STRATEGIC COMPENSATION A HUMAN
RESOURCE MANAGEMENT FINAL PAPER
TESTED QUESTIONS WITH VERIFIED
ANSWERS COMPLETE STUDY SHEET
●● Which best describes incentive pay?
A) Incentive pay is considered part of an employee's compensation.
B) The criteria for judging an award tend to be objective, such as
quantity produced.
C) Award levels are subjective.
D) The amount of the award paid for attainment of goals is not
communicated in advance.
Answer: B) The criteria for judging an award tend to be objective, such
as quantity produced.
●● Over the past 10 years, Lincoln's profit-sharing payments have been
substantial. Maria's annual salary was $40,000 last year, and she earned
a profit-sharing payment of $10,000. Maria's profit-sharing award
represents approximately what percentage of her annual salary?
A) 25 percent
B) 40 percent
C) 45 percent
D) 55 percent
,Answer: A) 25 percent
●● Companies can control costs by replacing annual merit or seniority
increases or fixed salaries with which type of plans?
A) incentive
B) longevity pay
C) pay-for-knowledge pay
D) base pay
Answer: A) incentive
●● Nowadays, most companies use a mix of which types of pay plans?
A) seniority pay plans and incentive pay plans
B) merit pay plans and merit bonus pay plans
C) traditional pay plans and incentive pay plans
D) traditional pay plans and person-focused pay plans
Answer: C) traditional pay plans and incentive pay plans
●● Which of the following is NOT a financial measure?
A) operating efficiency
B) revenue
C) earnings per stock share
D) operating income
,Answer: A) operating efficiency
●● Which of the following performance measures corresponds to
individual, group, and companywide incentive plans, respectively?
A) customer satisfaction, quantity of work, and quality of work
B) quantity of work, market share, and customer satisfaction
C) quality of work output, customer satisfaction, and revenue
D) customer satisfaction, market share, and quality of work
Answer: C) quality of work output, customer satisfaction, and revenue
●● In addition to the guaranteed hourly pay rate, John receives
incentives for every item produced over the designated production
standard. Which kind of incentive plan is used in this situation?
A) management incentive
B) referral
C) piecework plans
D) behavioral encouragement
Answer: C) piecework plans
●● Which of the following effects describe the concept that a hard
working employee is likely to stay at an incentive pay position?
A) representative
B) structural
, C) sorting
D) output
Answer: C) sorting
●● Which individual incentive plans require the achievement of
multiple, complex objectives without compromising the quality and
quantity of output?
A) piecework
B) referral
C) management incentive
D) behavior encouragement
Answer: C) management incentive
●● To have better safety records, the XYZ Company gives monetary
incentive awards to its workers for lower accident rates due to improper
use of heavy equipment. Which of the following incentive plans
describes this example?
A) management incentive
B) referral
C) piecework
D) behavioral encouragement
Answer: D) behavioral encouragement
RESOURCE MANAGEMENT FINAL PAPER
TESTED QUESTIONS WITH VERIFIED
ANSWERS COMPLETE STUDY SHEET
●● Which best describes incentive pay?
A) Incentive pay is considered part of an employee's compensation.
B) The criteria for judging an award tend to be objective, such as
quantity produced.
C) Award levels are subjective.
D) The amount of the award paid for attainment of goals is not
communicated in advance.
Answer: B) The criteria for judging an award tend to be objective, such
as quantity produced.
●● Over the past 10 years, Lincoln's profit-sharing payments have been
substantial. Maria's annual salary was $40,000 last year, and she earned
a profit-sharing payment of $10,000. Maria's profit-sharing award
represents approximately what percentage of her annual salary?
A) 25 percent
B) 40 percent
C) 45 percent
D) 55 percent
,Answer: A) 25 percent
●● Companies can control costs by replacing annual merit or seniority
increases or fixed salaries with which type of plans?
A) incentive
B) longevity pay
C) pay-for-knowledge pay
D) base pay
Answer: A) incentive
●● Nowadays, most companies use a mix of which types of pay plans?
A) seniority pay plans and incentive pay plans
B) merit pay plans and merit bonus pay plans
C) traditional pay plans and incentive pay plans
D) traditional pay plans and person-focused pay plans
Answer: C) traditional pay plans and incentive pay plans
●● Which of the following is NOT a financial measure?
A) operating efficiency
B) revenue
C) earnings per stock share
D) operating income
,Answer: A) operating efficiency
●● Which of the following performance measures corresponds to
individual, group, and companywide incentive plans, respectively?
A) customer satisfaction, quantity of work, and quality of work
B) quantity of work, market share, and customer satisfaction
C) quality of work output, customer satisfaction, and revenue
D) customer satisfaction, market share, and quality of work
Answer: C) quality of work output, customer satisfaction, and revenue
●● In addition to the guaranteed hourly pay rate, John receives
incentives for every item produced over the designated production
standard. Which kind of incentive plan is used in this situation?
A) management incentive
B) referral
C) piecework plans
D) behavioral encouragement
Answer: C) piecework plans
●● Which of the following effects describe the concept that a hard
working employee is likely to stay at an incentive pay position?
A) representative
B) structural
, C) sorting
D) output
Answer: C) sorting
●● Which individual incentive plans require the achievement of
multiple, complex objectives without compromising the quality and
quantity of output?
A) piecework
B) referral
C) management incentive
D) behavior encouragement
Answer: C) management incentive
●● To have better safety records, the XYZ Company gives monetary
incentive awards to its workers for lower accident rates due to improper
use of heavy equipment. Which of the following incentive plans
describes this example?
A) management incentive
B) referral
C) piecework
D) behavioral encouragement
Answer: D) behavioral encouragement
