CB CHAPTER 8 Pay for Performance Plans

Below are the definition of pay for performance plans EXCEPT ____________.

• Pay are given based on employee's performance

• Pay are given based on employee's productivity

• Pay are given based on employee's time overtime

• pay are given based on employee's skills

Employee will received awards based on good performance such as a trophy, certification, etc. This statement refers to ________________.

• Individual spot awards

• Individual incentive plans

• Merit pay

• Lump sum bonuses

Increase in basic salary based on percentage refers to __________.

• Individual spot awards

• Individual Incentive plans

• Merit pay

• Lump sum bonuses

Which type of specific for performance plans viewed as less entitlement and less expensive over the long run term?

• Individual spot awards

• Individual incentive plans

• Merit pay

• Lump sum bonuses

Below are the disadvantages of individual incentive plan EXCEPT ____________.

• Reduced willingness of employees to suggest new production methods

• Reduced complaints of poor maintenance, hindering employee efforts to earn larger incentives

• Conflicts may emerge between employees managers

• Introduction of new technology may be resisted by employees

What is balance scorecard?

• Award given based on achieving performance target

• Award given based on organization profitability

• Award given based on improving the quality and productivity

• Award given based group performance goals or objectives

What is gain sharing plans?

• Award given based on performance target

• Award given based on organization profitability

• Award given based on improving the quality and productivity

• Award given based on group performance goals or objectives

Why company choose to use cash profit sharing plans?

• To reward employees for improvement in activities that they control

• To support major productivity

• To recruit top quality employees

• To educate employees about business operations

In which situation company can use stock ownership pay plans?

• To recruit top quality employees when organization has highly uncertain future

• To focus employees on needs to increase shareholder value

• To educate employees about business operations

• To demonstrate organization commitment on teams

When company can choose a group plans?

• Low commitment to organization built upon communication of organizational objectives

• Performance standard are stable

• Output is based on group collaborative efforts

• Commitment strongest to individual's profession or superior