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