1- At the beginning of the quarter, Sara sat down with her manager and set three goals. If Sara achieves those three goals in the next three months, she will receive a $1,000 bonus. Which advantage of individual incentives does this illustrate?
A. ability to match rewards to employee desires
B. may motivate less productive employees to work harder
C. easy to evaluate individual employees
D. promotes the link between performance and results
2- Incentive programs need to be consistent with the ___________________.
A. stock market
B. organizational culture
C. reward structure
D. quarterly report
3- _____________________ have the potential to lead to unethical actions.
A. Pay differentials
B. Floater holidays
C. Incentive payments
D. Program sales
4- People have to know how they are doing compared to the program goals, or else the incentive plan ___________.
A. will be rewritten
B. will fail
C. will grow too large
D. will be compromised
5- Angelique is paid a flat rate of $2 per pair of pants that she sews at work. Angelique is being paid on a(n):
A. merit pay basis
B. differential piece rate system
C. level piece system
D. bonus rate basis
E. straight piece rat system
6- Research studies over many years (since at least the 1940s) reveal that employees most want _______ from a job.
A. A raise
B. Benefits
C. More time off
D. A yearly bonus
E. Full appreciation for work done
7- _______________ is a breakdown of communication and/or cooperation between individuals in a group.
A. Ringelmann Effect
B. Social loafing
C. Autonomy
D. Conversion deficit
E. Group infighting
8- With the introduction of an individual incentive program, Alexander feels like he is competing with the other members of his team instead of working together with them. While the individual incentive plan could mean more money for some members of the team, most members of the team feel the same way Alexander does. They wish they could go back to working together for a group incentive. Which disadvantage of individual incentives does this illustrate?
A. may not fit organizational culture
B. may motivate undesirable employee behaviors
C. many jobs have no direct output
D. record-keeping burden is high
9- A lump sum payment, typically given to an individual at the end of a period is a(n):
A. commission
B. exit pay
C. stock option
D. bonus
E. merit pay
10- Jacob sat down with his supervisor at the beginning of the quarter and set a goal to reduce defects on the assembly line from 5 percent to 2 percent. If he achieves this goal by the end of the quarter, he will receive a ________ of $4,000.
A. merit pay
B. commissions
C. piecework
D. bonus
11- What restrictions do 16- and 17-year-olds have concerning work?
A. They must have a parent’s permission to work at night.
B. They must work under direct supervision at all times
C. They must not work overtime.
D. They must not work more than 30 hours per week during school time.
E. They must work in nonhazardous occupations.
12- Colton’s salary is $40,000 per year. This part of his compensation is considered ________.
A. wage and salary add-on
B. incentive pay
C. base pay
D. benefits
13- Aryn and Mary started at the organization on the same day. Both are hard workers and perceive that they are equitably rewarded for their efforts. According to equity theory, it is likely that both will ________.
A. request a raise
B. continue to put forth effort
C. do less work
D. worker harder or longer
14- What type of compensation would be paid on an hourly basis?
A. Stock options
B. Wages
C. Salary
D. Benefits
E. Bonuses
15- Morgan is working on the compensation package for bank tellers. Bank customers like to see the same faces in the bank when they come in to talk about their money. Therefore, Morgan needs to find a way to reduce turnover among the tellers. Adopting a(n) _________ organizational philosophy on compensation might be a good idea.
A. pay for longevity
B. at-the-market
C. wage compression
D. below-the-market