Question 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.
Question 2. 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
Question 3. John is a design engineer working at an auto manufacturer research and development department. In addition to his normal duties, he is assigned to a team of other engineers developing a highly automated assembly line for the new model of a passenger car. What type of team is John assigned to?
a) incentive teams
b) project teams
c) work (process) teams
d) parallel teams
Question 4. Gunther Rohn was rewarded for making a suggestion that saved Ewe and Eye Electronics thousands of dollars. Which type of incentive compensation approach might have worked best?
a) group incentive programs
b) gain sharing plan
c) management incentive plans
d) employee stock ownership plan
Question 5. XYZ Company pays a portion of company profits to its employees. The management offers this incentive plan as one kind of retirement program. What kind of company-wide incentive plan does XYZ Co. offer?
a) employee stock ownership plan
b) deferred profit sharing plan
c) current profit sharing plan
d) employee stock option plan
Question 6. Which pay plan generally rewards employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performance?
a) knowledge-based
b) incentive
c) merit
d) person-focused
Question 7. When a filing clerk is trained to maintain employee attendance records, it is an example of acquiring which type of skills?
a) horizontal
b) vertical
c) depth
d) breadth
Question 8. Jamie earned a raise in pay when he finished the training for the Technician 2 position. He will receive another raise when he finishes the training for the Technician 3 position. The company is probably using which type of pay program?
a) the stair-step model
b) the skill blocks model
c) the job-point accrual model
d) the cross-departmental model
Question 9. Which of the following is a characteristic of job-based pay?
a) It compensates employees for the number of jobs in which they possess the skills to perform.
b) It rewards employees on their promise to make positive contributions to the work place.
c) It compensates employees for the jobs they are currently performing.
d) A reward is based on the successful acquisition of work-related skills or knowledge.
Question 10. In the garment factory of XYZ Co., line workers are trained to be able to work at different manufacturing steps such as grading, cutting, sewing and assembling, pressing, etc. XYZ Co.'s strategy of training its workers to do different tasks is an example of which following term?
a) task identity
b) skill variety
c) autonomy
d) feedback