FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Rewarding Performance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

Pay-for-performance is likely to enhance the spirit of cooperation in an organization, as employees will work to help one another improve their job performance.

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

If managers increase employee involvement in the design of an incentive compensation system, which of the following will most likely occur?

A) Employees will be more committed to the plan.
B) Managers will spend more time in conflict resolution.
C) Employees' intrinsic drives will be sharply reduced.
D) Managers will be better able to evaluate performance.

Correct Answer

verified

Show Answer

Question 63

Short Answer

Review LaterAdd Note

________ is a theory of behavior holding that people tend to do those things that are rewarded.

A corporate-wide pay-for-performance plan that rewards employees with company stocks, either as an outright grant or at a favorable price that may be below market value, is referred to as a(n)________.

A firm is offering a one-time tangible prize to the employee who receives the highest customer service evaluation in a particular month. This company is using a(n) ________ incentive.

Nearly 95% of U.S. companies are expected to use pay-for-performance plans by 2014.

________ is an increase in base pay, normally given once a year.

Additional Case 11.1 The HR department at Sussex Enterprises has been asked to evaluate the effectiveness of the firm's team-based incentive plan. Managers at the firm report a decline in worker performance, an increase in interpersonal conflicts, and an increase in complaints about free riding team members. In addition, the manufacturing group has been accused of producing more units than the marketing group can sell. HR at Sussex needs to determine if the current incentive plan is appropriate or should be replaced. -Refer to Additional Case 11.1. Which of the following would most likely improve the effectiveness of the current pay-for-performance plan at Sussex?

Which of the following is a negative aspect of straight-salary sales compensation plans?

The future rewards theory maintains that people tend to do those things that are rewarded.

One advantage of pay-for-performance compensation systems is the relative ease of accurately assessing an employee's actual contribution to the company.

Piece-rate pay-for-performance would most likely work well with:

Most companies use a ________ when setting up their sales compensation plan.

What is the most popular incentive given by employers?

A survey of 1,400 employers showed that ________ of them factor customer satisfaction into their calculation of incentive payments to employees.

Healthy living incentives most likely benefit employers in all of the following ways EXCEPT by:

Additional Case 11.2 Richland Manufacturing uses an individual-based pay-for-performance plan for employees. Manager input in the form of performance evaluations primarily determines individual employee rewards. Performance appraisals at Richland are used for multiple purposes including compensation, training, and work planning. Since implementing the plan, many managers have noticed that employees tend to play it safe by setting modest rather than challenging goals for themselves. Employees have also been avoiding important tasks, such as satisfying the needs of customers and keeping work areas neat. In addition, most employees express disbelief that pay and performance are actually linked. As a result, Richland is considering making modifications to the system. The HR Director wants a system that will reward all employees based on the entire company's performance because he wants to increase employee commitment. The VP of Operations wants to reward specific productivity and quality improvements with a simply structured system that considers labor costs as well as other production expenses. The VP of Operations also believes that labor and management should work together to allocate the rewards. -Refer to Additional Case 11.2. Most Richland managers want to use an individual-based pay-for-performance plan to reward high performers but are concerned about increasing employees' base pay permanently due to costs. Which of the following would most likely be appropriate in this case?

The best environment for individual-based pay-for-performance plans is with jobs with minimal autonomy.

Perry wants employees with unique skills and backgrounds to be able to tackle common projects. Flexibility in work assignments is also very important to his firm. Perry's best choice of an incentive program, based on these factors, would be a(n) :

What types of plantwide incentive plans are available to firms? What are the primary disadvantages of such plans?