.

One advantage of a(n) ______ is that it broadens individual outlook.

As a salesperson,Harold is paid based on a percentage of the value of the products and services he sells.In other words,he is paid on a ______ basis.

One risk with a ______ as an incentive is in allowing it to become a time-based entitlement instead of a performance incentive.

Carol was recently put on a team to develop a new product for Acme Global.Because there are so many people on the team,Carol thinks no one will notice if she does not participate or do any work for the team.Carol is a(n) ______.

For every $1,000 of widgets Tanner sells,he receives a ______ of 10%,or $100.

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% to 2%.If he achieves this goal by the end of the quarter,he will receive a ______ of $4,000.

In order for a(n) ______ incentive program to work,it must provide a significant incentive to the salesperson to be successful in selling and provide a disincentive to make a harmful "quick sale."

A(n) ______ is a payment typically provided to a salesperson for selling an item to a customer and is usually paid as a percentage of the price of the item that is sold.

In compensation,a ______ is a lump sum payment,typically given to an individual at the end of a time period.

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.This illustrates which advantage of group incentives?

A program to reward top performers with increases in their annual wage that carry over from year to year is called ______ pay.

Now that his team is working toward a group incentive,Matteo is paying more attention to what others in the organization do and how their actions affect his group.This illustrates which advantage of group incentives?

______ avoid providing their maximum effort in group settings because it is difficult to pick out individual performance.