Reference no: EM133375578
Questions
1. Why is it difficult to have merit pay systems for school teachers?
a. Performance bonuses are only effective if there is a team culture and the entire school improves.
b. Many teachers believe that performance reviews are too objective.
c. Many teachers believe that performance reviews are very subjective.
d. Their students change every year therefore there are no long term incentives.
2. Gain sharing and profit sharing are the same thing, as the both fall under the category of group performance pay.
a. True
b. False
3. What is another name for special-purpose incentives?
a. commissioned-based incentives
b. base pay incentives
c. extraordinary incentives
d. targeted incentive programs
4. One of the significant problems using merit pay in organizations that use the human relations managerial model is there is very little performance distinction between those with receiving high ratings with those receiving lower ratings.
a. True
b. False
5. Lawrence J. Peter created a concept named the "Peter principle." Which statement best describes the "Peter principle"?
a. In a hierarchical organization, every employee tends to rise to their level of incompetence.
b. In a hierarchical organization, every employee tends to rise to their level of competence.
c. In a flat organization, every employee tends to be given equal merit raises.
d. In a flat organization, every employee tends to be given unequal merit raises.
6. What is the difference between merit pay and other types of performance pay?
a. Merit pay is generally based on total group performance.
b. Merit pay is generally based on sales targets.
c. Merit pay is generally based on appraisals of overall performance.
d. Merit pay is generally based on a specific performance target.
7. Once an employee rises to the top of their pay range, they can continue to get merit raises to ensure continued positive performance reinforcement.
a. True
b. False
8. Which term refers to an increase to an employee's base pay in recognition of good job performance?
a. general wage increase (GWI)
b. performance raise
c. suggestion system
d.merit raise
9. Which situation best fits Coletti and Chicelli's recommendations as ideal conditions for using commission-based pay?
a. Your company has individual selling and a short sales cycle.
b. Your company has individual selling and a long sales cycle.
c. Your company requires team selling and a long sales cycle.
d. Your company requires maintenance and conversion selling.
10. Which of the following do you need to be concerned about as a sales manager in charge of a straight commission on volume sales team?
a. low margin selling by sales people
b. high margin selling by sales people
c. profitability of piece rates
d. developing long term incentive plans
11. One significant advantage of piece rates pay systems is that setting the rate is a simple scientific calculation.
a. True
b. False
12. Which of the following is an advantage of a piece rate pay plan?
a. It may reduce the need for external control.
b. It may provide long term incentives.
c. It is easy to set and measure.
d. It may lower absenteeism.
13. What is the objective of a piece rate pay system?
a. to have overall lower employee wage costs
b. to have a secondary incentive to improve organizational performance
c. to minimize overtime costs
d. to maximize individual productivity
14. A farmer estimates that a labourer should be able to pick 12 boxes (250 kg) of apples in an eight-hour shift. Wage rates in the area place labourer daily rates at $160.00 per day for an eight-hour shift. Based on this information, what is the straight piece rate paid by the farmer?
a. $10.00 per box
b. $12.50 per box
c. $13.33 per box
d. $20.00 per box
15. Which pay-for-performance system has the potential to increase conflict and lack of cooperation?
a. Piece rate
b. Gain-Sharing
c. Profit Sharing
d. Commission sales
16. Which statement regarding merit bonuses can be seen as advantageous from an employer's perspective?
a. Merit bonuses do not represent a permanent increase to base pay; hence, good employee performance is needed every year.
b. Merit bonuses cannot be used in conjunction with a merit raise system.
c. Merit bonuses are usually provided to teams; hence, team work is promoted in classical organizations.
d. Once established, the percentage of merit bonuses is static from year to year; hence, it is fairly easy to administer.
17. Which of the following is a disadvantage of merit raises?
a. Merit raises are always tied to base pay.
b. Once an employee rises to the top of the pay range; there are no more merit raises.
c. If given at the end of the year, merit raises can act as a disincentive.
d. Size of raise depends on the success of other departments
18. As the VP of human resources, you have determined that greater teamwork is required in your organization. Which pay plan would you introduce if greater teamwork is your goal?
a. commission pay
b. merit pay
c. goal sharing
d. special purpose incentives
19. In a classic management style organization, employees are likely to sell their shares at the first possible opportunity.
a. True
b. False
19. What is the usual time frame for a performance unit plan?
a. 3 to 6 months
b. 6 to 12 months
c. 1 to 2 years
d. 3 to 5 years
20. Which plan encourages employees "to think like owners" and can help create citizenship and membership behaviours?
a. employee stock plans
b. group commissions
c. gain-sharing plans
d. merit pay
21. In general, which managerial strategy best fits with organization performance pay?
a. classical
b. human relations
c. high-involvement
d. hybrid
22. Which statement best describes a weakness of long-term incentives?
a. They do not align the interest of the employers and workers.
b. They may be used improperly as a retirement tool.
c. They have very high administrative costs.
d. It is difficult to align employees' current activity to long-term goals.
23. Under which conditions would stock options have monetary value to an employee?
a. at the moment when the stock options are issued
b. when the original set price is below current market value
c. when the original set price is above current market value
d. if held by the employee for at least five years from the date of issue.