HRM 9

31. Which of the following statements about tournament incentives is accurate?

• A. Tournament incentives encourage employees to share best practices

• B. Tournament incentives helps maintain the effectiveness of incentives when outside factors affect many employees' productivity

• C. Tournament incentives work well when employees work together in teams

32. A factory line worker is paid a piecerate, or a rate per unit he or she produces. When the materials and components that the line worker receives are faulty, the line worker's performance suffers. This is an example of the

• A. Measurement problem

• B. Metering problem

• C. Alignment problem

• D. Control problem

33. A call center wants to identify how many calls a customer service representative should take in a given hour. To do so, they use historical data, finding that a customer service representatives can be expected to service an average of six calls per hour. By benchmarking productivity, they are trying to solve

• A. The measurement problem

• B. The alignment problem

• C. The control problem

• D. The metering problem

34. What is the relationship between pay and performance when a job only pays a base rate, without STIs?

• A. Flat

• B. Accelerated

• C. Linear (negative slope)

• D. Linear (positive slope)

35. Which of the following statement is TRUE?

• A. A share is only valuable if its price goes up.

• B. A dividend of "$1 per share" means you need to pay $1 to purchase a share of the stock.

• C. Both of the above.

• D. None of the above.

36. Which of the following definitions is correct?

• A. The strike price is the market price of the stock on the date that the employee exercises the option to purchase the stock.

• B. The vesting period represents the period of time over which the options become allowed to be exercised.

37. Which of the following statements about non-qualified stock options (NQSOs) is accurate?

• A. Employers cannot deduct NQSOs as a business expense, employees do not pay taxes when they exercise NQSOs.

• B. Employers can deduct NQSOs as a business expense, employees do pay taxes when they exercise NQSOs.

• C. Employers cannot deduct NQSOs as a business expense, employees do pay taxes when they exercise NQSOs.

• D. Employers can deduct NQSOs as a business expense, employees do not pay taxes when they exercise NQSOs.

38. Which of the following is sometimes referred to as Golden Handcuffs?

• A. bonuses

• B. commissions

• C. stock options

• D. pensions

39. The differences between the stock price and the stock option's strike price is:

• A. The time value

• B. The intrinsic value

• C. The vesting period

40. Employees who receive high performance evaluations for their prior year's accomplishments are awarded a fixed cash award. This is an example of tying evaluations to what element of the pay mix?

• A. Non-Monetary

• B. Long Term Incentives

• C. Short Term Incentives

• D. Perks

• E. Base pay