Question :
81) When setting up a compensation plan for salespeople to : 1346323
81) When setting up a compensation plan for salespeople to encourage them to service accounts, a ________ plan is the best choice.
A) straight commission
B) combination
C) straight salary
D) merit
82) Which of the following is a negative aspect of straight-salary sales compensation plans?
A) Increase in employee turnover
B) Increase of fixed compensation costs
C) Complicated to design and administer
D) Reduced motivation to spend time with customers
83) A survey of 1400 employers showed that ________ of them factor customer satisfaction into their calculation of incentive payments to employees.
A) 75%
B) 55%
C) 35%
D) 15%
84) In regards to pay-for-performance programs, which of the following is most likely characteristic of small firms than large firms?
A) Conflicts about pay differences are minimal because of close co-worker relationships.
B) Linking pay incentives to team performance is easier at small firms than large ones.
C) Small firms lack personnel able to design and administer complex incentive plans.
D) Clearly established grievance procedures allow employees to address unfair pay.
85) Benson Marketing is a small firm with less than 100 employees. The CEO wants to implement a pay-for-performance system. The CEO wants the plan to motivate employees, attract top workers, and reduce fixed costs. Which of the following would be most appropriate for Benson?
A) Straight-commission
B) Profit sharing
C) Gainsharing
D) Merit pay
Case 11.1
The HR department at Sussex Enterprises has been asked to evaluate the effectiveness of the firm’s team-based incentive plan. Managers at the firm report a decline in worker performance, an increase in interpersonal conflicts, and an increase in complaints about free riding team members. In addition, the manufacturing group has been accused of producing more units than the marketing group can sell. HR at Sussex needs to determine if the current incentive plan is appropriate or should be replaced.
86) Refer to Case 11.1. Which of the following would be the best way to minimize free-riding at Sussex?
A) Making adjustments to the performance appraisal system
B) Requiring all team members to attend training sessions
C) Basing a portion of incentive payments on peer reviews
D) Increasing opportunities for intergroup competition
87) Refer to Case 11.1. Which of the following would most likely improve the effectiveness of the current pay-for-performance plan at Sussex?
A) Establishing specific group goals
B) Offering gainsharing opportunities
C) Allowing employees to form their own teams
D) Providing the manufacturing group with better technology
88) Refer to Case 11.1. Sussex executives have decided to change the firm’s pay-for-performance plan to one that is individual-based. Which of the following best supports this decision?
A) The organizational structure at Sussex has many hierarchical levels.
B) Most positions at Sussex require autonomy and very little cooperation.
C) Most Sussex employees are intrinsically motivated and committed to their work.
D) Consumer demand for products and services offered by Sussex is relatively stable.
89) Refer to Case 11.1. In addition to rewarding high performers, Sussex executives want to gain the maximum tax advantage, increase employee commitment, and maximize financial flexibility. Which pay-for-performance plan would be most appropriate for Sussex?
A) Individual-based
B) Corporate-wide
C) Plantwide
D) Team-based
90) Refer to Case 11.1. Sussex executives have decided to change the firm’s pay-for-performance plan to one that is plantwide. Which of the following characteristics of Sussex, if true, best supports this decision?
A) Sussex is a midsize firm in a stable product market.
B) Sussex is a large, global firm in a cyclical product market.
C) Most employee contributions at Sussex can be clearly isolated.
D) Sussex managers want to encourage innovation within work groups.
Case 11.2
Richland Manufacturing uses an individual-based pay-for-performance plan for employees.
Manager input in the form of performance evaluations primarily determines individual employee rewards. Performance appraisals at Richland are used for multiple purposes including compensation, training, and work planning. Since implementing the plan, many managers have noticed that employees tend to play it safe by setting modest rather than challenging goals for themselves. Employees have also been avoiding important tasks, such as satisfying the needs of customers and keeping work areas neat. In addition, most employees express disbelief that pay and performance are actually linked. As a result, Richland is considering making modifications to the system.
The HR Director wants a system that will reward all employees based on the entire company’s performance because he wants to increase employee commitment. The VP of Operations wants to reward specific productivity and quality improvements with a simply structured system that considers labor costs as well as other production expenses. The VP of Operations also believes that labor and management should work together to allocate the rewards.
91) Refer to Case 11.2. Which of the following would most likely improve the success of Richland’s current incentive plan?
A) Limiting the use of performance appraisals to compensation purposes
B) Offering team-based pay in addition to individual bonuses
C) Providing Scanlon plans to all employees
D) Encouraging employee competition
92) Refer to Case 11.2. Most Richland managers want to use an individual-based pay-for-performance plan to reward high performers but are concerned about increasing employees’ base pay permanently due to costs. Which of the following would most likely be appropriate in this case?
A) A merit pay program
B) A bonus program
C) A Rucker plan
D) Gainsharing
93) Refer to Case 11.2. Employees avoiding important tasks is most likely a problem associatedwith:
A) lack of promotion opportunities for employees.
B) employee motivation as explained by expectancy theory.
C) the deterioration of quality that comes with individual-based plans.
D) the single-mindedness and focus that comes with individual-based plans.
94) Refer to Case 11.2. Which of the following would most likely meet the demands of managers, the HR Director, and the VP of Operations?
A) A profit sharing plan
B) A multiple-layers-of-rewards system
C) A plantwide plan.
D) A team-based pay-for-performance plan
95) Refer to Case 11.2. The VP of Operations would most likely favor a:
A) profit sharing plan.
B) team-based plan.
C) Scanlon plan.
D) Rucker plan.
