Site MapHelpFeedbackChapter 12 Quiz
Chapter 12 Quiz
(See related pages)





1Organizations have great latitude in setting performance-related pay. The organizations often link incentive or performance related pay to all but which one of the following items?
A)Employee seniority
B)Chief executive officer's annual salary
C)Individual performance
D)Organizational profits


2In order for incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designe Of the following items, select the one that would NOT be considered when an effective incentive pay plan is designed.
A)Employees believe the executives are amply compensated
B)Employees believe they have the ability to meet performance standards
C)Employees feel the plan is fair and equitable
D)Employees believe they have the resources necessary to meet performance standards


3There are three broad categories for the many kinds of incentive pay. All but which one of the following items would be considered one of the three categories?
A)Incentives linked to individual performance
B)Incentives linked to competitor performance
C)Incentives linked to organizational performance
D)Incentives linked to group performance


4In most instances, employees compare their efforts and rewards with other employees. Most employees are noted for considering a plan as fair when the rewards are distributed according to what they contribute.
A)True
B)False


5The Widget Company of Tulsa usually pays its assembly worker $10 per hour. The company now desires to pay the employee on a piecework rate rather than a per hour basis. What would the organization pay the assembler if the worker produces 10 widgets per hour?
A)$10
B)$1
C)$0.10
D)$100


6An obvious advantage of piece rates is the direct link between how much work the employee performs and the amount of revenue the employee earns.
A)True
B)False


7One drawback to the utilization of merit pay, from the employer's standpoint, is that it provides a method for rewarding performance in all of the dimensions measured in the organization's performance management system.
A)True
B)False


8Total Quality Management guru, W. Edwards Deming, strongly advocated the use of group incentives while criticizing the use of merit pay. His criticism was based on his belief that merit pay ________.
A)encouraged discord
B)discouraged teamwork
C)prevented flexibility
D)discouraged dissonance


9Whenever an employee is paid by earning a percentage of the sales that he or she makes, the earnings are called _____.
A)commissions
B)salaries
C)gainshares
D)improshares


10All of the following are conditions that when provided by the organization, contribute to the success of its gainsharing program except which ONE?
A)Strong commitment to improvement
B)Need for change
C)Absence of employment security
D)High levels of interaction


11The primary advantage of ESOP is that it carries no risk for employees.
A)True
B)False





To learn more about the book this website supports, please visit its Information Center.
(c)2007 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Fundamentals of Human ResourceOnline Learning Center

Home > Chapter 12 > Quiz