Human Resource Management Exam 3 Review

Meshing compensation and organizational objectives helps employees assume ownership of their jobs, which can, in turn, improve their effort and overall job performance.

• True

• False

Historically, incentive plans have not been a major element of strategic compensation management

• True

• False

In order for Globisys to establish effective rewards based on group contributions, the firm should measure performance without considering the contributions of other teams and use this system when work is organizationally interdependent.

• True

• False

Piecework may be inappropriate where technology changes are frequent

• True

• False

By using employee stock ownership plans, Globisys can provide retirement benefits for its employees at a relatively low cost.

• True

• False

VirtualCorp encourages its employees to eat properly and to exercise. To promote these goals, VirtualCorp offers healthy cooking classes and discounted memberships to area fitness centers. This is an example of a wellness program.

• True

• False

Which of the following is an advantage of an incentive pay program?

• Incentives focus employee efforts on high levels of salary compensation

• Incentives shift attention from equity and justice to pay in an organization

• Incentives are a way to distribute success among those not responsible for producing that success

• Incentives are a means to reward or attract top performers when salary budgets are low

When setting performance measures for incentive systems, we can say that the best measures are those that

• are quantitative, simple to understand, and show a clear relationship to improved performance.

• are qualitative, flexible, and create competition between employees.

• allow employers to "ratchet up" standards and base rewards on qualitative standards

• reduce administrative costs, determine rewards based only on quantity, and reward only exceptional

  employees.

Globisys is launching a new incentive plan for individual pay. To increase its chances for success, the plan should measure

• work that is independent of others' contribution

• work that is organizationally interdependent

• output without considering effects of the environment

• based on personalities and political preferences

The cardinal rule when administering incentive plans is for managers to combine thorough planning with

• the approval of employees

• no limits on rewarding exceptional performance

• allowing incentive payments to eventually become pay guarantees

• a "proceed with caution" approach.