Chapter 4
Strategic Compensation, 7e (Martocchio)
Chapter 4 Incentive Pay
1) Which of the following is true concerning incentive pay?
A) The award is earned only when the predetermined work objective is totally completed.
B) Motivates employees to be more productive, but does little to control payroll costs.
C) Awards are granted in one-time payouts.
D) Incentive levels are generally subjective in nature.
Answer: C
Difficulty: Difficult
Type: Concept
Learning Obj: 1
2) Which of the following is true of incentive pay?
A) Incentive pay is considered part of an employee's fringe compensation.
B) The criteria for judging an award tends to be objective, such as quantity produced.
C) Award levels are subjective.
D) The amount of the award paid for attainment of goals is not communicated in advance.
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 2
3) Customer satisfaction, labor cost savings, materials cost savings, and reduction in accidents were listed as typical performance measures for which type of incentive plan?
A) individual
B) group
C) company-wide
D) executive
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 2
4) In addition to the guaranteed hourly pay rate, John receives incentives for every item produced over the designated production standard. What kind of incentive plan is used in this situation?
A) management incentive plans
B) referral plans
C) piecework plans
D) behavioral encouragement plans
Answer: C
Difficulty: Easy
Type: Application
Learning Obj: 2
5) The concept that a hard working employee is likely to stay at an incentive pay position is better known as this.
A) representative effect
B) structural effect
C) sorting effect
D) output effect
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 2
6) Which type of individual incentive plan requires the achievement of multiple, complex objectives without compromising the quality and quantity of output that is generated by employees?
A) piecework plans
B)
Chapter 4 Incentive Pay
1) Which of the following is true concerning incentive pay?
A) The award is earned only when the predetermined work objective is totally completed.
B) Motivates employees to be more productive, but does little to control payroll costs.
C) Awards are granted in one-time payouts.
D) Incentive levels are generally subjective in nature.
Answer: C
Difficulty: Difficult
Type: Concept
Learning Obj: 1
2) Which of the following is true of incentive pay?
A) Incentive pay is considered part of an employee's fringe compensation.
B) The criteria for judging an award tends to be objective, such as quantity produced.
C) Award levels are subjective.
D) The amount of the award paid for attainment of goals is not communicated in advance.
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 2
3) Customer satisfaction, labor cost savings, materials cost savings, and reduction in accidents were listed as typical performance measures for which type of incentive plan?
A) individual
B) group
C) company-wide
D) executive
Answer: B
Difficulty: Moderate
Type: Concept
Learning Obj: 2
4) In addition to the guaranteed hourly pay rate, John receives incentives for every item produced over the designated production standard. What kind of incentive plan is used in this situation?
A) management incentive plans
B) referral plans
C) piecework plans
D) behavioral encouragement plans
Answer: C
Difficulty: Easy
Type: Application
Learning Obj: 2
5) The concept that a hard working employee is likely to stay at an incentive pay position is better known as this.
A) representative effect
B) structural effect
C) sorting effect
D) output effect
Answer: C
Difficulty: Moderate
Type: Concept
Learning Obj: 2
6) Which type of individual incentive plan requires the achievement of multiple, complex objectives without compromising the quality and quantity of output that is generated by employees?
A) piecework plans
B)