Chapter 11 & 12: Pay for performance

Which of the following terms refers to all forms of pay or rewards going to employees and

arising from their employment?

• salary

• employee benefits

• wage reimbursement

• employee compensation

Which of the following is NOT a type of direct financial payment?

• wages

• insurance

• incentives

• commissions

Ahmad is a sales representative in a jewelry store. He typically works 40 hours per week and his

pay is completely based on his sales. He earns a 5% commission for every sale he makes. Which

of the following terms best describes John's situation?

• pay for performance

• indirect financial compensation

• time-based compensation

• piecework pay

What theory of motivation states that people are strongly motivated to maintain a balance

between what they perceive as their contributions and their rewards?

• Two-factor theory

• Equity theory

• Learned needs theory

• Expectancy theory

What type of pay plan is being used when workers are paid a sum for each unit they

produce?

• competency-based pay

• job-based pay

• piecework

• bonus

In which of the following do workers receive a basic hourly rate plus a premium equal to the

percent by which their performance exceeds the standard?

• variable pay

• straight piecework

• standard hour plan

• standard piecework

Which of the following terms refers to any salary increase the firm awards to an individual

employee based on his or her individual performance?

• competency-based pay

• variable pay

• merit pay

• base pay

________ is a program where informal manager-employee exchanges such as praise,

approval, or expressions of appreciation are given for a job well done.

• Merit pay

• A social recognition program

• Performance feedback

• Variable pay

Abdul is a line manager at a paper supply company. All of the following are methods that

Craig should most likely implement to motivate his subordinates EXCEPT ________.

• recognizing an employee's contribution

• encouraging workers to earn overtime pay

• gaining agreement on goals with employees

• using positive reinforcement on a daily basis

The most common eligibility determinant for bonuses is:

• salary grade

• job title

• officer status

• base salaryv