An incentive plan under which employees receive a certain rate for each unit produced

The performance threshold in incentive pay programs is

a minimum level an employee must reach in order to qualify for variable pay

Contemporary reasons given by organizations for implementing incentive plans are

1. to improve or maintain high levels of productivity

2. to focus employee efforts on specific performance targets

3. to link compensation rewards to the achievement of results

Enterprise incentive plans include

More than ____ of companies globally are offering variable pay programs

Group incentive plans include

Enterprise incentive plans include

Which of the following is not an advantage of an incentive pay programs

Incentive payouts are fixed costs linked to the achievement of results

Studies have shown that variable pay plans may not achieve their proposed objectives or lead to organizational improvements due to each of the following except

taxes are often a demotivator

When setting performance measures for incentive systems, we can say that the best measures are

quantitative, simple to understand, and show a clear relationship to improved performance

According to Sammer, which of the following is NOT a characteristic of a successful incentive plan

Payout formulas should be technically detailed, quantitative and extremely thorough to prove that management took significant efforts to create the plan

One word, _____ describes the design of individual incentive plans

When employees receive a certain rate for each unit produced, they are working under which incentive plan

When employees receive a higher rate of pay for all of their work if production exceeds a standard level of output, they are working under which incentive plan

Research shows that a merit increase in the range of ____ is necessary to serve as a pay motivator

an increase in output that results in the disapproval of fellow employees

Piecework is appropriate when

the job is fairly standardized

If employees' pay is based not on the actual amount of time it takes them to complete a job but instead on a predetermined amount of time for completing the job, which incentive plan are they working under

An incentive given for a special employee contribution not directly tied to a performance standard is

An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is

Research shows that a merit increase in the range of _____ percent is necessary to serve as a pay motivator

These individuals are over the age of 60 and are less likely to spend money on themselves

In order for organizations to minimize the problems of merit raises, they should

This group is between the ages of 25 and 41 and values a balanced lifestyle of work and play

The straight commission plan is limited by all of the following disadvantages, Except

Salespeople will stress low-priced products

A grant of units equal in value to the fair market value or book value of a share of stock; on a specified date the executive will be paid the appreciation in the value of the units up to that time. this is known as

A cash or stock award determined by increase in stock price during any time chosen by the executive in the option period, which does not require executive financing is known as

stock appreciation rights

In most profit sharing plans, about____ of the net profit is shared

Performance of sales people can be affected by all of the following external factors except

change in the sales volume standard

A sales incentive plan that permits salespeople to be paid for performing various duties not reflected immediately in their sales volume is known as

A compensation plan that compensates sales employees based on a percentage of sales is known as a

Which of the following is not one of the simple rules for maintaining motivation among professionals

eliminate autonomy in work

Executive compensation consists of all of the following except

Executive base salaries represent between ______ percent of the total annual compensation

The greatest influence on executive base salary is most likely

the levels of competitive salaries in the job market

When computing executive pay, ____ link operational yardsticks to traditional gauges

Management should guard against incentive payments being seen as

Which of the following is not an executive long term incentive program

Long term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as

Which plan provides opportunities for executives to purchase shares of their organization's stock valued at full market or a discounted price

Which of the following is an individual type of incentive plan

Special benefits given to executive employees, such as assigned chauffeurs, country club memberships, and special vacation policies, are known as

Compensation committees justify large executive compensation packages for all of the following reasons except

the pay gap between the CEO and employees builds credibility

A major concern of executive compensation involves

the amount of compensation

Group incentive plans do all of the following except

A problem with creating team incentive plans is

Team incentive bonuses may be paid out in all of the following ways except

distributed on the basis of individual performance appraisal

Common output measures for productivity include

The gain sharing plan that has as its most significant feature effective employee participation through committee representation is

The philosophy behind the Scanlon plan is that

employees should make suggestions to improve performance and be rewarded for their contributions

When the determination of a bonus includes both production employees and non production employees and this bonus is based on overall group productivity, which type of gainsharing program is being used

Profit sharing refers to any procedure by which an employer pays employees

current or deferred sums based on the organizations financial performance

The purpose of a profit sharing plan is to

motivate a total commitment to the organization as a whole

Disadvantages of profit sharing include all of the following except

effective profit sharing plans require a second HR program

A popular and prevalent method used in many different industries for motivating and compensating hourly, salaried, and executive personnel is

ESOPs can qualify as tax exempt employee trusts under section _____ of the internal revenue code

Advantages of ESOPs include all of the following except

the employees' pensions are less vulnerable due to diversification

A major problem of ESOPs is that

ESOPs place employees' pensions at risk because they are tied to the market performance of the organization

According to one budget survey, what percentage of reporting organizations use variable pay

Noncash incentive rewards are most effective as motivators when the award

is combined with a meaningful employee recognition program

Compensation specialists recognize all the following generations of employees except

The most widely used sales incentive program is the _____ plan

combined salary and commission

What is an incentive plan for employees?

What are the different types of incentive plans?

What is an incentive compensation plan?

What are 3 forms of incentive compensation?