MIE 330 STUDY GUIDE EXAM 2026/2027 QUESTIONS
AND SOLUTIONS RATED A+
✔✔Incentives - ✔✔Piecework rates, standard hour plans, merit pay, individual bonuses,
sales commissions
✔✔Standard Hour Plan - ✔✔incentive that pays workers extra for finishing job in less
than set time
✔✔Merit Pay - ✔✔System of linking pay increases to ratings on performance
appraisals.
✔✔Merit Increases - ✔✔The annual raise
-external variables determine the size of pool. performance determined allocation of
pool
✔✔Allocating Merit increases - ✔✔-Manager is given merit budget for department
-Percentage of salary budget. 500,000 salary budget with 3% pool = 15,000 merit pool
✔✔Performance Bonuses - ✔✔Not rolled into base pay,
-employee must re-earn during each period
-may be one-time
-may be linked to objective performance measures
✔✔Sales Commissions - ✔✔Incentive pay calculated as percentage of sales
-Straight commission plan-earn only commissions
✔✔Gainsharing - ✔✔Group incentive that measures improvement in productivity and
effectiveness and distributes portion to each employee
- focuses on production as a whole for groups performance
✔✔Profit Sharing - ✔✔incentive pay in which payments are percentage of org profits not
part of base salary
-may encourage employees to think like owners
✔✔ESOP - ✔✔an arrangement in which the org distributes stock to all employees and
puts it in a trust
✔✔Balanced Scorecard - ✔✔combination of performance measures directed towards
the company's long and short term goals and used as basis for awarding incentive pay
1.Financial
2.Customer
3.Internal
4.Learning and Growth
, ✔✔Short-term Incentives - ✔✔Bonuses bases on ROI, year's profits, or other measures
related to org's goals
-actual payments of bonus may be delayed to gain tax advantage
✔✔Long-term Incentives - ✔✔Include stock options and purchase plans.
-Rationale is executives will want to do what is best for org because the value of their
stock will grow
✔✔Benefits required by law - ✔✔-Social Security
-Unemployment Insurance
-Workers comp insurance
-Family and medical leave
-Health care
✔✔Employee Retirement Income Security Act (ERISA) - ✔✔fed law that increased
responsibility of pension plan to protect retirees
-established rights related to vesting and portability, created pension benefit guarantee
corporation
✔✔Pension Benefit Guarantee Corporation (PBGC) - ✔✔fed agency that insures
retirement benefits and guarantees retirees basic benefit if employer has financial
difficulties
✔✔Retirement Plans - ✔✔-Defined contribution plan
-Money purchase plans
-Profit-sharing/Employee stock ownership plans
-Section 401(k) plans
-Cash balance plans
✔✔Role of Labor Unions/Labor Relations - ✔✔Unions formed to represent members
interests and resolve conflicts with employers
-Labor relations strategy, negotiating contracts, administering contracts
✔✔National and International Unions - ✔✔Most members belong to these.
-Craft union: members all have particular skill or occupation
-Industrial Union: members are linked in particular industry
-Most are affiliated with American Federation of Labor and Congress of Industrial
Organizations
✔✔Local Unions - ✔✔-most day to day interaction between labor and management
-membership depends on type of union
-members elect officials and vote on resolutions to strike
-Union steward: elected to represent members in ensuring that terms of contract are
enforced
AND SOLUTIONS RATED A+
✔✔Incentives - ✔✔Piecework rates, standard hour plans, merit pay, individual bonuses,
sales commissions
✔✔Standard Hour Plan - ✔✔incentive that pays workers extra for finishing job in less
than set time
✔✔Merit Pay - ✔✔System of linking pay increases to ratings on performance
appraisals.
✔✔Merit Increases - ✔✔The annual raise
-external variables determine the size of pool. performance determined allocation of
pool
✔✔Allocating Merit increases - ✔✔-Manager is given merit budget for department
-Percentage of salary budget. 500,000 salary budget with 3% pool = 15,000 merit pool
✔✔Performance Bonuses - ✔✔Not rolled into base pay,
-employee must re-earn during each period
-may be one-time
-may be linked to objective performance measures
✔✔Sales Commissions - ✔✔Incentive pay calculated as percentage of sales
-Straight commission plan-earn only commissions
✔✔Gainsharing - ✔✔Group incentive that measures improvement in productivity and
effectiveness and distributes portion to each employee
- focuses on production as a whole for groups performance
✔✔Profit Sharing - ✔✔incentive pay in which payments are percentage of org profits not
part of base salary
-may encourage employees to think like owners
✔✔ESOP - ✔✔an arrangement in which the org distributes stock to all employees and
puts it in a trust
✔✔Balanced Scorecard - ✔✔combination of performance measures directed towards
the company's long and short term goals and used as basis for awarding incentive pay
1.Financial
2.Customer
3.Internal
4.Learning and Growth
, ✔✔Short-term Incentives - ✔✔Bonuses bases on ROI, year's profits, or other measures
related to org's goals
-actual payments of bonus may be delayed to gain tax advantage
✔✔Long-term Incentives - ✔✔Include stock options and purchase plans.
-Rationale is executives will want to do what is best for org because the value of their
stock will grow
✔✔Benefits required by law - ✔✔-Social Security
-Unemployment Insurance
-Workers comp insurance
-Family and medical leave
-Health care
✔✔Employee Retirement Income Security Act (ERISA) - ✔✔fed law that increased
responsibility of pension plan to protect retirees
-established rights related to vesting and portability, created pension benefit guarantee
corporation
✔✔Pension Benefit Guarantee Corporation (PBGC) - ✔✔fed agency that insures
retirement benefits and guarantees retirees basic benefit if employer has financial
difficulties
✔✔Retirement Plans - ✔✔-Defined contribution plan
-Money purchase plans
-Profit-sharing/Employee stock ownership plans
-Section 401(k) plans
-Cash balance plans
✔✔Role of Labor Unions/Labor Relations - ✔✔Unions formed to represent members
interests and resolve conflicts with employers
-Labor relations strategy, negotiating contracts, administering contracts
✔✔National and International Unions - ✔✔Most members belong to these.
-Craft union: members all have particular skill or occupation
-Industrial Union: members are linked in particular industry
-Most are affiliated with American Federation of Labor and Congress of Industrial
Organizations
✔✔Local Unions - ✔✔-most day to day interaction between labor and management
-membership depends on type of union
-members elect officials and vote on resolutions to strike
-Union steward: elected to represent members in ensuring that terms of contract are
enforced
