Reference no: EM133029074

1. A major reason for the increasing interest in incentive pay is the:

a) desire to make compensation a variable cost

b) globalization of American industry

c) trend toward less competition in the workplace

2. When designing a large group incentive plan, which is not one of the most commonly used financial metrics?

a) revenue

b) EBITDA

c) performance

d) earnings per share

e) operating income

3. Which of the following job conditions tend to make individual incentive plans inappropriate?

a) repetitive work

b) worker control of the pace

c) stable methods

d) need for cooperation

4. Your organization needs an incentive plan to motivate employees on jobs that lack standardization and repetition. Which type of plan is more appropriate?

a) piecework

b) standard hour

c) gainsharing

5. The main requirement for successful inclusion of a group of employees in an incentive plan is they are:

a) paid hourly

b) professional employees

c) in jobs that are easily described

d) in jobs whose purpose is measurable

6. What is threshold performance?

a) minimum performance

b) target performance

c) maximum performance

d) under performance

7. What is the best way to determine the amount of pay to place at risk?

a) design an effective plan that produces fair results

b) analyze the external labor market to determine a competitive base, incentive, and total cash

c) compensation at target

d) use a formula that motivates and engages eligible employees

8. The major requirement of establishing performance standards is to:

a) make them easy enough for everyone to accomplish

b) define the value of a unit of production or performance

c) encourage cooperation

d) make a profit for the company

9. What is a typical reason for a failed incentive plan?

a) too many exceptions

b) impossible objectives

c) wages are high enough already

d) supervisors have not been trained in performance appraisal

10. Which of the following type of plan is least likely to meet the criteria of the performance-motivation model?

a) profit sharing

b) gainsharing

c) Scanlon

d) improshare