Question 1

Trident Industries sends employees their annual incentive pay in separate cheques rather than in their regular paycheques. Although this practice requires extra expense, which of the following is it intended to achieve?

Accepted Answer

A)  to make clear to the employees that they have to re-earn their bonus every year
B)  to ease employee income tax preparation
C)  to highlight the difference in pay among employees
D)  to pay a large bonus at the end of the year when employees most need it

Question 2

It is not always appropriate to link pay to performance.

Accepted Answer

A) True 
 B)False

Question 3

Piece-rate pay systems encourage work-safe practices.

Accepted Answer

A) True 
 B)False

Question 4

In one kind of gainsharing program, the employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. Which of the following is the name of the program?

Accepted Answer

A)  Scanlon plan
B)  Improshare
C)  earnings-at-risk
D)  Rucker plan

Question 5

In a TV interview, the CEO of Trevelyan, Inc., observed that the pay-for-performance system was working extremely well at her company. She explained it this way: "Now everyone is pulling in the same direction." Which of the following statements best clarifies what the CEO meant?

Accepted Answer

A)  Important HR objectives, such as reduction in turnover and better attendance, have been achieved.
B)  Employees are receiving higher total compensation.
C)  The system is linking employee performance with the organization's strategic goals.
D)  Employees are better aware of when their performance is outstanding.

Question 6

Which of the following is the most frequently used form of sales compensation?

Accepted Answer

A)  salary plus commission
B)  straight commission
C)  draw
D)  differential commission

Question 7

The addition of e-sales to sales generated by traditional personal-selling techniques has simplified the compensation of organizational sales staff.

Accepted Answer

A) True 
 B)False

Question 8

A consultant presenting a group/team incentive plan proposal stresses that the money to be used as incentive rewards will be generated by improved organizational performance. Which of the following principles is at work in such a plan?

Accepted Answer

A)  zero investment
B)  pay-as-you-go
C)  financial independence
D)  self-funding

Question 9

At its annual awards banquet, a company gave all employees who had been with it 20 years or more their choice of a cruise or a week at a resort. How is the award most associated with this type of special incentive program best described?

Accepted Answer

A)  golden handshake
B)  recognition
C)  service
D)  performance

Question 10

The board of directors of Clementine Minerals and Mining (CMM)  has been challenged by shareholders about the total compensation of the CEO. In order to examine whether the CEO's pay is reasonable, the board of directors is addressing all of the following questions but one. Which question has it most likely chosen to ignore?

Accepted Answer

A)  Would another company hire this CEO?
B)  How does the CEO's compensation compare with that of CEOs in other companies in the same industry?
C)  What would an investor pay for the CEO's level of performance?
D)  Is the CEO's pay more than 20 times higher than the pay of the average employee at CMM?

Question 11

Which of the following statements is TRUE about sales incentive plans?

Accepted Answer

A)  Sales targets are effective in generating sales productivity over targets in most cases.
B)  Sales incentive plans are frequently changed in most firms.
C)  Sales staff are most satisfied when they are paid on straight commission plans because they are simple to calculate and result in high payouts.
D)  Most companies are satisfied with their sales incentive plans.

Question 12

Describe the various methods of compensating sales employees.

Accepted Answer

Compensation paid to sales or marketing ...

Question 13

Which of the following is classified as an individual variable pay plan?

Accepted Answer

A)  cost reduction
B)  profit sharing
C)  employee stock options
D)  piece-rate

Question 14

In designing the company's new team incentive plan, the vice president of HR wishes to make a strong link between the team's efforts and their effective performance. Which of the following periods is the way incentive payouts should be timed to achieve this?

Accepted Answer

A)  quarterly
B)  annually
C)  semi-annually
D)  monthly

Question 15

The most common group or team incentives are gainsharing or goalsharing goals.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following terms is most associated with use of the company helicopter, country club memberships, first-class air travel, and a chauffeured limousine?

Accepted Answer

A)  perquisites
B)  golden handcuffs
C)  motivators
D)  executive mandates

Question 17

Which of the following criteria does NOT provide a reliable base for allocating profits among employees?

Accepted Answer

A)  each employee's earnings
B)  the union status of each employee
C)  the performance level of each employee
D)  each employee's years of service with the company

Question 18

One effect of variable pay plans is to increase the competition among individuals. Which type of incentive is at work?

Accepted Answer

A)  organizational
B)  team
C)  group
D)  individual

Question 19

Which of the following statements best describes the Rucker plan's approach to gainsharing?

Accepted Answer

A)  The ratio measuring the gain compares labour costs to the value added in production.
B)  The gain is the decrease in labour hours needed to produce a unit of product.
C)  Employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard.
D)  Base wage dissatisfaction is created that, in turn, triggers greater effort directed toward performance.

Question 20

From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?

Accepted Answer

A)  favourable tax treatment on earnings earmarked for use in the ESOP
B)  reduction of financial risk for employees and consequent reduction in employee turnover rate
C)  increased protection against union-organizing attempts
D)  increased employee productivity

Exam 11: Variable Pay and Executive Compensation

From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?

