Variable Pay-Improving Performance With Variable
Pay QUIZ: Questions And Answers
What influences can variable pay provide in relation to organizational
performance?
a) Focus, alignment, motivation and reinforcement
b) Customer satisfaction, brand awareness and product quality
c) Growth, efficiency and capability
d) Attraction, penetration, innovation and collaboration Right Ans - Focus,
alignment, motivation and reinforcement
In which of the following stages of the business life cycle would an
organization generally be focused on maintaining / increasing market share,
improving productivity and reducing cost of sales?
a) Decline
b) Start-up
c) Mature
d) Growth Right Ans - Mature
What business strategy often includes a combination of price, quality,
dependability and ease of purchase that competitors cannot match?
a) Product / service leadership
b) Operational excellence
c) Customer intimacy Right Ans - Operational excellence
Which of the following business objectives would relate most to the start-up
stage of a business life cycle?
a) Maximize profits
b) Maintain / increase market share
c) Obtaining capital
d) Product quality Right Ans - Obtaining capital
Which of the following describes a purpose of variable pay?
a) To reward individuals for acquisition of new skills and competencies
b) To reward individuals for their sustained performance over time
c) To ensure the individuals' value relative to the labor market
, d) To differentiate the pay of individuals who achieve results from those who
do not Right Ans - To differentiate the pay of individuals who achieve
results from those who do not
Which of the following business objectives would relate most to a
product/service leadership strategy?
a) Customer attraction and retention
b) Time from innovation to market
c) Improve operational efficiency
d) Reduce costs Right Ans - Time from innovation to market
Which of the following would describe the appropriate use of a bonus?
a) Paying a bonus to supplement a merit increase
b) Paying a special bonus to key players in lieu of an incentive plan payment
despite performance thresholds not being met
c) Paying a bonus to employees for completing a key project Right Ans -
Paying a bonus to employees for completing a key project
Which of the following is an example of an appreciation-only equity-based
plan?
a) Stock options
b) Performance shares
c) Stock grant
d) Restricted stock Right Ans - Stock options
Which of the following plans is a type of long-term incentive plan?
a) Performance-sharing plan
b) Equity-based plan
c) Individual performance-based plan
d) Profit-sharing plan Right Ans - Equity-based plan
As opposed to incentive plans, recognition plans tend to have which of the
following characteristics?
a) They generally are self-funded rather than budgeted
b) They are more after-the-fact than objective-based
c) They are more financial than psychological Right Ans - They are more
after-the-fact than objective-based
Pay QUIZ: Questions And Answers
What influences can variable pay provide in relation to organizational
performance?
a) Focus, alignment, motivation and reinforcement
b) Customer satisfaction, brand awareness and product quality
c) Growth, efficiency and capability
d) Attraction, penetration, innovation and collaboration Right Ans - Focus,
alignment, motivation and reinforcement
In which of the following stages of the business life cycle would an
organization generally be focused on maintaining / increasing market share,
improving productivity and reducing cost of sales?
a) Decline
b) Start-up
c) Mature
d) Growth Right Ans - Mature
What business strategy often includes a combination of price, quality,
dependability and ease of purchase that competitors cannot match?
a) Product / service leadership
b) Operational excellence
c) Customer intimacy Right Ans - Operational excellence
Which of the following business objectives would relate most to the start-up
stage of a business life cycle?
a) Maximize profits
b) Maintain / increase market share
c) Obtaining capital
d) Product quality Right Ans - Obtaining capital
Which of the following describes a purpose of variable pay?
a) To reward individuals for acquisition of new skills and competencies
b) To reward individuals for their sustained performance over time
c) To ensure the individuals' value relative to the labor market
, d) To differentiate the pay of individuals who achieve results from those who
do not Right Ans - To differentiate the pay of individuals who achieve
results from those who do not
Which of the following business objectives would relate most to a
product/service leadership strategy?
a) Customer attraction and retention
b) Time from innovation to market
c) Improve operational efficiency
d) Reduce costs Right Ans - Time from innovation to market
Which of the following would describe the appropriate use of a bonus?
a) Paying a bonus to supplement a merit increase
b) Paying a special bonus to key players in lieu of an incentive plan payment
despite performance thresholds not being met
c) Paying a bonus to employees for completing a key project Right Ans -
Paying a bonus to employees for completing a key project
Which of the following is an example of an appreciation-only equity-based
plan?
a) Stock options
b) Performance shares
c) Stock grant
d) Restricted stock Right Ans - Stock options
Which of the following plans is a type of long-term incentive plan?
a) Performance-sharing plan
b) Equity-based plan
c) Individual performance-based plan
d) Profit-sharing plan Right Ans - Equity-based plan
As opposed to incentive plans, recognition plans tend to have which of the
following characteristics?
a) They generally are self-funded rather than budgeted
b) They are more after-the-fact than objective-based
c) They are more financial than psychological Right Ans - They are more
after-the-fact than objective-based
