FINAL PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ stock options. Answer: the right of an employee to buy shares of
the company's stock at a certain price (the exercise price) during
some future period of time
◉ long-term incentives. Answer: incentives that motivate behaviors
and performance that support company value and long-term
organizational health. ie stock options
◉ vesting. Answer: the point at which employees can sell or transfer
the stock option
◉ pay for performance programs. Answer: rewards employees
based on some specific measure of their performance
◉ variable pay plans. Answer: pay for performance plans that put a
small amount of base pay at risk, in exchange for the opportunity to
earn additional pay if performance meets or exceeds a standard
,◉ spot awards. Answer: awards given immediately when a desired
behavior is seen
◉ extrinsic motivation. Answer: motivation that comes from outside
the individual, including performance bonuses
◉ intrinsic motivation. Answer: derived from an interest in or
enjoyment from doing a task
◉ skill-based pay. Answer: rewards for employees based on the
range and depth of their knowledge and skills. effort and coop
w/supervisor
limited ability, partial proficiency, full competence
◉ limited ability. Answer: ability to perform simple tasks without
direction
◉ partial proficiency. Answer: ability to apply more advanced
principles on the job
◉ full competence. Answer: ability to analyze problems associated
with the job
,◉ competency-based pay. Answer: skill-based pay for professional
jobs
◉ multi-crafting. Answer: employees gain proficiency in two or
more trades
◉ recognition awards. Answer: rewards for specific achievements
like tenure with the organization, helping a coworker or attendence
◉ compressed workweek. Answer: 40 hour work week in less than
five days
◉ job sharing. Answer: two or more people split a single job
◉ flextime. Answer: scheduling option that lets employees decide
when to work within parameters
◉ telecommuting. Answer: allows employees to work from home
and link to the company's offices via computer.
◉ gainsharing. Answer: a program in which the firm shares the
value of productivity gains with employees
, ◉ scanlon plans. Answer: gainsharing programs based on
implementing employee suggestions for lowering the cost per unit
produced
◉ improshare. Answer: a gainsharing plan based on a mathematical
formula that compares a performance baseline with actual
productivity during a given period with the goal of reducing
production time
◉ employee stock ownership plans. Answer: tax-exempt, employer-
established employee trusts that hold company stock for employees
◉ errors of commission. Answer: an employee receives an
undeserved reward
◉ errors of omission. Answer: an employee who deserves a reward
doesn't receive one
◉ employee benefits. Answer: nonwage compensation or rewards
given to employees (indirect compensation)
◉ Social Security, Unemployment Insurance, Workers'
Compensation, Family Medical Leave Act, COBRA. Answer: 5
Mandatory Benefits