Correct Answer
verified

It is not always appropriate to link pay to performance.

Correct Answer
verified

Correct Answer
verified

Which of the following terms is most associated with use of the company helicopter, country club memberships, first-class air travel, and a chauffeured limousine?

Correct Answer
verified

In designing the company's new team incentive plan, the vice president of HR wishes to make a strong link between the team's efforts and their effective performance. Which of the following periods is the way incentive payouts should be timed to achieve this?

Correct Answer
verified

Which of the following statements best describes the Rucker plan's approach to gainsharing?

Correct Answer
verified

The addition of e-sales to sales generated by traditional personal-selling techniques has simplified the compensation of organizational sales staff.

Correct Answer
verified

Describe the various methods of compensating sales employees.

Correct Answer
verified
Compensation paid to sales or marketing ...
View Answer

Trident Industries sends employees their annual incentive pay in separate cheques rather than in their regular paycheques. Although this practice requires extra expense, which of the following is it intended to achieve?

Correct Answer
verified

Which of the following is the most frequently used form of sales compensation?

Correct Answer
verified

Piece-rate pay systems encourage work-safe practices.

Correct Answer
verified

Which of the following statements is TRUE about sales incentive plans?

Correct Answer
verified

In one kind of gainsharing program, the employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. Which of the following is the name of the program?

Correct Answer
verified

In a TV interview, the CEO of Trevelyan, Inc., observed that the pay-for-performance system was working extremely well at her company. She explained it this way: "Now everyone is pulling in the same direction." Which of the following statements best clarifies what the CEO meant?

Correct Answer
verified

Which of the following criteria does NOT provide a reliable base for allocating profits among employees?

Correct Answer
verified

At its annual awards banquet, a company gave all employees who had been with it 20 years or more their choice of a cruise or a week at a resort. How is the award most associated with this type of special incentive program best described?

Correct Answer
verified

Which of the following is classified as an individual variable pay plan?

Correct Answer
verified

One effect of variable pay plans is to increase the competition among individuals. Which type of incentive is at work?

Correct Answer
verified

A consultant presenting a group/team incentive plan proposal stresses that the money to be used as incentive rewards will be generated by improved organizational performance. Which of the following principles is at work in such a plan?

Correct Answer
verified

The most common group or team incentives are gainsharing or goalsharing goals.

Correct Answer
verified

Exam 11: Variable Pay and Executive Compensation

From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?

Correct AnswerverifiedShow Answer

It is not always appropriate to link pay to performance.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following terms is most associated with use of the company helicopter, country club memberships, first-class air travel, and a chauffeured limousine?

Correct AnswerverifiedShow Answer

In designing the company's new team incentive plan, the vice president of HR wishes to make a strong link between the team's efforts and their effective performance. Which of the following periods is the way incentive payouts should be timed to achieve this?

Correct AnswerverifiedShow Answer

Which of the following statements best describes the Rucker plan's approach to gainsharing?

Correct AnswerverifiedShow Answer

The addition of e-sales to sales generated by traditional personal-selling techniques has simplified the compensation of organizational sales staff.

Correct AnswerverifiedShow Answer

Describe the various methods of compensating sales employees.

Correct AnswerverifiedCompensation paid to sales or marketing ...View AnswerShow Answer

Trident Industries sends employees their annual incentive pay in separate cheques rather than in their regular paycheques. Although this practice requires extra expense, which of the following is it intended to achieve?

Correct AnswerverifiedShow Answer

Which of the following is the most frequently used form of sales compensation?

Correct AnswerverifiedShow Answer

Piece-rate pay systems encourage work-safe practices.

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE about sales incentive plans?

Correct AnswerverifiedShow Answer

In one kind of gainsharing program, the employees receive a bonus if the ratio of labour costs to the sales value of production is below a set standard. Which of the following is the name of the program?

Correct AnswerverifiedShow Answer

In a TV interview, the CEO of Trevelyan, Inc., observed that the pay-for-performance system was working extremely well at her company. She explained it this way: "Now everyone is pulling in the same direction." Which of the following statements best clarifies what the CEO meant?

Correct AnswerverifiedShow Answer

Which of the following criteria does NOT provide a reliable base for allocating profits among employees?

Correct AnswerverifiedShow Answer

At its annual awards banquet, a company gave all employees who had been with it 20 years or more their choice of a cruise or a week at a resort. How is the award most associated with this type of special incentive program best described?

Correct AnswerverifiedShow Answer

Which of the following is classified as an individual variable pay plan?

Correct AnswerverifiedShow Answer

One effect of variable pay plans is to increase the competition among individuals. Which type of incentive is at work?

Correct AnswerverifiedShow Answer

A consultant presenting a group/team incentive plan proposal stresses that the money to be used as incentive rewards will be generated by improved organizational performance. Which of the following principles is at work in such a plan?

Correct AnswerverifiedShow Answer

The most common group or team incentives are gainsharing or goalsharing goals.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Compensation paid to sales or marketing ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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