A) using a historical standard to calculate whether employees will receive an incentive payout
B) ensuring that administration involves complex calculations which tend to be more accurate
C) ensuring that all profits or savings generated are paid only to the management
D) factoring in environmental influences on performance which are not controllable by plan participants
E) limiting employee involvement in the implementation of the plan in order to avoid complications
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A) Bonuses
B) Low-cost loans
C) Life insurance
D) Executive stock options
E) Pension plans
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A) A Scanlon plan involves a less complex formula than a Rucker plan for determining worker incentive bonuses.
B) A Scanlon plan requires worker committees while a Rucker plan does not.
C) A Scanlon plan is a gain-sharing plan while a Rucker plan is an individualized incentive plan.
D) A Scanlon plan is dependent on productivity norms while a Rucker plan works better without them.
E) A Scanlon plan focuses on reducing labour costs, while a Rucker plan focuses on increasing labour costs.
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A) size of the sales force
B) competitor practices
C) organizational strategy
D) the nature of people who enter the sales profession
E) the product to be sold
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A) profit-sharing plan
B) gain-sharing plan
C) broad-based option plan
D) Scanlon plan
E) earnings-at-risk plan
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A) They foster competition among employees, instead of cooperation.
B) They are simple to administer.
C) They do not bring about clear performance-reward links.
D) They ensure that payouts occur only when a company's financial performance is good.
E) They help increase employees' knowledge of business.
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