MGT 330 - Chapter 13 Exam Questions with Complete Solutions (Already Passed)

MGT 330 - Chapter 13 Exam Questions with Complete Solutions (Already Passed) Incentive pay is typically based on _____. a. cost of living rates b. a competitor's pay base c. benchmark results d. an employee's performance - Answers d. an employee's performance Jake's sales team earned a 5% bonus for meeting its goals last quarter. This bonus is an example of _____. a. incentive pay b. profit sharing c. piecework rates d. skill-based pay - Answers a. incentive pay What should an organization consider when offering incentive pay? (Select all that apply.) a. What kind of employee will be attracted to the organization because of the incentives being offered b. How the incentive will help achieve the organization's goals c. The strengths and weaknesses of each type of incentive d. Whether low-achieving employees will feel slighted when their co-workers earn incentive rewards - Answers a. What kind of employee will be attracted to the organization because of the incentives being offered b. How the incentive will help achieve the organization's goals c. The strengths and weaknesses of each type of incentive Janine works as a seamstress at a tailor shop and sews buttons on clothing. She earns $2 for each item she completes. Her pay is an example of ____. a. a commission b. a salary c. an hourly wage d. a piecework rate - Answers d. a piecework rate Samira makes necklaces. Her buyer pays her $50 per necklace. This is an example of a(n) ______. a. hard-to-measure output plan b. differential piece rate c. straight piecework plan d. incentive plan - Answers c. straight piecework plan Forms of pay that are linked to an employee's performance as an individual, group member or organization member are called _____ pay. a. overtime b. incentive c. commission d. standard - Answers b. incentive Caroline works in a candy production plant. If she fills at least 10 boxes of candy in an hour, she earns $1 for each box, but if she fills more than 10 boxes, she earns $1.50 per box. This demonstrates the idea of a _____ piece rate. a. straight b. standardized c. differential d. falling - Answers c. differential It is important that incentive pay plan meet which of the following requirements? (Select all that apply.) a. The incentives will not negatively affect competing organizations. b. The performance measures will help achieve the company's goals. c. Employees value the reward offered. d. The organization can provide resources employees need to achieve their goals. - Answers b. The performance measures will help achieve the company's goals. c. Employees value the reward offered. d. The organization can provide resources employees need to achieve their goals. An incentive plan that pays workers more if they finish their work in less than the normal amount of time is called a(n) _____. a. straight piecework plan b. standard hour plan c. merit pay system d. bonus plan - Answers b. standard hour plan Incentive pay can be linked to the performance of which of the following? Choose all that apply. a. Competitor b. Group c. Organization d. Individuals - Answers b. Group c. Organization d. Individuals At her last performance review, Marlo received a 4% pay increase because she had met all of the goals her manager had set for her the previous year. Her pay increase is an example of _____ pay. a. overtime b. commission c. piecework d. merit - Answers d. merit Why do organizations pay workers a piecework rate? a. To control company overhead b. To keep individual incentive pay low c. As a reward for doing good work d. To motivate them to work efficiently - Answers d. To motivate them to work efficiently What are the disadvantages of merit pay? (Select all that apply.)