Question : 41. Organizations that link pay to individual performance more likely to A. attract : 1250916

41. Organizations that link pay to individual performance are more likely to 
A. attract team-oriented employees.
B. attract individualistic employees.
C. older workers.
D. result in none of the above, as different pay systems do not affect the nature or composition of an organization’s workforce.

Different pay systems appear to attract people with different personality traits and values. Organizations that link pay to individual performance may be more likely to attract individualistic employees, whereas team rewards are more likely to attract team-oriented employees.

42. Employee contribution programs differ according to all of these design features except 
A. payment method.
B. frequency of payout.
C. type of work.
D. ways of measuring performance.

Employee contribution programs differ according to three design features: (1) payment method, (2) frequency of payout, and (3) ways of measuring performance.

43. In an organization where there is a culture that supports cooperation and problem solving, the compensation program that would best reinforce that culture is 
A. group incentive pay.
B. merit pay.
C. gainsharing.
D. individual incentive pay.

A culture of cooperation and problem solving contributes to improved plant performance, the productivity gains of which can be shared with employees.

44. The pay-for-performance program that does not use a bonus payment as a payment method is 
A. ESOPs.
B. profit sharing.
C. a Scanlon plan.
D. incentive pay.

In the case of ESOPs, payment is in the form of equity.

45. If an organization desires to implement a compensation program that “locks in” employees, the recommended program is 
A. merit pay.
B. gainsharing.
C. profit sharing.
D. stock options.

Stock options are one of the tools used by companies to “lock in” employees (promote organizational loyalty).

46. Which type of compensation program attracts learning-oriented employees? 
A. Skill-based pay
B. Merit pay
C. Incentive pay
D. Gainsharing

Performance measures in skill-based pay involves the acquisition of skills and competencies.

47. Overtime is an attraction of which compensation program? 
A. Merit pay
B. Incentive pay
C. Gainsharing
D. Skill-based pay

Overtime pays better performers more.

48. The compensation program that would best fit in any company regardless of its organizational structure or the independence of jobs is 
A. profit sharing.
B. skill-based.
C. merit pay.
D. incentive pay.

Merit and incentive pay are better suited for organizations that focus on individual performance while skill-based pay focuses on the level of skill proficiency. Profit sharing programs can be adopted in any kind of an organization irrespective of its organizational structure or organization of jobs.

49. Which compensation program offers payouts on a monthly or quarterly basis? 
A. Gainsharing.
B. Profit sharing.
C. Merit pay.
D. Incentive pay.

Gainsharing payouts occur on a monthly or quarterly basis. Profit sharing and merit pay occur on an annual basis while incentive pay occurs weekly.

50. A _____ is suitable for an organization whose culture promotes knowledge of business and cooperation among its employees. 
A. gainsharing plan
B. profit sharing plan
C. merit pay plan
D. incentive pay plan

Individual performance is the focus of merit and incentive pay while gainsharing focuses on cooperation and problem solving.